Flowserve Corporation (“Flowserve”) (NYSE: FLS), a leading
provider of flow control products and services for the global
infrastructure markets, has acquired the intellectual property and
in-process R&D related to cryogenic Liquefied Natural Gas (LNG)
submerged pump technology, systems and packaging from NexGen
Cryogenic Solutions, Inc. (“NexGen Cryo”), a privately held,
Arizona-based company specialized in the engineering, design and
testing of LNG pumps and turbines.
NexGen Cryo’s pump and cold energy recovery turbine (CERT)
technology for the liquefaction, shipping and regasification
markets is expected to meaningfully differentiate and expand
Flowserve’s LNG product portfolio and complement its existing
pumps, valves and mechanical seals offering.
“LNG provides a resilient pathway to energy transition. As we
continue advancing our 3D growth strategy to diversify, decarbonize
and digitize, this technology acquisition will strengthen our
decarbonization offerings across the LNG value chain,” said Scott
Rowe, Flowserve’s President and Chief Executive Officer. “We look
forward to leveraging our new state-of-the-art LNG pump facility
with our existing network of more than 150 quick response centers
to commercialize this LNG product offering to our customers.”
Dennis Chalmers, President and Chief Executive Officer of NexGen
Cryo commented, “With over 300 years of combined cryogenic pump
team experience, we are excited in the potential for this
next-generation technology to provide LNG customers across the
globe improved efficiency, increased reliability and reduced
operating expenditures. I am excited for the next phase of this
technology.”
Transaction Details The
technology acquisition closed during the third quarter of 2024. The
purchase price and associated expenses are expected to reduce
adjusted earnings per share by $0.05 in Flowserve’s 2024 third
quarter. NexGen Cryo’s technology is now part of Flowserve’s Pumps
Division.
About Flowserve Flowserve Corporation is one of the
world’s leading providers of fluid motion and control products and
services. Operating in more than 50 countries, the company produces
engineered and industrial pumps, seals and valves as well as a
range of related flow management services. More information about
Flowserve can be obtained by visiting the company’s website at
www.flowserve.com.
About NexGen Cryo NexGen Cryogenic Solutions, Inc.
specializes in the engineering, design and testing of LNG submerged
pumps and turbines. More information about NexGen Cryo can be
obtained by visiting the company’s website at
www.nexgencryo.com.
Safe Harbor Statement: This news release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, which are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995, as
amended. Words or phrases such as, "may," "should," "expects,"
"could," "intends," "plans," "anticipates," "estimates,"
"believes," "forecasts," "predicts" or other similar expressions
are intended to identify forward-looking statements, which include,
without limitation, earnings forecasts, statements relating to our
business strategy and statements of expectations, beliefs, future
plans and strategies and anticipated developments concerning our
industry, business, operations and financial performance and
condition.
The forward-looking statements included in this news release are
based on our current expectations, projections, estimates and
assumptions. These statements are only predictions, not guarantees.
Such forward-looking statements are subject to numerous risks and
uncertainties that are difficult to predict. These risks and
uncertainties may cause actual results to differ materially from
what is forecast in such forward-looking statements, and include,
without limitation, the following: economic, political and other
risks associated with our international operations, including
military actions, trade embargoes, epidemics or pandemics or
changes to tariffs or trade agreements that could affect customer
markets, particularly North African, Latin American, Asian and
Middle Eastern markets and global oil and gas producers, and
non-compliance with U.S. export/re-export control, foreign corrupt
practice laws, economic sanctions and import laws and regulations;
any continued volatile regional and global economic conditions
resulting from the COVID-19 pandemic on our business and
operations; global supply chain disruptions and the current
inflationary environment could adversely affect the efficiency of
our manufacturing and increase the cost of providing our products
to customers; a portion of our bookings may not lead to completed
sales, and our ability to convert bookings into revenues at
acceptable profit margins; changes in global economic conditions
and the potential for unexpected cancellations or delays of
customer orders in our reported backlog; our dependence on our
customers’ ability to make required capital investment and
maintenance expenditures; if we are not able to successfully
execute and realize the expected financial benefits from any
restructuring and realignment initiatives, our business could be
adversely affected; the substantial dependence of our sales on the
success of the oil and gas, chemical, power generation and water
management industries; the adverse impact of volatile raw materials
prices on our products and operating margins; increased aging and
slower collection of receivables, particularly in Latin America and
other emerging markets; our exposure to fluctuations in foreign
currency exchange rates, including in hyperinflationary countries
such as Venezuela and Argentina; potential adverse consequences
resulting from litigation to which we are a party, such as
litigation involving asbestos-containing material claims;
expectations regarding acquisitions and the integration of acquired
businesses; the potential adverse impact of an impairment in the
carrying value of goodwill or other intangible assets; our
dependence upon third-party suppliers whose failure to perform
timely could adversely affect our business operations; the highly
competitive nature of the markets in which we operate;
environmental compliance costs and liabilities; potential work
stoppages and other labor matters; access to public and private
sources of debt financing; our inability to protect our
intellectual property in the U.S., as well as in foreign countries;
obligations under our defined benefit pension plans; our internal
control over financial reporting may not prevent or detect
misstatements because of its inherent limitations, including the
possibility of human error, the circumvention or overriding of
controls, or fraud; the recording of increased deferred tax asset
valuation allowances in the future or the impact of tax law changes
on such deferred tax assets could affect our operating results; our
information technology infrastructure could be subject to service
interruptions, data corruption, cyber-based attacks or network
security breaches, which could disrupt our business operations and
result in the loss of critical and confidential information;
ineffective internal controls could impact the accuracy and timely
reporting of our business and financial results; and other factors
described from time to time in our filings with the Securities and
Exchange Commission.
All forward-looking statements included in this news release are
based on information available to us on the date hereof, and we
assume no obligation to update any forward-looking statement.
The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). However,
management believes that non-GAAP financial measures which exclude
certain non-recurring items present additional useful comparisons
between current results and results in prior operating periods,
providing investors with a clearer view of the underlying trends of
the business. Management also uses these non-GAAP financial
measures in making financial, operating, planning and compensation
decisions and in evaluating the Company's performance. Non-GAAP
financial measures, which may be inconsistent with similarly
captioned measures presented by other companies, should be viewed
in addition to, and not as a substitute for, the Company’s reported
results prepared in accordance with GAAP.
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version on businesswire.com: https://www.businesswire.com/news/home/20240723988621/en/
Investors: Jay Roueche, Vice President, Investor Relations &
Treasurer (972) 443-6560 Tarek Zeni, Director, Investor Relations
(469) 420-4045
Media: Wes Warnock, Vice President, Marketing, Communications
& Public Affairs (972) 443-6900
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