Dover Corp. (DOV), a diversified manufacturer of specialized products and components, Wednesday reported higher profit in its first quarter, above analysts' estimates, benefited by improved revenues mainly on acquisitions. The company also backed its fiscal 2013 earnings and sales growth forecast.
President and Chief Executive Officer Robert Livingston said, "We were pleased with our first quarter results. We achieved solid revenue growth from our businesses serving the production and downstream energy markets and the consumer electronics market. These results helped offset the anticipated revenue decline driven by a lower North American rig count and reduced refrigeration activity, principally associated with a major retailer, as well as soft European industrial markets."
In its first quarter, the company's net earnings increased to $210 million or $1.20 per share from $196.06 million or $1.05 per share last year.
The latest results included earnings from discontinued operations of $13.0 million or $0.07 per share, higher than prior year's earnings of $9.65 million or $0.05 per share.
On a continuing operations basis, earnings grew 6 percent to $196.99 million from $186.41 million last year, and earnings per share improved 12 percent to $1.12 from $1.00 in the prior year.
Excluding the impact of discrete tax items of $0.02 per share, adjusted earnings from continuing operations were $1.10 per share in the quarter, 9 percent higher than last year's $1.01 per share.
On average, 18 analysts polled by Thomson Reuters expected the company to report profit of $1.08 per share for the quarter. Analysts' estimates typically exclude special items.
Quarterly revenues rose 4 percent to $2.04 billion from $1.96 billion last year. Analysts expected revenue of $2.07 billion for the quarter. The company said the revenue increase was driven by a 6 percent increase from acquisitions offset by organic decline of 1 percent and a minor impact from foreign exchange.
Regarding the current trading, Livingston said, "I am encouraged by our solid seasonal bookings growth as we begin the second quarter. In total, bookings grew 7 percent and resulted in a book-to-bill of 1.09."
The company also said that its recently acquired refrigeration business, Anthony International, is off to a great start and that it is enthusiastic about its continued strength in that market.
Looking ahead for fiscal 2013, Dover continues to expect profit per share from continuing operations in the range of $5.05-$5.35. The company continues to expect total revenue growth of 7 percent to 9 percent with organic growth of 3 percent to 5 percent complemented by acquisition growth of 4 percent.
Analysts currently expect the company to report profit per share of $5.23 on revenue of $8.72 billion.
Dover closed Tuesday's trading at $72.22.
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