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Announces Second Quarter Revenue and Earnings and Planned Divestiture of Seven Businesses

NEW YORK, July 25 /PRNewswire-FirstCall/ -- Dover Corporation (NYSE: DOV) announced that for the second quarter ended June 30, 2006, it had record earnings from continuing operations of $158.7 million or $0.77 diluted earnings per share ("EPS"), compared to $109.5 million or $0.54 EPS from continuing operations in the prior-year period, representing significant increases of 45% and 44%, respectively. Revenue for the second quarter of 2006 was $1,655.4 million, an increase of 24% over the prior-year period. Earnings from continuing operations for the second quarter of 2006 included $0.02 EPS related to the expensing of stock options and stock appreciation rights.

Net earnings for the second quarter of 2006 were $71.9 million or $0.35 EPS, including a loss from discontinued operations of $86.7 million or $0.42 EPS, compared to net earnings of $173.2 million or $0.85 EPS for the same period of 2005, which included earnings from discontinued operations of $63.7 million or $0.31 EPS. Included in the 2005 period was a gain from the sale of a business, while the 2006 quarterly results include impairments related to discontinued companies.

Earnings from continuing operations for the six months ended June 30, 2006 were $290.0 million or $1.41 EPS, up 44%, compared to $201.1 million or $0.98 EPS in the prior year. Earnings from continuing operations for the six months ended June 30, 2006 included $0.04 EPS related to the expensing of stock options and stock appreciation rights. Net earnings were $275.7 million or $1.34 EPS, compared to $271.3 million or $1.33 EPS in the prior year.

Dover also announced today that it discontinued seven businesses during the second quarter of 2006 - five from the Dover Technologies segment, one from Dover Electronics and one from Dover Industries. The five discontinued businesses from Dover Technologies are Universal Instruments, Hover-Davis, Vitronics Soltec and Alphasem from the Circuit, Assembly and Test Group and Mark Andy from the Product Identification Group. In 2005, these five businesses had total revenue and earnings of $580.2 million and $26.7 million, respectively, and the 2006 year-to-date revenue and earnings were $291.8 million and $9.3 million, respectively. The two other businesses that Dover discontinued were Kurz-Kasch, from the Dover Electronics' Components Group, and a product line in the Dover Industries' segment. These seven businesses collectively generated an operating margin of 4.3% for the full year 2005 and 2.9% for 2006 year-to-date.

As a result of classifying these businesses as discontinued operations, Dover's overall margin from continuing operations in both the second quarter and year-to-date 2006 have improved by 120 basis points, and by 100 basis points in both of the comparable 2005 periods. The company anticipates that continued strong organic growth, as well as the full-year effect of its 2005 acquisitions, should offset the majority of the reduction in revenue and earnings related to these discontinued operations in 2006.

In connection with the discontinuance of the seven businesses, Dover recorded an after-tax charge of $87.9 million, reflecting the anticipated loss on sale for certain of these businesses. Any gains from the sale of the seven businesses will be recorded upon the close of the transactions.

Assuming all businesses currently in discontinued operations are sold by the end of 2006, the Company anticipates receiving after-tax proceeds in the range of $325 million.

All of Dover's results are presented on a comparable basis to reflect the discontinuance of the seven operations for all periods presented.

The full text of the second quarter earnings release as well as additional information on Dover's second quarter 2006 results and its operating companies can be found on the company website at www.dovercorporation.com and in the Company's Form 10-Q filed after this release. Dover will host a Webcast of its second quarter 2006 conference call at 9:00 A.M. Eastern Time on Wednesday, July 26, 2006. The Webcast can be accessed at the Dover Corporation website at www.dovercorporation.com. The conference call will also be made available for replay on the website.

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SOURCE: Dover Corporation

CONTACT: Robert G. Kuhbach, Vice President Finance & Chief Financial
Officer of Dover Corporation, +1-212-922-1640
Web site: http://www.dovercorporation.com