Flowserve Wins $15M Order

Flowserve Corp. (FLS) received an order worth more than $15 million from State Nuclear Power Engineering Company Ltd. (SNPEC) in China for ASME Section III safety-related globe and gate valves and Flowserve Limitorque actuators.

Flowserve said it will book the order in the first quarter of 2010.

The Flowserve valves and actuators will be utilized at the Westinghouse design AP1000(TM) Sanmen and Haiyang Unit 2 nuclear power plants located in Zhejiang and Shandong regions. The plants, representing the first Westinghouse AP1000 nuclear power plants to be constructed in China, are expected to be operational in Jun 2014 and Jan 2015, respectively.

Valves, which are a part of the order, will be sourced from Flowserve's Raleigh, N.C., facility. Limitorque actuators will be manufactured in Lynchburg, VA.

The company recently won a pump and solutions order, valued in excess of $31 million, from LUKOIL Neftochim Burgas AD for Flowserve proprietary pumping systems and heavy-duty high-energy pumps. LUKOIL Neftochim Burgas AD – a subsidiary of Russian oil behemoth LUKOIL – is the largest oil refinery in the Balkan area. The pumps will be utilized in the refinery's new H-Oil VGO complex in Burgas, Bulgaria, converting heavy residues to high-valued products.

There are increasing signs of stabilization in the end-markets, notably China, India, Brazil and the Middle East. We continue to believe that the long-term secular spend drivers in power, water and oil and gas remain firmly in place. While the industry has continued to see pricing pressure and reduced volumes, companies like Flowserve with strong technical capabilities, good execution and strong balance sheets have been able to maintain sound performance and expand market share.

Flowserve Corp. is one of the world's leading providers of fluid motion and control products and services. Operating in more than 55 countries, the company produces engineered and industrial pumps, seals and valves, as well as a range of related flow management services. 

The company develops, manufactures, and sells precision-engineered flow control equipment, as well as provides a range of aftermarket equipment services. Flowserve operates in three divisions: Flowserve Pump, Flow Control, and Flow Solutions. Its major competitor is ITT Corporation (ITT).

We currently have a Neutral recommendation on FLS.

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