Dover Reports Second Quarter 2013 Results; Provides Full-Year Outlook

    Dover Reports Second Quarter 2013 Results; Provides Full-Year Outlook

PR Newswire

DOWNERS GROVE, Ill., July 18, 2013

DOWNERS GROVE, Ill., July18, 2013 /PRNewswire/ --

  oReports quarterly revenue of $2.2 billion, an increase of 9% over the
    prior year
  oDelivers quarterly diluted earnings per share from continuing operations
    of $1.70, an increase of 55% over last year
  oAchieves adjusted quarterly diluted earnings per share from continuing
    operations of $1.36, excluding tax benefits of $0.36 and Knowles spin off
    costs of $0.02, up 24% from an adjusted prior year
  oReaffirms outlook for full year revenue growth at 7% to 9%
  oExpects diluted earnings per share from continuing operations to be in the
    range of $5.56 to $5.71 after raising the low end of the range, and
    including tax benefits and incurred spin off costs

Dover (NYSE: DOV) announced today that for the second quarter ended June30,
2013, revenue was $2.2 billion, an increase of 9% over the prior year period.
The revenue increase was driven by organic growth of 5%, an increase of 4%
from acquisitions, and a minor impact from foreign exchange. Earnings from
continuing operations were $294.4 million, or $1.70 diluted earnings per share
("EPS"), compared to $205.2 million, or $1.10 EPS, in the prior year period,
representing increases of 43% and 55%, respectively. EPS from continuing
operations includes discrete tax items of $0.36 EPS and Knowles spin off costs
of $0.02 EPS recognized in the current quarter. Excluding these items,
adjusted EPS from continuing operations for the second quarter of 2013 was
$1.36, reflecting an increase of 24% over EPS of $1.10 in the prior year
period.

Revenue for the six months ended June30, 2013 was $4.3 billion, an increase
of 7% over the prior year, reflecting organic growth of 2%, a 5% increase from
acquisitions, and a minor impact from foreign exchange. Earnings from
continuing operations for the six months ended June30, 2013 were $491.3
million, or $2.82 EPS, compared to $391.6 million, or $2.10 EPS in the prior
year period, representing increases of 25% and 34%, respectively. EPS from
continuing operations during this period includes discrete tax items of $0.38
EPS and Knowles spin off costs of $0.02 EPS, compared to ($0.01) EPS of
discrete tax items in the prior year. Excluding these items, adjusted EPS from
continuing operations for the six months ended June30, 2013, was $2.46, an
increase of 17% over an adjusted EPS of $2.11 in the prior year.

Commenting on the second quarter results, Dover's President and Chief
Executive Officer, Robert A. Livingston, said, "I am very pleased with our
results for the second quarter and the actions we've taken to strengthen our
company. The quarter was driven by broad-based growth, particularly among our
businesses serving the consumer electronics and refrigeration markets, with
solid contribution from our energy and fluids businesses. In all, we posted
strong revenue growth of 9%. Segment margin also expanded, where improved
performance at Printing & Identification and Engineered Systems helped drive
segment margin to 17.3%, a 30 basis point improvement over last year."

"We also made progress on several important strategic actions in the quarter.
We continued to execute on our share repurchase program, completed four small
synergistic acquisitions, and most importantly, announced our intention to
spin off several businesses within our Communication Technologies segment to
our shareholders, which is progressing as planned. Taken together, these
actions demonstrate Dover's ongoing commitment to create significant
shareholder value."

"Looking ahead, 2013 remains largely consistent with the view we previously
shared. We continue to expect full year organic revenue growth of 3% to 5%,
complemented by acquisition growth of 4%, resulting in total revenue growth of
7% to 9%. Based on our solid second quarter performance, we are taking up the
low end of our earnings guidance range. In addition, we are adjusting full
year guidance to include discrete tax benefits and incurred spin off costs.
As a result, our revised guidance for full year EPS is now $5.56 to $5.71.
This range does not include any prospective Knowles spin off costs to be
incurred in the next several quarters."

Net earnings for the second quarter of 2013 were $330.0 million or $1.91 EPS,
including earnings from discontinued operations of $35.7 million, or $0.21
EPS, compared to net earnings of $214.1 million, or $1.15 EPS, for the same
period of 2012, which included earnings from discontinued operations of $8.9
million, or $0.05 EPS. Reflected within discontinued operations was a
goodwill impairment charge of $18.7 million, net of tax, or $0.11 EPS,
connected with the anticipated sale of our electronic test and assembly
businesses, and discrete tax benefits of $42.7 million, or $0.25 EPS.

Net earnings for the six months ended June30, 2013, were $540.1 million, or
$3.10 EPS, including net earnings from discontinued operations of $48.7
million, or $0.28 EPS, compared to net earnings of $410.2 million, or $2.20
EPS, for the same period of 2012, which included net earnings from
discontinued operations of $18.6 million or $0.10 EPS. Reflected within
discontinued operations was a goodwill impairment charge of $18.7 million, net
of tax, or $0.11 EPS, connected with the anticipated sale of our electronic
test and assembly businesses, and discrete tax benefits of $52.4 million, or
$0.30 EPS.

Dover will host a webcast of its second quarter 2013 conference call at 10:00
A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, July18, 2013. 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 second 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 revenues of over $8
billion. For over 50 years, Dover has been delivering outstanding products
and services that reflect its market leadership and commitment to operational
and technical excellence. The Company's entrepreneurial business model
encourages, promotes and fosters deep customer engagement which has led to
Dover's well-established and valued reputation for providing superior customer
service and industry-leading product innovation. Dover focuses on innovative
equipment and components, specialty systems and support services through its
four major operating segments: Communication Technologies, Energy, Engineered
Systems and Printing & Identification. Headquartered in Downers Grove,
Illinois, Dover employs 35,000 people worldwide.Dover is traded on the New
York Stock Exchange under "DOV."Additional information is available on our
website at www.dovercorporation.com.

Forward-Looking Statement:

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,
operating and strategic plans, income, earnings, cash flows, changes in
operations, operating improvements, industries in which Dover businesses
operate and the U.S. and global economies. Statements in this press release
that are not historical are hereby identified as "forward-looking statements"
and may be indicated by words or phrases such as "anticipates," "expects,"
"believes," "indicates," "suggests," "will," "plans," "supports," "projects,"
"should," "would," "could," "forecast" and "management is of the opinion," 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, the state of the worldwide economy and sovereign credit,
especially in Europe; political events that could impact the worldwide
economy; the impact of natural disasters and their effect on global supply
chains and energy markets; current economic conditions and uncertainties in
the credit and capital markets; instability in countries where Dover conducts
business; the ability of Dover's businesses to expand into new geographic
markets and to anticipate and meet customer demands for new products and
product enhancements; increased competition and pricing pressures in the
markets served by Dover's businesses; the impact of the proposed spin off and
our ability to consummate it on the anticipated time line or terms; the terms
and timing of the sale of any business in discontinued operations; the impact
of loss of a single-source manufacturing facility; changes in customer demand
or loss of a significant customer; the relative mix of products and services
which impacts margins and operating efficiencies; short-term capacity
constraints; increases in the cost of raw materials; domestic and foreign
governmental and public policy changes including environmental regulations,
conflict minerals disclosure requirements, and tax policies (including
domestic and international export subsidy programs, R&E credits and other
similar programs); protection and validity of patent and other intellectual
property rights; the ability to identify and successfully consummate
value-adding acquisition opportunities; Dover's ability to achieve expected
savings from integration, synergy and other cost-control initiatives;
unforeseen developments in contingencies such as litigation; international
economic conditions including interest rate and currency exchange rate
fluctuations; possible future terrorist threats and their effect on the
worldwide economy; and a downgrade in Dover's credit ratings. 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 in this press release. Dover
undertakes no obligation to update any forward-looking statement, except as
required by law.





INVESTOR SUPPLEMENT - SECOND QUARTER 2013





DOVER CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

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




                       Three Months Ended June 30,  Six Months Ended June 30,
                       2013          2012           2013          2012
Revenue                $ 2,228,763    $ 2,038,289   $ 4,268,336   $ 3,992,903
Cost of goods and      1,372,811      1,261,187     2,635,762     2,469,721
services
Gross profit           855,952        777,102       1,632,574     1,523,182
Selling and
administrative         505,628        466,089       990,049       920,078
expenses
Operating earnings     350,324        311,013       642,525       603,104
Interest expense, net  30,280         29,715        60,524        59,746
Other expense          2,543          364           (2,176)       2,149
(income), net
Earnings before
provision for income
taxes                  317,501        280,934       584,177       541,209

and discontinued
operations
Provision for income   23,149         75,778        92,836        149,644
taxes
Earnings from          294,352        205,156       491,341       391,565
continuing operations
Earnings from
discontinued           35,697         8,945         48,711        18,599
operations, net
Net earnings           $ 330,049      $ 214,101     $ 540,052     $ 410,164
Comprehensive earnings $ 332,989      $ 120,514     $ 511,713     $ 357,819
Basic earnings per
common share:
Earnings from          $ 1.72         $ 1.12        $ 2.85        $ 2.13
continuing operations
Earnings from
discontinued           0.21           0.05          0.28          0.10
operations, net
Net earnings           1.93           1.17          3.13          2.23
Weighted average       171,111        183,494       172,273       183,625
shares outstanding
Diluted earnings per
common share:
Earnings from          $ 1.70         $ 1.10        $ 2.82        $ 2.10
continuing operations
Earnings from
discontinued           0.21           0.05          0.28          0.10
operations, net
Net earnings           1.91           1.15          3.10          2.20
Weighted average       173,097        185,780       174,325       186,171
shares outstanding
Dividends paid per     $ 0.35         $ 0.315       $ 0.70        $ 0.63
common share





DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)


               2013                                       2012
               Q1            Q2            Q2 YTD         Q1            Q2            Q2 YTD        Q3            Q4            FY 2012
REVENUE
Communication  $ 372,790     $ 401,477     $ 774,267      $ 357,575     $ 361,689     $ 719,264     $ 396,470     $ 400,851     $ 1,516,585
Technologies
Energy         561,198       573,471       1,134,669      531,570       538,786       1,070,356     562,263       539,985       2,172,604
Engineered
Systems
Fluid          203,991       226,882       430,873        180,364       211,974       392,338       218,324       206,500       817,162
Solutions
Refrigeration  664,294       777,396       1,441,690      642,213       674,501       1,316,714     674,116       613,012       2,603,842
& Industrial
Eliminations   (352)         (383)         (735)          (453)         (352)         (805)         (319)         (336)         (1,460)
               867,933       1,003,895     1,871,828      822,124       886,123       1,708,247     892,121       819,176       3,419,544
Printing &     237,877       250,646       488,523        243,570       251,875       495,445       246,945       254,141       996,531
Identification
Intra-segment  (225)         (726)         (951)          (225)         (184)         (409)         (194)         (322)         (925)
eliminations
Total
consolidated   $ 2,039,573   $ 2,228,763   $ 4,268,336    $ 1,954,614   $ 2,038,289   $ 3,992,903   $ 2,097,605   $ 2,013,831   $ 8,104,339
revenue
NET EARNINGS
Segment
Earnings:
Communication  $ 44,208      $ 51,789      $ 95,997       $ 46,556      $ 50,322      $ 96,878      $ 63,706      $ 58,376      $ 218,960
Technologies
Energy         139,545       132,926       272,471        132,115       133,936       266,051       139,038       133,561       538,650
Engineered     117,178       165,440       282,618        122,092       133,808       255,900       144,245       101,807       501,952
Systems
Printing &     29,752        35,967        65,719         26,089        28,918        55,007        39,502        40,650        135,159
Identification
Total Segments 330,683       386,122       716,805        326,852       346,984       673,836       386,491       334,394       1,394,721
Corporate
expense /      33,763        38,341        72,104         36,546        36,335        72,881        32,001        31,127        136,009

other (1)
Net interest   30,244        30,280        60,524         30,031        29,715        59,746        30,399        30,996        121,141
expense
Earnings from
continuing
operations     266,676       317,501       584,177        260,275       280,934       541,209       324,091       272,271       1,137,571
before
provision for
income taxes
Provision for  69,687        23,149        92,836         73,866        75,778        149,644       90,761        64,047        304,452
income taxes
Earnings from
continuing     196,989       294,352       491,341        186,409       205,156       391,565       233,330       208,224       833,119
operations
Earnings
(loss) from
discontinued   13,014        35,697        48,711         9,654         8,945         18,599        7,716         (48,364)      (22,049)
operations,
net
Net earnings   $ 210,003     $ 330,049     $ 540,052      $ 196,063     $ 214,101     $ 410,164     $ 241,046     159,860       $ 811,070
SEGMENT OPERATING MARGIN
Communication  11.9        % 12.9        % 12.4        %  13.0        % 13.9        % 13.5        % 16.1        % 14.6        % 14.4        %
Technologies
Energy         24.9        % 23.2        % 24.0        %  24.9        % 24.9        % 24.9        % 24.7        % 24.7        % 24.8        %
Engineered     13.5        % 16.5        % 15.1        %  14.9        % 15.1        % 15.0        % 16.2        % 12.4        % 14.7        %
Systems
Printing &     12.5        % 14.3        % 13.5        %  10.7        % 11.5        % 11.1        % 16.0        % 16.0        % 13.6        %
Identification
Total Segment  16.2        % 17.3        % 16.8        %  16.7        % 17.0        % 16.9        % 18.4        % 16.6        % 17.2        %
DEPRECIATION AND AMORTIZATION EXPENSE
Communication  $ 35,501      $ 37,719      $ 73,220       $ 31,513      $ 32,828      $ 64,341      $ 32,997      $ 35,281      $ 132,619
Technologies
Energy         26,298        26,599        52,897         21,184        23,533        44,717        24,639        25,721        95,077
Engineered     31,551        32,282        63,833         19,582        23,913        43,495        23,060        27,066        93,621
Systems
Printing &     7,630         7,606         15,236         8,331         8,496         16,827        8,777         7,998         33,602
Identification
Corporate      859           1,026         1,885          700           765           1,465         842           359           2,666
               $ 101,839     $ 105,232     $ 207,071      $ 81,310      $ 89,535      $ 170,845     $ 90,315      $ 96,425      $ 357,585



(1) Includes $3.3 million of incurred Knowles spin off costs in Q2 2013.





DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)


               2013                                     2012
               Q1           Q2          Q2 YTD          Q1            Q2           Q2 YTD        Q3            Q4           FY 2012
BOOKINGS
Communication  $ 379,122    $ 422,293    $ 801,415       $ 347,291     $ 387,058    $ 734,349     $ 411,005    $ 363,624     $ 1,508,978
Technologies
Energy         620,640      525,612      1,146,252       585,775       530,352      1,116,127     526,824      550,091       2,193,042
Engineered
Systems
Fluid          223,764      213,359      437,123         184,711       204,139      388,850       197,767      209,872       796,489
Solutions
Refrigeration  755,026      784,904      1,539,930       711,911       666,223      1,378,134     600,065      606,931       2,585,130
& Industrial
Eliminations   (373)        (432)        (805)           (408)         (376)        (784)         (258)        (399)         (1,441)
               978,417      997,831      1,976,248       896,214       869,986      1,766,200     797,574      816,404       3,380,178
Printing &     237,217      259,282      496,499         249,773       251,733      501,506       244,611      252,937       999,054
Identification
Intra-segment  (720)        (137)        (857)           (609)         (221)        (830)         (759)        (1,020)       (2,609)
eliminations
Total
consolidated   $ 2,214,676  $ 2,204,881  $ 4,419,557     $ 2,078,444   $ 2,038,908  $ 4,117,352   $ 1,979,255  $ 1,982,036   $ 8,078,643
bookings
BACKLOG
Communication  $ 458,765    $ 480,426                    $ 451,110     $ 476,745                  $ 491,041    $ 453,172
Technologies
Energy         311,793      255,544                      296,360       282,364                    248,233      256,093
Engineered
Systems
Fluid          178,854      184,142                      191,327       172,300                    156,191      160,890
Solutions
Refrigeration  592,922      597,838                      598,910       586,824                    515,285      516,559
& Industrial
Eliminations   (178)        (227)                        (132)         (155)                      (94)         (157)
               771,598      781,753                      790,105       758,969                    671,382      677,292
Printing &     95,353       103,864                      102,117       98,216                     98,356       97,857
Identification
Intra-segment  (886)        (578)                        (986)         (648)                      (324)        (591)
eliminations
Total
consolidated   $ 1,636,623  $ 1,621,009                  $ 1,638,706   $ 1,615,646                $ 1,508,688  $ 1,483,823
backlog









DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

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


             2013                              2012
             Q1         Q2         Q2 YTD      Q1         Q2         Q2 YTD     Q3         Q4         FY 2012
Basic earnings (loss) per common share:
Continuing   $ 1.14     $ 1.72     $ 2.85      $ 1.01     $ 1.12     $ 2.13     $ 1.28     $ 1.17     $ 4.59
operations
Discontinued 0.08       0.21       0.28        0.05       0.05       0.10       0.04       (0.27)     (0.12)
operations
Net earnings 1.21       1.93       3.13        1.07       1.17       2.23       1.33       0.90       4.47
Diluted earnings (loss) per common share:
Continuing   $ 1.12     $ 1.70     $ 2.82      $ 1.00     $ 1.10     $ 2.10     $ 1.27     $ 1.16     $ 4.53
operations
Discontinued 0.07       0.21       0.28        0.05       0.05       0.10       0.04       (0.27)     (0.12)
operations
Net earnings 1.20       1.91       3.10        1.05       1.15       2.20       1.31       0.89       4.41
Adjusted diluted earnings per common share (calculated below):
Continuing   $ 1.10     $ 1.36     $ 2.46      $ 1.01     $ 1.10     $ 2.11     $ 1.25     $ 1.09     $ 4.44
operations
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:
Net earnings
(loss):
Continuing   $ 196,989  $ 294,352  $ 491,341   $ 186,409  $ 205,156  $ 391,565  $ 233,330  $ 208,224  $ 833,119
operations
Discontinued 13,014     35,697     48,711      9,654      8,945      18,599     7,716      (48,364)   (22,049)
operations
Net earnings 210,003    330,049    540,052     196,063    214,101    410,164    241,046    159,860    811,070
Average shares outstanding:
Basic        173,448    171,111    172,273     183,737    183,494    183,625    181,763    177,257    181,551
Diluted      175,567    173,097    174,325     186,706    185,780    186,171    183,932    179,365    183,993



Note:
Earnings from continuing operations are adjusted by discrete tax items and
incurred Knowles spin off costs to derive adjusted earnings from continuing
operations and adjusted diluted earnings per common share as follows:

           2013                              2012
           Q1         Q2         Q2 YTD      Q1         Q2         Q2 YTD     Q3         Q4         FY 2012
Adjusted earnings from continuing
operations:
Earnings
from
continuing $ 196,989  $ 294,352  $ 491,341   $ 186,409  $ 205,156  $ 391,565  $ 233,330  $ 208,224  $ 833,119

operations
Gains
(losses)
from       4,525      61,477     66,002      (1,610)    (372)      (1,982)    4,513      13,606     16,137
discrete
and other
tax items
Knowles
spin off   —          (3,322)    (3,322)     —          —          —          —          —          —
costs
Adjusted
earnings
from       $ 192,464  $ 236,197  $ 428,661   $ 188,019  $ 205,528  $ 393,547  $ 228,817  $ 194,618  $ 816,982
continuing
operations
Adjusted diluted earnings per common share:
Earnings
from       $ 1.12     $ 1.70     $ 2.82      $ 1.00     $ 1.10     $ 2.10     $ 1.27     $ 1.16     $ 4.53
continuing
operations
Gains
(losses)
from       0.02       0.36       0.38        (0.01)     —          (0.01)     0.02       0.07       0.09
discrete
and other
tax items
Knowles
spin off   —          (0.02)     (0.02)      —          —          —          —          —          —
costs
Adjusted
earnings
from       $ 1.10     $ 1.36     $ 2.46      $ 1.01     $ 1.10     $ 2.11     $ 1.25     $ 1.09     $ 4.44
continuing
operations
* Per share data may not add due to
rounding.







DOVER CORPORATION

QUARTERLY FREE CASH FLOW

(unaudited)(in thousands)


           2013                                2012
           Q1         Q2          Q2 YTD       Q1          Q2          Q2 YTD      Q3          Q4          FY 2012
Cash flow
from
operating  $ 78,326   $ 304,729   $ 383,055    $ 161,327   $ 243,363   $ 404,690   $ 285,811   $ 570,659   $ 1,261,160

activities
Less:
Additions
to
property,  (47,153)   (53,284)    (100,437)    (68,249)    (72,758)    (141,007)   (67,842)    (88,163)    (297,012)

plant and
equipment
Free cash  $ 31,173   $ 251,445   $ 282,618    $ 93,078    $ 170,605   $ 263,683   $ 217,969   $ 482,496   $ 964,148
flow
Free cash
flow as a
percentage
of         15.8     % 85.4      % 57.5      %  49.9      % 83.2      % 67.3      % 93.4      % 231.7     % 115.7       %
earnings
from
continuing
operations
Free cash
flow as a  1.5      % 11.3      % 6.6       %  4.8       % 8.4       % 6.6       % 10.4      % 24.0      % 11.9        %
percentage
of revenue







SOURCE Dover Corporation

Website: http://www.dovercorporation.com
Contact: Paul Goldberg, Vice President - Investor Relations, (212) 922-1640