Dover Corporation Reports Second Quarter 2011 Results

DOWNERS GROVE, Ill., July 22, 2011 /PRNewswire-FirstCall/ -- Dover Corporation (NYSE: DOV) announced today that for the second quarter ended June 30, 2011, revenue was $2.2 billion, an increase of 21% over the prior-year period.  The revenue increase was driven by organic revenue growth of 14%, a 4% increase from acquisitions and a 3% favorable impact from foreign exchange.  Earnings from continuing operations were $249.1 million or $1.31 diluted earnings per share ("EPS"), compared to $171.9 million or $0.91 EPS from continuing operations in the prior-year period, representing increases of 45% and 44%, respectively.  Excluding the impact of tax benefits of $0.12 recognized in the quarter, adjusted diluted EPS from continuing operations was $1.19, an increase of 31% over the prior year. The tax benefits of $0.12 were principally related to the favorable resolution of domestic tax positions.  

Revenue for the six months ended June 30, 2011 was $4.1 billion, an increase of 22% over the prior year period, reflecting organic growth of 16%, a 4% increase from acquisitions, and a 2% favorable impact from foreign exchange. Earnings from continuing operations for the six months ended June 30, 2011 were $432.4 million or $2.28 EPS, compared to $293.4 million or $1.55 EPS in the prior-year period, representing increases in both measures of 47%. Excluding the impact of tax benefits recognized in the first and second quarters of 2011 of $0.04 and $0.12 EPS, respectively, adjusted diluted EPS from continuing operations for the six months ended June 30, 2011 was $2.12, an increase of 37% over the prior year period.  

Commenting on the second quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "I was pleased with Dover's second quarter performance, as quarterly revenue, earnings, margin, bookings and backlog all increased over the prior year. Revenue growth of 21% was largely driven by strength in our energy markets and a continued recovery in selected infrastructure markets served by Industrial Products.  Our segment margin of 17.4% was led by strong performances at Fluid Management and Electronic Technologies.  We also continued to see solid order rates across most of Dover, resulting in a book-to-bill of 1.03. Lastly, we completed the previously announced acquisition of Sound Solutions, which will operate as Knowles Sound Solutions, in the beginning of July and everyone at Dover is excited to welcome them into our organization.  Knowles Sound Solutions will add nearly $200 million to our second half revenue and will be slightly dilutive for 2011, inclusive of significant early period acquisition related expenses.

"Given our second quarter results and the addition of Knowles Sound Solutions, we now expect full-year 2011 revenue growth of 18% - 20%, representing organic revenue growth of 12% - 14% and 6% growth from acquisitions.  As a result, we are raising our full-year guidance to reflect higher volume, the aforementioned tax benefit and a slightly lower effective tax rate, net of the impact of Knowles Sound Solutions (-$0.03 to -$0.05 EPS).  We now expect full-year diluted EPS from continuing operations to be in the range of $4.50 - $4.60."

Net earnings for the second quarter of 2011 were $249.8 million or $1.32 diluted EPS, including a gain from discontinued operations of $0.7 million, compared to net earnings of $169.9 million or $0.90 EPS for the same period of 2010, which included a loss from discontinued operations of $2.0 million or $0.01 EPS.  Net earnings for the six months ended June 30, 2011 were $444.7 million or $2.34 EPS, including a gain from discontinued operations of $12.3 million or $0.06 EPS, compared to net earnings of $278.0 million or $1.47 EPS for the same period of 2010, which included a loss from discontinued operations of $15.4 million or $0.08 EPS.

Dover will host a webcast of its second quarter 2011 conference call at 10:30 A.M. Eastern Time (9:30 A.M. Central Time) on Friday, July 22, 2011.  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.  Additional information on Dover's second quarter 2011 results and its operating companies can also be found on the Company website.

Dover Corporation is a global manufacturer 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.

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, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover companies operate and the U.S. and global economies. Statements in this press release that are not historical may be indicated by words or phrases such as "anticipates," "expects," "believes," "indicates," "suggests," "will," "plans," "supports," "projects," "should," "would," "could," "hope," "forecast" and "management is of the opinion," use of 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, political events that could impact the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; increases in the cost of raw materials; 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; changes in customer demand; the impact of loss of a single-source manufacturing facility; 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; instability in countries where Dover conducts business; 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

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