Dover Corporation Reports Third Quarter 2012 Results

17 Oct, 2012, 07:00 ET from Dover Corporation

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