Flowserve Promotes Kling To President & CEO
Kling, 60, had been serving as chief operating officer at Flowserve and succeeds Interim-Chairman, President and CEO Kevin Sheehan, who was appointed by the board in April. Sheehan, 60, a director since 1990, was named non-executive chairman of the board. The company said it does not currently plan to name a successor to Kling in the COO role.
Kling brings more than 35 years of experience with companies such as General Electric, SPX, Harris and AlliedSignal. Prior to joining Flowserve in July 2004, he was a group president and corporate officer for SPX Corp.
In July, Flowserve announced it was commencing a major refinancing effort and entered into an agreement with Bank of America and Merrill Lynch & Co. to borrow up to $1 billion, consisting of up to $400 million of a revolving credit facility and up to $600 million of term debt. This refinancing commitment for the full amount is subject to customary conditions, and the refinancing had an expected closing date in mid-August.
The company further reported that second quarter 2005 consolidated bookings increased 8%, including positive currency effects of 2%, to approximately $723 million compared with about $670 million in the second quarter of 2004. For the first six months of 2005, bookings increased 8%, including positive currency effects of 3%, to approximately $1.4 billion compared with about $1.3 billion in the first six months of the prior year.
Second quarter 2005 backlog decreased 1% to approximately $866 million compared with about $873 million at the end of the second quarter of the prior year.
The company expects to announce its 2004 financial results in the third quarter of 2005. As previously announced, Flowserve is restating annual financial results for 2000 through 2003 and quarterly results for the first quarter of 2004. The company is also continuing to work with the IRS to address its previously announced potential liabilities from the pending audit of its 1999-2001 tax returns. Excluding any of the tax audit's potential impact, which is still being analyzed, the company continues to expect that the cumulative net reduction in net income, which is still being finalized, should be less than $20 million for the periods being restated.