2014

Dover Corporation Reports Third Quarter 2012 Results

DOWNERS GROVE, Ill., Oct. 17, 2012 /PRNewswire-FirstCall/ --

  • Reports revenue of $2.2 billion, an increase of 3% over the prior year
  • Delivers quarterly diluted earnings per share from continuing operations of $1.32, an increase of 11%
  • Revises outlook for full-year revenue growth and earnings per share; now expects revenue growth to be approximately 7%, and earnings per share to be $4.55 - $4.65

Dover Corporation (NYSE: DOV) announced today that for the third quarter ended September 30, 2012, revenue was $2.2 billion, an increase of 3% over the prior-year period. The revenue increase was driven by organic growth of 1% and a 4% increase from acquisitions, offset in part by a 2% unfavorable impact from foreign exchange. Earnings from continuing operations were $242.2 million, or $1.32 diluted earnings per share ("EPS"), compared to $223.4 million, or $1.19 EPS, in the prior-year period, representing increases in earnings from continuing operations and EPS of 8% and 11%, respectively, inclusive of minor tax benefits realized in both periods.

Revenue for the nine months ended September 30, 2012 was $6.4 billion, an increase of 8% over the prior-year period, reflecting organic growth of 4%, a 6% increase from acquisitions and a 2% unfavorable impact from foreign exchange. Earnings from continuing operations for the nine months ended September 30, 2012 were $651.9 million, or $3.51 EPS, compared to $637.4 million, or $3.37 EPS in the prior-year period, representing an increase in earnings from continuing operations of 2% and an increase in EPS of 4%. Excluding the impact of tax benefits of $0.03 EPS in the nine months ended September 30, 2012 and $0.17 EPS in the prior-year period, adjusted diluted EPS from continuing operations increased 9%.

Commenting on the third quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "The third quarter demonstrated the strength of our businesses as we leveraged modest revenue growth with 18% segment margin and delivered $1.32 EPS. The margin performance was especially encouraging because it was broad-based, as Communication Technologies, Printing & Identification and Engineered Systems all showed significant sequential improvement, while Energy remained very strong."

"While the quarter was solid and the majority of our businesses are performing very well, we are facing near-term revenue challenges in the Handset and Electronics markets, along with the continuing uncertain global economic environment."

"Taking these challenges into account, we now expect full-year 2012 revenue growth of approximately 7%, comprised of organic growth of 3% (inclusive of a 2% unfavorable impact from foreign exchange), plus growth from completed acquisitions of 4%.  Based on this revenue assumption, we expect full-year diluted EPS from continuing operations to be in the range of $4.55 - $4.65."

Net earnings for the third quarter of 2012 were $241.0 million or $1.31 EPS, including a net loss from discontinued operations of $1.2 million, or $0.01 EPS, compared to net earnings of $172.3 million, or $0.91 EPS, for the same period of 2011, which included a loss from discontinued operations of $51.2 million, or $0.27 EPS. Net earnings for the nine months ended September 30, 2012 were $651.2 million, or $3.51 EPS, including a net loss from discontinued operations of $0.7 million, compared to net earnings of $617.0 million, or $3.26 EPS for the same period of 2011, which included a loss from discontinued operations of $20.5 million or $0.11 EPS.

Dover will host a webcast of its third quarter 2012 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, October 17, 2012. The webcast can be accessed at the Dover Corporation website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's third quarter results and its operating segments can also be found on the company's website.

About Dover:

Dover Corporation is a multi-billion dollar diversified global manufacturer. For over 50 years, Dover has been providing its customers with outstanding products and services that reflect the company's commitment to operational excellence, innovation and market leadership. The company focuses on innovative equipment and components, specialty systems and support services through its four major operating segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification. Dover is headquartered in Downers Grove, Illinois and employs 35,000 people worldwide. Dover Corporation is traded on the New York Stock Exchange under "DOV." Additional information is available on the company's website at www.dovercorporation.com.

Forward-Looking Statement:

This press release contains "forward-looking" statements within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover companies operate and the U.S. and global economies. Statements in this press release that are not historical may be indicated by words or phrases such as "anticipates," "expects," "believes," "indicates," "suggests," "will," "plans," "supports," "projects," "should," "would," "could," "hope," "forecast" and "management is of the opinion," use of future tense and similar words or phrases. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, uncertainties in the credit and capital markets, interest rates, currency exchange rates, the world economy and sovereign credit, especially in Europe; political events and possible future terrorist threats that could impact countries where Dover does business or the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; increases in the cost of raw materials; the Company's ability to achieve expected savings from integration, synergy and other cost-control initiatives; the ability to identify and successfully consummate value-adding acquisition opportunities; increased competition and pricing pressures in the markets served by Dover's operating companies; the ability of Dover's companies to expand into new geographic markets and to anticipate and meet customer demands for new products and product enhancements; the impact of loss of a single-source manufacturing facility; changes in customer demand; a downgrade in Dover's credit ratings; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints; domestic and foreign governmental and public policy changes including environmental regulations, tax policies, export subsidy programs, R&E credits and other similar programs; unforeseen developments in contingencies such as litigation; protection and validity of patent and other intellectual property rights; and the cyclical nature of some of Dover's companies. Dover Corporation 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 these and other 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 Corporation undertakes no obligation to update any forward-looking statement.

 

INVESTOR SUPPLEMENT - THIRD QUARTER 2012


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

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






Three Months Ended

September 30,


Nine Months Ended

September 30,


2012


2011


2012


2011

Revenue

$

2,208,699



$

2,138,606



$

6,428,571



$

5,945,654


Cost of goods and services

1,361,769



1,332,324



3,983,720



3,651,625


Gross profit

846,930



806,282



2,444,851



2,294,029


Selling and administrative expenses

476,573



476,640



1,451,503



1,378,466


Operating earnings

370,357



329,642



993,348



915,563


Interest expense, net

30,388



30,061



90,132



86,536


Other expense, net

3,962



48



6,726



2,713


Earnings before provision for income taxes
and discontinued operations

336,007



299,533



896,490



826,314


Provision for income taxes

93,794



76,095



244,548



188,887


Earnings from continuing operations

242,213



223,438



651,942



637,427


Loss from discontinued operations, net

(1,167)



(51,158)



(732)



(20,473)


Net earnings

$

241,046



$

172,280



$

651,210



$

616,954










Comprehensive earnings

$

334,327



$

47,957



$

692,146



$

583,927










Basic earnings per common share:








Earnings from continuing operations

$

1.33



$

1.20



$

3.56



$

3.42


Loss from discontinued operations, net

(0.01)



(0.28)





(0.11)


Net earnings

1.33



0.93



3.56



3.31










Weighted average shares outstanding

181,763



185,770



183,000



186,246










Diluted earnings per common share:








Earnings from continuing operations

$

1.32



$

1.19



$

3.51



$

3.37


Loss from discontinued operations, net

(0.01)



(0.27)





(0.11)


Net earnings

1.31



0.91



3.51



3.26










Weighted average shares outstanding

183,932



188,436



185,489



189,420










Dividends paid per common share

$

0.35



$

0.315



$

0.98



$

0.865










 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


2012




Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2011

REVENUE












Communication Technologies

$

357,575


$

361,689


$

396,470


$

1,115,734



$

269,582


$

288,843


$

405,357


$

963,782


$

396,295


$

1,360,077














Energy

531,570


538,786


562,263


1,632,619



425,424


454,327


510,608


1,390,359


510,390


1,900,749














Engineered Systems












Fluid Solutions

180,364


211,974


218,324


610,662



163,196


178,031


173,804


515,031


162,590


677,621


Refrigeration & Industrial

642,213


674,501


674,116


1,990,830



560,453


645,573


649,768


1,855,794


568,844


2,424,638


Eliminations

(453)


(352)


(319)


(1,124)



(382)


(424)


(431)


(1,237)


(287)


(1,524)



822,124


886,123


892,121


2,600,368



723,267


823,180


823,141


2,369,588


731,147


3,100,735














Printing & Identification

352,332


370,173


358,086


1,080,591



394,627


429,497


400,515


1,224,639


368,325


1,592,964














Intra-segment eliminations

(237)


(263)


(241)


(741)



(822)


(877)


(1,015)


(2,714)


(1,671)


(4,385)














Total consolidated revenue

$

2,063,364


$

2,156,508


$

2,208,699


$

6,428,571



$

1,812,078


$

1,994,970


$

2,138,606


$

5,945,654


$

2,004,486


$

7,950,140














NET EARNINGS












Segment Earnings:












Communication Technologies

$

46,556


$

50,322


$

63,706


$

160,584



$

47,325


$

54,527


$

53,433


$

155,285


$

71,097


$

226,382


Energy

132,115


133,936


139,038


405,089



93,051


110,447


125,268


328,766


121,871


450,637


Engineered Systems

122,092


133,808


144,245


400,145



98,235


128,570


125,529


352,334


92,852


445,186


Printing & Identification

32,605


41,674


51,407


125,686



54,637


67,967


59,447


182,051


44,483


226,534


Total Segments

333,368


359,740


398,396


1,091,504



293,248


361,511


363,677


1,018,436


330,303


1,348,739


Corporate expense / other

36,546


36,335


32,001


104,882



36,112


35,391


34,083


105,586


32,393


137,979


Net interest expense

30,027


29,717


30,388


90,132



28,318


28,157


30,061


86,536


29,060


115,596


Earnings from continuing operations before provision for income taxes

266,795


293,688


336,007


896,490



228,818


297,963


299,533


826,314


268,850


1,095,164


Provision for income taxes

69,968


80,786


93,794


244,548



54,027


58,765


76,095


188,887


59,912


248,799


Earnings from continuing operations

196,827


212,902


242,213


651,942



174,791


239,198


223,438


637,427


208,938


846,365


Earnings (loss) from discontinued operations, net

(764)


1,199


(1,167)


(732)



20,114


10,571


(51,158)


(20,473)


69,351


48,878


Net earnings

$

196,063


$

214,101


$

241,046


$

651,210



$

194,905


$

249,769


$

172,280


$

616,954


278,289


$

895,243














SEGMENT OPERATING MARGIN










Communication Technologies

13.0

%

13.9

%

16.1

%

14.4

%


17.6

%

18.9

%

13.2

%

16.1

%

17.9

%

16.6

%

Energy

24.9

%

24.9

%

24.7

%

24.8

%


21.9

%

24.3

%

24.5

%

23.6

%

23.9

%

23.7

%

Engineered Systems

14.9

%

15.1

%

16.2

%

15.4

%


13.6

%

15.6

%

15.2

%

14.9

%

12.7

%

14.4

%

Printing & Identification

9.3

%

11.3

%

14.4

%

11.6

%


13.8

%

15.8

%

14.8

%

14.9

%

12.1

%

14.2

%

Total Segment

16.2

%

16.7

%

18.0

%

17.0

%


16.2

%

18.1

%

17.0

%

17.1

%

16.5

%

17.0

%













DEPRECIATION AND AMORTIZATION EXPENSE










Communication Technologies

$

31,513


$

32,828


$

32,997


$

97,338



$

18,685


$

18,533


$

34,360


$

71,578


$

30,261


$

101,839


Energy

21,184


23,533


24,639


69,356



18,573


18,765


19,399


56,737


21,082


77,819


Engineered Systems

19,582


23,913


23,060


66,555



18,415


18,816


18,332


55,563


19,213


74,776


Printing & Identification

11,206


11,448


11,604


34,258



11,372


11,685


11,548


34,605


11,543


46,148


Corporate

700


765


842


2,307



586


626


636


1,848


713


2,561



$

84,185


$

92,487


$

93,142


$

269,814



$

67,631


$

68,425


$

84,275


$

220,331


$

82,812


$

303,143


 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)



2012




Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2011

BOOKINGS












Communication Technologies

$

356,386


$

383,135


$

412,092


$

1,151,613



$

274,611


$

309,734


$

410,616


$

994,961


$

349,579


$

1,344,540














Energy

585,775


530,352


526,824


1,642,951



495,125


472,543


498,212


1,465,880


519,525


1,985,405














Engineered Systems












Fluid Solutions

184,711


204,139


197,767


586,617



173,626


175,539


174,772


523,937


158,895


682,832


Refrigeration & Industrial

711,911


666,223


600,065


1,978,199



660,449


623,929


602,488


1,886,866


625,840


2,512,706


Eliminations

(408)


(376)


(258)


(1,042)



(733)


(884)


179


(1,438)


(1,378)


(2,816)



896,214


869,986


797,574


2,563,774



833,342


798,584


777,439


2,409,365


783,357


3,192,722














Printing & Identification

347,368


357,648


342,834


1,047,850



438,526


386,259


384,085


1,208,870


353,849


1,562,719














Intra-segment eliminations

(609)


(222)


(759)


(1,590)



(2,736)


(3,370)


(2,452)


(8,558)


(3,153)


(11,711)














Total consolidated bookings

$

2,185,134


$

2,140,899


$

2,078,565


$

6,404,598



$

2,038,868


$

1,963,750


$

2,067,900


$

6,070,518


$

2,003,157


$

8,073,675














BACKLOG












Communication Technologies

$

435,912


$

457,624


$

473,007




$

410,843


$

431,558


$

483,512



$

437,320















Energy

296,360


282,364


248,233




240,198


255,889


243,401



246,351















Engineered Systems












Fluid Solutions

191,327


172,300


156,191




57,357


54,945


55,230



54,194



Refrigeration & Industrial

598,910


586,824


515,285




544,995


523,011


469,876



528,118



Eliminations

(132)


(155)


(94)




(339)


(526)


(94)



(177)




790,105


758,969


671,382




602,013


577,430


525,012



582,135















Printing & Identification

177,511


160,311


148,144




262,629


220,619


197,792



180,871















Intra-segment eliminations

(987)


(647)


(324)




(704)


(1,178)


(891)



(193)















Total consolidated backlog

$

1,698,901


$

1,658,621


$

1,540,442




$

1,514,979


$

1,484,318


$

1,448,826



$

1,446,484




 

DOVER CORPORATION


QUARTERLY EARNINGS PER SHARE


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





2012





Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2011


Basic earnings (loss) per common share:











Continuing operations

$

1.07


$

1.16


$

1.33


$

3.56



$

0.94


$

1.28


$

1.20


$

3.42


$

1.13


$

4.55


Discontinued operations


0.01


(0.01)




0.11


0.06


(0.28)


(0.11)


0.38


0.26


Net earnings

1.07


1.17


1.33


3.56



1.04


1.34


0.93


3.31


1.51


4.82


























Diluted earnings (loss) per common share:











Continuing operations

$

1.05


$

1.15


$

1.32


$

3.51



$

0.92


$

1.26


$

1.19


$

3.37


$

1.12


$

4.48


Discontinued operations


0.01


(0.01)




0.11


0.06


(0.27)


(0.11)


0.37


0.26


Net earnings

1.05


1.15


1.31


3.51



1.03


1.32


0.91


3.26


1.49


4.74




Adjusted diluted earnings per common share (calculated below):


Continuing operations

$

1.05


$

1.15


$

1.30


$

3.48



$

0.88


$

1.14


$

1.18


$

3.20


$

1.07


$

4.26















Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:















Net earnings (loss):













Continuing operations

$

196,827


$

212,902


$

242,213


$

651,942



$

174,791


$

239,198


$

223,438


$

637,427


$

208,938


$

846,365


Discontinued operations

(764)


1,199


(1,167)


(732)



20,114


10,571


(51,158)


(20,473)


69,351


48,878


Net earnings

196,063


214,101


241,046


651,210



194,905


249,769


172,280


616,954


278,289


895,243















Average shares outstanding:











Basic

183,737


183,494


181,763


183,000



186,659


186,443


185,770


186,246


184,686


185,882


Diluted

186,706


185,780


183,932


185,489



190,090


189,705


188,436


189,420


187,208


188,887



































Note:













Earnings from continuing operations are adjusted by discrete and other tax items to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:
















2012






















Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2011

Adjusted earnings from continuing operations:










Earnings from continuing operations

$

196,827



 

$

 

212,902


 

$

 

242,213


 

$

 

651,942



 

$

 

174,791


 

$

 

239,198


 

$

 

223,438


 

$

 

637,427


 

$

 

208,938


 

$

 

846,365

Gains (losses) from discrete and other tax items

1,432



 

(372)


 

4,513


5,573



 

8,016


 

22,338


 

2,390


 

32,744


 

8,590


 

41,334

Adjusted earnings from continuing operations

$

195,395



 

$

 

213,274


 

$

 

237,700


 

$

646,369



 

$

166,775


 

$

 

216,860


 

$

 

221,048


 

$

 

604,683


 

$

 

200,348


 

$

 

805,031














Adjusted diluted earnings per common share:










Earnings from continuing operations

$

1.05



 

$

 

1.15


 

$

 

1.32


 

$

3.51



 

$

 

0.92


 

$

 

1.26


 

$

 

1.19


 

$

 

3.37


 

$

 

1.12


 

$

 

4.48

Gains (losses) from discrete and other tax items



 


 

0.02


0.03



 

0.04


 

0.12


 

0.01


 

0.17


 

0.05


 

0.22

Adjusted earnings from continuing operations

$

1.05



 

$

 

1.15


 

$

 

1.30


 

$

 

3.48



 

$

 

0.88


 

$

 

1.14


 

$

 

1.18


 

$

 

3.20


 

$

 

1.07


 

$

 

4.26














* Per share data may not add due to rounding.










 

DOVER CORPORATION

QUARTERLY FREE CASH FLOW

(unaudited)(in thousands)






2012




Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2011

Cash flow from operating activities

$

160,127


$

252,120


$

298,987


$

711,234



$

117,503


$

205,260


$

376,614


$

699,377


$

358,852


$

1,058,229


Less: Additions to property, plant and equipment

(71,429)


(74,358)


(69,329)


(215,116)



(51,379)


(72,338)


(65,000)


(188,717)


(83,092)


(271,809)


Free cash flow

$

88,698


$

177,762


$

229,658


$

496,118



$

66,124


$

132,922


$

311,614


$

510,660


$

275,760


$

786,420














Free cash flow as a percentage of earnings from continuing operations

45.1

%

83.5

%

94.8

%

76.1

%


37.8

%

55.6

%

139.5

%

80.1

%

132.0

%

92.9

%













Free cash flow as a percentage of revenue

4.3

%

8.2

%

10.4

%

7.7

%


3.6

%

6.7

%

14.6

%

8.6

%

13.8

%

9.9

%

 

SOURCE Dover Corporation



RELATED LINKS
http://www.dovercorporation.com

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