Flowserve Corp Q2 2020 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : I just wanted to follow up on the pricing question and the pricing discipline angle on this. I've seen a few cycles for you guys, and everyone goes into these cycles looking to be disciplined on pricing. And if the cycle drags out a little bit, then the volumes become a problem, your overhead absorption becomes a problem, and you find yourself caught between a rock and a hard place: You can either take lower-margin projects or you don't take a project at all and you have overhead absorption problems. I'm wondering if there's anything that's happened in the Flowserve 2.0 transformation, such as Lean, operational excellence, ability to do more with less, that might enable you to accelerate some of the cost-out plans that you might have had over the next 1, 2, 3 years earlier on, so that, that doesn't put you in that corner where you're between a rock and a hard place and you can protect margins without having to take some of these low margin, no margin and I know Flowserve over the years has even taken negative margin projects to absorb overhead. Just any color or comments you have around that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 31, 2020 / 7:00PM, FLS.N - Q2 2020 Flowserve Corp Earnings Call

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : I think typically on the aftermarket side of the business, you don't see a lot of pricing pressure. You haven't at least, I think, historically in previous cycles. Are you seeing pricing on the aftermarket side, the MRO side of the business continue to hold in? And do you expect that to continue to hold in going forward?