Diversified machinery company Dover Corp. (DOV) reported Friday a 43% year-over-year decline in profit for the third quarter, hurt by lower segment margins as well as a 24% drop in revenues, amid the continuing weakness in global economy. Earnings per share from continuing operations for the quarter dropped, but topped analysts' expectations by ten cents. The company currently expects fiscal 2009 earnings to be around the midpoint of the prior guidance range.
In a statement, president and chief executive officer, Robert Livingston said, "The signs of stability we observed during the second quarter carried through to the third quarter across the majority of our businesses. I am pleased that we were able to leverage an 8% sequential improvement in revenue into a 38% sequential improvement in segment earnings. Operating margins expanded sequentially at all segments and came in at 14.3%, reflecting our year-long restructuring efforts."
Third Quarter Results
The New York-based maker of truck bodies, car wash systems and internal engine components reported net earnings of $106.88 million or $0.57 per share for the third quarter, lower than $187.65 million or $1.00 per share in the prior-year quarter.
Earnings from continuing operations for the quarter dropped to $107.48 million or $0.58 per share from $190.34 million or $1.01 per share in the year-ago quarter. On average, eight analysts polled by Thomson Reuters expected earnings of $0.48 per share for the quarter. Analysts' estimates typically exclude special items.
Total consolidated revenues for the quarter declined 24% to $1.50 billion from $1.97 billion in the same quarter last year, hurt by a decline in core business revenue of 24%, a negative impact of foreign exchange of 2%, and a 2% increase from net acquisitions. Three Wall Street analysts had a consensus revenue estimate $1.46 billion for the quarter.
Segmental Details
The company has four operating segments: Industrial Products, Engineered Systems, Fluid Management, and Electronic Technologies.
Revenues for Dover's industrial products dropped 37% to $396.04 million from $629.61 million in the prior-year quarter, primarily driven by continued weakness in infrastructure, automotive and energy end-markets.
At engineered systems, third quarter revenues edged down 1% to $520.69 million from $524.65 million in the year-ago quarter as revenue gains from Tyler Refrigeration acquisition in May were offset by weakness in most other end-markets.
Fluid Management revenues for the quarter totaled $309.25 million, down 32% from $451.68 million in the same quarter last year, driven by substantially lower volume.
Electronic technologies reported revenues of $275.27 million, 24% lower than $362.45 million in the comparable quarter a year ago, reflecting significantly weaker volumes in most served markets, partially offset by growth at Knowles Electronics.
Total segment earnings dropped to $215.15 million from $312.78 million in the prior-year quarter, and segment margins declined 160 basis points to 14.3% from last year's 15.9%.
Nine Month Highlights
For the nine month period, net earnings slipped to $257.4 million or $1.38 per share from $470.1 million or $2.47 per share in the year-ago period. Earnings from continuing operations for the period dropped to $269.5 million or $1.45 per share from $525.2 million or $2.76 per share in the prior-year period.
Revenue for the year-to-date period decreased 27% to $4.27 billion from $5.84 billion reported last year, reflecting a decline in core business revenue of 26%, a negative impact of foreign exchange of 3% and a 2% increase from net acquisitions.
Looking ahead...
"Thanks in large part to the continued disciplined focus of our business leaders, we remain well-positioned to finish the year with solid double-digit margins and strong cash flow. We are confident the steps we've taken to strengthen our businesses will provide us with a foundation to leverage the eventual market recovery when it occurs,"
For fiscal 2009, Dover currently expects full-year earnings per share to be around the midpoint of the prior guidance range of $1.75 to $2.00 per share. Analysts currently estimate full-year earnings of $1.83 per share for the full year 2009.
The company also continues to anticipate full-year 2009 revenue decline to be between 24% and 26% from last year, reflecting revenues in the range of $5.60 billion and $5.75 billion. The Street is looking for fiscal 2009 revenues of $5.67 billion.
Stock Quote
DOV closed Thursday's regular trading session at $40.54, up $0.70 on a volume of 1.86 million shares, higher than the three-month average volume of 1.53 million shares. In the past 52-week period, the stock has been trading in a range of $21.79 to $40.85.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.