UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________________
FORM 8-K
__________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 24, 2006
DOVER CORPORATION
(Exact Name of Registrant as Specified in Charter)
__________________
| STATE OF DELAWARE (State or other Jurisdiction of Incorporation ) |
1-4018 (Commission File Number) |
53-0257888 (I.R.S. Employer Identification No.) |
| 280 Park Avenue, New York, NY (Address of Principal Executive Offices) |
10017 (Zip Code) |
(212) 922-1640
(Registrant’s telephone number, including area code)
(Registrant’s telephone number, including area code)
(Former Name or Former address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On October 24, 2006, Dover Corporation issued the press release attached hereto as Exhibit 99.1
announcing its results of operations for its quarter ended September 30, 2006.
The information in this Current Report on Form 8-K, including Exhibits, is being furnished to the
Securities and Exchange Commission (the “SEC”) and shall not be deemed to be incorporated by
reference into any of Dover’s filings with the SEC under the Securities Act of 1933.
Item 9.01 Financial Statements and Exhibits.
(a)
|
Financial statements of businesses acquired. | |
| Not applicable. | ||
(b)
|
Pro forma financial information. | |
| Not applicable. | ||
(c)
|
Shell company transactions. | |
| Not applicable. | ||
(d)
|
Exhibits. | |
| The following exhibit is furnished as part of this report: | ||
| 99.1 Press Release of Dover Corporation, dated October 24, 2006. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly
authorized.
| Date: October 24, 2006 | DOVER CORPORATION (Registrant) |
|||
| By: | /s/ Joseph W. Schmidt | |||
| Joseph W. Schmidt | ||||
| Vice President, General Counsel & Secretary | ||||
EXHIBIT INDEX
| Number | Exhibit | |
99.1
|
Press Release of Dover Corporation, dated October 24, 2006 |
Exhibit 99.1
CONTACT:
|
READ IT ON THE WEB | |
Paul Goldberg Treasurer & Director of Investor Relations (212) 922-1640 |
www.dovercorporation.com October 24, 2006 |
DOVER REPORTS THIRD QUARTER 2006 RESULTS
New York, New York, October 24, 2006 — Dover Corporation (NYSE: DOV) announced that for the third
quarter ended September 30, 2006, it had earnings from continuing operations of $156.3 million or
$0.76 diluted earnings per share (“EPS”), compared to $123.0 million or $0.60 EPS from continuing
operations in the prior-year period, representing increases of 27% and 26%, respectively. Revenue
for the third quarter of 2006 was $1,651.9 million, an increase of 21% over the prior-year period.
Earnings from continuing operations for the third quarter of 2006 included $0.02 EPS related to the
expensing of stock options and stock appreciation rights.
Net earnings for the third quarter of 2006 were $167.5 million or $0.82 EPS, including earnings
from discontinued operations of $11.2 million or $0.05 EPS, compared to net earnings of $122.7
million or $0.60 EPS for the same period of 2005, which included a loss from discontinued
operations of $0.4 million and no EPS impact.
Earnings from continuing operations for the nine months ended September 30, 2006 increased 38% to
$446.3 million, or $2.17 EPS, compared to the prior year, and included $0.06 EPS related to the
expensing of stock options and stock appreciation rights. Net earnings were $443.3 million or $2.16
EPS, compared to $394.0 million or $1.93 EPS in the prior year.
Commenting on the third quarter results, Dover’s President and Chief Executive Officer, Ronald L.
Hoffman, stated: “Dover continues to post very positive comparative results with a 27% earnings
increase on a 21% increase in sales for the third quarter. We also had a positive book to bill in the quarter.
These results reflect continued strong
performances at a number of Dover’s key platforms, particularly the Oil and Gas, Electronic
Components, Product Identification, Mobile Equipment and Process Equipment Groups. We continue to
generate strong, double-digit organic growth and have also realized a significant positive impact from
our recent acquisitions. Quarterly free cash flow of $240 million was 15% of quarterly sales
and 154% of quarterly net earnings. Our robust cash generation reflects Dover’s focus on working capital
improvements in our operating companies. This is driven by the Dover metrics and the Performance Counts
initiatives and validates our rebalanced portfolio of higher margin operating companies. We are
also excited about the addition of Paladin Brands to the Dover family. Paladin serves
a broad array of construction, demolition, utility and forestry customers with an extensive line of
specialty attachments and tools sold primarily through a diverse distribution network.
Looking ahead, Dover enters the fourth quarter with record backlogs
and demand remains strong in the Oil and Gas, Electronic Components, Product
Identification and Process Equipment Groups. However, light construction and automotive markets
continue to decline and semiconductor markets remain soft. Overall, we anticipate a solid fourth
quarter, well ahead of prior year results, but moderating somewhat from the third quarter of 2006
2
given the effects of acquisition accounting costs at Paladin and Markem as well as the normal
impact of the holiday season.”
Dover will host a Webcast of its third quarter 2006 conference call at 9:00 AM Eastern Time on
Wednesday October 25, 2006. The Webcast can be accessed at the Dover Corporation website at
www.dovercorporation.com. The conference call will also be made available for replay on the
website and additional information on Dover’s third quarter 2006 results and its operating
companies can also be found on the Company website and in the Company’s Form 10-Q filed after this
release.
Dover Corporation makes information available to the public, orally and in writing, which may use
words like “anticipates,” “expects,” “believes,” “indicates,” “suggests,” “will,” “plans” and
“should,” which are “forward-looking statements” under the Private Securities Litigation Reform Act
of 1995. This press release contains forward-looking statements concerning future events and the
performance of Dover Corporation that involve inherent risks and uncertainties that could cause
actual results to differ materially from current expectations, including, but not limited to,
failure to achieve expected synergies, the impact of continued events in the Middle East on the
worldwide economy, economic conditions, increases in the cost of raw materials, changes in customer
demand, increased competition in the markets served by Dover Corporation’s operating companies, the
impact of natural disasters, such as hurricanes, and their effect on global energy markets and
other risks. Dover Corporation 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
in this press release. Dover Corporation undertakes no obligation to update any forward-looking
statement.
TABLES FOLLOW
3
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (in thousands, except per share figures)
(unaudited) (in thousands, except per share figures)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Revenue |
$ | 1,651,927 | $ | 1,364,597 | $ | 4,813,554 | $ | 3,922,771 | ||||||||
Cost of goods and services |
1,070,569 | 882,538 | 3,067,317 | 2,540,453 | ||||||||||||
Gross profit |
581,358 | 482,059 | 1,746,237 | 1,382,318 | ||||||||||||
Selling and administrative expenses |
355,264 | 301,005 | 1,059,130 | 900,364 | ||||||||||||
Operating earnings |
226,094 | 181,054 | 687,107 | 481,954 | ||||||||||||
Interest expense, net |
17,186 | 16,250 | 57,932 | 47,606 | ||||||||||||
Other expense (income), net |
2,609 | (957 | ) | 9,583 | (9,398 | ) | ||||||||||
Total interest/other expense, net |
19,795 | 15,293 | 67,515 | 38,208 | ||||||||||||
Earnings before provision for income
taxes and discontinued operations |
206,299 | 165,761 | 619,592 | 443,746 | ||||||||||||
Provision for income taxes |
49,991 | 42,719 | 173,276 | 119,622 | ||||||||||||
Earnings from continuing operations |
156,308 | 123,042 | 446,316 | 324,124 | ||||||||||||
Earnings (loss) from discontinued operations, net |
11,217 | (362 | ) | (3,054 | ) | 69,891 | ||||||||||
Net earnings |
$ | 167,525 | $ | 122,680 | $ | 443,262 | $ | 394,015 | ||||||||
Basic earnings (loss) per common share: |
||||||||||||||||
Earnings from continuing operations |
$ | 0.77 | $ | 0.61 | $ | 2.19 | $ | 1.60 | ||||||||
Earnings (loss) from discontinued operations |
0.06 | — | (0.01 | ) | 0.34 | |||||||||||
Net earnings |
0.82 | 0.61 | 2.18 | 1.94 | ||||||||||||
Weighted average shares outstanding |
203,682 | 202,572 | 203,629 | 203,057 | ||||||||||||
Diluted earnings (loss) per common share: |
||||||||||||||||
Earnings from continuing operations |
$ | 0.76 | $ | 0.60 | $ | 2.17 | $ | 1.59 | ||||||||
Earnings (loss) from discontinued operations |
0.05 | — | (0.01 | ) | 0.34 | |||||||||||
Net earnings |
0.82 | 0.60 | 2.16 | 1.93 | ||||||||||||
Weighted average shares outstanding |
205,313 | 203,918 | 205,294 | 204,236 | ||||||||||||
Dividends paid per common share |
$ | 0.19 | $ | 0.17 | $ | 0.53 | $ | 0.49 | ||||||||
The following table is a reconciliation of the share amounts used in computing earnings per share:
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2006 | 2005 | 2006 | 2005 | |||||||||||||
Weighted average shares outstanding — Basic |
203,682 | 202,572 | 203,629 | 203,057 | ||||||||||||
Dilutive effect of assumed exercise of employee stock options |
1,631 | 1,346 | 1,665 | 1,179 | ||||||||||||
Weighted average shares outstanding — Diluted |
205,313 | 203,918 | 205,294 | 204,236 | ||||||||||||
Anti-dilutive shares excluded from diluted EPS computation |
1,837 | 3,755 | 2,252 | 4,537 | ||||||||||||
4
DOVER CORPORATION
MARKET SEGMENT INFORMATION
(unaudited)(in thousands)
DOVER CORPORATION
MARKET SEGMENT INFORMATION
(unaudited)(in thousands)
| 2005 | 2006 | |||||||||||||||||||||||||||||||||||||||
| Q3 | Q4 | Q3 | ||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | YTD | Q4 | YTD | Q1 | Q2 | Q3 | YTD | |||||||||||||||||||||||||||||||
REVENUE |
||||||||||||||||||||||||||||||||||||||||
Diversified |
$ | 185,058 | $ | 196,969 | $ | 185,050 | $ | 567,077 | $ | 182,006 | $ | 749,083 | $ | 199,864 | $ | 208,148 | $ | 196,360 | $ | 604,372 | ||||||||||||||||||||
Electronics |
116,980 | 121,700 | 112,781 | 351,461 | 194,582 | 546,043 | 199,495 | 222,751 | 225,469 | 647,715 | ||||||||||||||||||||||||||||||
Industries |
193,955 | 210,450 | 206,274 | 610,679 | 207,267 | 817,946 | 208,571 | 215,338 | 221,387 | 645,296 | ||||||||||||||||||||||||||||||
Resources |
356,307 | 377,135 | 390,249 | 1,123,691 | 395,247 | 1,518,938 | 425,162 | 435,341 | 463,853 | 1,324,356 | ||||||||||||||||||||||||||||||
Systems |
155,871 | 177,735 | 197,076 | 530,682 | 174,695 | 705,377 | 181,285 | 234,124 | 217,543 | 632,952 | ||||||||||||||||||||||||||||||
Technologies |
219,084 | 252,005 | 275,612 | 746,701 | 287,151 | 1,033,852 | 294,941 | 343,367 | 330,768 | 969,076 | ||||||||||||||||||||||||||||||
Intramarket eliminations |
(2,400 | ) | (2,675 | ) | (2,445 | ) | (7,520 | ) | (3,352 | ) | (10,872 | ) | (3,088 | ) | (3,672 | ) | (3,453 | ) | (10,213 | ) | ||||||||||||||||||||
Total consolidated revenue |
$ | 1,224,855 | $ | 1,333,319 | $ | 1,364,597 | $ | 3,922,771 | $ | 1,437,596 | $ | 5,360,367 | $ | 1,506,230 | $ | 1,655,397 | $ | 1,651,927 | $ | 4,813,554 | ||||||||||||||||||||
NET EARNINGS |
||||||||||||||||||||||||||||||||||||||||
Segment Earnings: |
||||||||||||||||||||||||||||||||||||||||
Diversified |
$ | 20,424 | $ | 22,975 | $ | 23,121 | $ | 66,520 | $ | 20,770 | $ | 87,290 | $ | 22,676 | $ | 23,037 | $ | 23,061 | $ | 68,774 | ||||||||||||||||||||
Electronics |
9,227 | 12,259 | 5,208 | 26,694 | 20,194 | 46,888 | 20,754 | 29,862 | 31,618 | 82,234 | ||||||||||||||||||||||||||||||
Industries |
21,918 | 24,418 | 28,180 | 74,516 | 29,764 | 104,280 | 27,328 | 30,208 | 31,389 | 88,925 | ||||||||||||||||||||||||||||||
Resources |
62,747 | 65,545 | 65,077 | 193,369 | 67,302 | 260,671 | 82,797 | 80,919 | 76,641 | 240,357 | ||||||||||||||||||||||||||||||
Systems |
22,037 | 26,910 | 29,221 | 78,168 | 21,920 | 100,088 | 26,971 | 38,341 | 24,920 | 90,232 | ||||||||||||||||||||||||||||||
Technologies |
17,591 | 33,284 | 44,591 | 95,466 | 39,264 | 134,730 | 47,712 | 60,684 | 52,257 | 160,653 | ||||||||||||||||||||||||||||||
Total segments |
153,944 | 185,391 | 195,398 | 534,733 | 199,214 | 733,947 | 228,238 | 263,051 | 239,886 | 731,175 | ||||||||||||||||||||||||||||||
Corporate expense/other |
(15,197 | ) | (14,797 | ) | (13,387 | ) | (43,381 | ) | (14,906 | ) | (58,287 | ) | (18,558 | ) | (18,692 | ) | (16,401 | ) | (53,651 | ) | ||||||||||||||||||||
Net interest expense |
(16,115 | ) | (15,241 | ) | (16,250 | ) | (47,606 | ) | (24,603 | ) | (72,209 | ) | (21,480 | ) | (19,266 | ) | (17,186 | ) | (57,932 | ) | ||||||||||||||||||||
Earnings from continuing
operations before provision
for income taxes |
122,632 | 155,353 | 165,761 | 443,746 | 159,705 | 603,451 | 188,200 | 225,093 | 206,299 | 619,592 | ||||||||||||||||||||||||||||||
Provision for income taxes |
31,023 | 45,880 | 42,719 | 119,622 | 40,250 | 159,872 | 56,850 | 66,435 | 49,991 | 173,276 | ||||||||||||||||||||||||||||||
Earnings from
continuing operations |
91,609 | 109,473 | 123,042 | 324,124 | 119,455 | 443,579 | 131,350 | 158,658 | 156,308 | 446,316 | ||||||||||||||||||||||||||||||
Earnings (loss) from
discontinued operations, net |
6,525 | 63,728 | (362 | ) | 69,891 | (3,328 | ) | 66,563 | 72,476 | (86,747 | ) | 11,217 | (3,054 | ) | ||||||||||||||||||||||||||
Net earnings |
$ | 98,134 | $ | 173,201 | $ | 122,680 | $ | 394,015 | $ | 116,127 | $ | 510,142 | $ | 203,826 | $ | 71,911 | $ | 167,525 | $ | 443,262 | ||||||||||||||||||||
| SEGMENT OPERATING MARGIN | ||||||||||||||||||||||||||||||||||||||||
Diversified |
11.0 | % | 11.7 | % | 12.5 | % | 11.7 | % | 11.4 | % | 11.7 | % | 11.3 | % | 11.1 | % | 11.7 | % | 11.4 | % | ||||||||||||||||||||
Electronics |
7.9 | % | 10.1 | % | 4.6 | % | 7.6 | % | 10.4 | % | 8.6 | % | 10.4 | % | 13.4 | % | 14.0 | % | 12.7 | % | ||||||||||||||||||||
Industries |
11.3 | % | 11.6 | % | 13.7 | % | 12.2 | % | 14.4 | % | 12.7 | % | 13.1 | % | 14.0 | % | 14.2 | % | 13.8 | % | ||||||||||||||||||||
Resources |
17.6 | % | 17.4 | % | 16.7 | % | 17.2 | % | 17.0 | % | 17.2 | % | 19.5 | % | 18.6 | % | 16.5 | % | 18.1 | % | ||||||||||||||||||||
Systems |
14.1 | % | 15.1 | % | 14.8 | % | 14.7 | % | 12.5 | % | 14.2 | % | 14.9 | % | 16.4 | % | 11.5 | % | 14.3 | % | ||||||||||||||||||||
Technologies |
8.0 | % | 13.2 | % | 16.2 | % | 12.8 | % | 13.7 | % | 13.0 | % | 16.2 | % | 17.7 | % | 15.8 | % | 16.6 | % | ||||||||||||||||||||
QUARTERLY EPS
(unaudited) (in thousands)
(unaudited) (in thousands)
| 2005 | 2006 | |||||||||||||||||||||||||||
| 1 Qtr. | 2 Qtr. | 3 Qtr. | 4 Qtr. | 1 Qtr. | 2 Qtr. | 3 Qtr. | ||||||||||||||||||||||
Basic earnings (loss) per common share: |
||||||||||||||||||||||||||||
Continuing operations |
$ | 0.45 | $ | 0.54 | $ | 0.61 | $ | 0.59 | $ | 0.65 | $ | 0.78 | $ | 0.77 | ||||||||||||||
Discontinued operations |
0.03 | 0.31 | (0.00 | ) | (0.02 | ) | 0.36 | (0.43 | ) | 0.06 | ||||||||||||||||||
Net earnings |
0.48 | 0.85 | 0.61 | 0.57 | 1.00 | 0.35 | 0.82 | |||||||||||||||||||||
Diluted earnings (loss) per common share: |
||||||||||||||||||||||||||||
Continuing operations |
$ | 0.45 | $ | 0.54 | $ | 0.60 | $ | 0.59 | $ | 0.64 | $ | 0.77 | $ | 0.76 | ||||||||||||||
Discontinued operations |
0.03 | 0.31 | (0.00 | ) | (0.02 | ) | 0.35 | (0.42 | ) | 0.05 | ||||||||||||||||||
Net earnings |
0.48 | 0.85 | 0.60 | 0.57 | 0.99 | 0.35 | 0.82 | |||||||||||||||||||||
5
DOVER CORPORATION MARKET
SEGMENT INFORMATION
(continued)
(unaudited) (in thousands)
DOVER CORPORATION MARKET
SEGMENT INFORMATION
(continued)
(unaudited) (in thousands)
| 2005 | 2006 | |||||||||||||||||||||||||||||||||||||||
| Q3 | Q4 | Q3 | ||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 | YTD | Q4 | YTD | Q1 | Q2 | Q3 | YTD | |||||||||||||||||||||||||||||||
BOOKINGS |
||||||||||||||||||||||||||||||||||||||||
Diversified |
$ | 231,308 | $ | 199,741 | $ | 184,191 | $ | 615,240 | $ | 194,965 | $ | 810,205 | $ | 214,317 | $ | 216,659 | $ | 203,986 | $ | 634,962 | ||||||||||||||||||||
Electronics |
122,960 | 117,234 | 118,484 | 358,678 | 213,304 | 571,982 | 223,559 | 219,784 | 231,527 | 674,870 | ||||||||||||||||||||||||||||||
Industries |
196,455 | 209,887 | 214,973 | 621,315 | 224,942 | 846,257 | 219,423 | 232,185 | 251,017 | 702,625 | ||||||||||||||||||||||||||||||
Resources |
387,122 | 375,164 | 394,567 | 1,156,853 | 393,148 | 1,550,001 | 454,669 | 441,761 | 471,625 | 1,368,055 | ||||||||||||||||||||||||||||||
Systems |
156,181 | 221,709 | 201,360 | 579,250 | 176,185 | 755,435 | 231,036 | 229,633 | 210,132 | 670,801 | ||||||||||||||||||||||||||||||
Technologies |
233,611 | 275,436 | 261,722 | 770,769 | 288,104 | 1,058,873 | 339,124 | 325,101 | 307,885 | 972,110 | ||||||||||||||||||||||||||||||
BOOK-TO-BILL |
||||||||||||||||||||||||||||||||||||||||
Diversified |
1.25 | 1.01 | 1.00 | 1.08 | 1.07 | 1.08 | 1.07 | 1.04 | 1.04 | 1.05 | ||||||||||||||||||||||||||||||
Electronics |
1.05 | 0.96 | 1.05 | 1.02 | 1.10 | 1.05 | 1.12 | 0.99 | 1.03 | 1.04 | ||||||||||||||||||||||||||||||
Industries |
1.01 | 1.00 | 1.04 | 1.02 | 1.09 | 1.03 | 1.05 | 1.08 | 1.13 | 1.09 | ||||||||||||||||||||||||||||||
Resources |
1.09 | 0.99 | 1.01 | 1.03 | 0.99 | 1.02 | 1.07 | 1.01 | 1.02 | 1.03 | ||||||||||||||||||||||||||||||
Systems |
1.00 | 1.25 | 1.02 | 1.09 | 1.01 | 1.07 | 1.27 | 0.98 | 0.97 | 1.06 | ||||||||||||||||||||||||||||||
Technologies |
1.07 | 1.09 | 0.95 | 1.03 | 1.00 | 1.02 | 1.15 | 0.95 | 0.93 | 1.00 | ||||||||||||||||||||||||||||||
BACKLOG |
||||||||||||||||||||||||||||||||||||||||
Diversified |
$ | 294,605 | $ | 296,607 | $ | 296,561 | — | $ | 308,587 | — | $ | 321,310 | $ | 327,943 | $ | 339,159 | — | |||||||||||||||||||||||
Electronics |
83,269 | 78,197 | 93,459 | — | 141,102 | — | 165,253 | 163,182 | 169,151 | — | ||||||||||||||||||||||||||||||
Industries |
197,043 | 196,445 | 205,286 | — | 222,793 | — | 234,174 | 251,301 | 282,234 | — | ||||||||||||||||||||||||||||||
Resources |
167,810 | 165,087 | 169,580 | — | 167,561 | — | 196,379 | 203,757 | 249,040 | — | ||||||||||||||||||||||||||||||
Systems |
125,037 | 170,238 | 172,806 | — | 174,402 | — | 223,843 | 218,360 | 211,939 | — | ||||||||||||||||||||||||||||||
Technologies |
90,426 | 109,210 | 102,232 | — | 102,232 | — | 147,984 | 141,526 | 123,416 | — | ||||||||||||||||||||||||||||||