DOVER CORPORATION 
DOWNERS GROVE, Ill., April 17, 2014 /PRNewswire/ -- Dover (NYSE: 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
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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 250,906 237,786 288,319 317,670 256,704 1,100,479
income taxes
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 3.6% 18.8% 84.1% 106.0% 203.1% 103.0%
operations
Free cash flow as a percentage of revenue 0.3% 1.8% 11.2% 12.4% 19.7% 11.4%
SOURCE Dover
