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NEW YORK, April 22 /PRNewswire-FirstCall/ -- Dover Corporation (NYSE: DOV)
announced today that for the first quarter ended March 31, 2009, it had
earnings from continuing operations of $61.1 million or $0.33 diluted earnings
per share ("EPS"), compared to $147.9 million or $0.77 EPS from continuing
operations in the prior-year period, representing decreases of 59% and 57%,
respectively. Included in the first quarter results were pre-tax
restructuring charges of $35.2 million, or a negative EPS impact of $0.12.
Revenue for the first quarter of 2009 was $1.4 billion, a decrease of 26% over
the prior-year period. The revenue decrease was driven by a decline in core
business revenue of 22% and by a negative impact of foreign exchange of 4%.
Commenting on the first quarter results, Dover's President and Chief
Executive Officer, Robert A. Livingston, said, "Orders, revenue and margins
were all down due to significantly lower demand across most of our
end-markets, especially in electronic assembly and infrastructure related
markets. We escalated our restructuring activities through the quarter as the
decline in order rates was more severe than originally anticipated.
Nonetheless, I am pleased that we achieved 10%+ operating margins and
generated free cash flow of $83 million. Free cash flow was 6% of revenue,
consistent with last year, yielding a cash conversion rate of 136%, a
meaningful improvement over last year's rate of 75%."
"Our leadership teams have taken significant restructuring actions to
properly respond to this recession while continuing to invest in product
innovation and customer development opportunities. In addition to our
restructuring activities, we continue to execute on several business
integration and consolidation initiatives. We have appointed our first Vice
President of Global Sourcing and Supply Chain and are taking decisive steps
towards leveraging a significant portion of our annual spend. We continue to
refine and improve our corporate development process and strategy and remain
focused on synergistic add-on acquisitions. We are confident that as trends
and markets improve, Dover will emerge even stronger."
"Though order trends improved sequentially during the quarter, we are not
expecting a meaningful recovery in our end-markets for the balance of 2009.
Based on our most recent reviews, we now expect 2009 EPS to be in the range of
$2.00 - $2.30. Included in this guidance are additional pre-tax restructuring
charges of approximately $35 million, most of which will be taken in the
second quarter. Despite this, we remain fully committed to achieving
double-digit margins in 2009."
Net earnings for the first quarter of 2009 were $53.4 million or $0.29
EPS, including a loss from discontinued operations of $7.7 million or $0.04
EPS, compared to net earnings of $147.2 million or $0.76 EPS for the same
period of 2008, which included a negligible loss from discontinued operations.
Dover will host a webcast of its first quarter 2009 conference call at
8:00 A.M. Eastern Time on Wednesday, April 22, 2009. 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 and
additional information on Dover's first quarter 2009 results and its operating
companies can also be found on the Company website.
Dover Corporation is a global portfolio of manufacturing companies
providing innovative components and equipment, specialty systems and support
services for a variety of applications in the industrial products, engineered
systems, fluid management and electronic technologies markets. For more
information, please visit www.dovercorporation.com.
Dover Corporation makes information available to the public, orally and in
writing, which may use words like "anticipates," "expects," "believes,"
"indicates," "suggests," "will," "plans" and "should," which are
"forward-looking statements" under the Private Securities Litigation Reform
Act of 1995. This press release contains forward-looking statements concerning
future events and the performance of Dover Corporation that involve inherent
risks and uncertainties that could cause actual results to differ materially
from current expectations, including, but not limited to, current economic
conditions and uncertainties in the credit and capital markets; the Company's
ability to achieve expected savings from integration, synergy and other
cost-control initiatives; the ability to identify and successfully consummate
value-adding acquisition opportunities; increased competition and pricing
pressures in the markets served by Dover's operating companies; the ability of
Dover's companies to expand into new geographic markets and to anticipate and
meet customer demands for new products and product enhancements; increases in
the cost of raw materials; changes in customer demand; political events that
could impact the worldwide economy; the impact of natural disasters and their
effect on global energy markets; a downgrade in Dover's credit ratings;
international economic conditions including interest rate and currency
exchange rate fluctuations; the relative mix of products and services which
impacts margins and operating efficiencies; short-term capacity constraints;
domestic and foreign governmental and public policy changes including
environmental regulations and tax policies (including domestic and
international export subsidy programs, R&E credits and other similar
programs); unforeseen developments in contingencies such as litigation;
protection and validity of patent and other intellectual property rights; the
cyclical nature of some of Dover's companies; domestic housing industry
weakness; and continued events in the Middle East and possible future
terrorist threats and their effect on the worldwide economy. Dover
Corporation 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 Corporation undertakes no obligation to update any
forward-looking statement.
SOURCE: Dover Corporation
CONTACT: Paul Goldberg, Treasurer & Director of Investor Relations,
+1-212-922-1640
Web Site: http://www.dovercorporation.com
