DOWNERS GROVE, Ill., Oct. 20, 2015 /PRNewswire/ -- Dover (NYSE: DOV) announced today that for the third quarter ended September 30, 2015, revenue was $1.8 billion, a decrease of 11% from the prior year. The decrease in revenue was driven by an organic revenue decline of 10% and an unfavorable impact from foreign exchange of 4%, partially offset by 3% growth from acquisitions. Earnings from continuing operations were $186.5 million, a decrease of 17% as compared to $225.7 million for the prior year period. Diluted earnings per share from continuing operations ("EPS") for the third quarter ended September 30, 2015 were $1.19, compared to $1.34 EPS in the prior year period, representing a decrease of 11%. EPS from continuing operations for the third quarter of 2015 included discrete tax benefits of $0.05, compared to $0.03 EPS in the prior year period. Excluding these items, adjusted EPS from continuing operations for the third quarter of 2015 was $1.14, a decrease of 13% over an adjusted EPS of $1.31 in the prior year period. EPS for the third quarter ended September 30, 2015 and 2014 includes restructuring costs of $0.05 EPS and $0.01 EPS, respectively.

Revenue for the nine months ended September 30, 2015 was $5.3 billion, a decrease of 9% over the prior year, reflecting an organic revenue decline of 9% and an unfavorable impact from foreign exchange of 4%, offset by 4% growth from acquisitions. Earnings from continuing operations for the nine months ended September 30, 2015 were $459.3 million, a decrease of 24% as compared to $606.3 million for the prior year period. Diluted EPS for the nine months ended September 30, 2015 was $2.87, compared to $3.57 EPS in the prior year period, representing a decrease of 20%. EPS from continuing operations for the nine months ended September 30, 2015 included discrete tax benefits of $0.05, compared to $0.04 EPS in the prior year period. Excluding these items, adjusted EPS from continuing operations decreased 20% to $2.82 from an adjusted EPS of $3.53 in the prior year period. EPS for the nine months ended September 30, 2015 and 2014 includes restructuring costs of $0.17 EPS and $0.03 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 $3.73 to $3.80, as compared to our prior forecast of $3.75 to $3.90. This range includes approximately $0.20 of restructuring charges, representing a $0.02 increase from our last forecast, and now also includes $0.05 of discrete tax benefits."

Net earnings for the third quarter ended September 30, 2015, were $186.1 million, or $1.19 EPS, which included a loss from discontinued operations of $0.4 million, compared to net earnings of $231.8 million, or $1.38 EPS, for the same period of 2014, which included earnings from discontinued operations of $6.2 million, or $0.04 EPS.

Net earnings for the nine months ended September 30, 2015, were $728.0 million, or $4.55 EPS, which included earnings from discontinued operations of $268.7 million, or $1.68 EPS, compared to net earnings of $605.9 million, or $3.57 EPS, for the same period of 2014, which included a loss from discontinued operations of $0.4 million. 2015 earnings from discontinued operations included gains of $265.6 million, or $1.66 EPS, resulting from the disposition of two businesses held for sale.

Dover will host a webcast of its third quarter 2015 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Tuesday, October 20, 2015. The webcast can be accessed on the Dover website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's third quarter results and its operating segments can also be found on the Company's website.

About Dover:

Dover is a diversified global manufacturer with annual revenues of approximately $7 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve.  Recognized for our entrepreneurial approach for 60 years, our team of 26,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible.  Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV." Additional information is available at www.dovercorporation.com.

Forward-Looking Statements:

This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements relate to, among other things, operating and strategic plans, income, earnings, cash flows, foreign exchange, changes in operations, acquisitions, industries in which Dover businesses operate, anticipated market conditions and our positioning, global economies, and operating improvements. Forward-looking statements may be indicated by words or phrases such as "anticipates," "expects," "believes," "suggests," "will," "plans," "should," "would," "could," and "forecast", or the use of the future tense and similar words or phrases. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, oil and natural gas demand, production growth, and prices; changes in exploration and production spending by Dover's customers and changes in the level of oil and natural gas exploration and development; changes in customer demand and capital spending; economic conditions generally and changes in economic conditions globally and in markets served by Dover businesses, including well activity and U.S. industrials activity; Dover's ability to achieve expected savings from integration and other cost-control initiatives, such as lean and productivity programs as well as efforts to reduce sourcing input costs; the impact of interest rate and currency exchange rate fluctuations; the ability of Dover's businesses to expand into new geographic markets; Dover's ability to identify and successfully consummate value-adding acquisition opportunities or planned divestitures; the impact of loss of a significant customer, or loss or non-renewal of significant contracts; the ability of Dover's businesses to develop and launch new products, timing of such launches and risks relating to market acceptance by customers; the relative mix of products and services which impacts margins and operating efficiencies; increased competition and pricing pressures; the impact of loss of a single-source manufacturing facility; short-term capacity constraints; increases in the cost of raw materials; domestic and foreign governmental and public policy changes or developments, including environmental regulations, conflict minerals disclosure requirements, and tax policies; protection and validity of patent and other intellectual property rights; the impact of legal matters and legal compliance risks; conditions and events affecting domestic and global financial and capital markets; and a downgrade in Dover's credit ratings which, among other matters, could make obtaining financing more difficult and costly. Dover refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained herein. Dover undertakes no obligation to update any forward-looking statement, except as required by law.