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Dover Reports First Quarter 2013 Results; Reaffirms Full-Year Outlook
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DOWNERS GROVE, Ill., April 17, 2013 /PRNewswire via COMTEX/ --

  • 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