10-QPeriod: Q1 FY2013

DOVER Corp Quarterly Report for Q1 Ended Mar 31, 2013

Filed April 17, 2013For Securities:DOV

Summary

Dover Corporation's first quarter 2013 results show a solid performance with a 4.3% increase in revenue to $2.04 billion compared to the prior year, driven by acquisitions and growth in its Energy and Communication Technologies segments. Despite a slight decrease in organic revenue, the company's diversified business model and strategic acquisitions have contributed to overall top-line growth. Earnings from continuing operations also saw a healthy increase of 5.7%, reaching $197 million, or $1.12 per diluted share, up from $186.4 million ($1.00 per diluted share) in the first quarter of 2012. This growth was supported by revenue increases, productivity improvements, and cost containment measures. The company continues to execute on its portfolio strategy, notably by divesting non-core businesses within the Printing & Identification segment, which are now presented as discontinued operations. This strategic realignment, coupled with significant share repurchase activity in the first quarter of 2013, demonstrates a focus on enhancing shareholder value. Dover also provided a positive outlook for the full year 2013, projecting revenue growth of 7% to 9% and diluted earnings per share from continuing operations between $5.05 and $5.35.

Financial Highlights

46 data points
Beta

Revenue

$1.68B

38.9% Gross Margin

Net Income

$210.00M

12.5% Net Margin

EPS (Diluted)

$1.20

Total Assets

$10.23B

Cash & Equivalents

$571.36M

Free Cash Flow

$31.39M

Financial Statements
Beta
Revenue$1.68B
Cost of Revenue$1.08B
Gross Profit$653.85M
SG&A Expenses$416.44M
Operating Income$265.18M
Net Income$210.00M
EPS (Basic)$1.21
EPS (Diluted)$1.20
Shares Outstanding (Basic)173.45M
Shares Outstanding (Diluted)175.57M

Key Highlights

  • 1Revenue increased by 4.3% to $2.04 billion in Q1 2013, driven by acquisitions and strength in Energy and Communication Technologies segments.
  • 2Earnings from continuing operations grew by 5.7% to $197 million, or $1.12 per diluted share, compared to $186.4 million ($1.00 per diluted share) in Q1 2012.
  • 3Acquisitions contributed significantly to revenue growth, offsetting a slight decrease in organic revenue.
  • 4Non-core businesses in the Printing & Identification segment were reclassified as discontinued operations.
  • 5The company repurchased approximately $292 million of its common stock in Q1 2013.
  • 6Dover provided a full-year 2013 outlook projecting revenue growth of 7-9% and diluted EPS from continuing operations of $5.05-$5.35.
  • 7Restructuring charges of $6.4 million were incurred in Q1 2013 to align operations with market conditions.

Frequently Asked Questions

Dover's revenue increased by 4.3% to $2.04 billion in the first quarter of 2013 compared to $1.95 billion in the same period of 2012. This growth was driven by acquisitions and contributions from the Energy and Communication Technologies segments, partially offsetting a 1% decrease in organic revenue.

Earnings from continuing operations increased by 5.7% to $197.0 million in the first quarter of 2013, resulting in diluted earnings per share of $1.12. This compares to $186.4 million and $1.00 per diluted share in the first quarter of 2012. The increase was attributed to higher revenues, productivity gains, and cost containment efforts.

Dover is actively managing its business portfolio. The company reclassified certain non-core businesses within the Printing & Identification segment as discontinued operations. This aligns with their long-term strategy to strengthen their portfolio and reduce exposure to cyclical markets.

Dover repurchased approximately $292 million of its common stock in the first quarter of 2013, demonstrating a commitment to returning capital to shareholders. The company also maintained its dividend payments. Its net debt to net capitalization ratio increased to 32.8% from 28.9% at the end of 2012, partly due to these share repurchases.