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Dover 3Q net income up 12 percent, narrows outlook

The Associated Press

NEWS: Dover Corp. said Thursday that its net income rose 12 percent in its third quarter, but its shares fell as the manufacturer narrowed its full-year outlook, citing weaker-than-expected conditions.

DETAILS: The company, based in Downers Grove, Ill., makes communications equipment, machinery used in oil and gas drilling and printing and identification technology.

The company said its strongest businesses were oil drilling and downstream equipment, refrigeration and food equipment, and printing and identification.

NUMBERS: Net income rose to $269.1 million, or $1.56 per share, in the three months ending Sept. 30. That's up from $241 million, or $1.31 per share, in the same quarter a year ago.

Excluding costs related to a spin-off and other one-time charges, the company reported earnings of $1.54 per share. Analysts, on average, expected $1.50 per share, according to FactSet.

Revenue rose 7.4 percent to $2.3 billion in the third quarter from $2.1 billion in the same quarter a year ago. That was in line with what analysts expected.

FUTURE: The company narrowed its full-year earnings and revenue for the full year because market conditions were weaker than it expected.

It now expects earnings from continuing operations between $5.57 per share to $5.64 per share. That compares with its previous projection of $5.56 per share to $5.71 per share. Analysts expect earnings of $5.31 per share for the full year.

It now expects revenue growth of 7 percent for the full year. That's the low end of its previous revenue growth expectations between 7 percent and 9 percent for the year.

Based on revenue of $8.1 billion last year, that implies a forecast for full-year revenue at $8.67 billion. Analysts had expected $8.78 billion.

STOCK: Down $2.36, or 2.7 percent, to $85.96 in midday trading Thursday.