Short answer
Flowserve Corp (FLS) filed its fiscal 2017 10-K annual report with the SEC on Feb 28, 2018. It reported revenue of $3.7B (−8.3% year over year) and net income of $3M.
- Top risk flagged: Asbestos litigation: substantial lawsuits over formerly manufactured asbestos-containing process equipment, with uncertain insurance and indemnity coverage
FY2017 key financial metrics · XBRL
- Revenue
- $3.7B
- −8.3% YoY
- Net income
- $3M
- −98.2% YoY
- Operating margin
- 9.2%
- +2.2 pp YoY
- Gross margin
- 29.6%
- −1.2 pp YoY
- EPS (diluted)
- $0.02
- −98.2% YoY
- ROE
- 0.2%
- −8.6 pp YoY
- Operating cash flow
- $311M
- +36.7% YoY
Source: XBRL data from the Flowserve Corp (FLS) FY2017 10-K on SEC EDGAR. USD.
Flowserve Corp FY2017 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Flow control manufacturer and aftermarket provider, serving infrastructure and industrial customers through pumps, valves, seals, automation and lifecycle services
- 2017 emphasis on IPS Insight remote monitoring, diagnostics and asset management, plus additive manufacturing exploration
- Strategic positioning toward digitally integrated, intelligent flow-control solutions and lifecycle value, beyond standalone equipment sales
- R&D spending $38.6 million, down from $42.8 million in 2016
- Backlog reached $2,069.4 million, with EPD $1,027.7 million, IPD $424.3 million and FCD $617.4 millionેણ
Management Discussion & Analysis
- Revenue $3,660.8M, down $329.7M or 8.3% YoY, with declines across every region
- Operating margin 9.2% vs 6.7%; net earnings $2.7M vs $132.5M, affected by a 98.4% tax rate
- Best segment FCD: operating income $321.2M, margin 27.0%; worst IPD: operating loss $49.5M, margin (6.4)%
- Operating cash flow $311.1M; dividends $99.2M, capex $61.6M, long-term debt payments $60.0M
- 2018 outlook: capex $80M to $90M; risks from capital-spending uncertainty, global conditions, currency volatility, and oil-and-gas weakness
Risk Factors
- Asbestos litigation: substantial lawsuits over formerly manufactured asbestos-containing process equipment, with uncertain insurance and indemnity coverage
- International exposure: manufacturing, sourcing and engineering across China, Eastern Europe, India and Latin America amid Brexit and Russia, Middle East instability
- Backlog execution: $2.0 billion backlog dependent on plant capacity, raw-material access and engineering expertise, with delivery-penalty clauses
- Competitive pressure: pricing competition from low-cost spare-parts replicators and customers’ in-house maintenance departments
- Financial constraints: indebtedness covenants restricting additional debt, dividends, investments and asset sales while requiring leverage and interest-coverage compliance
Generated from the filing text; verify against the original. How to read a 10-K
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