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Press release from PR Newswire

Dover Corporation Reports First Quarter 2012 Results

Wednesday, April 18, 2012

Dover Corporation Reports First Quarter 2012 Results07:00 EDT Wednesday, April 18, 2012DOWNERS GROVE, Ill., April 18, 2012 /PRNewswire-FirstCall/ --Reports revenue of $2.1 billion, an increase of 14% over the prior year, including organic growth of 9% Delivers quarterly diluted earnings per share from continuing operations of $1.05 Raises low end of guidance for full-year earnings per share from continuing operations; new range is $4.80 - $5.00 Dover Corporation (NYSE: DOV) announced today that for the first quarter ended March 31, 2012, revenue was $2.1 billion, an increase of 14% over the prior-year period.  The revenue increase was primarily driven by organic growth of 9% and a 5% increase from acquisitions.  Earnings from continuing operations were $196.8 million, or $1.05 diluted earnings per share ("EPS"), compared to $174.8 million, or $0.92 EPS, in the prior-year period, representing increases in earnings from continuing operations and EPS of 13% and 14%, respectively.  EPS from continuing operations increased 19% in the quarter, excluding the impact of tax benefits of $0.04 EPS recognized in the prior year period.  Commenting on the first quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "We are off to a great start in 2012 with strong revenue growth across the majority of our end-markets. Our 9% organic revenue growth for the quarter was driven by broad-based strength in energy, refrigeration and food equipment, handsets, fluids, and our industrial end-markets. Segment margin was 16.2%, led by our Energy and Engineered Systems segments, both of which exhibited strong operating leverage on volume. We saw a seasonal upswing in many of our businesses and finished with a solid book-to-bill of 1.06." "Dover continued to execute on our growth plans throughout the first quarter, including completing the acquisition of Maag Group. Maag, a leader in gear pumps for the plastics and petrochemical industries, is now part of our Fluid Solutions platform and will help expand our participation in the global fluids space.  We also invested for growth through expansion of our international sales and service network, and strategic capital projects connected with the handset market. These capital projects will improve productivity, facilitate production of new design wins and help drive improved results in the back half of the year.""Looking forward, we now expect full year 2012 revenue growth of 10% - 12%, comprised of organic revenue growth of 5% - 7%, plus growth from completed acquisitions of 5%. Based on this revenue assumption, we expect full-year diluted EPS from continuing operations to be in the range of $4.80 - $5.00, which represents a $0.10 increase from the low-end of our prior guidance."Net earnings for the first quarter of 2012 were $196.1 million or $1.05 EPS, including a net loss from discontinued operations of $0.7 million, compared to net earnings of $194.9 million, or $1.03 EPS, for the same period of 2011, which included a gain from discontinued operations of $20.1 million, or $0.11 EPS. Dover will host a webcast of its first quarter 2012 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, April 18, 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 first 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 nearly 34,000 people worldwide. Dover Corporation is traded on the New York Stock Exchange under "DOV."  Additional information is available at 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 - FIRST QUARTER 2012DOVER CORPORATIONCONSOLIDATED STATEMENTS OF EARNINGS(unaudited)(in thousands, except per share data)Three Months Ended March 31,20122011Revenue$2,063,364$1,812,078Cost of goods and services1,283,0401,100,327Gross profit780,324711,751Selling and administrative expenses480,880453,427Operating earnings299,444258,324Interest expense, net30,02728,318Other expense, net2,6221,188Earnings before provision for income taxes and discontinued operations266,795228,818Provision for income taxes69,96854,027Earnings from continuing operations196,827174,791(Loss) earnings from discontinued operations, net(764)20,114Net earnings $196,063$194,905Comprehensive earnings$237,305$266,566Basic earnings per common share:Earnings from continuing operations$1.07$0.94Earnings from discontinued operations, net-0.11Net earnings 1.071.04Weighted average shares outstanding 183,737186,659Diluted earnings per common share:Earnings from continuing operations$1.05$0.92Earnings from discontinued operations, net-0.11Net earnings1.051.03Weighted average shares outstanding 186,706190,090Dividends paid per common share$0.315$0.275 DOVER CORPORATIONQUARTERLY SEGMENT INFORMATION(unaudited)(in thousands)20122011Q1Q1Q2Q3Q4FY 2011REVENUECommunication Technologies$357,575$269,582$288,843$405,357$396,295$1,360,077Energy531,570425,424454,327510,608510,3901,900,749Engineered Systems       Fluid Solutions 180,364163,196178,031173,804162,590677,621       Refrigeration & Industrial 642,213560,453645,573649,768568,8442,424,638       Eliminations (453)(382)(424)(431)(287)(1,524)822,124723,267823,180823,141731,1473,100,735Printing & Identification352,332394,627429,497400,515368,3251,592,964Intra-segment eliminations(237)(822)(877)(1,015)(1,671)(4,385)Total consolidated revenue$2,063,364$1,812,078$1,994,970$2,138,606$2,004,486$7,950,140NET EARNINGS Segment Earnings:   Communication Technologies$46,556$47,325$54,527$53,433$71,097$226,382   Energy132,11593,051110,447125,268121,871450,637   Engineered Systems122,09298,235128,570125,52992,852445,186   Printing & Identification32,60554,63767,96759,44744,483226,534Total Segments333,368293,248361,511363,677330,3031,348,739Corporate expense / other 36,54636,11235,39134,08332,393137,979Net interest expense30,02728,31828,15730,06129,060115,596Earnings from continuing operations before provision for income taxes266,795228,818297,963299,533268,8501,095,164Provision for income taxes69,96854,02758,76576,09559,912248,799Earnings from continuing operations 196,827174,791239,198223,438208,938846,365Earnings (loss) from discontinued operations, net(764)20,11410,571(51,158)69,35148,878Net earnings$196,063$194,905$249,769$172,280$278,289$895,243SEGMENT OPERATING MARGIN   Communication Technologies13.0%17.6%18.9%13.2%17.9%16.6%   Energy24.9%21.9%24.3%24.5%23.9%23.7%   Engineered Systems14.9%13.6%15.6%15.2%12.7%14.4%   Printing & Identification9.3%13.8%15.8%14.8%12.1%14.2%Total Segment 16.2%16.2%18.1%17.0%16.5%17.0%DEPRECIATION AND AMORTIZATION EXPENSECommunication Technologies$31,513$18,685$18,533$34,360$30,261$101,839Energy21,18418,57318,76519,39921,08277,819Engineered Systems19,58218,41518,81618,33219,21374,776Printing & Identification11,20611,37211,68511,54811,54346,148Corporate7005866266367132,561$84,185$67,631$68,425$84,275$82,812$303,143DOVER CORPORATIONQUARTERLY SEGMENT INFORMATION(continued)(unaudited)(in thousands)Q1Q1Q2Q3Q4FY 2011BOOKINGSCommunication Technologies$356,386$274,611$309,734$410,616$349,579$1,344,540Energy585,775495,125472,543498,212519,5251,985,405Engineered Systems       Fluid Solutions 184,711173,626175,539174,772158,895682,832       Refrigeration & Industrial 711,911660,449623,929602,488625,8402,512,706       Eliminations (408)(733)(884)179(1,378)(2,816)896,214833,342798,584777,439783,3573,192,722Printing & Identification347,368438,526386,259384,085353,8491,562,719Intra-segment eliminations(609)(2,736)(3,370)(2,452)(3,153)(11,711)Total consolidated bookings$2,185,134$2,038,868$1,963,750$2,067,900$2,003,157$8,073,675BACKLOGCommunication Technologies$435,912$410,843$431,558$483,512$437,320Energy296,360240,198255,889243,401246,351Engineered Systems       Fluid Solutions 191,32757,35754,94555,23054,194       Refrigeration & Industrial 598,910544,995523,011469,876528,118       Eliminations (132)(339)(526)(94)(177)790,105602,013577,430525,012582,135Printing & Identification177,511262,629220,619197,792180,871Intra-segment eliminations(987)(704)(1,178)(891)(193)Total consolidated backlog$1,698,901$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)20122011Q1Q1Q2Q3Q4FY 2011Basic earnings (loss) per common share:Continuing operations$1.07$0.94$1.28$1.20$1.13$4.55Discontinued operations-0.110.06(0.28)0.380.26Net earnings1.071.041.340.931.514.82Diluted earnings (loss) per common share:Continuing operations$1.05$0.92$1.26$1.19$1.12$4.48Discontinued operations-0.110.06(0.27)0.370.26Net earnings1.051.031.320.911.494.74Adjusted diluted earnings per common share (calculated below): Continuing operations$1.05$0.88$1.14$1.18$1.07$4.26Net earnings (loss) :Continuing operations$196,827$174,791$239,198$223,438$208,938$846,365Discontinued operations(764)20,11410,571(51,158)69,35148,878Net earnings196,063194,905249,769172,280278,289895,243Average shares outstanding:Basic183,737186,659186,443185,770184,686185,882Diluted186,706190,090189,705188,436187,208188,887NOTE: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:20122011Q1Q1Q2Q3Q4FY 2011Adjusted earnings from continuing operations:Earnings from continuing operations$196,827$174,791$239,198$223,438$208,938$846,365Less: Gains from discrete and other tax items1,4328,01622,3382,3908,59041,334Adjusted earnings from continuing operations$195,395$166,775$216,860$221,048$200,348$805,031Adjusted diluted earnings per common share:Earnings from continuing operations$1.05$0.92$1.26$1.19$1.12$4.48Less: Gains from discrete and other tax items -0.040.120.010.050.22Adjusted earnings from continuing operations$1.05$0.88$1.14$1.18$1.07$4.26DOVER CORPORATION?QUARTERLY FREE CASH FLOW(unaudited)(in thousands)20122011Q1Q1Q2Q3Q4FY 2011Cash flow from operating activities$160,127$117,503$205,260$376,614$358,852$1,058,229Less:  Additions to property, plant and equipment(71,429)(51,379)(72,338)(65,000)(83,092)(271,809)Free cash flow$88,698$66,124$132,922$311,614$275,760$786,420Free cash flow as a percentage of netearnings from continuing operations45.1%37.8%55.6%139.5%132.0%92.9%Free cash flow as a percentage of revenue4.3%3.6%6.7%14.6%13.8%9.9% SOURCE Dover CorporationFor further information: Paul Goldberg, Vice President - Investor Relations, +1-212-922-1640