Flowserve posts flat 3Q profit, narrows guidance

Flowserve cuts 2009 profit prediction citing plans to expand restructuring efforts

• On 11:48 pm EDT, Wednesday October 28, 2009

DALLAS (AP) -- Flowserve Corp. said Wednesday its third-quarter profit was flat, as margin improvements and cost cuts offset a decrease in sales.

But the pump maker and fluid handling company also cut its 2009 profit prediction to below average analyst estimates, citing plans to expand its restructuring program and take additional charges to pay for it.

The news sent Flowserve shares down $8.68, or 8.7 percent, to $90.75 in aftermarket trading, after dropping $4.10, or 4 percent, to close the regular session at $99.43.

For the third quarter, Flowserve earned $116.9 million, or $2.07 per share, compared with $117 million, or $2.04 per share, in the year-ago period. Sales fell 9 percent to $1.05 billion from $1.15 billion.

Analysts polled by Thomson Reuters expected a profit of $2 per share on higher sales of $1.11 billion.

The recent quarter's results included 5 cents per share in restructuring charges. Bookings dropped 29 percent to $975 billion, or 26 percent excluding negative currency effects of $37 million.

As a result of the company's plans to boost its restructuring efforts, it now expects to log related charges of $30 million, or about 40 cents per share, in the rest of 2009 and up to $15 million in 2010.

The company revised its 2009 profit prediction to a range of $7.20 to $7.50 per share, including about 90 cents per share in restructuring charges, from its prior prediction of $7.15 to $7.75 per share, including about 50 cents in restructuring charges.

Analysts, on average, expect a profit of $7.57 per share including the charges.

Buzz up!