Attached files
| file | filename |
|---|---|
| 8-K - 8-K - DOVER Corp | a201404178-k.htm |
| EX-99.2 - EX-99.2 - DOVER Corp | a20140417exhibit992.htm |
Exhibit 99.1
CONTACT: | ||
Paul Goldberg | ||
Vice President - Investor Relations | ||
(212) 922-1640 | ||
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. |
Downers Grove, Illinois, April 17, 2014 — 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
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 | % | |||||||