Flowserve Corporation FLS recently unveiled the world’s first sealless pump INNOMAG TB-MAG Dual Drive, thereby expanding its pump portfolio. The pump is designed to help businesses safely handle hazardous chemicals without the risk of leaks.
Inside FLS’ Headlines
It is important for the chemical plants that process toxic liquids like hydrofluoric acid and acrylonitrile to take precautionary measures to avoid adversities. Previously Canned Motor Pumps (CMPs) were used to avoid such catastrophic incidents but these pumps wear out and can lead to potential leaks. Flowserve’s Dual Drive pump fixes this problem by sealing liquid and drive sections of the pump, thereby providing an airtight secondary layer of protection.
The pump’s innovative design ensures that the motor stays dry and works properly, even if the other parts fail. It also includes a non-metallic liner inside, which resists corrosion. It makes the pump suitable for chemicals that can damage other regular pumps. The INNOMAG TB-MAG Dual Drive pump helps operators handle dangerous fluids safely by preventing leaks.
This advanced pump comes with features such as ISO/ASME compliance, easy installation, low maintenance and high reliability. The INNOMAG TB-MAG pump can either be upgraded with the Dual Drive unit or purchased as a complete unit.
This product is in line with FLS’ 3D strategy, which is focused on diversification, decarbonization and digitization.
Flowserve’s Existing Business Scenario
Flowserve is benefiting from strong momentum in the Flowserve Pump Division and Flow Control Division segments. Strength in the aftermarket business, driven by a strong demand for products and services in North America, Europe Middle East and Latin America, is a prime catalyst for the Flowserve Pumps Division segment’s growth. An increase in bookings across general industries and oil & gas end markets is supporting the Flow Control Division segment’s performance.
Flowserve is committed to rewarding its shareholders handsomely. In 2024, the company used $110.4 million to distribute dividends and bought back shares worth $20.1 million. Also, Flowserve paid dividends of $105 million in 2023. In the first quarter of 2024, the company hiked its quarterly dividend by approximately 5% to 21 cents per share (annually: 84 cents).
However, the escalating cost of sales and expenses poses a threat to Flowserve’s bottom line. In 2024, the cost of sales increased 2.6% year over year to $3.12 billion due to higher input costs. The metric, as a percentage of net sales, was 68.5%. Also, its selling, general and administrative expenses increased 1.7% in 2024.
The company’s revenues are sourced from original equipment manufacturing and aftermarket sales and services. Its original equipment revenues are related to the sales of originally designed, manufactured and installed equipment that ranges from short-cycle products to highly-engineered equipment. The company, which belongs to the Zacks Manufacturing - General Industrial industry, faces stiff competition from competitors like RBC Bearings Incorporated RBC , The Middleby Corporation MIDD and Applied Industrial Technologies, Inc. AIT.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
