8. Revenue Breakdown Sales by Geographic Region (amounts in thousands) North America 1,565,715.55 (35%) Europe 1,252,572.44 (28%) Middle East and Africa 492,082.03 (11%) Asia Pacific 805,225.14 (18%) Latin America 357,877.84 (8%)
9. Revenue Breakdown Bookings by Industry Oil and Gas 39% Chemical 17% Power Generation 15% Water 6% General Industries* 23% * General industries includes the following: mining and ore processing, pharmaceuticals, pulp, paper, food and beverage, and other small enterprises.
10.
11. 2007: Joint venture with Changsa Pump Works in China, gives access to 2.7 million square feet of space, access to cheap labor.
12. 2008: 10-year supplier agreement with Saudi Aramco (world’s largest oil company, state-owned national oil company of Saudi Arabia) to supply entire range of products and services.
13. 2008: Exclusive relationship with Petrobras (Brazilian oil exploration and refining company – world’s 7th largest oil company). Investing more than $15 million for manufacturing plant in Brazil to support the recent large oil discoveries there. FLS has already received $18.4 million in pump orders from the company.
17. Designs, manufactures, distributes, and services pumps, pump systems, replacement parts, and other related equipment.
18. Marketing through worldwide sales force, regional services and repair centers, independent sales representatives. 30 plants worldwide (8 in Americas, 12 in Europe, 10 in Latin America and Asia).
27. Designs, manufactures, distributes, and services valves, actuators (device for moving or controlling a system) and automation systems. These products are usually custom-designed.
28. Also sells “smart” valves, embedded with microprocessors, that can analyze fluid quality and remotely control the flow of the liquid.
29. 48 sites worldwide including 19 principal manufacturing facilities (5 in the US), 29 QRCs.
30. Primarily used by companies in: Chemical, Power Generation, Oil and Gas, Water industries.
31. Industry is highly fragmented: top 25 global valve manufacturers comprise less than 25% of total valve market.
32. FLS Flow Control Division is 3rd largest global valve supplier.
36. Designs, manufactures, distributes, and services mechanical seals and sealing systems and parts. Seals are used in high-stress conditions, and need constant repair or replacement.
37. Purpose of seals: safety and environmental benefits, reduces emissions and use of power.
38. Seals manufactured at 4 US plants, 6 worldwide. Due to need for constant maintenance, 74 QRCs are located worldwide.
40. Primarily used by companies in: Oil and Gas, Chemical Processing, Mineral and Ore Processing industries.
41. FLS Flow Solutions Division is 2nd largest industrial mechanical seals supplier in the world.
42.
43. Well-positioned in markets which will have need for infrastructure and plants: China, Brazil, etc (exclusive deals with companies in those countries).
44. Quick Response Centers (QRCs) throughout the world make it easier to provide quick and reliable service to clients around the globe.
45. All parts of the business are connected: will likely need pumps, valves, and seals all at the same time. By also providing repair services, company ensures that it will maintain long-term relationships with its clients.
46. Wide selection of products provides flexibility to custom-make new orders for clients.
47. Products are patented and trademarked, making many of them unique. Patents generally expire 20 years after filing.
48.
49.
50. Bookings can also be canceled or modified, so they are no guarantee of future revenue.
51. Oil and gas industries represent a hefty amount of revenue – if demand for these products dramatically goes down, FLS will be negatively affected.
55. Water consumption has doubled every 20 years; water will get more difficult to find over time, will need more complex systems and pumps.
56. Goldman Sachs estimate: by 2020, US will need one trillion dollars in more piping and water treatment
57. Expensive oil requires new systems: When oil prices rise, companies can drill for oil in harder-to-reach places while still making a profit; these operations will require more intricate piping and pumping.
58.
59. 2006: FLS failed a review of compliance with US export laws. A law in 2007 increased the penalties for violation to be 2*transaction value.
60. 11.5M in fees from SEC by recording false sales to Iraq from 2001-2003.
67. In order to respond to service calls as quickly as FLS, need to have service centers throughout the world – very large required capital investment.
68.
69. Record Q1 sales of $1.02 billion, up 3% (or up 13% excluding currency effects).
![Business Description Basic Business Description Flowserve Corporation (FLS) is a manufacturer and service provider of flow control systems. The company develops and builds flow control equipment such as pumps, valves, and seals, and provides installation, repair, and retrofitting services for its products through its quick response centers (QRCs). The company pursues a strategy of pursues a strategy of industry diversity and geographic breadth in order to hedge against industry-specific or region-specific downturns. Sales are generally direct through employees assigned to specific regions and industries; majority of sales are through existing relationships or referrals. ,[object Object]](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)