Dover Reports 2Q 2018 Results

Dover announced its financial results for the second quarter ended June 30, 2018.
 
For the second quarter ended June 30, 2018, Dover’s revenue was $1.8 billion, an increase of 3% from the prior year. The increase in the quarter was driven by organic growth of 3% and a favorable impact from foreign exchange (FX) of 2%, partially offset by a net 2% impact from previous acquisitions and dispositions.
 
Earnings from continuing operations were $166.5 million, an increase of 17% as compared to $142.5 million for the prior year period. Diluted earnings per share from continuing operations (EPS) on a GAAP basis for the second quarter ended June 30, 2018, were $1.08, compared to $0.90 EPS in the prior year period, representing an increase of 20%.
 
In the second quarter, the Apergy spin-off was completed and its financial results are now reported as discontinued operations. Net earnings for the second quarter ended June 30, 2018, inclusive of a $26.5 million loss in discontinued operations, was $140.0 million, compared to net earnings of $164.1 million in the prior year period, which included earnings from discontinued operations of $21.6 million. The loss from discontinued operations of $26.5 million for the second quarter ended June 30, 2018 included Apergy-related separation costs of $34.6 million.
 
Dover tightened its guidance for adjusted diluted earnings per share from continuing operations to $4.75 to $4.85, representing an increase of approximately 16% over the prior year, on a comparable basis. This guidance is based on full year revenue growth of 2% to 3%, which is comprised of organic growth of 3% to 4%, acquisition growth of 1%, and a favorable impact from FX of 1%, partially offset by a 3% impact from dispositions.
 
“As Dover posts its first quarterly results following the successful spin-off of Apergy, we are pleased to report total company revenue up 3%, an increase in adjusted net earnings of 19% to $200 million, with a corresponding increase in EPS of 21%.” Said Richard J. Tobin, Dover’s president and CEO. “We were encouraged by the overall demand environment in the second quarter which drove revenue increases of 4% in Engineered Systems and 10% in Fluids, offsetting forecasted demand weakness in Refrigeration & Food Equipment. Second quarter bookings were strong giving us confidence in our earnings forecast for the full year.”