Flowserve Corp. Q3 2009 Earnings Call Transcript

  • download
  • Print
  • Recommend
  • 1

2009-10-29 16:29:09.0

Tags: Call Transcript, Earnings, Booking, Same-store Sales, Flowserve Corp., Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Mike Schneider with Robert W. Baird.

Michael Schneider - Robert W. Baird

Good morning, gentlemen.

Paul Fehlman

Hi, Mike. How you doing?

Michael Schneider - Robert W. Baird

Doing, great. First, I really appreciate the new foreman I like the detail and the burg or the process. On the sales division, I'm wondering just to get some inside into what is actually market share gains as a result of the QRC strategy versus just same store sales growth. This may be too granule, but if you look at the bookings and sales that were down 14.6% in constant currency, are you able to want peal out the pumps division and just give us a sense of what your external customers bookings look like. And then secondly, do you have the same store sales number if there is one to get a sense just how much is through penetration growth by versus same-store sales declines?

Paul Fehlman

Well, if you will find in the aftermarket bookings, a lot of those are directed to customer, where do you see, it's on the OE side typically that you have in a divisional sales. Beyond that, we do look obviously QRC-by-QRC but as we talked about before, we're not our retail business. So, a lot of these QRCs are put into support customers. And so looking at the same store sales which really wouldn't reflect the business.

Overall when you look at it, what we commented on was and I think this is generally been across pumps and sales into a certain rebalance is that maintenance spend and refineries and chemical facilities in the United States and Europe has gone down. And we've got interaction from our end-user strategies. And that does include deployment of additional QRCs

Michael Schneider - Robert W. Baird

Okay. And then, remind me, what aftermarket bookings then we are in the sale division is that, generally would then exclude the Flowserve's pump division?

Paul Fehlman

Yeah, we haven't broken down the divisions that division specifically. But what we have talked about before generally Mike is and I think Andy talked about it. Roughly three quarters by business is aftermarket. We did see a soothing last year with a project activity but generally the run rate is about three quarters of our business is aftermarket

Michael Schneider - Robert W. Baird

Okay. And then, as look at pricing, this is a recurring topic and most it every industrial conference call right now. As you look at project pricing coming in now. Really, I guess focused on thousand pumps. Can you give us a sense of what magnitude of pricing declines whether expressed in sales dollars, percentages or in margins as you're seeing right now and is it accelerating or is it the level of pressure at this point at least constant?

 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here