Flowserve Corp. (NYSE:FLS) Q4 2019 Earnings Conference Call - Final Transcript

Feb 18, 2020 • 11:00 am ET

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Flowserve Corp. (NYSE:FLS) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Welcome to Flowserve's Fourth Quarter Year Ending 2019 Earnings Call. My name is Paulette, and I will be your operator for today's call. [Operator Instructions] Later, we will conduct a question-and-answer session. [Operator Instructions]

I will now turn the call over to Mike Mullin, Director - Investor Relations. You may begin.

Executive
Mike Mullin

Thanks, Paulette. And good morning everyone. We appreciate you participating on our call today to discuss Flowserve's fourth quarter and full year 2019 financial results. Joining me this morning are Scott Rowe, Flowserve's President and Chief Executive Officer; and Jay Roueche, Interim Chief Financial Officer. Following our prepared comments, we will open the call for your questions. And as a reminder, this event is being webcast, and an audio replay will be available.

Please also note that our earnings materials do and this call will include non-GAAP measures and contain forward-looking statements. These statements are based upon forecasts, expectations and other information available to management as of February 18, 2020 and they involve risks and uncertainties, many of which are beyond the Company's control. We encourage you to fully review our Safe Harbor disclosures and the reconciliation of our non-GAAP metrics to our reported results, both of which are included in our press release and earnings presentation and are available on our website at flowserve.com in the Investor Relations section.

I'd now like to turn the call over to Scott Rowe, Flowserve's President and Chief Executive Officer for his prepared comments.

Executive
R. Scott Rowe

Great. Thank you, Mike. Good morning everyone and thank you for joining today's call. Flowserve's fourth quarter marked a strong finish to 2019 as we exceeded our initial full year expectations and continued to make significant progress with the Flowserve 2.0 transformation. I first want to let our Flowserve associates and leaders know how much I appreciate their efforts and contributions in 2019. We have asked a lot from our team, and they continue to rise to the occasion. Despite the challenges in 2019, our team delivered on our performance improvement program, continued to support our customers and created value for our shareholders. Since initiating our transformation strategy, our employees have demonstrated increasing ownership of the program, and our overall employee engagement has reached the highest level since I've been at Flowserve. I'm confident that we are building a culture of accountability, respect and trust as we drive sustainable improvements and create an enterprise capable of performing in any market environment.

Before turning to our results, I would like to talk briefly about China and the coronavirus situation. We have 780 associates based in China and our number one focus is their safety and that of their families. We are actively monitoring the situation and working closely with governmental health organizations in all of Asia Pacific to ensure we keep our workforce as safe as possible. We have a large manufacturing complex in Suzhou, which is about 450 miles east of Wuhan. Additionally, we have several smaller QRCs in the region as well as sales and administrative offices. All