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Press release from PR Newswire

Dover Reports First Quarter 2013 Results; Reaffirms Full-Year Outlook

Wednesday, April 17, 2013

Dover Reports First Quarter 2013 Results; Reaffirms Full-Year Outlook

07:00 EDT Wednesday, April 17, 2013

DOWNERS GROVE, Ill., April 17, 2013 /PRNewswire/ --

  • Reports quarterly revenue of $2.0 billion, an increase of 4% over the prior year
  • Delivers quarterly diluted earnings per share from continuing operations of $1.12, an increase of 12% over last year
  • Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.10, excluding tax benefits of $0.02, up 9% from an adjusted prior year
  • Reaffirms outlook for full year revenue growth at 7% to 9%, and diluted earnings per share from continuing operations of $5.05 to $5.35

Dover (NYSE: DOV) announced today that for the first quarter ended March 31, 2013, revenue was $2.0 billion, an increase of 4% over the prior-year period. The revenue increase was driven by a 6% increase from acquisitions offset by organic decline of 1% and a minor impact from foreign exchange. Earnings from continuing operations were $197.0 million, or $1.12 diluted earnings per share ("EPS"), compared to $186.4 million, or $1.00 EPS, in the prior-year period, representing increases of 6% and 12%, respectively.  Excluding the impact of discrete tax items of $0.02 EPS recognized in the current quarter and $0.01 EPS recognized in the prior-year period, adjusted EPS from continuing operations for the first quarter of 2013 was $1.10, reflecting an increase of 9% over an adjusted EPS of $1.01 in the prior-year period.  

Commenting on the first quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "We were pleased with our first quarter results.  We achieved solid revenue growth from our businesses serving the production and downstream energy markets and the consumer electronics market.  These results helped offset the anticipated revenue decline driven by a lower North American rig count and reduced refrigeration activity, principally associated with a major retailer, as well as soft European industrial markets. In addition, our recently acquired refrigeration business, Anthony International, is off to a great start and we are enthusiastic about Dover's continued strength in that market. We also made progress on our $1 billion share repurchase program, repurchasing 4 million shares in the first quarter."

"I am encouraged by our solid seasonal bookings growth as we begin the second quarter.  In total, bookings grew 7% and resulted in a book-to-bill of 1.09." 

"Looking ahead, our full year view of 2013 is essentially unchanged from our previous guidance.  We continue to expect full year organic growth of 3% to 5%, complemented by acquisition growth of 4%, resulting in total revenue growth of 7% to 9%.  Accordingly, we are reaffirming our full year diluted EPS from continuing operations will be in the range of $5.05 - $5.35."

Net earnings for the first quarter of 2013 were $210.0 million or $1.20 EPS, including earnings from discontinued operations of $13.0 million, or $0.07 EPS, compared to net earnings of $196.1 million, or $1.05 EPS, for the same period of 2012, which included earnings from discontinued operations of $9.7 million, or $0.05 EPS.

Dover will host a webcast of its first quarter 2013 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, April 17, 2013. The webcast can be accessed on the Dover 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 is a diversified global manufacturer with annual revenues of over $8 billion.  For over 50 years, Dover has been delivering outstanding products and services that reflect its market leadership and commitment to operational and technical excellence. The Company's entrepreneurial business model encourages, promotes and fosters deep customer engagement which has led to Dover's well-established and valued reputation for providing superior customer service and industry-leading product innovation. Dover 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. Headquartered in Downers Grove, Illinois, Dover employs 35,000 people worldwide. Dover is traded on the New York Stock Exchange under "DOV." Additional information is available on our 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, operating and strategic plans, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover businesses operate and the U.S. and global economies. Statements in this press release that are not historical are hereby identified as "forward-looking statements" and 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," or the use of the 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, the state of the worldwide economy and sovereign credit, especially in Europe; political events that could impact the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; current economic conditions and uncertainties in the credit and capital markets; instability in countries where Dover conducts business; possible future terrorist threats and their effect on the worldwide economy; the ability of Dover's businesses to expand into new geographic markets and to anticipate and meet customer demands for new products and product enhancements; increased competition and pricing pressures in the markets served by Dover's businesses; the impact of loss of a single-source manufacturing facility; changes in customer demand or loss of a significant customer; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints; increases in the cost of raw materials; domestic and foreign governmental and public policy changes including environmental regulations, conflict minerals disclosure requirements, and tax policies (including domestic and international export subsidy programs, R&E credits and other similar programs); protection and validity of patent and other intellectual property rights; the ability to identify and successfully consummate value-adding acquisition opportunities;  Dover's ability to achieve expected savings from integration, synergy and other cost-control initiatives; unforeseen developments in contingencies such as litigation; international economic conditions including interest rate and  currency exchange rate fluctuations; and a downgrade in Dover's credit ratings.  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 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 undertakes no obligation to update any forward-looking statement, except as required by law.

 

INVESTOR SUPPLEMENT - FIRST QUARTER 2013

 

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

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

Three Months Ended March 31,

2013

2012

Revenue

$

2,039,573

$

1,954,614

Cost of goods and services

1,262,951

1,208,534

Gross profit

776,622

746,080

Selling and administrative expenses

484,421

453,989

Operating earnings

292,201

292,091

Interest expense, net

30,244

30,031

Other (income) expense, net

(4,719)

1,785

Earnings before provision for income taxes and discontinued operations

266,676

260,275

Provision for income taxes

69,687

73,866

Earnings from continuing operations

196,989

186,409

Earnings from discontinued operations, net

13,014

9,654

Net earnings

$

210,003

$

196,063

Comprehensive earnings

$

178,724

$

237,305

Basic earnings per common share:

Earnings from continuing operations

$

1.14

$

1.01

Earnings from discontinued operations, net

0.08

0.05

Net earnings

1.21

1.07

Weighted average shares outstanding

173,448

183,737

Diluted earnings per common share:

Earnings from continuing operations

$

1.12

$

1.00

Earnings from discontinued operations, net

0.07

0.05

Net earnings

1.20

1.05

Weighted average shares outstanding

175,567

186,706

Dividends paid per common share

$

0.35

$

0.315

 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)

2013

2012

Q1

Q1

Q2

Q3

Q4

FY 2012

REVENUE

Communication Technologies

$

372,790

$

357,575

$

361,689

$

396,470

$

400,851

$

1,516,585

Energy

561,198

531,570

538,786

562,263

539,985

2,172,604

Engineered Systems

Fluid Solutions

203,991

180,364

211,974

218,324

206,500

817,162

Refrigeration & Industrial

664,294

642,213

674,501

674,116

613,012

2,603,842

Eliminations

(352)

(453)

(352)

(319)

(336)

(1,460)

867,933

822,124

886,123

892,121

819,176

3,419,544

Printing & Identification

237,877

243,570

251,875

246,945

254,141

996,531

Intra-segment eliminations

(225)

(225)

(184)

(194)

(322)

(925)

Total consolidated revenue

$

2,039,573

$

1,954,614

$

2,038,289

$

2,097,605

$

2,013,831

$

8,104,339

NET EARNINGS

Segment Earnings:

Communication Technologies

$

44,208

$

46,556

$

50,322

$

63,706

$

58,376

$

218,960

Energy

139,545

132,115

133,936

139,038

133,561

538,650

Engineered Systems

117,178

122,092

133,808

144,245

101,807

501,952

Printing & Identification

29,752

26,089

28,918

39,502

40,650

135,159

Total Segments

330,683

326,852

346,984

386,491

334,394

1,394,721

Corporate expense / other

33,763

36,546

36,335

32,001

31,127

136,009

Net interest expense

30,244

30,031

29,715

30,399

30,996

121,141

Earnings from continuing operations before provision for income taxes

266,676

260,275

280,934

324,091

272,271

1,137,571

Provision for income taxes

69,687

73,866

75,778

90,761

64,047

304,452

Earnings from continuing operations

196,989

186,409

205,156

233,330

208,224

833,119

Earnings (loss) from discontinued operations, net

13,014

9,654

8,945

7,716

(48,364)

(22,049)

Net earnings

$

210,003

$

196,063

$

214,101

$

241,046

$    159,860

$

811,070

SEGMENT OPERATING MARGIN

Communication Technologies

11.9

%

13.0

%

13.9

%

16.1

%

14.6

%

14.4

%

Energy

24.9

%

24.9

%

24.9

%

24.7

%

24.7

%

24.8

%

Engineered Systems

13.5

%

14.9

%

15.1

%

16.2

%

12.4

%

14.7

%

Printing & Identification

12.5

%

10.7

%

11.5

%

16.0

%

16.0

%

13.6

%

Total Segment

16.2

%

16.7

%

17.0

%

18.4

%

16.6

%

17.2

%

DEPRECIATION AND AMORTIZATION EXPENSE

Communication Technologies

$

35,501

$

31,513

$

32,828

$

32,997

$

35,281

$

132,619

Energy

26,298

21,184

23,533

24,639

25,721

95,077

Engineered Systems

31,551

19,582

23,913

23,060

27,066

93,621

Printing & Identification

7,630

8,331

8,496

8,777

7,998

33,602

Corporate

859

700

765

842

359

2,666

$

101,839

$

81,310

$

89,535

$

90,315

$

96,425

$

357,585

 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)

2013

2012

Q1

Q1

Q2

Q3

Q4

FY 2012

BOOKINGS

Communication Technologies

$

379,122

$

347,291

$

387,058

$

411,005

$

363,624

$

1,508,978

Energy

620,640

585,775

530,352

526,824

550,091

2,193,042

Engineered Systems

Fluid Solutions

223,764

184,711

204,139

197,767

209,872

796,489

Refrigeration & Industrial

755,026

711,911

666,223

600,065

606,931

2,585,130

Eliminations

(373)

(408)

(376)

(258)

(399)

(1,441)

978,417

896,214

869,986

797,574

816,404

3,380,178

Printing & Identification

237,217

249,773

251,733

244,611

252,937

999,054

Intra-segment eliminations

(720)

(609)

(221)

(759)

(1,020)

(2,609)

Total consolidated bookings

$

2,214,676

$

2,078,444

$

2,038,908

$

1,979,255

$

1,982,036

$

8,078,643

BACKLOG

Communication Technologies

$

458,765

$

451,110

$

476,745

$

491,041

$

453,172

Energy

311,793

296,360

282,364

248,233

256,093

Engineered Systems

Fluid Solutions

178,854

191,327

172,300

156,191

160,890

Refrigeration & Industrial

592,922

598,910

586,824

515,285

516,559

Eliminations

(178)

(132)

(155)

(94)

(157)

771,598

790,105

758,969

671,382

677,292

Printing & Identification

95,353

102,117

98,216

98,356

97,857

Intra-segment eliminations

(886)

(986)

(648)

(324)

(591)

Total consolidated backlog

$

1,636,623

$

1,638,706

$

1,615,646

$

1,508,688

$

1,483,823

 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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

2013

2012

Q1

Q1

Q2

Q3

Q4

FY 2012

Basic earnings (loss) per common share:

Continuing operations

$

1.14

$

1.01

$

1.12

$

1.28

$

1.17

$

4.59

Discontinued operations

0.08

0.05

0.05

0.04

(0.27)

(0.12)

Net earnings

1.21

1.07

1.17

1.33

0.90

4.47

Diluted earnings (loss) per common share:

Continuing operations

$

1.12

$

1.00

$

1.10

$

1.27

$

1.16

$

4.53

Discontinued operations

0.07

0.05

0.05

0.04

(0.27)

(0.12)

Net earnings

1.20

1.05

1.15

1.31

0.89

4.41

Adjusted diluted earnings per common share (calculated below):

Continuing operations

$

1.10

$

1.01

$

1.10

$

1.25

$

1.09

$

4.44

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

Net earnings (loss):

Continuing operations

$

196,989

$

186,409

$

205,156

$

233,330

$

208,224

$

833,119

Discontinued operations

13,014

9,654

8,945

7,716

(48,364)

(22,049)

Net earnings

210,003

196,063

214,101

241,046

159,860

811,070

Average shares outstanding:

Basic

173,448

183,737

183,494

181,763

177,257

181,551

Diluted

175,567

186,706

185,780

183,932

179,365

183,993

 

Note:

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

2013

2012

Q1

Q1

Q2

Q3

Q4

FY 2012

Adjusted earnings from continuing operations:

Earnings from continuing operations

$

196,989

$

186,409

$

205,156

$

233,330

$

208,224

$

833,119

Gains (losses) from discrete and other tax items

4,525

(1,610)

(372)

4,513

13,606

16,137

Adjusted earnings from continuing operations

$

192,464

$

188,019

$

205,528

$

228,817

$

194,618

$

816,982

Adjusted diluted earnings per common share:

Earnings from continuing operations

$

1.12

$

1.00

$

1.10

$

1.27

$

1.16

$

4.53

Gains (losses) from discrete and other tax items

0.02

(0.01)

?

0.02

0.07

0.09

Adjusted earnings from continuing operations

$

1.10

$

1.01

$

1.10

$

1.25

$

1.09

$

4.44

* Per share data may not add due to rounding.

 

DOVER CORPORATION

QUARTERLY FREE CASH FLOW

(unaudited)(in thousands)

2013

2012

Q1

Q1

Q2

Q3

Q4

FY 2012

Cash flow from operating activities

$

78,326

$

161,327

$

243,363

$

285,811

$

570,659

$

1,261,160

Less: Additions to property, plant and equipment

(47,153)

(68,249)

(72,758)

(67,842)

(88,163)

(297,012)

Free cash flow

$

31,173

$

93,078

$

170,605

$

217,969

$

482,496

$

964,148

Free cash flow as a percentage of earnings from continuing operations

15.8

%

49.9

%

83.2

%

93.4

%

231.7

%

115.7

%

Free cash flow as a percentage of revenue

1.5

%

4.8

%

8.4

%

10.4

%

24.0

%

11.9

%

 

SOURCE Dover

For further information: Paul Goldberg, Vice President - Investor Relations, (212) 922-1640

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