Dover Announces New Segment Structure And Executive Appointments

New Segment Structure Focused on Driving Growth

Mar 05, 2014, 08:30 ET from Dover Corporation

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



RELATED LINKS

http://www.dovercorporation.com