Dover Reports Third Quarter 2016 Results

Mittwoch, 19.10.2016 12:45 von

PR Newswire

DOWNERS GROVE, Ill., Oct. 19, 2016 /PRNewswire/ -- Dover (NYSE: DOV) announced today that for the third quarter ended September 30, 2016, revenue was $1.7 billion, a decrease of 4% from the prior year. Organic revenue declined 7% and acquisition revenue, net of dispositions, provided 3% growth in the quarter.  Earnings from continuing operations were $130.1 million, a decrease of 30% as compared to $186.5 million for the prior year period. Diluted earnings per share from continuing operations ("EPS") for the third quarter ended September 30, 2016, were $0.83, compared to $1.19 EPS in the prior year period, representing a decrease of 30%. Third quarter  2016 EPS of $0.83 decreased 27% as compared to third quarter 2015 adjusted EPS of $1.14, which excludes $0.05 of discrete tax benefits. There were no discrete tax benefits in the third quarter of 2016. EPS for the quarters ended September 30, 2016, and September 30, 2015, includes restructuring costs of $0.04 EPS and $0.05 EPS, respectively.

Revenue for the nine months ended September 30, 2016, was $5.0 billion, a decrease of 5% from the prior year, reflecting an organic revenue decline of 7% and an unfavorable impact from foreign exchange of 1%, offset by 3% growth from acquisition revenue, net of dispositions. Earnings from continuing operations for the nine months ended September 30, 2016, were $347.7 million, a decrease of 24% as compared to $459.3 million for the prior year period. Diluted EPS for the nine months ended September 30, 2016, was $2.22, compared to $2.87 EPS in the prior year period, representing a decrease of 23%. EPS from continuing operations for the nine months ended September 30, 2016, includes discrete tax benefits of $0.04 and a gain on disposition of $0.07. Excluding discrete tax benefits and the gain on disposition, adjusted EPS from continuing operations decreased 25% to $2.11 from a comparable EPS of $2.82 in the prior year period. EPS for the nine months ended September 30, 2016, and September 30, 2015, also includes restructuring costs of $0.14 EPS and $0.17 EPS, respectively.           

Dover's President and Chief Executive Officer, Robert A. Livingston, said, "Our third quarter results were disappointing.  The continuing weak macro environment, further declines in longer cycle oil & gas exposed markets, and production inefficiencies in our retail refrigeration business impacted both volume and earnings.  These results were well below our expectations, and more than offset solid improvements in our upstream drilling and production businesses, as well as continued strong performance in our Printing & Identification platform.

"As we announced on October 10, given these factors, we expect 2016 full year EPS to be in the range of $3.00 to $3.05.  Within this guidance, organic revenue is forecasted to decline 7% to 8%.

"Regarding the fourth quarter, we expect further improvements in our early cycle upstream oil & gas markets, strong performance in Printing & Identification, and continued sequential growth in Fluids. We also expect a seasonal decline in Refrigeration & Food Equipment.  These factors will result in our fourth quarter EPS to be largely in-line with the third quarter."

Net earnings for the third quarter ended September 30, 2016, were $130.1 million, or $0.83 EPS, compared to net earnings of $186.1 million, or $1.19 EPS, for the same period of 2015, which included earnings from discontinued operations of $0.4 million.

Net earnings for the nine months ended September 30, 2016, were $347.7 million, or $0.83 EPS, compared to net earnings of $728.0 million, or $1.19 EPS, for the same period of 2015, which included earnings from discontinued operations of $268.7 million, or $1.68 EPS. 2015 earnings from discontinued operations included gains of $265.6 million, or $1.66 EPS, resulting from the disposition of two businesses held for sale.

Dover will host a webcast of its third quarter 2016 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, October 19, 2016. The webcast can be accessed on the Dover website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's third quarter results and its operating segments can also be found on the Company's website.

About Dover:

Dover is a diversified global manufacturer with annual revenue approaching $7 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve.  Recognized for our entrepreneurial approach for over 60 years, our team of 26,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible.  Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.

Forward-Looking Statements:       

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements relate to, among other things, operating and strategic plans, income, earnings, cash flows, foreign exchange, changes in operations, acquisitions, industries in which Dover businesses operate, anticipated market conditions and our positioning, global economies, and operating improvements. Forward-looking statements may be indicated by words or phrases such as "anticipates," "expects," "believes," "suggests," "will," "plans," "should," "would," "could," and "forecast", or the use of the 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, oil and natural gas demand, production growth, and prices; changes in exploration and production spending by Dover's customers and changes in the level of oil and natural gas exploration and development; changes in customer demand and capital spending; economic conditions generally and changes in economic conditions globally and in markets served by Dover businesses, including well activity and U.S. industrials activity; Dover's ability to achieve expected savings from integration and other cost-control initiatives, such as lean and productivity programs as well as efforts to reduce sourcing input costs; the impact of interest rate and currency exchange rate fluctuations; the ability of Dover's businesses to expand into new geographic markets; Dover's ability to identify and successfully consummate value-adding acquisition opportunities or planned divestitures; the impact of loss of a significant customer, or loss or non-renewal of significant contracts; the ability of Dover's businesses to develop and launch new products, timing of such launches and risks relating to market acceptance by customers; the relative mix of products and services which impacts margins and operating efficiencies; increased competition and pricing pressures; the impact of loss of a single-source manufacturing facility; short-term capacity constraints; increases in the cost of raw materials; domestic and foreign governmental and public policy changes or developments, including environmental regulations, conflict minerals disclosure requirements, tax policies, trade sanctions, and export/import laws; protection and validity of patent and other intellectual property rights; the impact of legal matters and legal compliance risks; conditions and events affecting domestic and global financial and capital markets; and a downgrade in Dover's credit ratings which, among other matters, could make obtaining financing more difficult and costly. Dover 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 herein. Dover undertakes no obligation to update any forward-looking statement, except as required by law.

 


INVESTOR SUPPLEMENT - THIRD QUARTER 2016


DOVER CORPORATION

CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited)(in thousands, except per share data)




Three Months Ended September 30,


Nine Months Ended September 30,


2016


2015


2016


2015

Revenue

$

1,707,763



$

1,787,582



$

5,016,381



$

5,261,711


Cost of goods and services

1,075,975



1,114,974



3,164,116



3,307,376


Gross profit

631,788



672,608



1,852,265



1,954,335


Selling and administrative expenses

421,042



395,688



1,301,901



1,233,017


Operating earnings

210,746



276,920



550,364



721,318


Interest expense, net

32,994



31,983



96,865



96,008


Other income, net

(3,424)



(367)



(19,800)



(5,810)


Earnings before provision for income taxes and
discontinued operations

181,176



245,304



473,299



631,120


Provision for income taxes

51,092



58,821



125,569



171,813


Earnings from continuing operations

130,084



186,483



347,730



459,307


Earnings (loss) from discontinued operations, net



(385)





268,697


Net earnings

$

130,084



$

186,098



$

347,730



$

728,004










Basic earnings per common share:








Earnings from continuing operations

$

0.84



$

1.20



$

2.24



$

2.90


Earnings from discontinued operations, net







1.70


Net earnings

0.84



1.20



2.24



4.59










Weighted average shares outstanding

155,300



155,300



155,182



158,507










Diluted earnings per common share:








Earnings from continuing operations

$

0.83



$

1.19



$

2.22



$

2.87


Earnings from discontinued operations, net







1.68


Net earnings

0.83



1.19



2.22



4.55










Weighted average shares outstanding

156,798



156,560



156,562



160,112










Dividends paid per common share

$

0.44



$

0.42



$

1.28



$

1.22










 


DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

REVENUE












Energy

$

283,230


$

259,008


$

273,248


$

815,486



$

430,423


$

366,044


$

363,872


$

1,160,339


$

323,341


$

1,483,680














Engineered Systems












Printing & Identification

239,681


263,648


253,091


756,420



230,181


229,934


227,992


688,107


255,563


943,670


Industrials

337,314


328,784


317,471


983,569



343,015


363,157


351,404


1,057,576


341,667


1,399,243



576,995


592,432


570,562


1,739,989



573,196


593,091


579,396


1,745,683


597,230


2,342,913














Fluids

399,062


405,838


412,822


1,217,722



340,236


351,511


352,018


1,043,765


355,508


1,399,273














Refrigeration & Food
Equipment

363,252


429,386


451,328


1,243,966



372,097


448,115


492,460


1,312,672


418,758


1,731,430














Intra-segment eliminations

(266)


(319)


(197)


(782)



(451)


(133)


(164)


(748)


(237)


(985)


Total consolidated revenue

$

1,622,273


$

1,686,345


$

1,707,763


$

5,016,381



$

1,715,501


$

1,758,628


$

1,787,582


$

5,261,711


$

1,694,600


$

6,956,311














NET EARNINGS












Segment Earnings:












Energy

$

11,244


$

(75)


$

13,279


$

24,448



$

52,305


$

40,909


$

48,726


$

141,940


$

31,250


$

173,190


Engineered Systems

93,748


104,034


97,240


295,022



88,149


96,702


102,866


287,717


89,244


376,961


Fluids

46,047


54,033


66,178


166,258



54,634


70,168


74,911


199,713


62,404


262,117


Refrigeration & Food
Equipment

38,161


63,230


64,111


165,502



36,150


65,732


76,665


178,547


42,752


221,299


Total segments

189,200


221,222


240,808


651,230



231,238


273,511


303,168


807,917


225,650


1,033,567


Corporate expense / other

29,862


24,566


26,638


81,066



34,526


20,382


25,881


80,789


24,911


105,700


Interest expense, net

31,714


32,157


32,994


96,865



32,037


31,988


31,983


96,008


31,249


127,257


Earnings from continuing
operations before provision
for income taxes

127,624


164,499


181,176


473,299



164,675


221,141


245,304


631,120


169,490


800,610


Provision for income taxes

28,268


46,209


51,092


125,569



47,485


65,507


58,821


171,813


32,916


204,729


Earnings from continuing
operations

99,356


118,290


130,084


347,730



117,190


155,634


186,483


459,307


136,574


595,881


Earnings (loss) from
discontinued operations, net






92,320


176,762


(385)


268,697


5,251


273,948


Net earnings

$

99,356


$

118,290


$

130,084


$

347,730



$

209,510


$

332,396


$

186,098


$

728,004


$

141,825


$

869,829














SEGMENT OPERATING MARGIN










Energy

4.0

%

%

4.9

%

3.0

%


12.2

%

11.2

%

13.4

%

12.2

%

9.7

%

11.7

%

Engineered Systems

16.2

%

17.6

%

17.0

%

17.0

%


15.4

%

16.3

%

17.8

%

16.5

%

14.9

%

16.1

%

Fluids

11.5

%

13.3

%

16.0

%

13.7

%


16.1

%

20.0

%

21.3

%

19.1

%

17.6

%

18.7

%

Refrigeration & Food
Equipment

10.5

%

14.7

%

14.2

%

13.3

%


9.7

%

14.7

%

15.6

%

13.6

%

10.2

%

12.8

%

Total segment operating
margin

11.7

%

13.1

%

14.1

%

13.0

%


13.5

%

15.6

%

17.0

%

15.4

%

13.3

%

14.9

%













DEPRECIATION AND AMORTIZATION EXPENSE










Energy

$

34,160


$

33,289


$

32,605


$

100,054



$

34,427


$

32,740


$

31,858


$

99,025


$

42,754


$

141,779


Engineered Systems

16,036


16,075


16,238


48,349



14,526


14,392


14,503


43,421


16,493


59,914


Fluids

20,511


20,981


20,833


62,325



13,848


13,648


13,367


40,863


15,215


56,078


Refrigeration & Food
Equipment

16,728


16,881


16,146


49,755



16,458


16,406


16,609


49,473


16,601


66,074


Corporate

1,169


868


901


2,938



923


841


837


2,601


643


3,244


Total depreciation and
amortization expense

$

88,604


$

88,094


$

86,723


$

263,421



$

80,182


$

78,027


$

77,174


$

235,383


$

91,706


$

327,089














 


DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)



2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

BOOKINGS












Energy

$

273,445


$

246,021


$

270,685


$

790,151



$

416,628


$

345,079


$

351,557


$

1,113,264


$

315,996


$

1,429,260














Engineered Systems












Printing & Identification

242,569


266,490


248,443


757,502



235,617


224,203


226,756


686,576


250,639


937,215


Industrials

329,957


304,345


331,435


965,737



337,070


336,173


338,744


1,011,987


357,451


1,369,438



572,526


570,835


579,878


1,723,239



572,687


560,376


565,500


1,698,563


608,090


2,306,653














Fluids

418,345


413,767


413,535


1,245,647



339,310


333,695


357,032


1,030,037


321,154


1,351,191














Refrigeration & Food
Equipment

411,367


468,661


429,134


1,309,162



419,659


486,793


430,681


1,337,133


379,967


1,717,100














Intra-segment eliminations

(90)


(944)


(245)


(1,279)



(628)


(417)


(385)


(1,430)


(486)


(1,916)














Total consolidated bookings

$

1,675,593


$

1,698,340


$

1,692,987


$

5,066,920



$

1,747,656


$

1,725,526


$

1,704,385


$

5,177,567


$

1,624,721


$

6,802,288














BACKLOG












Energy

$

144,828


$

129,873


$

126,519




$

212,060


$

194,819


$

156,631



$

155,586















Engineered Systems












Printing & Identification

102,640


104,509


101,190




108,151


103,403


100,476



98,288



Industrials

235,384


210,646


224,892




276,598


248,592


236,298



250,725




338,024


315,155


326,082




384,749


351,995


336,774



349,013















Fluids

286,457


315,786


318,246




259,504


240,389


236,608



243,459















Refrigeration & Food
Equipment

303,479


332,312


309,462




337,084


373,193


307,351



247,352















Intra-segment eliminations

(36)


(265)


(252)




(595)


(354)


(598)



(808)















Total consolidated backlog

$

1,072,752


$

1,092,861


$

1,080,057




$

1,192,802


$

1,160,042


$

1,036,766



$

994,602



 

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

(unaudited)(in thousands, except per share data*)


Earnings Per Share













2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

Basic earnings (loss) per common share:










Continuing operations

$

0.64


$

0.76


$

0.84


$

2.24



$

0.72


$

0.98


$

1.20


$

2.90


$

0.88


$

3.78


Discontinued operations






0.57


1.11



1.70


0.03


1.74


Net earnings

$

0.64


$

0.76


$

0.84


$

2.24



$

1.30


$

2.10


$

1.20


$

4.59


$

0.92


$

5.52














Diluted earnings (loss) per common share:










Continuing operations

$

0.64


$

0.76


$

0.83


$

2.22



$

0.72


$

0.97


$

1.19


$

2.87


$

0.87


$

3.74


Discontinued operations






0.57


1.10



1.68


0.03


1.72


Net earnings

$

0.64


$

0.76


$

0.83


$

2.22



$

1.28


$

2.07


$

1.19


$

4.55


$

0.91


$

5.46














Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:













Net earnings (loss):












Continuing operations

$

99,356


$

118,290


$

130,084


$

347,730



$

117,190


$

155,634


$

186,483


$

459,307


$

136,574


$

595,881


Discontinued operations






92,320


176,762


(385)


268,697


5,251


273,948


Net earnings

$

99,356


$

118,290


$

130,084


$

347,730



$

209,510


$

332,396


$

186,098


$

728,004


$

141,825


$

869,829














Average shares outstanding:










Basic

155,064


155,180


155,300


155,182



161,650


158,640


155,300


158,507


154,986


157,619


Diluted

156,161


156,595


156,798


156,562



163,323


160,398


156,560


160,112


156,254


159,172


 


Adjusted Earnings Per Share (Non-GAAP)











Earnings from continuing operations are adjusted by gains (losses) from discrete and other tax items and gain on disposition of business to derive
adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:














2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

Adjusted earnings from continuing operations:









Earnings from continuing operations

$

99,356


$

118,290


$

130,084


$

347,730



$

117,190


$

155,634


$

186,483


$

459,307


$

136,574


$

595,881


Gains (losses) from discrete and
other tax items

7,348


(1,221)


(304)


5,823





8,131


8,131


9,382


17,513


Gain on disposition of business

11,228




11,228









Adjusted earnings from continuing
operations

$

80,780


$

119,511


$

130,388


$

330,679



$

117,190


$

155,634


$

178,352


$

451,176


$

127,192


$

578,368














Adjusted diluted earnings per common share:










Earnings from continuing operations

$

0.64


$

0.76


$

0.83


$

2.22



$

0.72


$

0.97


$

1.19


$

2.87


$

0.87


$

3.74


Gains (losses) from discrete and
other tax items

0.05


(0.01)



0.04





0.05


0.05


0.06


0.11


Gain on disposition of business

0.07




0.07









Adjusted earnings from continuing
operations

$

0.52


$

0.76


$

0.83


$

2.11



$

0.72


$

0.97


$

1.14


$

2.82


$

0.81


$

3.63














* Per share data may not add due to rounding.








 

DOVER CORPORATION

ADDITIONAL INFORMATION

(unaudited)(in thousands)

Quarterly Cash Flow



2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

Net Cash Flows Provided By
(Used In):












Operating activities

$

133,413


$

207,868


$

231,665


$

572,946



$

131,332


$

218,911


$

282,213


$

632,456


$

316,603


$

949,059


Investing activities

(425,857)


(69,415)


(66,110)


(561,382)



156,585


457,875


(33,454)


581,006


(615,584)


(34,578)


Financing activities

178,507


(127,678)


98,491


149,320



(416,603)


(608,329)


(86,033)


(1,110,965)


19,079


(1,091,886)


 


Quarterly Free Cash Flow (Non-GAAP)



2016


2015


Q1

Q2

Q3

Q3 YTD


Q1

Q2

Q3

Q3 YTD

Q4

FY 2015

Cash flow from operating
activities

$

133,413


$

207,868


$

231,665


$

572,946



$

131,332


$

218,911


$

282,213


$

632,456


$

316,603


$

949,059


Less: Capital expenditures

(37,230)


(35,422)


(43,116)


(115,768)



(27,956)


(43,807)


(39,516)


(111,279)


(42,972)


(154,251)


Free cash flow

$

96,183


$

172,446


$

188,549


$

457,178



$

103,376


$

175,104


$

242,697


$

521,177


$

273,631


$

794,808














Free cash flow as a
percentage of earnings from
continuing operations

96.8

%

145.8

%

144.9

%

131.5

%


88.2

%

112.5

%

130.1

%

113.5

%

200.4

%

133.4

%













Free cash flow as a
percentage of revenue

5.9

%

10.2

%

11.0

%

9.1

%


6.0

%

10.0

%

13.6

%

9.9

%

16.1

%

11.4

%

 

Revenue Growth Factors



Three Months Ended September 30, 2016



Energy


Engineered
Systems


Fluids


Refrigeration
& Food
Equipment


Total


Organic (decline) growth

(24)

%


1

%


(9)

%


(2)

%


(7)

%


Acquisitions

%


3

%


27

%


%


6

%


Dispositions

%


(5)

%


%


(7)

%


(3)

%


Currency translation

(1)

%


(1)

%


(1)

%


%


(1)

%



(25)

%


(2)

%


17

%


(9)

%


(5)

%


 


Nine Months Ended September 30, 2016



Energy


Engineered
Systems


Fluids


Refrigeration
& Food
Equipment


Total


Organic (decline) growth

(29)

%


2

%


(7)

 

%


1

%


(7)

%


Acquisitions

%


3

%


25

%


%


6

%


Dispositions

%


(4)

%


%


(6)

%


(3)

%


Currency translation

(1)

 

%


(1)

 

%


(1)

 

%


%


(1)

 

%



(30)

 

%


%


17

%


(5)

%


(5)

%


 

Non-GAAP Disclosures

In an effort to provide investors with additional information regarding our results as determined by GAAP, Management also discloses non-GAAP information that Management believes provides useful information to investors. Adjusted earnings from continuing operations, adjusted diluted earnings per common share, free cash flow and organic revenue growth are not financial measures under GAAP and should not be considered as a substitute for earnings from continuing operations, diluted earnings per common share, cash flows from operating activities, or revenue as determined in accordance with GAAP, and they may not be comparable to similarly titled measures reported by other companies.  Adjusted earnings from continuing operations represents earnings from continuing operations adjusted for gains or losses from discrete and other tax items and for gain on disposition of business.  Adjusted diluted earnings per common share represents adjusted earnings from continuing operations divided by average diluted shares.  Management believes this information is useful to investors to better understand the company's ongoing profitability and facilitates easier comparisons of the company's profitability to prior and future periods and to its peers.  Free cash flow represents net cash provided by operating activities minus capital expenditures.  Management believes that free cash flow is an important measure of operating performance because it provides management and investors a measurement of cash generated from operations that is available for mandatory payment obligations and investment opportunities, such as funding acquisitions, paying dividends, repaying debt and repurchasing our common stock.  Management believes that reporting organic revenue growth, which excludes the impact of foreign currency exchange rates and the impact of acquisitions, provides a useful comparison of our revenue performance and trends between periods.

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dover-reports-third-quarter-2016-results-300347357.html

SOURCE Dover