Dover Reports First Quarter 2014 Results and Reaffirms 2014 Guidance

-- Reports quarterly revenue of $1.9 billion, an increase of 7% over the prior year
-- Delivers quarterly diluted earnings per share from continuing operations of $1.02, an increase of 7% over prior year
-- Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.01, excluding minor tax benefits, up 9% from an adjusted prior year
-- Reaffirms 2014 full year revenue growth of 6% to 7% and diluted earnings per share from continuing operations in the range of $4.60 to $4.80.

PR Newswire

DOWNERS GROVE, Ill., April 17, 2014 /PRNewswire/ -- Dover (DOV) announced today that for the first quarter ended March 31, 2014, revenue was $1.9 billion, an increase of 7% over the prior year. The revenue increase was driven by organic growth of 4% and an increase of 3% from acquisitions. Earnings from continuing operations were $176.3 million, or $1.02 diluted earnings per share ("EPS"), compared to $167.2 million, or $0.95 EPS, in the prior year period, representing increases of 5% and 7%, respectively. EPS from continuing operations for the quarter ended March 31, 2014 and 2013 include discrete tax benefits of $0.01 and $0.02 EPS, respectively. Excluding these items, adjusted EPS from continuing operations for the first quarter of 2014 was $1.01, reflecting an increase of 9% over an adjusted EPS of $0.93 in the prior year period.

Commenting on the first quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "Our strong first quarter results were highlighted by solid revenue growth, broad-based bookings growth, and building momentum as we moved through the quarter. Revenue growth was led by Fluids and Engineered Systems, along with solid growth in Energy. Our book-to-bill of 1.09 was driven by strong order activity at Refrigeration & Food Equipment, Fluids and Engineered Systems. The combination of a strong first quarter, growing bookings and backlog, and our positioning with customers give me great confidence that Dover will have an outstanding year."

"In addition to our strong results, we also completed several important initiatives in the first quarter.  We successfully spun off Knowles, completed our $1 billion share repurchase program, and realigned our businesses into a new segment structure organized around our key end-markets to better focus on growth strategies. Our new structure will also provide greater opportunities to leverage scale and capitalize on productivity initiatives."

"Looking forward, our view of 2014 remains unchanged. We continue to expect full year organic revenue growth of 3% to 4%, complemented by growth from completed acquisitions of 3%, resulting in total revenue growth of 6% to 7%.  Our full year segment margin expectations of around 18% are also unchanged.  As a result, we are re-affirming our full year EPS to be in the range of $4.60 to $4.80."

Net earnings for the first quarter of 2014 were $160.1 million or $0.93 EPS, compared to net earnings of $210.0 million, or $1.20 EPS, for the same period of 2013. 2014 results reflected a loss from discontinued operations of $16.2 million, or $0.09 EPS, which included $25.8 million in spin off costs. 2013 results included earnings from discontinued operations of $42.8 million, or $0.24 EPS.

Dover will host a webcast of its first quarter 2014 conference call at 10:30 A.M. Eastern Time (9:30 A.M. Central Time) on Thursday, April 17, 2014. 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 $8 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve.  Recognized for our entrepreneurial approach for nearly 60 years, our team of 27,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible.  Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.

Forward-Looking Statements:

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," "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; political events; 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; the ability of Dover's businesses to expand into new geographic markets and to anticipate and meet customer demands for new products; increased competition and pricing pressures in the markets served by Dover's businesses; the terms and timing of the sale of any business in discontinued operations; 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; possible future terrorist threats and their effect on the worldwide economy; 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 2014


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

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



Three Months Ended March 31,


2014


2013

Revenue

$

1,884,647



$

1,763,977


Cost of goods and services

1,148,438



1,082,359


Gross profit

736,209



681,618


Selling and administrative expenses

452,282



416,437


Operating earnings

283,927



265,181


Interest expense, net

32,665



30,284


Other expense (income), net

356



(2,889)


Earnings before provision for income taxes and discontinued operations

250,906



237,786


Provision for income taxes

74,582



70,573


Earnings from continuing operations

176,324



167,213


(Loss) earnings from discontinued operations, net

(16,186)



42,790


Net earnings

$

160,138



$

210,003






Basic earnings per common share:




Earnings from continuing operations

$

1.04



$

0.96


Earnings (loss) from discontinued operations, net

(0.10)



0.25


Net earnings

0.94



1.21






Weighted average shares outstanding

169,750



173,448






Diluted earnings per common share:




Earnings from continuing operations

$

1.02



$

0.95


Earnings (loss) from discontinued operations, net

(0.09)



0.24


Net earnings

0.93



1.20






Weighted average shares outstanding

172,013



175,567






Dividends paid per common share

$

0.375



$

0.350






 


DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2014


2013


Q1


Q1

Q2

Q3

Q4

FY 2013

REVENUE








Energy

$

478,773



$

462,679


$

465,906


$

467,688


$

457,580


$

1,853,853










Engineered Systems








Printing & Identification

263,533



237,869


250,616


256,565


276,672


1,021,722


Industrials

386,245



367,456


388,810


385,640


374,934


1,516,840



649,778



605,325


639,426


642,205


651,606


2,538,562










Fluids

345,009



273,638


310,137


309,241


343,822


1,236,838










Refrigeration & Food Equipment

411,493



422,468


517,574


521,322


426,476


1,887,840










Intra-segment eliminations

(406)



(133)


(632)


(245)


(430)


(1,440)


Total consolidated revenue

$

1,884,647



$

1,763,977


$

1,932,411


$

1,940,211


$

1,879,054


$

7,515,653










NET EARNINGS








Segment Earnings:








Energy

$

118,968



$

118,708


$

109,662


$

119,086


$

112,193


$

459,649


Engineered Systems

92,320



83,283


102,804


111,850


101,511


399,448


Fluids

57,942



47,601


58,768


63,056


55,098


224,523


Refrigeration & Food Equipment

44,862



52,110


82,177


86,446


46,574


267,307


Total Segments

314,092



301,702


353,411


380,438


315,376


1,350,927


Corporate expense / other

30,521



33,632


34,860


32,532


28,752


129,776


Net interest expense

32,665



30,284


30,232


30,236


29,920


120,672


Earnings from continuing operations before provision for

 income taxes

250,906



237,786


288,319


317,670


256,704


1,100,479


Provision for income taxes

74,582



70,573


30,261


91,435


74,138


266,407


Earnings from continuing operations

176,324



167,213


258,058


226,235


182,566


834,072


Earnings (loss) from discontinued operations, net

(16,186)



42,790


71,991


42,879


11,397


169,057


Net earnings

$

160,138



$

210,003


$

330,049


$

269,114


$

193,963


$

1,003,129










SEGMENT OPERATING MARGIN







Energy

24.8

%


25.7

%

23.5

%

25.5

%

24.5

%

24.8

%

Engineered Systems

14.2

%


13.8

%

16.1

%

17.4

%

15.6

%

15.7

%

Fluids

16.8

%


17.4

%

18.9

%

20.4

%

16.0

%

18.2

%

Refrigeration & Food Equipment

10.9

%


12.3

%

15.9

%

16.6

%

10.9

%

14.2

%

Total Segment

16.7

%


17.1

%

18.3

%

19.6

%

16.8

%

18.0

%









DEPRECIATION AND AMORTIZATION EXPENSE







Energy

$

25,575



$

24,448


$

24,714


$

24,707


$

25,206


$

99,075


Engineered Systems

18,977



17,450


17,885


18,110


18,137


71,582


Fluids

16,366



11,361


11,570


11,790


14,091


48,812


Refrigeration & Food Equipment

17,212



16,585


16,611


16,962


17,070


67,228


Corporate

869



858


1,029


1,030


944


3,861



$

78,999



$

70,702


$

71,809


$

72,599


$

75,448


$

290,558










 

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)



2014


2013


Q1


Q1

Q2

Q3

Q4

FY 2013

BOOKINGS








Energy

$

478,469



$

515,388


$

416,892


$

481,021


$

440,261


$

1,853,562










Engineered Systems








Printing & Identification

282,867



237,291


259,380


256,210


270,392


1,023,273


Industrials

427,557



405,555


396,886


344,764


371,797


1,519,002


Eliminations

(17)



(82)


(129)


(5)


279


63



710,407



642,764


656,137


600,969


642,468


2,542,338










Fluids

362,943



303,609


298,817


307,729


351,767


1,261,922










Refrigeration & Food Equipment

493,731



482,742


515,320


433,426


450,850


1,882,338










Intra-segment eliminations

(506)



(560)


(708)


(416)


734


(950)










Total consolidated bookings

$

2,045,044



$

1,943,943


$

1,886,458


$

1,822,729


$

1,886,080


$

7,539,210










BACKLOG








Energy

$

210,846



$

274,733


$

218,764


$

233,820


$

206,790











Engineered Systems








Printing & Identification

136,309



95,353


103,864


105,699


100,032



Industrials

414,979



415,478


421,834


379,457


374,008




551,288



510,831


525,697


485,155


474,040











Fluids

328,617



222,255


228,212


228,880


310,330











Refrigeration & Food Equipment

431,298



417,246


412,366


324,042


347,004











Intra-segment eliminations

(374)



(385)


(526)


(387)


(592)











Total consolidated backlog

$

1,521,675



$

1,424,680


$

1,384,513


$

1,271,510


$

1,337,572



 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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



2014


2013


Q1


Q1

Q2

Q3

Q4

FY 2013

Basic earnings (loss) per common share:










Continuing operations

$

1.04



$

0.96


$

1.51


$

1.33


$

1.07


$

4.87


Discontinued operations

(0.10)



0.25


0.42


0.25


0.07


0.99


Net earnings

0.94



1.21


1.93


1.58


1.14


5.86










Diluted earnings (loss) per common share:










Continuing operations

$

1.02



$

0.95


$

1.49


$

1.31


$

1.06


$

4.81


Discontinued operations

(0.09)



0.24


0.42


0.25


0.07


0.97


Net earnings

0.93



1.20


1.91


1.56


1.13


5.78










Adjusted diluted earnings per common share (calculated below):



















Continuing operations

$

1.01



$

0.93


$

1.13


$

1.25


$

1.02


$

4.33










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









Net earnings (loss):








Continuing operations

$

176,324



$

167,213


$

258,058


$

226,235


$

182,566


$

834,072


Discontinued operations

(16,186)



42,790


71,991


42,879


11,397


169,057


Net earnings

160,138



210,003


330,049


269,114


193,963


1,003,129










Average shares outstanding:







Basic

169,750



173,448


171,111


170,544


170,027


171,271


Diluted

172,013



175,567


173,097


172,734


172,265


173,547


















Note:








Earnings from continuing operations are adjusted by discrete tax items and other one-time gains to derive adjusted earnings from continuing

operations and adjusted diluted earnings per common share as follows:










2014


2013


Q1


Q1

Q2

Q3

Q4

FY 2013

Adjusted earnings from continuing operations:







Earnings from continuing operations

$

176,324



$

167,213


$

258,058


$

226,235


$

182,566


$

834,072


Gains from discrete and other tax items

2,541



4,343


61,477


7,751


6,084


79,655


Other one-time gains, net of tax





2,866



2,866


Adjusted earnings from continuing operations

$

173,783



$

162,870


$

196,581


$

215,618


$

176,482


$

751,551










Adjusted diluted earnings per common share:







Earnings from continuing operations

$

1.02



$

0.95


$

1.49


$

1.31


$

1.06


$

4.81


Gains from discrete and other tax items

0.01



0.02


0.36


0.04


0.04


0.46


Other one-time gains, net of tax





0.02



0.02


Adjusted earnings from continuing operations

$

1.01



$

0.93


$

1.13


$

1.25


$

1.02


$

4.33










* Per share data may not add due to rounding.







 

DOVER CORPORATION

QUARTERLY FREE CASH FLOW

(unaudited)(in thousands)



2014


2013


Q1


Q1

Q2

Q3

Q4

FY 2013

Cash flow from operating activities

$

39,778



$

57,713


$

249,053


$

279,375


$

418,280


$

1,004,421


Less: Additions to property, plant and equipment

(33,402)



(26,326)


(32,017)


(39,644)


(47,579)


(145,566)


Free cash flow

$

6,376



$

31,387


$

217,036


$

239,731


$

370,701


$

858,855










Free cash flow as a percentage of earnings from continuing

operations

3.6

%


18.8

%

84.1

%

106.0

%

203.1

%

103.0

%









Free cash flow as a percentage of revenue

0.3

%


1.8

%

11.2

%

12.4

%

19.7

%

11.4

%

 

Rates

View Comments (0)