Summary
Dover Corporation reported strong financial performance for the nine months ended September 30, 2011, with revenue increasing by 22% to $6.12 billion and net earnings rising to $617 million, a 23% increase over the prior year. This growth was driven by robust performance across all segments, significant acquisition activity, and favorable foreign currency translation. The company successfully integrated several new businesses, most notably the Sound Solutions acquisition, which bolstered the Electronic Technologies segment. Operationally, Dover focused on strategic divestitures, selling off the Paladin Brands and Crenlo LLC businesses in the third quarter as part of its initiative to concentrate on higher-margin growth areas. Despite some challenges like increased raw material costs impacting gross margins, the company managed its expenses effectively, with selling and administrative costs as a percentage of revenue declining. The company's proactive management of its capital structure, including new debt issuances to fund acquisitions, has positioned it for continued growth, with a positive outlook for the remainder of 2011.
Financial Highlights
47 data points| Revenue | $2.00B |
| Cost of Revenue | $1.33B |
| Gross Profit | $757.61M |
| SG&A Expenses | $476.64M |
| Operating Income | $329.64M |
| Net Income | $172.28M |
| EPS (Basic) | $0.93 |
| EPS (Diluted) | $0.91 |
| Shares Outstanding (Basic) | 185.77M |
| Shares Outstanding (Diluted) | 188.44M |
Key Highlights
- 1Revenue for the nine months ended September 30, 2011, increased 22% to $6.12 billion, compared to $5.02 billion in the prior year period, driven by broad-based volume growth across all segments.
- 2Net earnings for the nine months ended September 30, 2011, rose 23% to $617 million, or $3.26 per diluted share, compared to $501.8 million, or $2.66 per diluted share, in the prior year period.
- 3The company completed significant acquisitions in 2011, including Sound Solutions for $855 million and several other businesses for an aggregate of $514 million, contributing to a substantial increase in goodwill and intangible assets.
- 4Dover divested Paladin Brands and Crenlo LLC in the third quarter of 2011, recognizing a year-to-date after-tax loss of $66 million, as part of its strategy to focus on higher-margin growth sectors.
- 5Free cash flow generation was strong, increasing by $169 million to $523 million for the nine months ended September 30, 2011, compared to the prior year, reflecting improved earnings and efficient working capital management.
- 6The net debt to net capitalization ratio increased to 20.7% from 9.9% due to the significant investments in acquisitions, funded by a combination of cash and new debt issuances.