Dover Announces New Segment Structure And Executive Appointments New Segment Structure Focused on Driving Growth

DOWNERS GROVE, Ill., March 5, 2014 /PRNewswire/ -- Dover (NYSE: DOV) today announced that the company has realigned its businesses into a new segment structure organized around its key end-markets to better focus on growth strategies. The new structure will also provide increased opportunities to leverage its scale and capitalize on productivity initiatives. Supporting this new structure, the company also announced, effective immediately, the promotions of C. Anderson (Andy) Fincher and William (Bill) Johnson.  Mr. Fincher and Mr. Johnson have been named President & CEO of the Engineered Systems and President & CEO of the Refrigeration & Food Equipment segments, respectively. 

The four segments are as follows:

Dover Energy is a leading provider of customer driven solutions and services for safe and efficient production and processing of fuels worldwide, and has a strong presence in the bearings and compression components markets.  Under the new structure, the Energy segment had 2013 full-year revenue of approximately $1.9 billion.  Soma Somasundaram will continue to serve as President and CEO of the Energy segment.

Dover Engineered Systems is focused on the design, manufacture and service of critical equipment and components serving the printing & identification, transportation, waste handling and industrial end-markets.  Under the new structure, Engineered Systems had 2013 full-year revenue of approximately $2.5 billionAndy Fincher, formerly EVP of Engineered Systems, has been appointed President and CEO of the Engineered Systems segment. 

Dover Fluids is focused on the safe handling of critical fluids across the oil & gas, retail fueling, chemical, hygienic and industrial end-markets.  Under the new structure, this segment had 2013 full-year revenue of approximately $1.2 billion. William (Bill) Spurgeon has been named President and CEO of Fluids.

Dover Refrigeration & Food Equipment is the leading provider of innovative and energy efficient equipment and systems serving the commercial refrigeration and food service industries.  Under the new structure, this segment had 2013 full-year revenue of approximately $1.9 billionBill Johnson, formerly President of Hillphoenix, has been appointed President and CEO of Refrigeration & Food Equipment.

Commenting on this announcement, Robert A. Livingston, Dover's President and Chief Executive Officer, said, "I am pleased to announce our new segment structure which will better enable us to focus on our key markets and leverage our scale, while we continue our emphasis on geographic market expansion, innovation and exceptional customer service."

Mr. Livingston added, "I am also happy to see the benefits of our talent development program with the promotions of Andy Fincher and Bill Johnson.  Both executives have developed long track records of accomplishment at Dover and are proven leaders.  Their continued focus on serving customers and driving productivity has enabled them to build strong and profitable businesses throughout their careers.  I'm confident that both Andy and Bill will excel in their new positions."

The realignment will be reflected in Dover's quarterly and full-year 2014 financial results. Going forward, Dover will provide customary segment data, including revenue and bookings data, as well as market commentary, on the new segment basis.

About William (Bill) Johnson
Mr. Johnson, 50, joined Dover in August 2006 as Executive Vice President at Hillphoenix with responsibility for the Case and Refrigeration Systems divisions.  A year later he became President of Dover's Triton Systems business.  In August 2008 he returned to Hillphoenix where he became President.  Prior to joining Hillphoenix, Bill was President and CEO of Graham Corporation, a leading designer and manufacturer of vacuum and heat transfer equipment for energy markets and process industries worldwide.  Mr. Johnson earned his Bachelor of Science degree in ceramic engineering from Alfred University and his MBA from Rollins College. He also served as an officer in the United States Navy from 1985 to 1990 as a nuclear engineer for submarines.

About C. Anderson (Andy) Fincher
Mr. Fincher, 43, joined Dover in 1994 as part of The Heil Company, where he held several positions of leadership in the areas of international business development, marketing, sales and operations.  He was then named President of Heil Trailer in 2005.  In May 2009 Andy was appointed Executive Vice President of Dover Industrial Products.  Prior to his recent promotion, Andy had held the position of Executive Vice President of Dover Engineered Systems since November 2011.  Mr. Fincher holds a Bachelor of Science degree in mechanical engineering from Tennessee Technological University and an Executive MBA degree from University of Tennessee.

About Dover:
Dover is a diversified global manufacturer with annual revenues of $8 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve.  Recognized for our entrepreneurial approach for nearly 60 years, our team of 25,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible.  Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.

Non-GAAP Information:
The following Investor Supplement tables contain historical financial information presented under Dover's new segment structure, as discussed within this release. These segment level disclosures are considered "Non-GAAP" financial information until such time that the new segment reporting structure is included within a periodic filing with the Securities and Exchange Commission. Management believes this non-GAAP financial information is useful to investors to better understand historical trends under the revised segment structure, which the company will be reporting under in its Form 10-Q for the quarter ending March 31, 2014.

Dover makes information available to the public, orally and in writing, which may use "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 that concern future events and the performance of Dover. Dover refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained in this press release. Dover undertakes no obligation to update any forward-looking statement.

INVESTOR SUPPLEMENT

 

DOVER CORPORATION

Revenue, Earnings & Other Data by Segment

(unaudited)(in thousands, except per share data)



Years Ended December 31,


2013


2012


2011

REVENUE:






Energy

$

1,853,853



$

1,788,295



$

1,546,684


Engineered Systems

2,538,562



2,498,800



2,453,129


Fluids

1,236,838



1,087,526



890,989


Refrigeration & Food Equipment

1,887,840



1,607,602



1,495,361


Intra-segment eliminations

(1,440)



(768)



440


Total consolidated revenue

$

7,515,653



$

6,981,455



$

6,386,603








EARNINGS FROM CONTINUING OPERATIONS:






Segment earnings:






Energy

$

459,649



$

466,801



$

393,978


Engineered Systems

399,448



369,842



350,363


Fluids

224,523



182,544



162,297


Refrigeration & Food Equipment

267,307



223,397



191,484


Total segments

1,350,927



1,242,584



1,098,122


Corporate expense / other

129,776



135,811



137,395


Net interest expense

120,672



121,268



115,485


Earnings from continuing operations before provision for income taxes

1,100,479



985,505



845,242


Provision for income taxes

266,407



301,027



229,786


Earnings from continuing operations

$

834,072



$

684,478



$

615,456








BASIC EARNINGS PER COMMON SHARE:






Earnings from continuing operations

$

4.87



$

3.77



$

3.31


Weighted average shares outstanding

171,271



181,551



185,882








DILUTED EARNINGS PER COMMON SHARE:






Earnings from continuing operations

$

4.81



$

3.72



$

3.26


Weighted average shares outstanding

173,547



183,993



188,887








ADJUSTED DILUTED EARNINGS PER COMMON SHARE:






Earnings from continuing operations

$

4.81



$

3.72



$

3.26


Gains from discrete and other tax items

0.46



0.09



0.23


Other one-time gains, net of tax

0.02






Adjusted earnings from continuing operations

$

4.33



$

3.63



$

3.03








OPERATING MARGINS:






Energy

24.8

%


26.1

%


25.5

%

Engineered Systems

15.7

%


14.8

%


14.3

%

Fluids

18.2

%


16.8

%


18.2

%

Refrigeration & Food Equipment

14.2

%


13.9

%


12.8

%

Total segments

18.0

%


17.8

%


17.2

%







DEPRECIATION AND AMORTIZATION EXPENSE:






Energy

$

99,075



$

87,922



$

70,652


Engineered Systems

71,582



74,158



76,423


Fluids

48,812



41,381



24,824


Refrigeration & Food Equipment

67,227



37,295



32,658


Corporate

3,861



2,666



2,560


Consolidated total

$

290,557



$

243,422



$

207,117


 


DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2013


2012



Q1

Q2

Q3

Q4

FY 2013


Q1

Q2

Q3

Q4

FY 2012


REVENUE:













Energy

$

462,679


$

465,906


$

467,688


$

457,580


$

1,853,853



$

437,438


$

442,493


$

463,046


$

445,318


$

1,788,295


Engineered Systems

605,325


639,426


642,205


651,606


2,538,562



619,966


633,355


623,944


621,535


2,498,800


Fluids

273,638


310,137


309,241


343,822


1,236,838



246,603


278,782


285,939


276,202


1,087,526


Refrigeration & Food Equipment

422,468


517,574


521,322


426,476


1,887,840



390,227


423,579


425,416


368,380


1,607,602


Intra-segment eliminations

(133)


(632)


(245)


(430)


(1,440)



(221)


(224)


84


(407)


(768)


Total consolidated revenue

$

1,763,977


$

1,932,411


$

1,940,211


$

1,879,054


$

7,515,653



$

1,694,013


$

1,777,985


$

1,798,429


$

1,711,028


$

6,981,455















EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES:








Segment earnings:













Energy

$

118,708


$

109,662


$

119,086


$

112,193


$

459,649



$

116,424


$

115,688


$

118,379


$

116,310


$

466,801


Engineered Systems

83,283


102,804


111,850


101,511


399,448



82,305


92,817


98,926


95,794


369,842


Fluids

47,601


58,768


63,056


55,098


224,523



41,989


43,325


51,138


46,092


182,544


Refrigeration & Food Equipment

52,110


82,177


86,446


46,574


267,307



56,361


62,789


71,869


32,378


223,397


Total segments

301,702


353,411


380,438


315,376


1,350,927



297,079


314,619


340,312


290,574


1,242,584


Corporate expense / other

33,632


34,860


32,532


28,752


129,776



36,216


36,762


31,874


30,959


135,811


Net interest expense

30,284


30,232


30,236


29,920


120,672



30,027


29,680


30,495


31,066


121,268


Earnings from continuing operations before provision for income taxes

$

237,786


$

288,319


$

317,670


$

256,704


$

1,100,479



$

230,836


$

248,177


$

277,943


$

228,549


$

985,505















SEGMENT OPERATING MARGIN:











Energy

25.7%


23.5%


25.5%


24.5%


24.8%



26.6%


26.1%


25.6%


26.1%


26.1%


Engineered Systems

13.8%


16.1%


17.4%


15.6%


15.7%



13.3%


14.7%


15.9%


15.4%


14.8%


Fluids

17.4%


18.9%


20.4%


16.0%


18.2%



17.0%


15.5%


17.9%


16.7%


16.8%


Refrigeration & Food Equipment

12.3%


15.9%


16.6%


10.9%


14.2%



14.4%


14.8%


16.9%


8.8%


13.9%


Total segments

17.1%


18.3%


19.6%


16.8%


18.0%



17.5%


17.7%


18.9%


17.0%


17.8%




































 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)


2013


2012


Q1

Q2

Q3

Q4

FY 2013


Q1

Q2

Q3

Q4

FY 2012

BOOKINGS:












Energy

$

515,388


$

416,892


$

481,021


$

440,261


$

1,853,562



$

482,045


$

438,167


$

427,395


$

453,973


$

1,801,580


Engineered Systems

642,764


656,137


600,969


642,468


2,542,338



649,471


624,124


609,813


616,796


2,500,204


Fluids

303,609


298,817


307,729


351,767


1,261,922



259,726


266,554


270,720


276,665


1,073,665


Refrigeration & Food Equipment

482,742


515,320


433,426


450,850


1,882,338



441,607


409,738


375,898


369,126


1,596,369


Intra-segment eliminations

(560)


(708)


(416)


734


(950)



(262)


(425)


(933)


(1,147)


(2,767)


Total consolidated bookings

$

1,943,943


$

1,886,458


$

1,822,729


$

1,886,080


$

7,539,210



$

1,832,587


$

1,738,158


$

1,682,893


$

1,715,413


$

6,969,051














BACKLOG:












Energy

$

274,733


$

218,764


$

233,820


$

206,790




$

257,424


$

249,056


$

216,011


$

224,284



Engineered Systems

510,831


525,697


485,155


474,040




525,446


509,064


495,830


488,714



Fluids

222,255


228,212


228,880


310,330




233,080


208,195


195,966


195,794



Refrigeration & Food Equipment

417,246


412,366


324,042


347,004




416,608


400,354


351,943


360,059



Intra-segment eliminations

(385)


(526)


(387)


(592)




(526)


(311)


(297)


(408)



Total consolidated backlog

$

1,424,680


$

1,384,513


$

1,271,510


$

1,337,572




$

1,432,032


$

1,366,358


$

1,259,453


$

1,268,443



 

Details of New Segment Structure

Dover's new segment structure is comprised of the following four segments and their respective business units:

  • The Energy segment is comprised of Norris Production Systems, Tulsa Winch Group, US Synthetic, Cook Compression, Waukesha Bearings and Quartzdyne; 
  • The Engineered Systems segment is comprised of two platforms, Printing & Identification and Industrial.  Within the Printing & Identification platform is Datamax O'Neil, Markem Imaje, MS Printing Solutions and OK International.  The Industrial platform includes De-Sta-Co, Environmental Solutions Group, Performance Motorsports, Texas Hydraulics, Vehicle Service Group, Warn, Microwave Products Group and Sargent;  
  • The Fluids segment is comprised of Pump Solutions Group, OPW, PDQ, HydroSystems and Colder; 
  • The Refrigeration & Food Equipment segment is comprised Hillphoenix, SWEP, Tipper Tie, Unified Brands and Belvac.

SOURCE Dover Corporation



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