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8-K - FORM 8-K - DOVER Corp | y89311e8vk.htm |
EX-99.2 - EX-99.2 - DOVER Corp | y89311exv99w2.htm |
EX-99.3 - EX-99.3 - DOVER Corp | y89311exv99w3.htm |
Exhibit 99.1
CONTACT:
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READ IT ON THE WEB | |
Paul Goldberg
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www.dovercorporation.com | |
Treasurer & Director of Investor Relations |
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(212) 922-1640 |
DOVER REPORTS FOURTH QUARTER AND FULL YEAR 2010 RESULTS
| Reports quarterly revenue of $1.9 billion, an increase of 24% over the prior year | ||
| Delivers quarterly diluted earnings per share from continuing operations of $1.01, up 85% over last year | ||
| Achieves adjusted quarterly diluted earnings per share of $0.94, excluding tax benefits of $0.07, up 71% | ||
| Expects 2011 full year organic revenue growth of 6% 8%, and diluted earnings per share from continuing operations in the range of $4.05 $4.25 |
Downers Grove, Illinois, January 28, 2011 Dover Corporation (NYSE: DOV) announced today that for
the fourth quarter ended December 31, 2010, revenue was $1.9 billion, an increase of 24% over the
prior year period. The revenue increase was driven by organic growth of 23%, a 2% increase from
acquisitions, and a 1% unfavorable impact from foreign exchange. Earnings from continuing
operations for the fourth quarter of 2010 were $191.8 million or $1.01 diluted earnings per share
(EPS), compared to $102.4 million or $0.55 diluted EPS from continuing operations in the
prior-year period, representing increases of 87% and 85%, respectively. Excluding the impact of tax
benefits of $0.07 recognized in the quarter, adjusted diluted EPS from continuing operations was
$0.94, an increase of 71% over the prior year. The tax benefits of $0.07 were principally related
to the favorable resolution of domestic tax positions.
Revenue for the year ended December 31, 2010 was $7.1 billion, up 24% over the prior year
representing organic revenue growth of 20% and growth from acquisitions of 4%. Earnings from
continuing operations for the year ended December 31, 2010 were $707.9 million or $3.74 diluted
EPS, compared to $371.9 million or $1.99 diluted EPS in the prior year period, representing
increases of 90% and 88%, respectively. Excluding the impact of tax benefits of $0.27 diluted EPS
recognized in 2010, and the impact of tax benefits of $0.15 diluted EPS recognized in 2009,
adjusted diluted EPS from continuing operations for the year ended December 31, 2010 was $3.47, an
increase of 89% over the prior year adjusted level of $1.84.
Commenting on the fourth quarter results, Dovers President and Chief Executive Officer, Robert A.
Livingston, said, Dover had a strong finish to 2010 with quarterly revenue, bookings, backlog,
margin and earnings all up significantly from last year. Revenue growth of 24% was above our
expectations and this momentum continued to be broad-based, led by Electronic Technologies, Energy
and Material Handling. Margin expansion was also broad-based, with all segments showing
improvement year-over-year, resulting in a fourth quarter segment margin of 16.3%. We generated
strong free cash flow during the quarter, totaling $378 million, and exited the year with strong
fourth quarter order rates, resulting in a book-to-bill of 1.03.
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I am pleased with our many accomplishments in 2010. We were able to achieve full-year organic
revenue growth of 20%, benefitting from improved end-markets, product innovation and geographic
expansion. Full-year segment operating margins were a record 16.4%. We also generated free cash
flow of $767 million in 2010, representing 11% of revenue, which funded re-investment in our
businesses, our acquisition program and our 55th consecutive annual dividend increase.
Looking forward, we expect full year 2011 revenue growth of 9% 11%, representing organic revenue
growth of 6% 8%, plus growth from acquisitions of 3%. Based on this revenue assumption, we
expect full-year diluted EPS from continuing operations to be in the range of $4.05 $4.25.
Net earnings for the fourth quarter of 2010 were $198.3 million or $1.04 diluted EPS, including
income from discontinued operations of $6.6 million or $0.03 diluted EPS, compared to net earnings
of $99.0 million or $0.53 diluted EPS for the same period of 2009, which included a loss from
discontinued operations of $3.4 million or $0.02 diluted EPS. Net earnings for the year ended
December 31, 2010 were $700.1 million or $3.70 diluted EPS, which included a loss from discontinued
operations of $7.8 million or $0.04 diluted EPS, compared to net earnings of $356.4 million or
$1.91 diluted EPS for the same period of 2009, including a loss from discontinued operations of
$15.5 million or $0.08 diluted EPS.
Dover will host a webcast of its fourth quarter 2010 conference call at 9:00 A.M. Eastern Time on
Friday, January 28, 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 and additional information on Dovers fourth quarter and full year 2010 results and its
operating companies can also be found on the Company website, including an investor supplement
containing a reconciliation of free cash flow and other non-GAAP measures to the most directly
comparable GAAP measures.
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, current economic conditions and uncertainties
in the credit and capital markets; the Companys 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 Dovers operating companies; the ability of Dovers companies to expand into
new geographic markets and to anticipate and meet customer demands for new products and product
enhancements; increases in the cost of raw materials; changes in customer demand; political events
that could impact the worldwide economy; the
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impact of natural disasters and their effect on global
energy markets; a downgrade in Dovers 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 Dovers companies; domestic housing
industry weakness; and continued events in the Middle East 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.