Date: Wed, 17 Dec 1997 22:41:30 GMT Server: Apache/1.2.4 FrontPage/3.0.3 Last-Modified: Fri, 31 Oct 1997 03:51:27 GMT ETag: "1ba52-dc29-345955bf" Content-Length: 56361 Accept-Ranges: bytes Connection: close Content-Type: text/html X-Pad: avoid browser bug Dover 3rd Quarter 1997:

CONTACT: READ IT ON THE WEB
John F. McNiff http://www.dovercorporation.com
Vice President, Dover  
(212) 922-1640  

 

FOR IMMEDIATE RELEASE

DOVER REPORTS RECORD QUARTER

 

NEW YORK, NY (October 14, 1997). . . Dover Corporation (DOV-NYSE) earned $.91 per share in its third quarter ended September 30. In the prior year third quarter Dover reported $1.27 per share, but this included $.44 from the sale of two businesses and $.09 from tax and investment income adjustments as described in last year’s third quarter report. Sales for the quarter of almost $1.2 billion were up 15% from the prior year.

Four of Dover’s five market segments had higher earnings than last year with a combined gain of 23%. The Technologies segment achieved a remarkable increase of 71% on a 49% sales gain. Although its book-to-bill was only .95 in the quarter, the summer is normally a soft period for new orders. Bookings were 57% greater than prior year and equal to the 1997 first half average, indicating continued strong markets.

Dover completed seven "add-on" acquisitions during the quarter representing an investment of $109 million. This brings the cumulative 1997 investment in purchasing new businesses to $185 million. A-C Compressor added the Preco and Conmec companies to expand its participation in the aftermarket for gas compressors and turbines. Everett Charles added ESH, expanding its testing presence from circuit boards into a portion of the semiconductor production market. Blackmer acquired Mouvex (France) and the two companies will coordinate their specialty pump businesses. Blackmer is primarily a U.S. manufacturer while Mouvex’s largest market base is Europe. De-Sta-Co Industries, OPW Fueling Components, and Dovatech also made small acquisitions, adding new product lines. Conmec and Preco accounted for more than half of the $109 million investment made in the third quarter.

Acquisitions made thus far in 1997 have reduced nine month earnings by $.01 per share due to financing costs and write-off of acquisition premiums. They are expected to add to 1998 full year results.

Dover Technologies had a record quarter primarily due to strength in its sales of printed circuit board assembly and test equipment. Universal, DEK, Soltec, and Everett Charles (acquired in November, 1996) each had strong gains and combined to produce profits of over $45 million on sales of almost $240 million. The special electronic components businesses also achieved strong earnings growth with three of the four companies involved in these markets ahead sharply. The overall earnings gain for these four businesses was almost 30% - to more than $10 million on sales of about $70 million. Filters, tuners, and timing devices for communications applications are experiencing strong growth. Imaje, the world’s number two producer of continuous-ink-jet printing machines and supplies, had flat earnings, compared to last year, of $15 million on sales of about $45 million. Imaje’s results, expressed in its own currency (French Francs), were up over 20% from last year’s third quarter. The three earnings figures above do not add to the reported segment total of $64 million due to rounding and to $9 million of acquisition premium write-offs and subsidiary expenses. Backlog for the Technologies companies is 8% below the level at the start of the third quarter, with Universal down 20%. Consequently, Technology segment earnings in the fourth quarter, while well ahead of prior year, are not expected to match those of the third quarter.

Dover Industries achieved its best quarterly earnings results since the 1996 first quarter with a 24% year-over-year gain to $33.5 million. Sales were up 6% to a record level. Subsidiary expenses and acquisition premium write-offs at DII in the third quarter totaled $4 million, indicating an average operating margin for its 11 companies of 17%. Total orders for DII exceeded third quarter shipments by 1%, last year’s third quarter by 11%, and were slightly above the 1997 first half average. Ten companies achieved earnings increases over last year with particularly strong gains at Texas Hydraulics, Heil Tank Trailer, Randell, and Groen. In last year’s fourth quarter both Heil Refuse and Groen reported losses totaling $2.7 million. In the most recent quarter they earned $5.7 million. Consequently, while Industries’ year-to-date profits are only 1% ahead of 1996, very favorable comparisons are expected in the final quarter of the year.

Dover Diversified profits trailed prior year by $4.2 million (15%). As in the previous four quarters, the source of the decline was the changed market circumstances at its Belvac company which earned $8.7 million less than in the third quarter of 1996. This more than offset very strong gains achieved by Hill, Tranter, Mark Andy, and Waukesha which propelled Diversified’s eight other companies (excluding Belvac) to a profit gain of more than 20%. The average margin of all nine companies (before subsidiary expenses and acquisition premium write-offs) was 15%, with Belvac above average and Hill (the largest company measured by sales) still below its near-term goal of 10%. The new order picture at Diversified in total, and Belvac in particular, was very positive. DDI orders were up 39% over last year and 26% above third quarter shipments, with five companies up over 20% from prior year. Belvac orders were 2.8 times third quarter shipments and at their highest level since their market "boom" ended in mid-1995. This gives Belvac a chance of achieving favorable earnings comparisons beginning in the fourth quarter and continuing into 1998. Dover Diversified enters the fourth quarter of 1997 with backlog 21% higher than at this time last year. Very favorable earnings comparison are expected in the final quarter of 1997, but perhaps not to the level needed for Diversified to achieve an "up" year.

Profits at Dover Resources gained 15% on a 14% sales increase to reach a record level of $29.4 million. The earnings of its seventeen companies provided a margin on sales of almost 18% (before subsidiary expenses and acquisition premium write-offs). Bookings trailed shipments by 4%, but were 14% ahead of prior year. About 1/3 of the gain over last year was due to acquisitions made in the past 12 months. Very strong earnings gains were achieved by the three oil-field equipment companies (up 26%), by OPW Fueling Components (also up 26%), and by Cook, De-Sta-Co Industries, Civacon, PetroVend, and Duncan – all of which achieved gains of 30% or more. Markets for De-Sta-Co Manufacturing (auto and refrigeration compressor valves), Ronningen-Petter (filtration systems) and Wittemann (CO2 recovery systems) remained soft and profits of these companies declined by almost $3 million. Dover Resources begins the fourth quarter with a backlog 7% less than at the start of the third quarter. Resources is hopeful that its fourth quarter will also show a year-over-year earnings improvement but a new record quarterly level appears unlikely.

Dover Elevator again earned more than $25 million in a single quarter with a 3% gain in earnings on a 2% sales increase. The gains from on-going operations were higher since Elevator’s European operations were included in last year’s third quarter results but not this year's due to their sale at June 30. North American sales rose 9% from last year and earnings by a higher percentage. Orders for new elevators improved 25%, with gains in both North America and Asia, pushing manufacturing and construction backlog up more than 20% from a year ago. The hydraulic elevator market continues to be strong and should set new volume records this year for the industry and for Dover. Following the sale of the European companies, service and repair activities now provide more than half of DEI’s profits on less than half of revenues. Several initiatives are under way in North America to stimulate after-market growth by providing new and improved services to elevator operators. Dover Elevator is continuing to relocate work from its Horn Lake, Mississippi manufacturing facility to two other plants that are being expanded, and plans to close the Horn Lake plant in 1998. Fourth quarter profits should continue strong.

Dover expects to achieve record earnings in 1997, up more than 10% from $3.01 last year - excluding gains from the sale of three businesses that added $.44 per share to 1996 earnings and $.23 to 1997,as well as any special charges or gains that might arise in this year’s fourth quarter. The Company believes its outlook for 1998 is quite positive.

 

DOVER CORPORATION CONSOLIDATED
MARKET SEGMENT RESULTS
(unaudited)

               
               
   

EARNINGS

 

SALES

Third quarter ended September 30, :  

1997

 

1996

 

1997

1996

               
Dover Technologies  

$ 63,777,000

 

$ 37,250,000

 

$ 356,185,000

$ 239,051,000

Dover Industries  

33,515,000

 

27,120,000

 

220,060,000

207,841,000

Dover Diversified  

23,875,000

 

28,042,000

 

181,753,000

183,201,000

Dover Resources  

29,419,000

 

25,497,000

 

188,213,000

165,134,000

Dover Elevator International  

25,868,000

 

25,066,000

 

219,034,000

215,358,000

  Subtotal (after intramarket eliminations)  

176,454,000

 

142,975,000

 

$ 1,163,744,000 ============

$ 1,009,388,000 ============

Special Items  

0

 

75,065,000

     
Corporate expense & interest net  

(15,420,000)

 

(6,578,000)

     
Earnings before taxes on income  

161,034,000

 

211,462,000

     
Taxes on income  

59,278,000

 

67,139,000

     
Net income  

$ 101,756,000 ===========

 

$ 144,323,000 ===========

     
Earnings per share *

$ 0.91

 

$ 1.27

     
               
               
   

EARNINGS

 

SALES

Nine months ended September 30, :  

1997

 

1996

 

1997

1996

               
Dover Technologies  

$ 152,416,000

 

$ 107,257,000

 

$ 946,880,000

$ 726,399,000

Dover Industries  

94,331,000

 

93,650,000

 

637,998,000

640,706,000

Dover Diversified  

72,276,000

 

84,424,000

 

536,724,000

553,887,000

Dover Resources  

83,615,000

 

77,433,000

 

547,717,000

482,036,000

Dover Elevator International  

75,597,000

 

69,745,000

 

661,237,000

632,691,000

  Subtotal (after intramarket eliminations)  

478,235,000

 

432,510,000

 

$ 3,326,536,000 ============

$ 3,032,284,000 ============

Special Items  

32,171,000

 

75,065,000

     
Corporate expense & interest net  

(44,273,000)

 

(34,328,000)

     
Earnings before taxes on income  

466,133,000

 

473,247,000

     
Taxes on income  

160,962,000

 

163,321,000

     
Net income  

$ 305,171,000 ===========

 

$ 309,926,000 ===========

     
Earnings per share * **

$ 2.73

 

$ 2.73

     
               
* 1996 Includes $.44 per share from divestitures of two companies, after taxes.      
** 1997 Includes $.23 from special item, after taxes.          

 

 

DOVER CORPORATION CONSOLIDATED
FINANCIAL RESULTS
(unaudited)

           
           
         

PERCENT

Third quarter ended September 30, :  

1997

 

1996

CHANGE

           
Net sales  

$ 1,163,744,000

 

$ 1,009,388,000

15.3%

           
Earnings before taxes  

$ 161,034,000

 

$ 211,462,000

-23.8%

           
Net earnings after taxes  

$ 101,756,000

 

$ 144,323,000

-29.5%

           
Earnings per common share *

$ 0.91

 

$ 1.27

-28.3%

           
Depreciation/amortization  

$37,604,000

 

$31,797,000

18.3%

           
           
         

PERCENT

Nine months ended September 30, :  

1997

 

1996

CHANGE

           
Net sales  

$ 3,326,536,000

 

$ 3,032,284,000

9.7 %

           
Earnings before taxes  

$ 466,133,000

 

$ 473,247,000

(1.5)%

           
Net earnings after taxes  

$ 305,171,000

 

$ 309,926,000

(1.5)%

           
Earnings per common share * **

$ 2.73

 

$ 2.73

 
           
Depreciation/amortization  

$108,028,000

 

$92,252,000

17.1 %

           
Average number of shares outstanding  

111,702,000

 

113,513,000

(1.6)%

           
           
* 1996 Includes $.44 per share from divestitures of two companies, after taxes.  
** 1997 Includes $.23 from special item, after taxes.      
           

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