Summary
Dover Corporation reported largely stable revenue for the third quarter of 2018 compared to the prior year, with a slight decrease in net earnings. The company successfully completed the spin-off of Apergy Corporation in May 2018, reclassifying its results as discontinued operations. Significant share repurchase activity occurred, including an accelerated share repurchase program funded by proceeds from the Apergy spin-off. Restructuring charges were incurred to improve operating margins and enhance operational efficiency, with further charges expected in the near term. The company's effective tax rate saw a notable decrease due to U.S. tax law changes. Operationally, the Fluids segment showed strong organic revenue growth, while the Engineered Systems segment experienced modest growth. The Refrigeration & Food Equipment segment faced headwinds, with declining revenue attributed to weak retail refrigeration markets. Despite challenges, Dover maintained a strong liquidity position and continued to return capital to shareholders through dividends and share repurchases.
Financial Highlights
48 data points| Revenue | $1.75B |
| Cost of Revenue | $1.10B |
| Gross Profit | $646.52M |
| SG&A Expenses | $426.44M |
| Operating Income | $220.07M |
| Interest Expense | $31.19M |
| Net Income | $157.31M |
| EPS (Basic) | $1.07 |
| EPS (Diluted) | $1.05 |
| Shares Outstanding (Basic) | 147.34M |
| Shares Outstanding (Diluted) | 149.46M |
Key Highlights
- 1Total revenue for the three months ended September 30, 2018 was $1,747.4 million, virtually unchanged from the prior year's $1,747.8 million.
- 2Net earnings for the third quarter decreased by 12.1% to $157.3 million ($1.05 per diluted share) from $178.9 million ($1.14 per diluted share) in the prior year period.
- 3The company completed the spin-off of Apergy Corporation on May 9, 2018, with its results presented as discontinued operations for all periods.
- 4Significant share repurchase activity occurred, with $700 million in accelerated share repurchases funded by proceeds from the Apergy spin-off.
- 5Restructuring charges of $24.2 million were recorded in the third quarter, with an expectation of $18 million more in the fourth quarter and early 2019.
- 6The effective tax rate decreased to 18.5% for the three months ended September 30, 2018, down from 22.9% in the prior year, primarily due to the U.S. Tax Cuts and Jobs Act.
- 7The Fluids segment reported strong organic revenue growth of 9.1%, while the Refrigeration & Food Equipment segment experienced an organic revenue decline of 8.8%.