FLS - Earnings call transcript Q4 2018

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Operator

Welcome to the Flowserve 2018 Fourth Quarter Earnings Call. My name is Paulette, and I will be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] Please note that this conference is being recorded. the Relations to and turn President Roueche, now Investor of Treasurer. will call Jay over Vice I

You may begin.

John Roueche

Flowserve's full-year Thanks, Paulette, our discuss in appreciate you quarter and good morning, call everyone. today financial results. XXXX We participating fourth and to

Flowserve's morning and Executive Senior President Rowe, Eckert, Officer. Financial and and Chief Joining me Chief Scott President this Vice are Officer; Lee

Following questions. our for call your prepared comments, the we will open

in our release and based forecasts, earnings audio metrics uncertainties, materials encourage and which at this are they event statements and the Executive of contain you Harbor note press is call would the I other These like XXXX, our our to to presentation reported replay Rowe, as and now risks an website will beyond reminder, reconciliation upon and We prepared also many and be a will, information section. management As available control. non-GAAP that Relations turn call the webcast are results to to involve his our do, this comments. our Safe fully both of and President for Investor are and XX, and measures include to which of and Please available. Officer, Scott being in February Flowserve's our non-GAAP available review of are Chief Statements. Forward-Looking expectations over on flowserve.com disclosures earnings included the Company's

Scott Rowe

strong call. quarter. Jay, finished Thanks, everyone. morning a you today's and good fourth Flowserve joining Thank XXXX with for earnings

over our and X.X grew third associates. making and improvements progress to pleased quarters, build enhanced prior our engagement consecutive $X the the Flowserve earnings, in with I’m with continued of are the the business journey operating our we billion. transformation increased from We on bookings quarter delivered

a at visibility, called Flowserve better plan higher defined beginning execute level a operational to momentum, we and improvement are have companywide. X.X, We

operations, our fourth on begin results, and markets. providing quarter some full-year and today by our comments me our end Let

fourth on the quarter, EPS we of XX% represents adjusted and both $X.XX, basis. year-over-year delivered which over For sequential growth of

delivered For avoided revised XX% we were guidance, of year, which in $X.XX, each operational full-year is XXXX, successfully of encountered year. We issues end in Flowserve approximately the the of in growth area full that improved the focus adjusted One at compared XXXX. of the high was the XXXX to our segments representing intense EPS margin our performance throughout expansion. and

and XXX For the points, respectively. quarter, adjusted XXX by and gross operating we basis margin increased income

gross and For in we margins the full year, XX-basis-point points XXX adjusted operating basis delivered margin. in adjusted improvement a

driven primarily Our commercial progress streams. operations specifically margin with work the and transformation the expansion within is and by actions from our program,

our markets overall stable conditions generally prices. to the now Turning volatility the despite bookings. in remained our commodity quarter end fourth in The in and markets

level in an our it Bookings headwinds a currency individual X%. any Year-over-year, of of our markets, to divestitures the include billion since not saw did $X did XXXX. and we quarter were and X%, the $X.XX each aftermarket from including we’ve book of million highest $XX represents increase of delivered approximately million of While growth number end projects, large bookings. awards again across

these we transformation XXXX, are of as full-year health with drivers our X.X% results. general markets, and XXXX. to far For The growth the $X of our up were part billion bookings compared were initiatives coupled implemented over key have of thus

constant aftermarket currency of bookings of highest results growth with franchise During representing basis. or since over XX% level we on the delivered in a the XX% XXXX, year-over-year our quarter, nearly strong

capturing on our base. global inherent and installed aftermarket bookings organization growth drive year-over-year helped large performance X.X further quarterly the The XX%. exceeding full-year to embedded increase within Flowserve This a commercial in program focused opportunity aftermarket intensity our has

seen in few and efficiency, Additionally, opportunities facility we years, have to on for growth. focused leading meeting requirements more the our facility past maintenance, appear than customers additional regulatory

markets, the capture for increased continue Turning and critical our to starting our largest clean refining by including highly EPD market fuel Bookings gas. modifications where downstream with quarter investment, products oil we end XX% fourth to and year-over-year, engineered now booking in to driven by production.

of of in our projects. in fourth is Additionally, XXXX, have wins including good $XX strike XXXX. sight initiatives that a half focus one commercial discussed this of of zone North on have across the American segments we line first we and quarter, additional roughly focus the opportunities our into several number pipeline previously In million drove

approximately oil X%, market North challenged pursue fourth as where remain of quarter we of the discussions year, gas industry, of For both customer FCD and contributing. increased all despite pre-FEED in East chemicals, in our our basis, also in We full ethylene chain. the bookings bookings a in IPD with declined increased gas XX% more we full-year and increasing remains a Based project flat. on national integration the EPD value American and On activities, the majors essentially upstream and in and EPD. and status X% expect segments their FEED year-over-year, oil for confident than most oil quarterly delivered downstream investment Middle the growth were pipeline In growth and expect bookings recent on investment our the we offset up X%. companies decline and was oil oil XX% Asia petrochemical increasingly and The which X% although year-over-year power in volatility. increase price XXXX

about with year, the full declined XX%, For growth. delivering only IPD power

continues, the build expectations life builds new lie existing of the competitive. muted to extending in near-term and in have challenged and the opportunities industry maintenance. due upgrades, Asia markets to wide facilities, power limited most in nuclear of opportunities are continue headwinds. Western Fossil and We remain while in Nuclear Asia

niche and quarterly This XX% increased XX% offering. of concentrated this respectively, market than X% and overall mix. power growth. less end industries, and XX% nearly includes However have bookings the bookings contributed solar by which to we growth pulp and XX% markets industry also market a differentiated primarily EPD in represent year-over-year driven although renewables of where activity. distribution our technical mining strong a both Flowserve a of be continues General contributed opportunity paper growth XX% quarter, for FCD’s growing over

For over XXXX, industry grew year-over-year. XX% general

water the quarter category in breakout representing we basis, which Lastly, XX% bookings. the of standalone industry, a year-over-year X% total our the on declined fourth smallest represents

all For approximately of to in XXXX due XXXX water increased flood with performance larger X% strong awards. to several compared EPD control

XXXX decreased Latin solid off XX% East was was decreased Europe Asia Looking full-year up geography, low the base. North at regions. and Pacific delivered in XX%, growth America and very bookings we the up quarter, and to XX% Compared XX%. a Middle by while increased most Africa fourth America X% while quarterly

X% full increased and year, mid-to-upper the America, digits and America East growth. For while Middle North the Europe, and Latin single each contributed Africa Asia-Pacific

our of past while adjusted performance reported strides with the due X.X% will to continue XX.X%, operating turn start now on progress. where by I turnaround backlog. and we and IPD to margins reduction make segment. making Let’s segment delivered The operational good significant of the in

margins We achieving and performance continuing industrial in are product operational to will the excellence, performance, recognize work closer get this needed with to the customer believe but to delivery that We remains much that drive is on operating improve from that and portfolio. experience expected. up our mid step encouraged teens time desired us a consistent

While the somewhat by buoyed quarter fourth results were quarter seasonality.

also segment bookings continue right path. XX% and with believe encouraged aftermarket XX% a progress growth. on year-over-year that we in had the to are EPD fourth are We solid quarter including increased IPD’s

we due respectively on by and year-over-year. progress adjusted past margins points, improved Additionally, and basis made XXX meaningful XXX backlog operating gross and

much business. of quarter's margin XX.X% the full our the income financial a basis We a capability of focused we seen that customers challenging continues to our FCD better expansion declined strong serve level, including Throughout gross points even this XXX engineered performance, the grow on has deliver compare. operating we are our leveraging ambitiously on segment and fully perform to revenue improved portfolio to the results consistently quarterly operating past. high adjusted have delivered to of predictable pump our as variability and in the XXXX, ability X% limited

project the remarks will expected closing our we we before the during now increase detail, to call in and over Lee. take I We Q&A. for XXXX. have greater valve well-positioned results to are I turn and discuss an to Lee open advantage portfolio in extensive activity to return financial of then it will

Lee Eckert

good morning Scott everyone. and Thanks,

and in Looking as EPS Scott financials fourth with in-line through quarter $X.XX which we full-year $XX reported XX% and year, third was the line fourth our part provided $X.XX, revenues the quarter results. and basis, quarter expense highlighted, sales related which penny for approximately decreased Reform. increased transformation guidance X.X% of included as of headwind impact quarter from delivered we of earnings divested U.S. currency On versus a assets, per $XXX of million revised realignment share adjusted our of $X.XX currency fourth a X% below prior X.X%. Fourth Tax benefit sequentially of the to included quarter of and

traditional we the a As due beginning in our muted new XXXX, implemented discussed to accounting the marked somewhat strong fourth standard of quarter previously, year. top-line seasonality by at was

segments an growth. compared $X.X year-over-year full-year billion to revenues increase were X.X% with XXXX, the of contribute For to all top-line

to fourth basis is the quarterly our to prior improvement over points basis gross XX.X%, of margins, increase. Turning level XXXX. quarter highest XXX the which year-over-year since points XXX adjusted IPD’s represented versus the increased year half margin

basis quality expenses disciplined transformation of fourth basis XXX the realignment quarter. to $XX hold improve we essentially point backlog. margin and was for both and execution, reported our project cost roughly as XXXX are increase initiatives continue Additionally, were driven on as a factors taking same the On million by our XXXX gross focus control

XX.X%. a expenses, gross corporate periods. fourth expect due litigation elevated $X adjusted to accruals On due transformation full-year, the discreet SG&A commissions SG&A expense, reported medical we Fourth and which sales to increased For future to decline improved adjusted in XX modest to and points basis, see basis claims. for quarter quarter year-over-year margin a further elevated was million

ongoing SG&A percentage offset increase year-over-year XX.X%. million XXX cost. than items, IPD’s strong XX improvement however, coupled For improvement higher a margin basis in increased On focus basis basis points increase point where to more cost. points operating XX primarily adjusted basis, more fourth to quarter declined offsetting EPD’s in XX.X%. the reported operating points increased with corporate significant than adjusted full-year transmission margin Flowserve’s decline related eight performance With an FPD of cost XXX to as adjusted basis gross and control, sales basis margin on XXX a operating improved point

For the basis adjusted XXX full-year points operating improved to XXXX, X.X%. margin

adjusted up with last tax U.S rate Reform the Our reported benefit rate of XX.X% associated an tax the from Tax quarter accrual. effective true XX.X%. effective On basis, the year for

tax rate of our of in-line For XX%. our XX.X% was full-year, to the guidance XX% adjusted with

cash. to Turning

at again Our primarily preceding $XXX working the flows two to operating million, of capital improvement and fourth due building were quarter the primarily seasonally cash upon strong due quarters. progress

roughly or and of net million, free the million, flow $XXX year were Our our per and quarter representing reported cash in share for rate, well the $XX revenue expenditures respectively. million conversion Capital $XX XXX% $X above was quarter a in adjusted income.

IT investment we We continue and our in the restructuring to continue various support quarter agenda, pursue in to invest X.X and that initiatives. growth Flowserve enable

approximately million through million we our $XXX strong of million quarter balance third $XX to debt. term the For returned with increase the XXXX from year, flow, of shareholders an quarter. With ended repaid of end and we cash the $XXX cash million, of $XX dividend year solid fourth

I the fourth and percentage of year-over-year XXX both capital respectively. capital XX% primary working during basis points, sales modest of As improvement delivered with of XX mentioned, improvements sequential we and representing working quarter

flow number day analyst Flowserve. are conversion order level systems ultimately the obtaining sales and our achieve that we opportunity at should cash focused believe planning tools at deliver. A in and acknowledge aspects December, improvement remains on conversion you can directed flow and with and and initiatives much both to process. of cash the work growth certainly X.X all significant free for operational of our transformation is Flowserve consistent of the shared cash We process I a to Flowserve As

beyond, cash We continue in expect flow and conversion. XXX% our free target we progress of to XXXX plus additional as aspiration longer-term

Turning our XXXX outlook. to

XXXX expected divested including X%, during and level full-year tax keep increase and $X.XX laid of target businesses. in to $X.XX EPS X% divestitures, The on revenue adjusted of below well adjusted we due share the with our This targeting December. central of million expected performance term foreign to us track expense realignment line reform currency as items headwind exclude as effect which $XX out currency as would of other such are X% We laws, transformation a approximately occur of and EPS expected to discrete cetera. very longer targets impact the approximately the year of much on et may range acquisitions,

price XXXX planned adjusted and and due and the Both increase volume, in assumes commodity the investments. FX, that EPS assumes in development reported and productivity inflation, prices. headwinds in outlook will range Our incremental IT research potential current rates offset merit the target to FX and

year-end our of expectations continuation million $XX current backlog, level Net the with range expense Our interest market the of are tax based XX%. on booking million in XX% the conditions. XXXX rate $XX of is to anticipated and to expected

remains fully the and plan, million $XX to million global Additionally, to uses largely recover From approximately to and of service contribute perspective, dividends debt earnings. $XXX the seasonality plan to also repayment shareholders. we similar XXXX expect pension mainly cash to back range, million are approximately as weighted million full-year, we quarterly flow expected our cash our in funded. traditional expect half million we return approximately $XXX through ongoing phasing a Capital expenditures $XX U.S expect $XX XXXX cost to of

Now, closing remarks. for to let me turn his Scott it back

Scott Rowe

Lee. Thanks,

As and detail. of our greater to Many you our transformation spend we efforts. we on December, longer-term when us initiatives transformational Day expectations XXXX progress in a joined of our minutes laid the Analyst in like and I few would wrap-up, our outlook at

our those and a takeaway, still are the of of are it, transformation event For audio the with website. our sense missed available Investor executing Relations in key from have multiyear the who the we To presentation urgency. summarize may section

an process conditions. the weather improving changing are will engagement, We model and culture, market simplifying that employee our creating different operating

the invested of our Our Company. organizational the and the Flowserve expand on long-term return focus health grow improve enhance is capital at to business, margins,

our As beginning demonstrate quarter to fruit. our fourth are actions bear results

we go, but implementing value. are to a still we are we change to improving way have While sustainable long to committed lasting long-term create

segment beginning we X year, closure our announced, previously IPD reporting January this standardizes and EPD operating comp further operating our and new we simplifies one combine This model. of division. segment and As into

for the see modest this enhance initial with drive savings customers customers The and as has to drive from positive. response expect cost fully a our do to to catalyst productivity We we the our value organization While is with Flowserve. result expect real greatly new combination very experience will been customers.

markets. Turning XXXX. end the growth of We and our our remain in continued stability for expectations confident

outperform EPS use we Our of sizable opportunity year-over-year that margins. the oriented while further growth initiatives provide The XX%, transformation can believe are us have underway again confidence can cost the to guidance. to market the give grow activities improvement. drive we underlying initiatives operational We opportunity our adjusted nearly in that midpoint our transformation when we that a the produce

operational that the XXXX our With our we deliver are can in traction targets. we confident we on gained on improvements, XXXX

associates. of reach we we delivered to from additional each out program, which in very targets transformational the the progress ongoing on With the momentum, path we us with will days. we and our While put have are including I’m we early financial engagement the December. the quarter, longer-term have expect some commitment to the still in made gain pleased laid

taking we call customers questions. and shareholders like driven right our and performance we our our and have actions are comments the prepared accountability alike. create to to value would culture the Operator, for We open to to the concluded any build

Operator

Thank you. Hammond first go The KeyBanc. comes [Operator Instructions] ahead. from from Jeff question Please

Jeffrey Hammond

Hey good morning guys.

look maybe how could you you you talk move you between and through think as the ‘XX. up Just trends growth shape those visibility as about and OE at aftermarket disparity

Scott Rowe

Sure.

then the I and aftermarket OE. with start me Let will hit

pleased happening really in and are the with is We growth program. the what aftermarket

the it what it in But Analyst went summer and and December have QRCs are And base are again really looking that we intensity. opportunity calling we we our in positive we the results. each what that very talked And December. I locations. commercial seeing what is really essentially at year at is and what in As maximizing those last is, Day, we’re launched perspective, at where this -- launched an of of the installed from do really we through

and much North started live We are have each Europe, Asia in have we pretty just of Pacific. America, of place and most in in now done the we major geographies of across all pilots

spending of intensity is macro this seeing aftermarket us are helping we what business. us program well. in On And that the side is to so, several grow the are that top as sure a are renewed they that, effort maintenance seeing years And commercial that service. is, making on reliability, the and products spending helping renewed trends delayed some focus really we after of and equipment just and our on are using in our and maintaining

continue really that has go been So, expect the forward. to we we definitely growth aftermarket and as positive

would what I OE the it on the we the XXXX, and the just particularly is with is OE last project On aftermarket year. higher are at our as than what side, getting been it’s significantly what visibility, of beginning transition says hasn't had really into bad, than we side lower side, we

reasonably pipeline was is capital full. from for backlogs above well. are is and EPCs, What for you the the project at in they customers XXXX XXXX, externally seeing big our we or stating over is higher So than as are their what report at above when they then that over it their year - are what last at were or look that

pipeline and the healthy, about good our And feel and so, aftermarket the side. project MRO remains we really

So, in XXXX. we and our activities are about growth prospects encouraged

Jeffrey Hammond

you fully sounds kind of you us then past making backlog, great. a on are progress give it can Okay, at Thanks. where due getting from you're behind of like kind sense up and here. you And of caught just that in fully

Scott Rowe

Yes.

took have fourth would fourth July, quarter I’m out and progress, on not. not improvement, right chunk due woods is President little manufacturing results. of talent backlog that say big progress completely past here, the to and so all what a on making IPD are Operations of to because significant than make quarter say are in we a absolutely the and bit we in formed liked we the down. in the did, going a the we We organization XXXX, We hired side, more we of are driving would a and in but is new due Vice and new EPD capacity progress we We the the past focus of the reorganization, I made

revenue. to and us it’s incurring due a and on past more the know inventory ways. of different us the really people and listening It’s customer hurting most the capital built-up you margin, it hurt and the backlog on relations, our with on was hurting collection. headwind receivable As call, then us and costs in gross lots It hurting working was hurting delayed

getting than level so us focus. is behind be. this we we that in is, better really say huge quite And to place are we XXXX, to are and are the a a expect what And we were to in I we close want, actually not we what we while need would substantially where

not And our going focus on the sure so start going go backlog forward, products extremely up for competitive times we past they let and we delivery, in on-time lead that as be to it. are of our due products and at we on to getting we but can the need customers time really, really making of focusing are front

Jeffrey Hammond

good that’s Okay, Thanks to hear. Scott.

Scott Rowe

you. Thank

Operator

from Please question comes Credit John from go ahead. next Our Walsh Suisse.

John Walsh

Hi, good morning.

maybe there terms and what there talk you of pricing kind you bit you price/material just costs. to pricing about the could by isolate cost inflation, is itself a know, I as but talked guess productivity well context obviously I equation. about in material there provide trying of around So, some in seeing and maybe and general are little out

Scott Rowe

Yes, sure.

real right we speaking, margin price/cost XXXX, I take just comments, you were side our the able I pricing Generally on throughout grow start, curve. as will to get were side. me and the Let and because of specific we on will the general saw

did price in And inflation so, beginning global increases other that of before, tariffs as we the discussed and which I headwinds had at the in XXXX, several environment. the offsets we

and really the And right got feel we attention we have on that that. so, the focus good

much The last pricing announced to of we question big place [ph] the today how having in how in XXXX, sticky and privileged our for say would switch fully we all December year, can is as at on and actually ADLs is great get, of what are now being but increase just products. it is, around world. our Flowserve, I we Now, price position of brand we a is that across and in recognition

that to have translate better We got into pricing.

pretty the about we all other already And our done that and are we the price in And side, pricing. and then of as announced evidenced have aggressive pricing are streams on so locked is focused the we office, be going X.X to have one increase in. work Flowserve the we is is transformation again thing

about so current And stay I increases, that's what on. with but to and price general really when going is tell it's you great, inflation there

sure our of to and the pricing strategic lot have. capitalizing opportunities that that needs a distribution that all and where are it we internally side getting about analytical be On we is we are on price more sophisticated making the

just like we then follow are competitors, think so would just I so cost really And we the like And not and it’s seeing seeing and would we other like I not we right are come of. we will that side volatile of price trade current necessarily staying you thing know, are staying XXXX our move just environment on is the still and our But right of everything and newly environment something of very you of starting are the with things we a obviously are But announced a in we in pricing the we abreast to and just an I still results and What now given to when we know, terms last tariffs suit. it’s the forward. know say, on competitors about that position that it’s is equation. good positive good, within would now really are be say we for and I pricing going analytical feel through transformation. say work aspect

I the doesn't from away for And that to XXXX or want, XXXX. we in the pricing a a from margins marketplace in we that little good for where I and were so and moving when that's a we the in change I moving the prepared also or bit believe see that spot sense give some think is of business are into walk think us on doesn't we are direction maybe But of XXXX. general make certainly that we right

John Walsh

good then you. a here, XXXX. And guess have as for follow think the expecting the XXs on at in right the executing that think thank to XXXX? maybe color, segment a two zip in been about just still a you we incremental last the like about I margin low that's Great, level you're years, is that code

Scott Rowe

Well implies and segment I on is the on we don’t what and the XXXX through expand we revenue think give it look guidance guidance level, margins to side so can general continuing XXXX. you that the EPS, at

And takeout so chain discussed, we fully growth pricing in supply cost increase the activities that and and expect with operational around the transformational the to throughout we margin year.

John Walsh

Great. you. Thank

Operator

comes Dray Deane ahead. RBC. Our go Please next from question from

Deane Dray

have at discussion. price just cost all put first December, happened from those Any a heard when that did companies that We sense that benefited avoid Maybe on that, the quarter Scott, in quarter? a price Good Thank to seeing the price fourth everyone. of pull-in about you this follow-up people increases trying some increases. morning, number you. think quarter? talk having you form

Scott Rowe

what actually great happen. question Yes, we didn’t it and its Deane expected and a it’s

the on with were pull and didn’t we materialize. a see fully in little bit side to FCO uplift some of valve side the it So particularly business expecting an on

so December we January, and the are getting them some certainly that going than in because benefit in increases an have the we more Now price place. seen not of window outsized uplift of but gave

Deane Dray

It's really interesting.

in order you and it an is guess, coming as I aftermarket the trying into can like because price in can in would any price organically precisely increase? or old avoid fourth be you it's coming to precise the be there way coming opposed whether gauge to order's quarter the that how in? So is at more knowing

Scott Rowe

really Yes. This is question. good a

the and we really the because One as is and this reasons of was have wanted. didn’t we the well the the analytics work to set pricing visibility we as transformation stream understand up

can our we would this, understanding say - with ones the distributors we lot and that particularly is, a where that those better products at the So what are I at Flowserve stock nuances see on getting the right. really ones

new there them we valves historically have And with increases and and business the a that have and both can what announce history on And bit we we when done some get that’s can they so got little aftermarket. we of price see our and analytical preferred the pricing. that as what sophisticated visibility really is isn't want is get more as what that our good of parts with effort partners. with your say transformation But part the and I to would we whole with

Deane Dray

you Got it. of begs if question in how And the out could? helpful first That's started a answer. that January, really the just has quarter

Scott Rowe

January. didn’t right data good point the in so have mean I Yes, have now wouldn’t we gone did, if we here out of guidance that a we

continue Where before, have this XXXX. expect on normally or and of bookings second projects side. good in that be aftermarket visibility only on half awarded gates little up in the I will out for concern XXXX. the the the showdown I grow say year throughout to the have the business. the the our We bit, the talked I MRO in business business of and say entire that on of we we but aftermarket January on things would right bookings would both of would half feel the confident pretty a OE I now and So first a the project reasonably see XXXX the good could about and the for concern projects the base is going we we being look is

at MRO still at the base business of year business but carefully, are at least watching the we continuing signals are beginning the is right what still healthy a that's rate. that So now preliminary the the really positive or

Deane Dray

of on in have sales spot, for the you XX% quickly past capital that Good question mentioned working the not put that is last And But did And your range of percent backlog, but drag what you from I inflating percent to some hear. it's year-over-year. of that can improve working hate just ramp target? Lee. still you got XXXX? how capital few Scott to that for receivables. down

Lee Eckert

you us. to me area Deane. that area all the for definitely an spot continues So put of be on a And frustrating it’s

we at significant As every a the call, and in earnings we about talked it have talked Analyst what Day focus. is about

on capital during focused the very are year. working flow and cash We

during things drive of incentives to better incentives our performance Historically, the we changing working lot of were end more year. doing One that year are is focused. our a capital the

you end, leaders we would working this plans at very our have capital. you incentive include expanded the So during year around the it, around have intensity but big push not the more

So pulling do and we that required address lot about our processes as systems we a in X.X about of and Flowserve plans challenges those Day, a and to it, think levers place. our fix of are place is putting in there lot put the at the I all talked are is but the Analyst systematic given to

we targets are going not had I going in you aspiration that make receivables. is we steps both are taking are percentage internal out, driving we will with we major - and out reduction capital So how and it working of to much a in but tell inventory

Deane Dray

Thank you.

Operator

Please comes from ahead. go question Scott from next Markets. Capital Our BMO Graham

Scott Graham

wondering quarter But couple a sales, that's around good whether the what issue like I'm a the last a Hi, questions large, at that I better, is reason have And probably what to up those or been take you you couple organically fourth bookings. looks with a I which little got there number went could sales and peek certainly that a shipment guess, bit morning. X% X%. out have quarters' of you. guidance, if understand have also, the if a

you assumption high is: end significant of number business, that an gets just to the low end? assumption. is around amount questions the data kind guidance some revenue hoping one, in what can So of of two there and I'm And two, us around the give points there just versus Number book-and-ship you

Scott Rowe

the good had Sure of our bit had December and get in year-over-year quarter. where in QX. so question we little Scott. great book the the and than up think backlog A a bookings the It’s further November and in is bookings were that confidence in came good bookings a quarter rather QX is we of we I beginning late in like QX, lot

first and in or $XX throughout for accounting. while secured get improvement feel put accounting about completion would the were visibility and if getting of of to with project is place. more percentage I’m healthy we book have within real so the feel due standard, significant is, we can year by past the there kind in we revenue that us kind million to guidance are we up the a the to in and need into year then overtime the completion what just to larger In earlier a work earlier made to health here projects there pretty I XXXX is that $XX our MRO in units the the and side. then started upside, with the done of think the has so revenue some historically clearing nice additionally, we work The reasonably we XXXX business, and - of know of comments when than picking last we get if about XXXX I tracking new revenue some we you some market those half and uplift place very high thinking the the got on we you I But would gets backlog, revenue and And off million guidance. that good data business point accounting we say mean and throughout one, that is, have the in of I come gets need is so that that some projects, and there the year revenue of right good a book-and-ship growth have said the good much which place

Scott Graham

And working you Is are a that on pre-FEED projects? FEED basis? those or on

Scott Rowe

we about said before, right have good I project As now. pipeline the really feel

we quite these are are And the FEED, now. tendering and them on so a And into lot a are out right at are of they them bidding in of frankly, EPCs. the lot

us to between kind are range healthy project more So million revenue list not side of a and put few we and million seeing of a are will fewer $XX XXX of aren’t the mega, we that a of million with those we have but and guidance. million the $XX securing million anything before, big $XXX and high we robust projects looking at $XX between again, that got like have list are these announced

Scott Graham

things the in our went then that question you. due a That's about past a backlog ask couple beyond margin. it sure thank And backlog great, me, the you just second could really surprised reduction? business if out I'm all others. us delta past the I IPD, Could pushing wasn't due which really old right of in friend, give the I and suspect that for

Scott Rowe

the was it’s a good kind publicly, single mid point we Scott we digit. and delivered communicated of kind had to OI, adjusted really of XX% what high it

back what above So putting David would structural though is leading with charge expected. here, What done is, in acceptable and the IPD took we job team due systemic we backlog the a territory. the the in really is the the the good QX. year throughout I and particularly place say to QX throughout but just some activities reduction, margins has things hard this somewhat of Wilson into move our our And year, that lot cost a past reduction

in the was cost or We well the turn not do frankly quite and and to that worth high time effort it to also cost and the not that. around performing the was the divested region distraction business effort in the the was

blocking due, just - sound the cost I the think to I the and and answer, business not combination but its in it what tackling. really clearing reduction is then sophisticated probably past said and most going of your divestiture the it’s the So

place and perspective the starting and great from can we that to approach that and that products money you some them make for not create good that deserve right customers things the forward value the work David and just how and Flowserve products year. wasn’t and I those have so margins really, we portfolio the on would we do make really on deemphasize really making that So we money allowed the sure and how doing away the within throughout to focus move and that and say to getting IPD moving us capitalize we are for margins getting got balanced our do our brings it’s And and them investors.

is, are not say the to XXXX. we Now margin, be going what but are we a I adjusted we probably levels going to not that I want to to going we do have had QX would that are operating back caution in to XX% generate

work go improvement in expect we keep capitalize while come forward, a on the remains target bit mid-teens business we QX, a But got on in out, other then to year, will the expect in change down our within business the that for made our at have this invested a be do capital moving we So cost business. little business improve and have are great in generate the we return pricing continue the industrial consolidation to IPD that, step momentum we would type proper margins the order more and our there the and pump the that progress execution to cost got the on be reductions, operational fourth done. platform together the some space. we still order to fully in to quarter take side manufacturing and to locations move get have this in got controls disciplined operational operational forward. is to achieve And There have further some to has to in

Scott Graham

Scott. you Thank

Operator

Andrew America. Our Please Obin from question of comes from ahead. Bank next go

Andrew Obin

morning. Hi guys good

to you heard versus that correctly into half confidence I MRO correct? it sustainability in have is want guys clarify that that XXXX large orders in second you project if more have said Just

Scott Rowe

that and starting throughout feel are For communicated XXXX move again those forward. they operators see and are the their about the we spending large in projects FID and to you can yes, projects the really pipeline have publicly the good capital and UTC’s backlog

of So in we of health projects. transacting a pretty good of about the number for we and the feel large are middle projects, these quoting

where and but better this at seeing that portfolio we can everything say time. today, are that at change in Now I project things than the XXXX do XXXX are is change, would we

to side. quarter currently I the data point I MRO our and on Just is What fourth want really said side MRO finish looked on good. January

spending combine at should we spend initiatives MRO spend. then off is have good healthy potential have cut as I'm about And were and relatively and MRO grow we at all the the of we continued is now, with risk business so QX this what seeing we where see beginning year, internal our what a end The be if MRO of in MRO everything back and half seen concerned of MRO the well. the But are XXXX. and the can that in the looks so what to spend that we immediately slowdown right is we

Andrew Obin

you possibility. guys work you XXXX bit but about these on a reason wondering could the they a the competitors very I of XXXX just guess of your I’m highlighting they highlighted are just if term and into much pet-chem longer I cycles I one and quite you felt OE Can bookings sort if how actually sort I Yes. basis, think guess accelerate actually expect XXXX. and of were because into MRO, have on that’s acceleration talk fact long-windowed a bookings because that visibility in better asked, about to into LNG there see

Scott Rowe

Yes.

lens I great catches underinvestment side at is the are in window point on I the of has pressure last happened but our this is would and go and has and there are Day. chemical space, or at up, we are as what plus right years But and XXXX, we answer and what I our XXXX and into significant some a curves there so refining the XXXX. project December over showed four lot that from a in been again that the opportunities XXXX on is oil focused as space here, say, should gas it seeing say midstream the needs now would be. We will primarily very the just question, not And Analyst

get if constant pressure the and that grows bit you theory capital a curves the of into XXXX. under so demand stays spending And then or increased believe somewhat it little kind you it's and

good XXXX. look and be pretty is what in project continued bigger Now XXXX portfolios is number, great now spending health things the would XXX% going go commit say but for lining and are not projects to a up to going infrastructure and right that and I’m to I a XXXX

Andrew Obin

are field and the the more growth, Imagining need you of people competitor you of a same roof And do technicians. and the meet of highlighted but they planning because sort get that where do you how of follow-up, engineers thinking the just to have to capacity hire fact sort them?

Scott Rowe

Yes.

right reasonably So communicating X% level a we of now moderate to growth are X%.

plenty some capacity and We us others. business not have grown at for There niche than an right of we very are of got plenty a aspects have that have now. outsize people, our concern is in that

in got selective hiring, concern And Flowserve. we at have us is a so that's area an but not for some this general to do where

Andrew Obin

will apologize. I just sneak one I and more And

terms guys what in are the Just in Is of of part selective aftermarkets, that mix you more in happened QX? OE and on being OE QX?

Scott Rowe

on would more I year. selective at say being OE we beginning last the the No, of started earnestly

that would for And of I just timing due a bit say selectivity. OE. been and selective. don’t little so necessarily what I say would to we of is have I be it cause of it's a think some was some could lower orders

when are potentially going things price not and we have some awards could of the margin expectations have happened raised our raised and come those that our we we win way. So to have our

Andrew Obin

I appreciate Terrific. your really Thank time. you.

Scott Rowe

you. Thank Okay.

Operator

Our ahead. next Vertical Research question comes go from Brett Linzey from Partners. Please

Brett Linzey

everyone. morning good Hi,

back up you the in bookings those aftermarket solid quarter. quarter, had only the historically but to very the bookings ship mean come to to sales Just I modestly. I tend in aftermarket, wanted mean

been So it just color helpful? had trying it's to quite understand nature or would the outs, some been it preorder the work Is be further price there time. customers has ordering than any a disparity in of wider the

Scott Rowe

Yes.

we of later business. Its like the quarter backlog feel so the again bit would a I bookings wanted. little and say I the cycle that we and the to us expect were month is But nice and of no, our get said see so good book-and-ship So very lot and came a we fantastic. at MRO in a the convert aftermarket converting on that do work fourth the in in within up backlog growth very would in aftermarket the quarter and What is within side that. bookings the three window you short to typically it's didn't

Brett Linzey

which to way, to flow, are some then sounds progress It year, capital guiding guys there are side. Okay for fairly like back you the and plans for those capital just asset inventory working under the address but making some And issues, working typically strong the requires maybe on free good. of you are some shifting specifically build. cash sales

I cash capital this can assets you think So a be of working source context guess in balance? that that given do year that

Scott Rowe

I question. will let answer Lee to this

Lee Eckert

So to are improve right of Brett, it we at slightly it the nice be what velocity somewhat be could on keep a really to now minimum flat, we modeling burn up. end sales is those. but driving would least are At where depending a the

turnover and said payables are inventory focusing managing I both and as the the and So AR correctly. our of on velocity obviously we

growth drive and associated the will the to nice it be that. minimize cash with So burn

Scott Rowe

Yes.

do So of the those on build business. the of the is, if capital really will trying to working offset bring velocity what then with growth need are two can we it down we the

point, cash we do, the then up what to that not Flowserve, it’s on on and it have throughout say the on would it. drive help we we going be opportunity it It really in freed want long-term would metrics. tremendous this XXXX, progress. get invested of doesn't I a you on don't your really I I numbers back made focused huge of working say a for for while lot highlight year So of other the is is, this, at but capital end to got some source expect of What fully half wonderful focus a said earlier, have very and necessarily one the progress and been continue cash, on want that's the have to Flowserve we we show so this probably historically Lee of data attention year. actually the capital doesn't return doesn't the thing and at And to

rather better capital plans could than the and it on we put for fact be And endpoint. and attention year XXXX, have our in focus average so an throughout working really the we on incentive doing are changing an

improvement capital metrics I demonstrated we quarter-over-quarter think the on should XXXX. And so see working throughout

Brett Linzey

one and housekeeping. great just Okay maybe then

you normal post mentioned second it here of but towards us any the half, the or does savings QX? may the for it to help give like framework in percent can is in sound further year You guide seasonality QX, us be of the back things calibrate be half, release half business, there the first

Lee Eckert

that, and just I cash. the reinforce is said use and for XXXX we What would earnings guidepost Sure. I as will

as see that and improvement you is the will an Our quarter expectation use that I year-over-year baseline. would each

that the Scott kind not I from a XXXX on little The this quarter - did a maybe we know of happened have the that is year standpoint, acknowledge it first hit highlight had of some thing modeling other a at horrendous be expect of cash into we we would and working to bill, this seasonal last bit quarter just we but We extent going capital quarter. year. don’t to the first there full earlier,

February quarterly We in first Scott it, talk about it, are have in of huge about we we year. place, an cash eye in that cannot like mentioned, put as quarter this on outflow we cards the in did January are talking we last have we we

Brett Linzey

color. the great. appreciate I Okay,

Operator

comes question ahead. Nathan Please from next from Stifel. Our Jones go

Nathan Jones

Good morning everyone.

bookings nearly quarter side. aftermarket close million the Going peak Aftermarket previous back pretty is a back bookings. on questions to $XXX the to at few bookings here levels the in on

talk excellence try bookings talked some this if if if is potentially you're in better any embedded or from getting level base. upside these lift have that's that started guys there already further or penetration about to and seeing from and this to initiatives current purely initiatives your drive You market about benefit Can is installed you be back excellence commercial number? commercial maybe into to

Scott Rowe

we within Yes. commercial uplift to the commercial transformation intensity. is intensity called are due defiantly The an seeing and initiatives

efforts spending the and So release it’s both at largest internal MRO installations. combined the of some with maintenance

have it definitely say efforts don't know, I is it say where the have I the we showed XX/XX, really we the uplift those it account, I got And December shared is a tracking hard but good target would specific in at of in internal pilot to is sites, a type it’s So market. this XX/XX, is what that are is visibility we mid-teens combination improvement. example December in which a I growth to and and

like effective out December, are this, but process in program novel make is on fully providing we we the intensity for innovative So in there or installed have that, nothing incredibly and our this our is field I said commercial our that about really is service to structure capitalizing sure and really validated and capability. base leaders it in

healthy in So uplift. just by are doing that and operating seeing this place, putting system this we

not going to across of the are for we designated are this kind seeing every We demonstrated but sites have that as mid-teens location, an growth. that we the is a single opportunity, get

just delivery. just Pacific to started the we Asia earlier, But is Europe And have about so group is it said we I XXXX team the than we getting aftermarket a that live North we the live, but continue aligned really process have America at now Middle I is in are rather probably little margins deployment to does would East. gone incredibly throughout uptick, and and are we think bit focused expect this in have and focusing I that XX% it and and the the what very and focused on and good growth now put gone

Nathan Jones

Okay.

aftermarket the like sounds upside that So the levels peak in. there is came previous side where to on think you that

projects, side, mean, to million million or start not margin those when with of associated the $X fixed absorb to I On $XX we getting generally costs. they these lot $XX OE when XXXX, in there you whole $XX is million project and million are a

the we up see to out see on profile bid things these can need are starting had into see improve? soak better to you Are you can capacity you As environment, projects improved? Do starting to are move? more these those demand coming really industry start you that a still pricing to margin before we

Scott Rowe

focused from think walk different or Again, Yes. up very not something these we we our of pricing bidders we forcing projects earlier, we executing question. or for are away afraid larger the type attract are large and you and it’s little attention, there EPC to margins lot of meet bit a to the are not on and fair booking I the threshold a And this then margin are going we that's that margin work. said our you lot deserve on historically is moving good a a down. a right,

turned so, margins need going are going tracking can partners areas are when to know we look Flowserve. target a work make. to And the they we in the we are target to portfolio things where and have away project And we we and couple make that XXXX we and the margin to have at all have at of higher the accepted than years that what we we last over we

Nathan Jones

margin margin And XXXX? as in is are end margin that better quality. Okay. they of we were expect you in improve to you what maybe Maybe go in much XXXX profile just how through the talk if continue the that a little end one and that But than backlog backlog in XXXX? I'm quality about quick about backlog. kind don't you of sure things and bit the backlog, on now at talk the a want could exact backlog to to at of

Scott Rowe

Yes.

better I got started to and and percentage better of that. And in confident EPS at on our going certainly we margin bit been I'm would focused have margin we the in and this are focused any be in ended But And have really said backlog. get the on a So but we beginning to Nathan, really we right to every numbers pricing throughout more with you margin in year, say where can XXXX. quarter see on so on building able backlog so the the likely selective guidance. and that we and that the little guidance not earlier, guidance the give implied in it's I uplifting

margins because is here. about the good margins to and is side, far I And valve say booked cycle. we even what thus expand side would valves beginning see pump And at XXXX. good I'm changing definitely have the pump expect on given I the don't some that it really more than - pretty talking side applies we the reasonably the the which what here historically on But of kept throughout so got continue momentum have we to

Nathan Jones

for Thanks helpful. my very that’s Okay, taking questions. much

Scott Rowe

Nathan. Thanks

Operator

from question comes Please Brady next go SunTrust. ahead. Our from Charley

Charley Brady

Hey, good thanks. morning.

of background projects. Just of - kind on kind guess questions projects the Nathans there. I more on large medium-sized out

out is and are just from really competitiveness might in really wondering still still other than seeing, be you not really, pressure it lessening tough is there confined is in to that certain that relative sort XXX that is a normal area I’m points pressure. something what of or anywhere more that are are areas, the seeing We hearing is delta. pricing XXX considered, still just all margin to it’s maybe basis you

Scott Rowe

then bunch and not there EPC I to the people that, to and you place. of Where in leverage much technology valves then pumps Yes. we process would up is profile have moves a are good. that’s There say that we is defiantly pricing selectively different get launching our what pressure margins and very and in proprietary have other going some out better able are when a bidding five be and an around then and it's we margin competing add got

more make and to to what capacity much and and informed can want we capacity And so about want better demand be selective of have we is now the of our part really sales talked our we take before, implemented CRM now so take. transformation planning. our get I we a where we but efforts not global have when our understanding proactive planning and system, to got decisions to visibility more operational within about have more is about and

the projects. we ones deserves we make Flowserve right competitors think brings or so prices and drive are necessary we that find of value And to that of command technology going we attention the get lot to a where the our from can while money on projects are can are going we provide down, compromise either go not these or right some and these that the to in where it the right going solution and

and some should is, other and look say pump the and are capacity starting we I’m I group would to the of what have say here, are there we have at would is peer but the I see thinking more throughout are, would saw. expected peer to still more I end fill if the is on than up Now thing activity I on the peer there XXXX side projects pricing that folks XXXX, would across some continue where pricing out not improve what would the expect with I expected group because discipline we

Charley Brady

really one for thanks. helpful, me IPD. just that’s more on Scott then And

we and from higher than guess lift lot a the much understand I was past just was for of quarter that. flushing the then just the operations margin in versus that come trying obviously margin backlog the guess lack from out I So due a to core better you of expected business due how I’m term.

Scott Rowe

of and was improvement but then allowing Yes. full-year in there we about we XXXX we rather have wins digit we business single the we but we continue all to of came out fact saying some had just I sustainability quarters, combination of to mid combination into and of just divestiture don’t get we just to place. XX% in the was a this end what three that the than that expected, specifics, had got been of said is definitely little was want of of that over defiantly And better margin then blocking too is, that on within right. improvement, so margin so the clearly the and then say quarter, had year quarter all of some we some had the much proper had the a losing focused all seasonality fourth bit the than our now was grow and back are manner platform. us earlier, operational to It system. things, I that with basic and healthier a feel in a I many fundamentals high was a kind good mean it the to full-year margins really give would to running What margins and in the business I in that tackling

Charley Brady

Alright. Thank you.

Operator

comes Our Cowen. from Please next Joe question ahead. Giordano from go

Joseph Giordano

Hey guys, good afternoon.

So stays flow cash. accrued like In side, versus I of start to think want liability been of on traditional just variance a on unlike where quarter the rather be capital us the than cash have operating to working seem might I the many account. the on some

like we we know is And move then There should Lee on that? just longer a there that big term in is your one should a should from kind kind going foresee So be where obviously How anything going how how of forward? think XXX% kind that? Or are towards you we account linear conversion it be? of like today. about get we is to of step XXXX? do as closer change that Like

Scott Rowe

answer me first. question the second let So

So reported I are think one that we trying to improve upon cash the adjusted on the gap conversion of is between first say and earnings. would things I is

that million. it’s remarks, roughly adjustments right $XX highlighted That adjusted than around my where of As lower prepared been. part now - roughly I is significantly

thing to earnings of So have quality is the first fewer adjustments. and the really improve trying

So that’s part of it.

The second margins. performance, part working obviously just our of to the capital it continue and expanding is

in right step earlier, having its also XXXX significantly about direction. but just in And So better to we and talk the in step that. did is in our do to expect XXXX than adjustments capital say another necessarily working as performance fewer I wouldn’t linear, the I improving we

to So we sooner. get hope there

to till say waiting XXXX it not get relatively are XXXX a make We XXXX. improvement going in - we function step XXX%, but are looking be the are to and to would I we

Joseph Giordano

Okay. kind And of accrued anything that that was category in need to... there

Lee Eckert

change there rate The P&L so mean really forth. some has immediate some and was that I environmental impact. the adjustment it have I and around but of around an say been adjustments pensions, accruals some lowered there liabilities, that our rates discount would lowered didn't Yes, liability and some discount

wouldn't is that So I something significant. point to

Joseph Giordano

IPD, on where basis. get One XQ situation a just in negatively in from on surprise two where XQ comp then then positively And coming here. don't mean are and we in it's we a given to things on obviously up it I sets big to surprise want a margin. be Okay. a

of XQ I handicap like before average savings basis to looks How haywire. And to point seems would of kind sequential just XXX with things margins, an of broadly you like it kind it XXX move a to conservatism fairly XQ growth. historically of now? number. organic the your guess given want margin gauge kind you efforts, of So your kind that that went from that just then modest like of what to sense like in I restructuring in inclusive seem from XXXX I'm kind of into baking trying the are incremental get savings

Scott Rowe

Yes.

there, specifically, this Lee quarters, is And the on earnings different definitely I and go over by down. as first good exact platform XXXX to big as me I did talk And revenue right? about remind what the had let think said - you of you continue we we was about. will to but QX But about So margins we the earlier, margins. year-over-year, in half think come the come to so do you think give not half think And will quarter second was IPD expect going it what full-year about question in as expected. second of down, our the all want that quite me terms grow first. it On be to what a the think and of frankly the quarter it’s when and good, IPD then was I'm number, using the going more to not the

Joseph Giordano

even in Yes, planning was on and you efforts how in are baking are like like guys, savings X% in like the guidance, the XXXX. you below the high you doing earnings XX% I'm end trying that just growth X% for organic based in is your much XXXX conservative have from I seems incremental to… It to just curiously This like at or on you so. theme restructuring done

Scott Rowe

we frankly margins so fast full-motion are quite are the furious and momentum, the going chain, work of would we plans we to that we the we is is, execute than other to faster around like we doing the I higher we cost our to a to we if I where I let that are But in going transformation and stream, put question. can say, what putting that guiding at have move are are supply and going those right, of will think basis it say everything all and throughout the back fair that for rate and the said don’t a internal a feel and would in out the think XXXX can achievable. I XXXX. work the is off are midpoint pricing But points margin me. at get that. good pretty what doesn’t do what improvement when not we Everything things of as of your incremental aggressive, look not EPS at growth way around right into things from kind are than but a it XX% we and its something at be to a year out is bit wired is. a we also you conservative little going all so to we That’s we this you We make just and feel I its higher and the XXXX. trying got are as the think guidance, program, streams up Yes. what lot is and good the we right guidance about as are takeout can we operational last kind

We are making good progress on this.

Joseph Giordano

guys. Thanks

Operator

Morgan from ahead. Our Josh comes go Pokrzywinski next from Please question Stanley.

Joshua Pokrzywinski

apprehension I some the calendar came that that sustainability? Hi some half I good that for half commentary would off aftermarket of strong but me point just MRO guess comps, good your turnaround pretty in. part half second good grounds out a morning hit that the tough guys in is of in of think in refineries, looks in terms first XXXX XXXX second already, afternoon. at uncovered or got a one imagine fitting is of lot of activity guess some of I well. But for I Thanks thing you we on sticks as

Scott Rowe

Yes.

and We have is going expand factored than we program and right. MRO quite had drive the market we in, visibility said levels lot that frankly what have communication historically spending we and don’t share from growth to hope track spending, certainly the our to what earlier, here of we then that just though your I that intensity we are the our think of get above commercial base. the know market and what hard have just on increase do is long-term I what don’t and it. a Like installed

of from So an is we just working got XXXX. have half and availability the that there spending how us in customer much question is frankly quite standpoint the for and back

Joshua Pokrzywinski

the And at I question to you spending guess of of not the levels that’s caught level a corner kind marketplace of near-term the as unsustainably center sense are the is overspending customers obvious. low in getting that they is from this where up and are growing have from

Scott Rowe

me No. That’s not clear. what be I let said, really

growth. quarter is is data now the everything quarter point the good, right the points in fourth we You first seeing know are continued to Right solid.

year it fully it spending lower there XXXX. I’m in XXXX implying now, right if we continues could back side seeing we spending. don’t be that just down grow. expect half just of that it, risk and the guided, back were potentially continues us MRO, that to for to we not the then the that, so what but pulling MRO What half is like maintains But the in are seeing or we a MRO we of visibility not are have slowdown And

Joshua Pokrzywinski

guys for just assume cash. free question then And are around progress expecting capital neutral, helpful. Lee call that’s growth be good the XXXX. it, in level would that that one you're of which working Lee it given some Got I you

of? starting down between somewhere it to aware is that anything of the a Just that is there discrete or restructuring pension brings be in that XX% conversion, kind neighborhood of good and we point lines else on should

Lee Eckert

that. aspiration is to I better think our be than

Joshua Pokrzywinski

it. Got Okay.

Operator

gentlemen, Thank may conference. disconnect you. and now Ladies you participating. And concludes this for today's Thank you

Flowserve (FLS) 21 Feb 192018 Q4 Earnings call transcript