Flowserve Corp (FLS) Q2 2018 10-Q Quarterly Earnings

Short answer

Flowserve Corp (FLS) filed its Q2 2018 10-Q quarterly report on Aug 8, 2018 for the quarter ended Jun 30, 2018.

AI summary of MD&A and risk factor updates

Q2 sales $973.1M, up 10.9% YoY from $877.1M, driven by aftermarket growth
Gross margin 29.4% vs 28.0% YoY; operating margin 4.8% vs 14.5%, reflecting the absent $131.3M Gestra gain
Best segment FCD: sales $306.5M, gross margin 33.0%; worst IPD: operating loss $20.5M, margin (10.0)%
Cash $517.4M vs $703.4M at December 31; operating cash flow $(56.7)M, dividends $49.7M and debt payments $30.0M
Outlook: cautious customer capital investment and oil-and-gas pricing pressure; 2018 capital expenditures expected at $80M to $90M

Newly triggered Argentina hyperinflation risk: U.S. dollar functional currency required effective July 1, 2018
Regulatory compliance risk: DOJ and SEC investigations into potential Foreign Corrupt Practices Act violations, with possible penalties and additional costs
Operational risk: IPD divestiture generated a $17.4 million charge, with an estimated additional $5 million to $10 million loss
Financial liquidity risk: Cash fell to $517.4 million, while operating activities used $56.7 million in six months
Currency risk: Foreign exchange translation losses reached $41.5 million in six months, including Argentina exposure

Generated from the filing text; verify against the original. 10-K vs 10-Q vs 8-K

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