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Dover Reports First Quarter 2015 Results
Commenting on the first quarter results, Dover's President and Chief Executive Officer,
"As we deal with these headwinds we will remain focused on growth investments, as well as investment in productivity initiatives, including supply chain optimization and shared infrastructure. I am confident the combination of these actions positions us well to continue our long-term track record of strong performance."
"Looking forward, we are re-affirming our recently updated 2015 guidance. We expect full-year revenue to decline 4% to 6%. Within our revenue forecast, organic growth is anticipated to decline 2% to 4%, completed acquisitions will provide approximately 2% growth, and FX is expected to be a 4% headwind. In total, full year adjusted EPS is expected to be in the range of
Net earnings for the quarter ended March 31, 2015, were
Dover will host a webcast of its first quarter 2015 conference call at
About Dover:
Dover is a diversified global manufacturer with annual revenues approaching
Forward-Looking Statements:
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements relate to, among other things, operating and strategic plans, income, earnings, cash flows, changes in operations, industries in which Dover businesses operate, anticipated market conditions and our positioning, global economies, and operating improvements. Forward-looking statements may be indicated by words or phrases such as "anticipates," "expects," "believes," "suggests," "will," "plans," "should," "would," "could," and "forecast", 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, oil and natural gas demand, production growth, and prices; changes in exploration and production spending by Dover's customers and changes in the level of oil and natural gas exploration and development; economic conditions generally and changes in economic conditions globally and in markets served by Dover businesses, including well activity and U.S. industrials activity; Dover's ability to achieve expected savings from integration and other cost-control initiatives, such as lean and productivity programs as well as efforts to reduce sourcing input costs; the impact of interest rate and currency exchange rate fluctuations; the ability of Dover's businesses to expand into new geographic markets; Dover's ability to identify and successfully consummate value-adding acquisition opportunities or planned divestitures; changes in customer demand or the impact of loss of a significant customer, or loss or non-renewal of significant contracts; the ability of Dover's businesses to develop and launch new products, timing of such launches and risks relating to market acceptance by customers; the relative mix of products and services which impacts margins and operating efficiencies; increased competition and pricing pressures; the impact of loss of a single-source manufacturing facility; short-term capacity constraints; increases in the cost of raw materials; domestic and foreign governmental and public policy changes or developments, including environmental regulations, conflict minerals disclosure requirements, and tax policies; protection and validity of patent and other intellectual property rights; the impact of legal matters and legal compliance risks; conditions and events affecting domestic and global financial and capital markets; and a downgrade in Dover's credit ratings which, among other matters, could make obtaining financing more difficult and costly. Dover refers you to the documents that it files from time to time with the
INVESTOR SUPPLEMENT - FIRST QUARTER 2015
DOVER CORPORATION |
|||||||
Three Months Ended March 31, |
|||||||
2015 |
2014 |
||||||
Revenue |
$ |
1,715,501 |
$ |
1,802,570 |
|||
Cost of goods and services |
1,088,342 |
1,094,710 |
|||||
Gross profit |
627,159 |
707,860 |
|||||
Selling and administrative expenses |
434,634 |
433,404 |
|||||
Operating earnings |
192,525 |
274,456 |
|||||
Interest expense, net |
32,037 |
32,655 |
|||||
Other (income) expense, net |
(4,187) |
191 |
|||||
Earnings before provision for income taxes and discontinued operations |
164,675 |
241,610 |
|||||
Provision for income taxes |
47,485 |
71,569 |
|||||
Earnings from continuing operations |
117,190 |
170,041 |
|||||
Earnings (loss) from discontinued operations, net |
92,320 |
(9,903) |
|||||
Net earnings |
$ |
209,510 |
$ |
160,138 |
|||
Basic earnings per common share: |
|||||||
Earnings from continuing operations |
$ |
0.72 |
$ |
1.00 |
|||
Earnings (loss) from discontinued operations, net |
0.57 |
(0.06) |
|||||
Net earnings |
1.30 |
0.94 |
|||||
Weighted average shares outstanding |
161,650 |
169,750 |
|||||
Diluted earnings per common share: |
|||||||
Earnings from continuing operations |
$ |
0.72 |
$ |
0.99 |
|||
Earnings (loss) from discontinued operations, net |
0.57 |
(0.06) |
|||||
Net earnings |
1.28 |
0.93 |
|||||
Weighted average shares outstanding |
163,323 |
172,013 |
|||||
Dividends paid per common share |
$ |
0.40 |
$ |
0.375 |
|||
DOVER CORPORATION |
|||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2014 |
||||||||||||||
REVENUE |
|||||||||||||||||||
Energy |
$ |
430,423 |
$ |
478,773 |
$ |
481,016 |
$ |
507,334 |
$ |
550,116 |
$ |
2,017,239 |
|||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
230,181 |
231,679 |
252,354 |
257,282 |
247,569 |
988,884 |
|||||||||||||
Industrials |
343,015 |
335,995 |
361,467 |
355,019 |
344,600 |
1,397,081 |
|||||||||||||
573,196 |
567,674 |
613,821 |
612,301 |
592,169 |
2,385,965 |
||||||||||||||
Fluids |
340,236 |
345,009 |
346,275 |
361,797 |
377,485 |
1,430,566 |
|||||||||||||
Refrigeration & Food Equipment |
372,097 |
411,493 |
522,357 |
528,807 |
458,532 |
1,921,189 |
|||||||||||||
Intra-segment eliminations |
(451) |
(379) |
(833) |
(664) |
(355) |
(2,231) |
|||||||||||||
Total consolidated revenue |
$ |
1,715,501 |
$ |
1,802,570 |
$ |
1,962,636 |
$ |
2,009,575 |
$ |
1,977,947 |
$ |
7,752,728 |
|||||||
NET EARNINGS |
|||||||||||||||||||
Segment Earnings: |
|||||||||||||||||||
Energy |
$ |
52,305 |
$ |
118,968 |
$ |
114,991 |
$ |
122,738 |
$ |
105,118 |
$ |
461,815 |
|||||||
Engineered Systems |
88,149 |
83,227 |
101,766 |
108,800 |
93,205 |
386,998 |
|||||||||||||
Fluids |
54,634 |
57,942 |
63,112 |
67,559 |
63,026 |
251,639 |
|||||||||||||
Refrigeration & Food Equipment |
36,150 |
44,862 |
84,926 |
78,012 |
30,934 |
238,734 |
|||||||||||||
Total Segments |
231,238 |
304,999 |
364,795 |
377,109 |
292,283 |
1,339,186 |
|||||||||||||
Corporate expense / other |
34,526 |
30,734 |
29,287 |
27,815 |
29,964 |
117,800 |
|||||||||||||
Net interest expense |
32,037 |
32,655 |
31,961 |
31,231 |
31,332 |
127,179 |
|||||||||||||
Earnings from continuing operations before provision for income taxes |
164,675 |
241,610 |
303,547 |
318,063 |
230,987 |
1,094,207 |
|||||||||||||
Provision for income taxes |
47,485 |
71,569 |
92,966 |
92,380 |
59,152 |
316,067 |
|||||||||||||
Earnings from continuing operations |
117,190 |
170,041 |
210,581 |
225,683 |
171,835 |
778,140 |
|||||||||||||
Earnings (loss) from discontinued operations, net |
92,320 |
(9,903) |
3,378 |
6,161 |
(2,541) |
(2,905) |
|||||||||||||
Net earnings |
$ |
209,510 |
$ |
160,138 |
$ |
213,959 |
$ |
231,844 |
$ |
169,294 |
$ |
775,235 |
|||||||
SEGMENT OPERATING MARGIN |
|||||||||||||||||||
Energy |
12.2 |
% |
24.8 |
% |
23.9 |
% |
24.2 |
% |
19.1 |
% |
22.9 |
% |
|||||||
Engineered Systems |
15.4 |
% |
14.7 |
% |
16.6 |
% |
17.8 |
% |
15.7 |
% |
16.2 |
% |
|||||||
Fluids |
16.1 |
% |
16.8 |
% |
18.2 |
% |
18.7 |
% |
16.7 |
% |
17.6 |
% |
|||||||
Refrigeration & Food Equipment |
9.7 |
% |
10.9 |
% |
16.3 |
% |
14.8 |
% |
6.7 |
% |
12.4 |
% |
|||||||
Total Segment |
13.5 |
% |
16.9 |
% |
18.6 |
% |
18.8 |
% |
14.8 |
% |
17.3 |
% |
|||||||
DEPRECIATION AND AMORTIZATION EXPENSE |
|||||||||||||||||||
Energy |
$ |
34,427 |
$ |
25,575 |
$ |
25,807 |
$ |
27,145 |
$ |
33,429 |
$ |
111,956 |
|||||||
Engineered Systems |
14,526 |
15,850 |
15,982 |
15,334 |
14,780 |
61,946 |
|||||||||||||
Fluids |
13,848 |
16,366 |
15,308 |
14,019 |
15,210 |
60,903 |
|||||||||||||
Refrigeration & Food Equipment |
16,458 |
17,212 |
17,451 |
17,073 |
16,965 |
68,701 |
|||||||||||||
Corporate |
923 |
870 |
1,000 |
910 |
902 |
3,682 |
|||||||||||||
$ |
80,182 |
$ |
75,873 |
$ |
75,548 |
$ |
74,481 |
$ |
81,286 |
$ |
307,188 |
||||||||
DOVER CORPORATION
|
|||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2014 |
||||||||||||||
BOOKINGS |
|||||||||||||||||||
Energy |
$ |
416,628 |
$ |
478,469 |
$ |
477,162 |
$ |
526,134 |
$ |
534,646 |
$ |
2,016,411 |
|||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
235,636 |
250,434 |
245,445 |
249,299 |
248,082 |
993,260 |
|||||||||||||
Industrials |
337,070 |
370,949 |
363,773 |
342,687 |
374,438 |
1,451,847 |
|||||||||||||
Eliminations |
(19) |
(18) |
(16) |
(11) |
(11) |
(56) |
|||||||||||||
572,687 |
621,365 |
609,202 |
591,975 |
622,509 |
2,445,051 |
||||||||||||||
Fluids |
339,310 |
362,943 |
375,009 |
350,853 |
345,553 |
1,434,358 |
|||||||||||||
Refrigeration & Food Equipment |
419,659 |
493,731 |
542,810 |
459,099 |
367,567 |
1,863,207 |
|||||||||||||
Intra-segment eliminations |
(628) |
(506) |
(1,089) |
(737) |
(644) |
(2,976) |
|||||||||||||
Total consolidated bookings |
$ |
1,747,656 |
$ |
1,956,002 |
$ |
2,003,094 |
$ |
1,927,324 |
$ |
1,869,631 |
$ |
7,756,051 |
|||||||
BACKLOG |
|||||||||||||||||||
Energy |
$ |
212,060 |
$ |
210,846 |
$ |
206,415 |
$ |
232,739 |
$ |
233,347 |
|||||||||
Engineered Systems |
|||||||||||||||||||
Printing & Identification |
108,151 |
131,298 |
128,912 |
115,352 |
110,359 |
||||||||||||||
Industrials |
276,598 |
266,517 |
268,680 |
254,612 |
282,598 |
||||||||||||||
384,749 |
397,815 |
397,592 |
369,964 |
392,957 |
|||||||||||||||
Fluids |
259,504 |
328,617 |
348,508 |
323,424 |
277,834 |
||||||||||||||
Refrigeration & Food Equipment |
337,084 |
431,298 |
450,065 |
376,141 |
282,507 |
||||||||||||||
Intra-segment eliminations |
(595) |
(374) |
(211) |
(302) |
(431) |
||||||||||||||
Total consolidated backlog |
$ |
1,192,802 |
$ |
1,368,202 |
$ |
1,402,369 |
$ |
1,301,966 |
$ |
1,186,214 |
DOVER CORPORATION QUARTERLY EARNINGS PER SHARE (unaudited)(in thousands, except per share data*) |
|||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2014 |
||||||||||||||
Basic earnings (loss) per common share: |
|||||||||||||||||||
Continuing operations |
$ |
0.72 |
$ |
1.00 |
$ |
1.26 |
$ |
1.36 |
$ |
1.04 |
$ |
4.67 |
|||||||
Discontinued operations |
0.57 |
(0.06) |
0.02 |
0.04 |
(0.02) |
(0.02) |
|||||||||||||
Net earnings |
1.30 |
0.94 |
1.29 |
1.40 |
1.03 |
4.65 |
|||||||||||||
Diluted earnings (loss) per common share: |
|||||||||||||||||||
Continuing operations |
$ |
0.72 |
$ |
0.99 |
$ |
1.25 |
$ |
1.34 |
$ |
1.03 |
$ |
4.61 |
|||||||
Discontinued operations |
0.57 |
(0.06) |
0.02 |
0.04 |
(0.02) |
(0.02) |
|||||||||||||
Net earnings |
1.28 |
0.93 |
1.27 |
1.38 |
1.02 |
4.59 |
|||||||||||||
Adjusted diluted earnings per common share (calculated below): |
|||||||||||||||||||
Continuing operations |
$ |
0.72 |
$ |
0.97 |
$ |
1.25 |
$ |
1.31 |
$ |
1.01 |
$ |
4.54 |
|||||||
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows: |
|||||||||||||||||||
Net earnings (loss): |
|||||||||||||||||||
Continuing operations |
$ |
117,190 |
$ |
170,041 |
$ |
210,581 |
$ |
225,683 |
$ |
171,835 |
$ |
778,140 |
|||||||
Discontinued operations |
92,320 |
(9,903) |
3,378 |
6,161 |
(2,541) |
(2,905) |
|||||||||||||
Net earnings |
209,510 |
160,138 |
213,959 |
231,844 |
169,294 |
775,235 |
|||||||||||||
Average shares outstanding: |
|||||||||||||||||||
Basic |
161,650 |
169,750 |
166,474 |
166,021 |
164,589 |
166,692 |
|||||||||||||
Diluted |
163,323 |
172,013 |
168,857 |
168,343 |
166,467 |
168,842 |
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: |
|||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2014 |
||||||||||||||
Adjusted earnings from continuing operations: |
|||||||||||||||||||
Earnings from continuing operations |
$ 117,190 |
$ 170,041 |
$ 210,581 |
$ 225,683 |
$ 171,835 |
$ 778,140 |
|||||||||||||
Gains (losses) from discrete and other tax items |
— |
2,541 |
(635) |
5,524 |
3,860 |
11,290 |
|||||||||||||
Adjusted earnings from continuing operations |
$ 117,190 |
$ 167,500 |
$ 211,216 |
$ 220,159 |
$ 167,975 |
$ 766,850 |
|||||||||||||
Adjusted diluted earnings per common share: |
|||||||||||||||||||
Earnings from continuing operations |
$ 0.72 |
$ |
$ 0.99 |
$ 1.25 |
$ 1.34 |
$ 1.03 |
$ 4.61 |
||||||||||||
Gains (losses) from discrete and other tax items |
— |
0.01 |
— |
0.03 |
0.02 |
0.07 |
|||||||||||||
Adjusted earnings from continuing operations |
$ 0.72 |
$ |
$ 0.97 |
$ 1.25 |
$ 1.31 |
$ 1.01 |
$ 4.54 |
||||||||||||
* Per share data may not add due to rounding. |
DOVER CORPORATION QUARTERLY FREE CASH FLOW (unaudited)(in thousands) |
|||||||||||||||||||
2015 |
2014 |
||||||||||||||||||
Q1 |
Q1 |
Q2 |
Q3 |
Q4 |
FY 2014 |
||||||||||||||
Cash flow from operating activities |
$ |
131,332 |
$ |
28,361 |
$ |
185,013 |
$ |
292,012 |
$ |
444,778 |
$ |
950,164 |
|||||||
Less: Additions to property, plant and equipment |
(27,956) |
(32,695) |
(42,550) |
(33,532) |
(57,256) |
(166,033) |
|||||||||||||
Free cash flow |
$ |
103,376 |
$ |
(4,334) |
$ |
142,463 |
$ |
258,480 |
$ |
387,522 |
$ |
784,131 |
|||||||
Free cash flow as a percentage of earnings from continuing operations |
88.2 |
% |
(2.5)% |
67.7 |
% |
114.5 |
% |
225.5 |
% |
100.8 |
% |
||||||||
Free cash flow as a percentage of revenue |
6.0 |
% |
(0.2)% |
7.3 |
% |
12.9 |
% |
19.6 |
% |
10.1 |
% |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dover-reports-first-quarter-2015-results-300069199.html
SOURCE
Paul Goldberg, Vice President - Investor Relations, (212) 922-1640