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Dover Reports Second Quarter 2018 Results

  • Reports quarterly revenue of $1.8 billion, an increase of 3% from the prior year
  • Posts earnings from continuing operations of $166.5 million on a GAAP basis, up 17%; and adjusted diluted earnings per share from continuing operations of $1.30, an increase of 21% from the prior year
  • Tightens 2018 guidance for full year adjusted diluted earnings per share from continuing operations to $4.75 to $4.85

    DOWNERS GROVE, Ill., July 19, 2018 /PRNewswire/ -- Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2018.

    Second Quarter 2018 Financial Results:

    For the second quarter ended June 30, 2018, Dover's revenue was $1.8 billion, an increase of 3% from the prior year. The increase in the quarter was driven by organic growth of 3% and a favorable impact from foreign exchange ("FX") of 2%, partially offset by a net 2% impact from previous acquisitions and dispositions. Earnings from continuing operations were $166.5 million, an increase of 17% as compared to $142.5 million for the prior year period. Diluted earnings per share from continuing operations ("EPS") on a GAAP basis for the second quarter ended June 30, 2018, were $1.08, compared to $0.90 EPS in the prior year period, representing an increase of 20%.

    For the second quarter ended June 30, 2018, EPS from continuing operations included acquisition-related amortization costs of $0.18 and rightsizing and other costs of $0.03. Excluding these costs, adjusted EPS for the second quarter ended June 30, 2018, was $1.30, an increase of 21% over an adjusted EPS of $1.07 in the prior year period, on a comparable basis.

    In the second quarter, the Apergy spin-off was completed and its financial results are now reported as discontinued operations. Net earnings for the second quarter ended June 30, 2018, inclusive of a $26.5 million loss in discontinued operations, was $140.0 million, compared to net earnings of $164.1 million in the prior year period, which included earnings from discontinued operations of $21.6 million. The loss from discontinued operations of $26.5 million for the second quarter ended June 30, 2018 included Apergy-related separation costs of $34.6 million.

    A reconciliation between GAAP and adjusted measures is included as an exhibit herein.

    Full Year 2018 Guidance Update:

    Dover tightened its guidance for adjusted diluted earnings per share from continuing operations to $4.75 to $4.85, representing an increase of approximately 16% over the prior year, on a comparable basis. This guidance is based on full year revenue growth of 2% to 3%, which is comprised of organic growth of 3% to 4%, acquisition growth of 1%, and a favorable impact from FX of 1%, partially offset by a 3% impact from dispositions.

    Dover’s updated 2018 guidance for adjusted EPS from continuing operations excludes acquisition-related amortization costs of $0.72, rightsizing and other costs of $0.06 and any additional second half cost reduction actions that may be undertaken. Additionally, Dover expects its full year effective tax rate to be in the range of 21% to 22%.

    Management Commentary:

    Dover’s President and Chief Executive Officer, Richard J. Tobin, said, “As Dover posts its first quarterly results following the successful spin-off of Apergy, we are pleased to report total company revenue up 3%, an increase in adjusted net earnings of 19% to $200 million, with a corresponding increase in EPS of 21%. We were encouraged by the overall demand environment in the second quarter which drove revenue increases of 4% in Engineered Systems and 10% in Fluids, offsetting forecasted demand weakness in Refrigeration & Food Equipment. Second quarter bookings were strong giving us confidence in our earnings forecast for the full year.

    “Dover recently completed a review of its company operating performance, competitive positioning, overhead structure and industrial footprint. This review validated our belief that our core business platforms are strong and well-positioned for growth.  The review also made it clear that actions are required to adjust our cost structure in certain businesses. Accordingly, Dover expects to undertake targeted cost reduction initiatives between now and the end of the year to reduce overhead and increase asset intensity, while preserving our ability to drive top line growth.  We will be announcing the estimated costs, benefits and timelines associated with these actions later in the third quarter. These actions, while difficult, are necessary so that we can fund initiatives in product digitization, e-commerce, new product development, and inorganic investment in our core business platforms.”

    Conference Call Information:

    Dover will host a webcast and conference call to discuss its second quarter 2018 results and 2018 guidance at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, July 19, 2018. The webcast can be accessed on the Dover website at The conference call will also be made available for replay on the website. Additional information on Dover’s second quarter results and its operating segments can be found on the Company’s website.

    About Dover:

    Dover is a diversified global manufacturer with annual revenue of approximately $7 billion. We deliver innovative equipment and components, specialty systems, consumable supplies, software and digital solutions, and support services through three operating segments: 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

    Forward-Looking Statements:

    This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this document other than statements of historical fact are statements that are, or could be deemed, “forward-looking” statements. Some of these statements may be indicated by words such as “may”, “anticipate”, “expect”, believe”, “intend”, “guidance”, “estimates”, “suggest”, “will”, “plan”, “should”, “would”, “could”, “forecast” and other words and terms that use the future tense or have a similar meaning.  Forward-looking statements are based on current expectations and are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control.  Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets in which we operate, changes in customer demand and capital spending, competitive factors and pricing pressures, our ability to develop and launch new products in a cost-effective manner, our ability to identify and complete acquisitions and integrate and realize synergies from newly acquired businesses, the impact of interest rate and currency exchange rate fluctuations, capital allocation plans and changes in those plans, including with respect to dividends, share repurchases, investments in research and development, capital expenditures and acquisitions, changes in law, including the effect of U.S. tax reform and developments with respect to trade policy and tariffs, our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions, changes in sourcing input costs or the supply of input materials, the impact of legal compliance risks and litigation, including with respect to product quality and safety, cybersecurity and privacy, our ability to capture and protect intellectual property rights, and various other factors that are described in the Company’s periodic reports filed with or furnished to the Securities and Exchange Commission, including our Annual Report on Form 10-K/A for the year ended December 31, 2017. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.

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