Industrial conglomerate, Dover Corporation (DOV), announced third quarter results. The company reported earnings of 58 cents per share for the quarter, above the Zacks Consensus Estimate of 48 cents. However, third quarter EPS was down 43% year-over-year.
Quarterly revenue fell approximately 24% to $1.5 billion, from $2.0 billion reported last year. The revenue decline was due to a 24% decline in core business revenue and 2% negative impact of foreign exchange, partially offset by a 2% contribution from acquisitions.
Three of the four business segments reported double-digit revenue declines. Sales in the Industrial Products, Fluid Management, and Electronic Technologies segments were down approximately 37%, 32% and 24% respectively, compared to the third quarter of 2008. Sales in the company’s Engineered Systems division were essentially flat compared to last year.
Bookings fell 25% year-over-year to $1.4 billion. However, they improved 4% on a sequential basis. The company said that a majority of its businesses are showing signs of stability.
The better-than-expected earnings performance was a result of various aggressive actions taken by Dover in response to the market conditions. These actions include synergy capture, pricing initiatives, capacity rationalization and significant workforce reduction. We are pleased with the company’s ability to take costs out of the system.
The company does not expect any substantial recovery in a majority of its end-markets and distribution channels for the remainder of 2009. Full-year revenue is expected to decline 24%-26% compared to 2008. Dover reiterated its full-year earnings guidance in the range of $1.75 to $2.00 per share.
Earlier this week, another machinery and equipment manufacturer, Caterpillar (CAT) had reported higher than expected earnings, having benefited from its cost reduction and capacity rationalization initiatives.
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