Short answer
Flowserve Corp (FLS) filed its fiscal 2014 10-K annual report with the SEC on Feb 17, 2015.
- Top risk flagged: FCPA exposure: overseas employee conduct self-reported to DOJ and SEC, with potential monetary penalties and investigation costs
Flowserve Corp FY2014 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Flow control manufacturer and aftermarket provider, serving critical infrastructure industries through pumps, valves, seals, automation and services
- New China pump manufacturing site operational in 2014, with valve facility under construction for 2015
- Aftermarket emphasis strengthened, sales reaching 42% of total versus 40% in 2013
- R&D spending increased to $40.9 million from $37.8 million in 2013, focused on diagnostics, digital integration and advanced technologies
- Approximately 18,000 global employees and $338.5 million in U.S. export sales during 2014
Management Discussion & Analysis
- Sales $4,877.9M, down $76.7M or 1.5% YoY, while bookings reached $5,161.0M, up 5.7%
- Operating income $789.8M, operating margin 16.2% vs 15.3%; gross margin 35.2% vs 34.1%
- Best segment FCD: operating income $322.8M, margin 20.0%; weakest IPD sales $932.9M, down 1.8%
- Operating cash flow $571.0M; buybacks $246.5M, dividends $85.1M, capex $132.6M
- 2015 capex guidance $150M-$160M; oil-price decline risks lower upstream investment and customer demand
Risk Factors
- FCPA exposure: overseas employee conduct self-reported to DOJ and SEC, with potential monetary penalties and investigation costs
- Venezuela exposure: delayed payments from the national oil company amid high inflation, political instability and government restrictions
- Backlog execution: $2.7 billion backlog dependent on manufacturing capacity, raw-material access and project-engineering expertise
- Competitive pressure: low-cost spare-parts replicators and customers’ in-house maintenance departments constrain pricing and margins
- Pension funding: U.K. equity and fixed-income concentrations create sensitivity to investment performance and plan-funding requirements
Generated from the filing text; verify against the original. How to read a 10-K
Other Flowserve Corp annual reports
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.