Flowserve Corp Q3 2020 Earnings Call Transcript

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 one of the cost comments that you made there, Scott. I mean it's $100 million of cost out this year. In my understanding, maybe when you reported second quarter earnings, was that 2021 was going to be a wash between carryover structural savings and the return of some of the temporary costs. The way you were talking here this morning, it sounds a little bit like it might be a net tailwind now in your expectations into 2021. Is that from maybe volumes a little bit lower than you were anticipating in 2021, so some of those temporary costs don't come back? Just any color you could give us around that?

Question: Nathan Hardie Jones - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Got it. Next one is on price. I think I asked you the same question, Scott, last quarter. Typically, in these environments, you see very challenging pricing, particularly on large projects. And then you've got the additional challenge of figuring out what you need to do with price versus filling factories to absorb overhead and those kinds of things. It seems like the order rates are lower for longer than maybe we thought 3 months ago, pricing's may be a little more challenging than you thought it was going to be 3 months ago. Just your current views on how you balance those 2 things of not filling the backlog full of things that are very low-margin versus the need to absorb your fixed costs?