Dover Corp. (DOV), a manufacturer of industrial products and components, Friday, reported lower fourth-quarter profit, as revenue declined in all its business segments except Engineered Systems. On a continuing operations basis, earnings slid 40%, but managed to come in above analysts' forecast. Going forward, Dover provided earnings and revenue growth outlook for fiscal 2010.
The company's fourth-quarter net earnings were $99.05 million or $0.53 per share, compared with $120.73 million or $0.65 per share a year ago.
The results included a loss from discontinued operations of $3.4 million or $0.02 per share, in comparison with a loss from discontinued operations of $48.9 million or $0.26 per share in the previous year. The company's fourth-quarter and full-year losses from discontinued operations largely reflect a loss provision for a business expected to be sold in 2010.
Earnings from continuing operations declined 40% to $102.44 million or $0.55 per share from $169.58 million or $0.91 per share in the prior-year quarter.
On average, 8 analysts polled by Thomson Reuters expected earnings per share of $0.49 for the quarter. Analysts' estimate typically excludes one-time items.
For the preceding third quarter, the New York-based manufacturer of truck bodies, car wash systems and internal engine components had reported net earnings of $106.88 million or $0.57 per share.
The company's quarterly revenues totaled $1.51 billion, a decrease of 12.7% from $1.73 billion in the previous-year quarter. Two analysts estimated revenues of $1.46 billion for the quarter. Organic revenue declined 19.3%, partially offset by 4.4% net growth from acquisitions and a 2.2% favorable foreign exchange impact. The company had posted revenues of $1.50 billion for the sequential third quarter.
Commenting on the results, Dover's President and Chief Executive Officer Robert Livingston, said, "We had a solid fourth quarter performance as a result of continued modest recovery in several of our key end-markets, including those served by Electronic Technologies, Energy and Product Identification…We also closed four add-on acquisitions in the fourth quarter which will enhance our positions in energy, product identification, refrigeration and food service equipment."
Based on segments, Industrial Products generated revenue of $408.01 million, down from $564.11 million a year earlier. Engineered Systems revenue rose to $473.04 million from $447.75 million in the prior-year quarter.
Fluid Management revenue was $335.62 million, compared with $414.44 million last year. Electronic Technologies revenue reached $291.70 million, lower than $301.97 million in the same period of fiscal 2008.
For fiscal 2009, Dover earned $356.44 million or $1.91 per share, compared with $590.83 million or $3.12 per share last year. Earnings from continuing operations fell 46% to $371.89 million or $1.99 per share from $694.76 million or $3.67 per share in the prior year.
The company's full-year revenue totaled $5.78 billion, down 23.7% from $7.57 billion in fiscal 2008. Organic revenue declined 23.9% and foreign exchange had a negative impact of 1.7%, partially offset by a favorable impact of 1.9% in net growth from acquisitions.
Wall Street analysts projected full-year earnings of $1.94 per share on revenues of $5.71 billion.
Amongst others in the sector, Cooper Industries Plc (CBE) has reported a 16% increase in its profit for the fourth quarter from last year, as lower costs and charges helped the company to offset a 17.5% decline in revenues. Cooper's net income increased to $128.8 million or $0.76 per share from $111.1 million or $0.65 per share a year ago. Quarterly revenues were $1.26 billion, down from $1.52 billion in the comparable quarter of fiscal 2008.
Weatherford International Ltd. (WFT) has posted a loss for the fourth quarter of fiscal 2009, reflecting lower revenues, loss for investigation and exit costs and a tax provision. The Geneva, Switzerland-based group incurred a loss from continuing operations attributable to Weatherford of $30.39 million or $0.04 per share versus a net profit of $348.11 million or $0.50 per share a year ago. Weatherford's net revenues totaled $2.42 billion, down from $2.63 billion in the prior-year quarter.
Another rival, Ingersoll-Rand Plc (IR) is set announce is fourth-quarter results on February 12. Analysts are of the view that the company will earn $0.53 per share on revenues of $3.35 billion.
Moving forward, Dover expects fiscal 2010 earnings per share from continuing operations of $2.35 to $2.65. Analysts anticipate full-year earnings of $2.38 per share.
Dover also projects full-year 2010 revenue growth of 7% to 9%, representing organic revenue growth of 4% to 6% and growth of 3% from acquisitions completed in 2009.
DOV is trading at $44.21, up $1.69 or 3.97%, on a volume of 262,780 shares.
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