Dover 3Q Profit Falls 40% Amid Slack Demand, Still Tops Views
DOW JONES NEWSWIRES
Dover Corp.'s (DOV) third-quarter earnings fell 40% amid slack demand, though
the results beat analysts' forecasts.
The equipment manufacturer makes a broad range of products, from garbage
trucks to printers, and has been hurt by falling demand, especially in its
electronics and infrastructure segments.
President and Chief Executive Robert A. Livingston on Friday said the signs of
stability in the second quarter carried through across most of its businesses,
as revenue rose 8% sequentially. Order trends remain stable, though some
businesses, including its engineered systems and refrigeration business are
beginning to see signs of a normal seasonal slowdown.
Dover reported a profit of $106.9 million, or 57 cents a share, down from $
187.7 million, or $1 a share, a year earlier. Revenue decreased 24% to $1.5
billion.
Analysts polled by Thomson Reuters most recently forecast earnings of 48 cents
on revenue of $1.47 billion.
Operating margin rose to 14.3%, Livingston said.
Dover has cut jobs and has been restructuring during the downturn. In May,
moving to bolster its position in the commercial-refrigeration market, it
acquired assets of Carrier's Tyler refrigeration unit.
Shares of Dover, which affirmed its 2009 revenue estimate and predicted
earnings at the midpoint of its prior view, closed Thursday at $40.54 and didn't
trade premarket. The stock is up 49% the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;
(END) Dow Jones Newswires
10-23-090731ET
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