) has announced promotions in two of its segments, to maintain
strength across all industries it caters. The leadership changes
will also drive innovation and create value for customers.
William W. Spurgeon, Jr. will join the Engineered Systems Segment
as President and Chief Executive Officer (CEO). Spurgeon served
as President and CEO of Dover's Energy segment since 2011. On the
other hand, S. Somasundaram has been elevated to the post of
President and CEO from Executive Vice President in the Energy
Both the segments performed well in the in the second quarter of
2013. The Energy segment, which serves the oil, gas and power
generation industries, posted revenues of $573 million, up 6%
year over year. The improvement was attributable to organic
growth of 4.5% as well acquisition-related growth of 2.3%.
Additionally, revenues in the Engineered Systems segment
increased 13% year over year to $1003.8 million in the quarter,
driven by an 8.8% increase from recent acquisitions and organic
growth of 4.4%.
For fiscal 2013, Dover reiterated revenue growth in the range of
7-9% on the back of organic revenue growth of 3-5%, while
acquisitions are expected to add 4%. Management forecasts
earnings in the band of $5.56-$5.71 per share.
Recently, Dover announced that it will acquire Italy-based Finder
to strengthen its Pump Solutions Group's position in the energy
market. Finder will immediately provide the group with its
product portfolio, application expertise, customer reference
list, and key certifications required to serve the fast-growing
upstream, midstream and downstream oil & gas markets. Finder
will also expand Dover's presence in key growth markets in
Europe, the Middle East and the Americas.
In addition, Dover's decision to spin off certain parts of its
communication technologies businesses will simplify its business
profile and enable it to focus on key growth spaces, namely,
Energy, Fluids, Refrigeration & Food Equipment and Printing
Dover will continue to benefit from its active acquisition
pipeline, bookings and orders growth. However, a volatile
semiconductor market and weak industrial market might weigh on
the Printing and Identification segments. Moreover, lower North
American rig count will constrain growth in the company's Energy
Dover currently retains a Zacks Rank #3 (Hold).
Other stocks in the diversified machinery industry with favorable
Zacks rank include
Barnes Group Inc.
). While Gorman-Rupp and Graham Corp. sport a Zacks Rank #1
(Strong Buy), Barnes Group holds a Zacks Rank #2 (Buy).
BARNES GRP (B): Free Stock Analysis Report
DOVER CORP (DOV): Free Stock Analysis Report
GRAHAM CORP (GHM): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis
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