Â鶹´«Ã½ÔÚÏß

CHARLOTTE, N.C.,ÌýFeb. 10, 2016Ìý// --ÌýÂ鶹´«Ã½ÔÚÏß, Inc. (NYSE:FLOW) today reported results for the quarter endedÌýDecember 31, 2015Ìýand provided 2016 financial guidance.

Fourth Quarter 2015 Overview:

• Revenues declined 15.2% toÌý$612.7 million, fromÌý$722.5 millionÌýin the year-ago quarter. ÌýThe impact of the stronger U.S. Dollar versus foreign currencies decreased revenues by 6.5%, orÌý$46.8 million.Ìý Organic revenues* decreased 8.7%, due primarily to lower power and energy revenue, largely reflecting the impact of lower oil prices on customers' capital spending decisions.

• Segment income and margins wereÌý$72.5 millionÌýand 11.8%, compared toÌý$115.7 millionÌýand 16.0% in the year-ago quarter, due primarily to the organic revenue decline.

• Diluted net income per share wasÌý$0.51, compared to diluted net income per share ofÌý$0.53Ìýin the year-ago quarter.Ìý

• • In Q4 2015, the company recorded an impairment charge ofÌý$0.13Ìýper share related to certain technology and trademarks of a business within the Food and Beverage reportable segment.

• • In Q4 2015, the company recorded a gain on the sale of a legal entity ofÌý$0.11Ìýper share.

• Net cash from operating activities wasÌý$157.0 million, compared toÌý$101.4 millionÌýin the year-ago quarter. The increase in cash generated was driven by the successful completion of certain project milestones, which led a strong working capital performance in the period.

• Free cash flow* wasÌý$143.1 million, compared toÌý$87.0 millionÌýin the year-ago quarter. The increase in free cash flow was related to the increase in operating cash flow described above.

Full Year 2015 Overview:

• Revenues declined 13.8% toÌý$2.39 billionÌýfromÌý$2.77 billionÌýin the prior year.Ìý The impact of the stronger U.S. Dollar on foreign currencies decreased revenues by 7.7%, orÌý$211.9 million.Ìý Organic revenues* decreased 6.1%, due primarily to lower power and energy revenue, largely reflecting the impact of lower oil prices on customers' capital spending decisions.

• Segment income and margins declined toÌý$301.7 millionÌýand 12.6%, compared toÌý$391.0 millionÌýand 14.1% in the prior year, due primarily to the organic revenue decline partially offset by improved operating and project execution performance in Food and Beverage.

• Special charges wereÌý$42.6 million, compared toÌý$14.2 millionÌýin the prior year.Ìý

• • During 2015, the company recordedÌý$23.0 millionÌýof charges due to restructuring actions related to the ongoing closures of two European manufacturing facilities.Ìý These closures are part of the initial phase of a broader, multi-year plan to expand the company's manufacturing presence in Bydgoszcz,ÌýPolandÌýand reduce its global manufacturing overhead.Ìý As part of this plan, during 2016 the company intends to shift production to Bydgoszcz,ÌýPolandÌýfrom its manufacturing facilities in Unna,ÌýGermanyÌýand Kolding,ÌýDenmarkÌýand close the Unna and Kolding manufacturing plants.

• • The company also recordedÌý$8.1 millionÌýof special charges related to restructuring actions planned at two of its European Power and Energy facilities.

"Our fourth quarter results reflect the challenging economic environment in our key end markets and the impact of the stronger U.S. dollar. ÌýÌýIn particular, reduced prices for oil and dairy commodities have significantly impacted our customers' operating and capital spending decisions," saidÌýMarc Michael, President and Chief Executive Officer.Ìý "On a positive note, orders in the fourth quarter were stable sequentially and our cash generation in the quarter was strong, giving us sufficient financial flexibility to invest in our business."

"Looking at 2016, we do not anticipate any meaningful recovery in our key end markets. Notwithstanding the challenging economic environment, I am driving a higher level of accountability and a greater sense of urgency throughout the organization to improve our competitive position and operational execution. I firmly believe we will create significant value over the next 12 to 24 months by growing our bottom line."Ìý

Michael continued, "At the outset of this year, our executive team established realignment and strategic enterprise initiatives that we expect will improve our competitive position and reduce our cost structure byÌý$110 millionÌýas we exit 2017.Ìý These initiatives, some of which began last year, include strategically realigning our footprint, streamlining our business processes and improving our working capital performance.Ìý In addition, we continue to invest in attractive growth opportunities with an emphasis on growing our aftermarket business.Ìý We are aligning our compensation and incentive programs with our enterprise initiatives.Ìý And we are increasing our focus on employee engagement and talent development."

"As we execute on our realignment and strategic enterprise initiatives, we expect to see incremental financial benefits, quarter-to-quarter, as the year progresses and into next year.Ìý We also expect to be in an even better competitive position to deliver our high quality products, meet our customers' needs and leverage our strong brands.Ìý Ultimately we expect to drive a higher, more sustainable return profile across our business.Ìý We are committed to these initiatives and confident in our ability to execute them."

Fourth Quarter 2015 Results by Segment

Food and Beverage

Revenues for Q4 2015 wereÌý$222.1 million, compared toÌý$246.6 millionÌýin Q4 2014, a decrease ofÌý$24.5 million, or 9.9%.Ìý Currency fluctuations decreased revenues 8.6%, orÌý$21.2 million, and organic revenues* declined 1.3%, orÌý$3.3 million. The decline in organic revenues was due primarily to lower sales of components, particularly inÌýNorth America, partially offset by increased systems revenue.

Segment income wasÌý$26.7 million, or 12.0% of revenues, in Q4 2015, compared toÌý$31.7 million, or 12.9% of revenues, in Q4 2014. Segment income and margins decreased due primarily to the revenue declines described above as well as an unfavorable revenue mix.

Power and Energy

Revenues for Q4 2015 wereÌý$190.0 million, compared toÌý$257.5 millionÌýin Q4 2014, a decrease ofÌý$67.5 million, or 26.2%.Ìý Currency fluctuations decreased revenues 4.9%, orÌý$12.5 million, and organic revenues* declined 21.3%, orÌý$55.0 million.Ìý The decline in organic revenue was due largely to the impact of low, volatile and uncertain oil prices which significantly reduced both operational and capital spending by end customers, particularly for projects related to upstream oil applications.

Segment income wasÌý$18.8 million, or 9.9% of revenues, in Q4 2015, compared toÌý$52.7 million, or 20.5% of revenues, in Q4 2014.Ìý The decrease in segment income and margin was due primarily to the organic revenue decline described above as well as competitive price pressures and lower utilization rates at certain of our manufacturing locations.

Industrial

Revenues for Q4 2015 wereÌý$200.6 million, compared toÌý$218.4 millionÌýin Q4 2014, a decline ofÌý$17.8 million, or 8.2%.Ìý Currency fluctuations decreased revenues 6.0%, orÌý$13.1 million, and organic revenues* declined 2.2%, orÌý$4.7 million.Ìý The organic revenue decline was due primarily to decreased sales of hydraulic technology equipment into the oil and gas market.

Segment income wasÌý$27.0 million, or 13.5% of revenues, in Q4 2015, compared toÌý$31.3 million, or 14.3% of revenues, in Q4 2014.Ìý The decline in segment income and margin was due primarily to the organic revenue decline described above.

OTHER ITEMS

Form 10-K:ÌýÌý The company expects to file its annual report on Form 10-K for the year endedÌýDecember 31, 2015Ìýwith the Securities and Exchange Commission inÌýmid-February 2016. This press release should be read in conjunction with that filing, which will be available on the company's website atÌý, in the Investor Relations section.

Impairment Charges:ÌýÌýIn the fourth quarter of 2015, the company recorded an impairment charge ofÌý$7.7Ìýrelated to certain technology and trademarks of a business within the Food and Beverage reportable segment.

About Â鶹´«Ã½ÔÚÏß, Inc.:ÌýBased inÌýCharlotte, North Carolina, Â鶹´«Ã½ÔÚÏß is a leading global supplier of highly engineered flow components, process equipment and turn-key systems, along with the related aftermarket parts and services, into the food and beverage, power and energy and industrial end markets. Â鶹´«Ã½ÔÚÏß has more thanÌý$2 billionÌýin annual revenues and approximately 8,000 employees with operations in over 35 countries and sales in over 150 countries around the world. To learn more about Â鶹´«Ã½ÔÚÏß, please visit our website atÌý.

*Non-GAAP number. See attached schedules for reconciliation to most comparable GAAP number.

Certain statements in this press release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Please read these results in conjunction with the company's documents filed with the Securities and Exchange Commission. These filings identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. Actual results may differ materially from these statements. The words "expect," "anticipate," "project" and similar expressions identify forward-looking statements. Although the company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. In addition, estimates of future operating results are based on the company's current complement of businesses, which is subject to change.Ìý Statements in this press release speak only as of the date of this press release, and Â鶹´«Ã½ÔÚÏß disclaims any responsibility to update or revise such statements.

Investor and Media Contact:
Ryan Taylor, Vice President, Communications, Market Insights and Financial Planning
704-752-4486
E-mail:Ìýinvestor@spxflow.com

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SOURCE Â鶹´«Ã½ÔÚÏß, Inc.