Dover Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Confirms Earnings Guidance for the Year 2017
January 26, 2017 at 11:45 am
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Dover Corporation announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company's revenue was $1,777.96 million compared with $1,694.6 million a year ago. The increase in the quarter was driven by acquisition growth of 11%, offset by an organic revenue decline of 2%, a 3% impact from dispositions, and an unfavorable impact from foreign exchange of 1%. Operating earnings were $164.1 million compared with $199.4 million a year ago. Earnings before provision for income taxes and discontinued operations was $216.0 million compared with $169.5 million a year ago. Earnings from continuing operations was $161.2 million or $1.03 per diluted share compared with $136.6 million or $0.87 per diluted share a year ago. Net earnings was $161.2 million or $1.03 per diluted share compared with $141.8 million or $0.91 per diluted share a year ago. Adjusted earnings from continuing operations was $110.7 million or $0.71 per diluted share compared with $127.2 million or $0.81 per diluted share a year ago. As on December 31, 2016, the company's net debt was $3,272.0 million. Net cash provided by operating activities of continuing operations was $289.0 million compared with $316.6 million a year ago.
For the year, the company's revenue was $6,794.3 million compared with $6,956.3 million a year ago. Operating earnings were $714.4 million compared with $920.8 million a year ago. Earnings before provision for income taxes and discontinued operations was $689.3 million compared with $800.6 million a year ago. Earnings from continuing operations was $508.9 million or $3.25 per diluted share compared with $595.9 million or $3.74 per diluted share a year ago. Net earnings was $508.9 million or $3.25 per diluted share compared with $869.8 million or $5.46 per diluted share a year ago. Adjusted earnings from continuing operations was $441.4 million or $2.82 per diluted share compared with $578.4 million or $3.63 per diluted share a year ago. Net cash provided by operating activities of continuing operations was $861.98 million compared with $949.1 million a year ago. Additions to property, plant and equipment was $165.2 million compared with $154.3 million a year ago.
The company confirmed its guidance for full year 2017 diluted earnings per share from continuing operations to be in the range of $3.40 to $3.60. Within this guidance, revenue growth is expected to be 10% to 12%, including organic growth of 3% to 5% and acquisition growth of approximately 10%, partially offset by a 1% impact from dispositions and a 2% headwind from FX.
Dover Corporation is a diversified industrial group. Net sales break down by family of products as follows:
- material handling equipment (23.7%): industrial and recreational winches, construction and demolition machinery attachments, hydraulic parts, industrial automation tools, etc.;
- fluid management products (21.2%): sucker rods, drill bit inserts for oil and gas exploration, control valves, piston and seal rings, nozzles, swivels, suction system equipment, etc.;
- refrigeration equipment (21.1%): refrigeration systems, commercial kitchen air and ventilation systems, heat transfer equipment, food and beverage packaging machines, etc.;
- mobile equipment (20.8%): tank trailers, compactors, balers, car wash systems, internal engine components, etc.;
- identification products (13.2%): industrial marking and coding systems used to code information on products, product traceability, etc.
Net sales are distributed geographically as follows: the United States (55.8%), Americas (8.1%), Europe (20.8%), Asia (11%) and other (4.3%).
Dover Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2016; Confirms Earnings Guidance for the Year 2017