) reported fourth-quarter 2013 adjusted earnings from continuing
operations of $1.28 per share, in line with the Zacks Consensus
Estimate and up 17% from the prior-year quarter's earnings of
$1.09 per share. Organic growth across all segments, strength in
refrigeration and food equipment, fast moving consumer goods,
fluids, drilling and downstream energy markets helped the
Including one-time items, earnings from continuing operations
were $1.22 per share, up 5% from $1.16 per share earned in the
prior-year quarter. Earnings in the reported quarter included tax
benefit of 3 cents per share and a charge of 9 cents per share
related to the Knowles spin-off. The year-ago quarter included
tax benefit of 7 cents per share.
Revenues and Margins
Total revenue rose 10% year on year to $2.21 billion in the
quarter, ahead of the Zacks Consensus Estimate of $2.18 billion.
The year-over-year rise includes an organic growth of 5% and a 5%
contribution from acquisitions.
Cost of sales increased 11% to $1.38 billion in the quarter from
$1.24 billion in the year-ago quarter. Gross profit went up 7%
year over year to $830 million. Gross margin contracted 80 basis
points (bps) to 37.6% in the quarter.
Selling, general and administrative expenses increased 9% year
over year to $513 million. Operating profit in the reported
quarter increased 4% to $317 million. Operating margin contracted
70 bps to 14.4% in the quarter.
Revenues in the Communication Technologies segment rose 7% year
over year to $428 million in the reported quarter. The segment's
income increased 12% year over year to $66 million.
Energy revenues went up 8% to $584 million in the quarter. The
segment's operating income edged up 1% to $135 million from $133
million in the prior-year quarter.
Revenues in the Engineered Systems segment increased 12% to $919
million in the quarter. The segment's income also improved 19% to
Printing & Identification segment revenues were $276 million
in the quarter compared with $254 million in the prior-year
quarter. The segment reported an operating income of $44 million,
increasing 8% from $40.6 million a year ago.
Bookings and Backlog
Dover ended 2013 with bookings worth $8.7 billion versus $8.1
billion at the end of fiscal 2012. Backlog increased year over
year to $1.55 billion at the end of the reported quarter compared
with $1.48 million in the year-ago quarter.
Dover generated cash flow from operating activities of $1.18
billion in fiscal 2013, up from $1.26 billion in the prior year.
Free cash flow was $942 million compared with $964 million in the
Long-term debt was $229 million as of 2013-end compared with
$610 million as of 2012-end. Net debt to net capitalization was
27.4% as of fiscal 2013-end compared with 28.9% as of fiscal
ALTRA HOLDINGS (AIMC): Free Stock Analysis
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DOVER CORP (DOV): Free Stock Analysis Report
MIDDLEBY CORP (MIDD): Free Stock Analysis
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During the quarter, Dover completed four acquisitions, three in
the Energy segment and one in the Engineered Systems
segment. For fiscal 2013, Dover has made 10 acquisitions
for $323 million.
Fiscal 2013 Performance
Dover reported adjusted earnings per share of $5.28, a 19%
increase over $4.44 per share earned in the prior fiscal year and
in line with the Zacks Consensus Estimate. Including one-time
items, such as Knowles spin-off costs, discrete tax benefits, and
other one-time gains, earnings stood at $5.57 per share compared
with $4.53 in the prior year, reflecting a 23% increase.
Revenues came in at $8.7 billion, up 8% year over year,
reflecting organic growth of 3% and a 5% increase from
acquisitions and in line with the Zacks Consensus Estimate.
Fiscal 2014 Outlook
Dover expects earnings in the range of $4.60-$4.80 per share.
Dover projects revenue growth of 5%-6% in fiscal 2014.
Dover currently retains a short-term Zacks Rank #3 (Hold). Some
better-performing stocks in the sector include
Altra Industrial Motion Corp.
Barnes Group Inc.
). While Middleby carries a Zacks Rank #1 (Strong Buy), Altra
Industrial Motion and Baroup have a Zacks Rank #2 (Buy).