Dover Q2 Profit Down 35%, But Lifts 2014 Earnings Outlook

(RTTNews) - Diversified manufacturer Dover Corp. (DOV) on Thursday reported a 35 percent decline in profit for the second quarter from last year when results were boosted by earnings from discontinued operations and tax benefits. However, revenues for the latest quarter increased and the company raised its earnings outlook for fiscal 2014.

The Illinois-based maker of engineered systems, fluids, and refrigeration & food equipment said its net earnings for the second quarter were $213.96 million or $1.27 per share, down from $330.05 million or $1.91 per share in the previous-year quarter.

The latest quarter's results include net loss from discontinued operations of $3.5 million or $0.02 per share, compared to net earnings from discontinued operations of $72 million or $0.42 per share.

Earnings from continuing operations for the latest quarter were $217.44 million or $1.29 per share, compared to $258.06 million or $1.49 per share in the prior-year period. The prior-year quarter's results included discrete tax benefits of $0.36 per share.

Excluding items, adjusted earnings from continuing operations for the latest quarter was $1.29 per share, compared to adjusted earnings of $1.13 per share in the year-ago period. On average, 16 analysts polled by Thomson Reuters expected the company to report earnings of $1.28 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter grew 6 percent to $2.05 billion from $1.93 billion in the prior-year period. Analysts had a consensus revenue estimate of $2.07 billion for the quarter.

The increase in revenue was driven by organic growth of 3 percent and an increase of 3 percent from acquisitions.

Total consolidated bookings for the quarter were $2.09 billion, up 11 percent from $1.89 billion in the year-ago period. Consolidated backlog at the end of the quarter were $1.55 billion, up 12 percent from $1.38 billion in the same period last year.

For fiscal 2014, Dover raised its outlook for earnings to a range of $4.75 to $4.85 per share from the prior range of $4.60 to $4.80 per share, citing the positive market conditions that are reflected in its bookings and backlog.

The company now expects full-year organic growth of about 4 percent, near the high end of its prior range of 3 percent to 4 percent, principally driven by a more favorable mix.

According to Dover, completed acquisitions will provide 3 percent growth, resulting in total revenue growth at the high end of its range of 6 percent to 7 percent.

Analysts expect the company to report earnings of $4.81 per share for the year on revenues of $8.00 billion.

DOV is currently trading at $87.62, down $1.32 or 1.48 percent on a volume of 320,880 shares.