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Actionable news in DOV: DOVER CORPORATION,

Dover: Vice President - Investor Relations

The following excerpt is from the company's SEC filing.

Vice President - Communications

(212) 922-1640

(630) 743-5039

peg@dovercorp.com

asakowicz@dovercorp.com

DOVER REPORTS

THIRD QUARTER

RESULTS, UPDATES 2015 GUIDANCE, AND ANNOUNCES TWO ACQUISITIONS

Reports quarterly revenue of

$1.8 billion

a decrease

from the prior year

Delivers quarterly diluted earnings per share from continuing operations of

, including

of discrete tax benefits

Updates full year 2015 diluted earnings per share from continuing operations to now be in the range of $3.73 to $3.80, including discrete tax benefits

Signs definitive agreements to acquire two businesses with combined 2016 revenue of approximately $165 million

Downers Grove, Illinois,

October 20, 2015

— Dover (NYSE: DOV) announced today that for the

quarter ended

September 30, 2015

, revenue was

from the prior year. The

in revenue was driven by an organic revenue

decline

an unfavorable

impact from foreign exchange of

, partially offset by

growth

from acquisitions. Earnings from continuing operations were

$186.5 million

as compared to

$225.7 million

for the prior year period. Diluted earnings per share from continuing operations ("EPS") for the

, compared to

EPS in the prior year period, representing

. EPS from continuing operations for the

quarter of

included discrete tax benefits of

, compared to

EPS in the prior year period. Excluding these items, adjusted EPS from continuing operations for the

quarter of

over an adjusted EPS of

in the prior year period.

EPS for the

includes restructuring costs of

EPS and

EPS, respectively.

Revenue for the

nine months

ended

$5.3 billion

over the prior year, reflecting an organic revenue

, offset by

from acquisitions. Earnings from continuing operations for the

were

$459.3 million

$606.3 million

for the prior year period. Diluted EPS for the

ended

included discrete tax benefits of

EPS in the prior year period. Excluding these items, adjusted EPS from continuing operations

decreased

from an adjusted EPS of

in the prior year period. EPS for the

includes restructuring costs of

EPS, respectively.

Commenting on the third quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "Overall, our third quarter performance was in line with our expectations. Our

team aggressively pursued cost actions and productivity initiatives, which helped to mitigate weak global macro conditions.

“We continued to pursue acquisitions that offer industry-leading products and significantly complement and expand our market positions. In this regard, I am pleased to announce we have signed definitive agreements to acquire two businesses, both of which are expected to close later in the fourth quarter. These acquisitions are in addition to our previously announced Tokheim deal.

“Specifically, we have agreed to acquire Italy-based JK Group SPA (“JK”), a leading manufacturer of innovative inks and consumables serving the fast-growing digital textile printing markets. JK’s digital inks will complement our MS Solutions equipment business, and will join the Engineered Systems segment under its Printing & Identification platform. We have also agreed to acquire Gala Industries, Inc. (“Gala”), a leading manufacturer of underwater pelletizing systems and solutions serving the plastics compounding industry, headquartered in Eagle Rock, Virginia. Gala will become part of our Maag business within the Fluids segment, and collectively, will provide our customers unequaled process and engineering expertise.”

The combined purchase price of JK and Gala will be approximately $520 million. JK and Gala are expected to have combined 2016 revenue of about $165 million and be about $0.11 accretive to continuing earnings per share in 2016. On an operating basis, which excludes purchase accounting amortization, JK and Gala are expected to be approximately $0.23 accretive in 2016. Combining JK and Gala with the previously announced Tokheim deal, Dover expects 2016 acquisition revenue to be approximately $500 million and 2016 continuing earnings per share accretion to be about $0.18. On an operating basis, which excludes normal transaction-related costs and purchase accounting amortization, these acquisitions are expected to be approximately $0.38 accretive in 2016. Dover expects to fund the nearly $1 billion in total acquisition spend with cash on hand and debt. Interest charges associated with the incremental debt financing are not included in the above earnings per share estimates.

"Looking to the remainder of 2015

” Mr. Livingston continued, “we have lowered our guidance to reflect the impact of generally weaker global market conditions. We expect full-year revenue to decline 10% to 11%, a two point reduction from our previous forecast. Within this revenue forecast, organic growth is anticipated to decline 9% to 10%, completed acquisitions will provide approximately 3% growth, and FX is expected to be a 4% headwind. In total, full year EPS is expected to be in the range of...


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