01—Abstract
Summary
Summary of the 10-K filed February 14, 2014. Cited figures are marked; the original filing is the authoritative source.
Dover Corporation's 2013 10-K filing highlights a year of solid revenue growth, driven by both organic expansion and strategic acquisitions.
The company experienced a notable increase in revenue by 7.7%, reaching $8.7 billiona, with organic growth at 2.9% and acquisition-related growth contributing 4.8%. This growth was broad-based across its four key segments: Energy, Engineered Systems, Printing & Identification, and Communication Technologies, with particular strength noted in the second half of the year across several end markets, including refrigeration, food equipment, and energy. The company also provided updates on its strategic initiatives, including the planned spin-off of its Communication Technologies businesses into a separate entity, Knowles Corporation, expected to be completed in early 2014.
Dover continued its commitment to shareholder returns through consistent dividend increases and an active share repurchase program. Financially, the company demonstrated strong free cash flow generation, maintaining healthy liquidity and a stable financial position, while managing its capital allocation effectively through investments in growth and productivity improvements. The report also details ongoing efforts in cost optimization and the integration of acquired businesses.
02—Key points
Key Highlights
- Dover Corporation reported a consolidated revenue of $8.7 billion for 2013, an increase of 7.7% year-over-year, comprising 2.9% organic growth and 4.8% acquisition-related growth.
- All four operating segments (Energy, Engineered Systems, Printing & Identification, and Communication Technologies) contributed to revenue growth, with strong performance noted in the second half of the year in key markets like refrigeration, food equipment, and energy.
- The company announced the planned spin-off of its Communication Technologies businesses into a new entity, Knowles Corporation, expected to be completed in early 2014.
- Dover continued to focus on shareholder returns, increasing its dividend for the 58th consecutive year and actively repurchasing shares under its announced programs.
- The company generated strong free cash flow, amounting to $941.9 million in 2013, representing 10.8% of revenue, indicating robust operational cash generation.
- Significant acquisition activity continued, with ten businesses acquired in 2013 for approximately $323 million, primarily within the Engineered Systems and Energy segments, aimed at expanding product lines and achieving synergies.
- The company is committed to operational excellence and has implemented productivity initiatives, including supply chain management and lean manufacturing, to enhance efficiency and cost management.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Dover Corp kept $0.14.
- Revenue$7.16B100.0%
- Cost of revenue−$4.38B61.2%
- Gross profit$2.78B38.8%
- Operating costs−$1.62B22.6%
- Operating income$1.16B16.2%
- Interest, other & tax−$158.5M2.2%
- Net income$1.00B14.0%
Where FY2013 revenue went
$7.16B- Cost of revenue: $4.38B, 61% of revenue
- SG&A: $1.62B, 23% of revenue
- Net income: $1.00B, 14% of revenue
- R&D: $117.2M, 1.6% of revenue
- Interest, other & tax: $158.5M, 2.2% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 14, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $7.16B$6.63B | +8.0% |
| Cost of Revenue | $4.38B$4.05B | +8.2% |
| Gross Profit | $2.78B$2.58B | +7.7% |
| R&D Expenses | $117.18M$123.64M | −5.2% |
| SG&A Expenses | $1.62B$1.52B | +6.3% |
| Operating Income | $1.16B$1.06B | +9.7% |
| Net Income | $1.00B$811.07M | +23.7% |
| EPS (Basic) | $5.86$4.47 | +31.1% |
| EPS (Diluted) | $5.78$4.41 | +31.1% |
| Shares Outstanding (Basic) | 171.27M181.55M | −5.7% |
| Shares Outstanding (Diluted) | 173.55M183.99M | −5.7% |
05—Questions
Frequently Asked Questions
What was Dover Corporation's overall financial performance in 2013?
In 2013, Dover Corporation demonstrated solid financial performance with a consolidated revenue of $8.7 billion, representing a 7.7% increase from the previous year. This growth was driven by both organic expansion (2.9%) and strategic acquisitions (4.8%). The company also generated strong free cash flow of $941.9 million, underscoring its operational efficiency and financial health.
What are the key strategic initiatives Dover Corporation highlighted in this filing?
Dover highlighted several key strategic initiatives. Most notably, the company announced the planned spin-off of its Communication Technologies businesses into a new, independent publicly-traded company called Knowles Corporation, expected to be completed in early 2014. Additionally, Dover continues to focus on growth through strategic acquisitions in its key markets, operational excellence through productivity initiatives, and disciplined capital allocation, including increasing dividends and repurchasing shares.
How did the different business segments perform in 2013?
All four segments showed positive revenue growth in 2013. The Energy segment grew by 5.7%, the Engineered Systems segment by 11.0%, the Printing & Identification segment by 2.5%, and the Communication Technologies segment by 6.6%. The company noted strong momentum in the second half of the year, particularly in refrigeration and food equipment, fast-moving consumer goods, fluids, drilling, and downstream energy markets.
What is the company's outlook for shareholder returns?
Dover Corporation remains committed to shareholder returns. The company continued its track record of increasing its annual dividend payments, marking the 58th consecutive year of increases. Furthermore, it actively engaged in share repurchases under its authorized programs, demonstrating a focus on returning capital to shareholders.
06—Continue