Flowserve Corp. (NYSE:FLS) Q4 2019 Earnings Conference Call - Final Transcript
Feb 18, 2020 • 11:00 am ET
R. Scott Rowe
we have made to date and the opportunities that remain ahead of us. With solid growth the last few years and steady margin improvement, we feel optimistic with where we are. And I believe we are on the right path to achieve the longer-term targets we introduced in December of 2018.
In addition to the improvements in the income statement metrics, we've made great progress in our free cash flow conversion, and our 2019 return on invested capital grew to nearly 13%. While we are pleased with the performance to date, our transformation efforts in 2020 do involve some heavy lifting. The dedicated transformation office will remain in place throughout this year as we continue to drive a sustainable process improvement culture deep into the enterprise with further manufacturing improvements, product design-to-value, supply chain improvement and G&A cost reductions. We will wind down the designated transformation team at the end of 2020 as our functional leadership continues to assume greater responsibility and ownership of the program. I'm confident that we will continue to capitalize on the great progress that we have achieved to date. We are moving Flowserve to a higher level. And I have no doubt that this will be reflected in our metrics, our service levels to our customers and value creation for our shareholders.
Operator, we have now concluded our prepared comments, and we would now like to open the call to any questions.