Flowserve Corp. (FLS) reported third quarter net earnings of $116.9 million or $2.07 per share, compared to $117.0 million or $2.04 per share in the previous year period. The quarterly earnings included realignment charges of $0.05 per share.
On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $2.00 per share. Analysts' estimates typically exclude special items.
Third quarter sales were $1.05 billion, compared to $1.15 billion in the previous year period. Eight Wall Street analysts expected revenues of $1.11 billion.
Looking forward, for the fiscal year 2009, the company now expects earnings per share in a range of $7.20 to $7.50, compared to its prior forecast in the range of $7.15 to $7.75. Nine Street analysts expect earnings of $7.57 per share.
Separately, the company announced that it would embark on an expansion of the realignment initiatives involving additional charges of up to $30 million, or approximately $0.40 in earnings per share, in the remainder of 2009 and up to $15 million in 2010. Flowserve expects the expanded initiatives to add another approximately $50 million of annual run rate savings, the majority of which would be structural in nature, with the expected additional benefits generally beginning in the latter half of 2010.
Combined, the company believes that the previously and newly announced realignment initiatives should provide full annual run rate savings of approximately $110 million, a majority of which would be structural in nature.
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