Dover Reports 1Q 2018 Results

Dover announced its financial results for the first quarter ended March 31, 2018.
 
For the first quarter ended March 31, 2018, Dover’s revenue was $1.9 billion, an increase of 6% from the prior year. The increase in the quarter was largely driven by organic growth of 4%. Net earnings were $131.4 million, a decrease of 24% as compared to $172.2 million for the prior year period. Diluted net earnings per share (EPS) for the first quarter ended March 31, 2018, were $0.84, compared to $1.09 EPS in the prior year period, representing a decrease of 23%.
 
For the first quarter ended March 31, 2018, EPS included Apergy separation related costs of $0.06 and rightsizing and other costs of $0.02. First quarter EPS also included acquisition-related amortization costs of $0.24. Excluding these costs, adjusted EPS for the first quarter ended March 31, 2018, was $1.16, an increase of 26% over an adjusted EPS of $0.92 in the prior year period, which excludes a gain on disposition of $0.39 and acquisition-related amortization costs of $0.22.
 
Beginning with this earnings release, Dover is providing full year EPS and revenue guidance on a pro forma continuing operations basis, which excludes the 2018 operating results of Apergy. On this basis, in 2018, Dover expects to generate adjusted diluted earnings per share in the range of $4.70 to $4.85, representing an increase of approximately 15% over the prior year, on a comparable pro forma basis. This guidance is based on full year revenue growth of 4% to 5%.
 
“Our first quarter revenue and earnings performance was solid and in-line with our expectations,” said Robert A. Livingston, Dover’s president and CEO. “We experienced continued strength in many of our businesses, including those serving the waste handling, printing & identification, heat exchanger and upstream energy markets. A number of other businesses also turned in solid performances, including pumps, vehicle service equipment, and industrial winches. This performance was partially offset by softer than expected retail refrigeration markets in the first quarter.
 
“We recently made two important announcements,” Livingston added. “First, we announced the appointment of Rich Tobin as Dover’s new president and CEO, effective May 1st. Rich is inheriting a strong company with outstanding talent and attractive businesses that are well-positioned in their markets. The Board and I are confident he is the right person to lead Dover to even greater success. We also announced the Board’s approval of the Apergy spin-off. The spin-off positions Dover to become a more focused company with more consistent performance.”