30625--2/24/2010--FLOWSERVE

related topics

{financial, litigation, operation}

{operation, international, foreign}

{cost, operation, labor}

{customer, product, revenue}

{regulation, change, law}

{cost, regulation, environmental}

{acquisition, growth, future}

{cost, contract, operation}

{operation, natural, condition}

{debt, indebtedness, cash}

{property, intellectual, protect}

{tax, income, asset}

{product, market, service}

We may be unable to deliver our sizeable backlog on time, which could affect our revenues, future sales and profitability and our relationships with customers. We sell our products in highly competitive markets, which results in pressure on our profit margins and limits our ability to maintain or increase the market share of our products. If we are not able to execute and realize the expected financial benefits from our strategic realignment and other cost-saving initiatives, our business could be adversely affected. Economic, political and other risks associated with international operations could adversely affect our business. Our international operations and foreign subsidiaries are subject to a variety of complex and continually changing laws and regulations. Our international operations expose us to fluctuations in foreign currency exchange rates. Noncompliance with U.S. export control laws could materially adversely affect our business. Terrorist acts, conflicts and wars may materially adversely affect our business, financial condition and results of operations and may adversely affect the market for our common stock. We are currently subject to a conditional securities class action litigation settlement, which if not finalized, could lead to continued litigation, the unfavorable outcome of which could have a material adverse effect on our financial condition, results of operations and cash flows. Environmental compliance costs and liabilities could adversely affect our financial condition, results of operations and cash flows. We are party to asbestos-containing product litigation that could adversely affect our financial condition, results of operations and cash flows. Our business may be adversely impacted by work stoppages and other labor matters. Inability to protect our intellectual property could negatively affect our competitive position. If we are unable to obtain raw materials at favorable prices, our operating margins and results of operations may be adversely affected. Significant changes in pension fund investment performance or assumptions changes may have a material effect on the valuation of our obligations under our defined benefit pension plans, the funded status of these plans and our pension expense. We may incur material costs as a result of product liability and warranty claims, which could adversely affect our financial condition, results of operations and cash flows. The recording of increased deferred tax asset valuation allowances in the future could affect our operating results. Our outstanding indebtedness and the restrictive covenants in the agreements governing our indebtedness limit our operating and financial flexibility. We may not be able to continue to expand our market presence through acquisitions, and any future acquisitions may present unforeseen integration difficulties or costs.

Full 10-K form ▸

30625--2/24/2010--FLOWSERVE_CORP