Oct. 28, 2009 (Business Wire) -- Flowserve Corp. (NYSE:FLS), a global leader in the fluid motion and control industry, confirmed today that it has already seen substantial benefits from its previously announced realignment initiatives, achieving 2009 benefits of approximately $17 million year to date and delivering a projected full year run rate savings of about $60 million, on about $41 million of planned initial 2009 realignment expense. As part of its previously communicated realignment initiatives, the Company improved its global cost structure and manufacturing efficiency through headcount reductions and several facility closures.

The Company announced that it will embark on an expansion of these realignment initiatives involving additional charges of up to $30 million, or approximately $0.40 in EPS, in the remainder of 2009 and up to $15 million in 2010. These additional initiatives are designed to allow the Company to drive towards capacity optimization, more efficiently and effectively serve customers, drive structural costs out of the business and respond to reduced orders. Flowserve also expects these expanded initiatives to add another approximately $50 million of annual run rate savings, the majority of which will be structural in nature, with the expected additional benefits generally beginning in the latter half of 2010. In these expanded realignment initiatives, the Company plans to focus more resources on its customer interface and aftermarket delivery capabilities to drive additional business growth opportunities. The Company plans to also continue to make structural changes in its global manufacturing footprint through additional migration to low cost regions, additional consolidation of product manufacturing and further headcount reductions to reduce overhead, including SG&A expense.

Combined, the Company believes that the previously and newly announced realignment initiatives should provide full annual run rate savings of approximately $110 million, a majority of which will be structural in nature.

“We continue to see strong execution and benefits from our previously announced realignment initiatives aimed at further improving our operational excellence results,” said Mark Blinn, Flowserve President and Chief Executive Officer. “In fact, we now expect the previously announced realignment initiatives to provide approximately $60 million of full year run rate savings, about $50 million of which should be structural. Based on this success and the fact that we have substantially completed it well before year end, we now plan on expanding our realignment work to continue to drive to strategically optimize our capacity and reduce our overall cost structure going into 2010 and beyond.