Dover Reports Fourth Quarter and Full Year 2010 Results

Dover Reports Fourth Quarter and Full Year 2010 Results

Dover Corporation announced today that for the fourth quarter ended December 31, 2010, revenue was $1.9 billion, an increase of 24% over the prior year period. The revenue increase was driven by organic growth of 23%, a 2% increase from acquisitions, and a 1% unfavorable impact from foreign exchange. Earnings from continuing operations for the fourth quarter of 2010 were $191.8 million or $1.01 diluted earnings per share (“EPS”), compared to $102.4 million or $0.55 diluted EPS from continuing operations in the prior-year period, representing increases of 87% and 85%, respectively. Excluding the impact of tax benefits of $0.07 recognized in the quarter, adjusted diluted EPS from continuing operations was $0.94, an increase of 71% over the prior year. The tax benefits of $0.07 were principally related to the favorable resolution of domestic tax positions.

Revenue for the year ended December 31, 2010 was $7.1 billion, up 24% over the prior year representing organic revenue growth of 20% and growth from acquisitions of 4%. Earnings from continuing operations for the year ended December 31, 2010 were $707.9 million or $3.74 diluted EPS, compared to $371.9 million or $1.99 diluted EPS in the prior year period, representing increases of 90% and 88%, respectively. Excluding the impact of tax benefits of $0.27 diluted EPS recognized in 2010, and the impact of tax benefits of $0.15 diluted EPS recognized in 2009, adjusted diluted EPS from continuing operations for the year ended December 31, 2010 was $3.47, an increase of 89% over the prior year adjusted level of $1.84.

Commenting on the fourth quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “Dover had a strong finish to 2010 with quarterly revenue, bookings, backlog, margin and earnings all up significantly from last year. Revenue growth of 24% was above our expectations and this momentum continued to be broad-based, led by Electronic Technologies, Energy and Material Handling. Margin expansion was also broad-based, with all segments showing improvement year-over-year, resulting in a fourth quarter segment margin of 16.3%. We generated strong free cash flow during the quarter, totaling $378 million, and exited the year with strong fourth quarter order rates, resulting in a book-to-bill of 1.03.

“I am pleased with our many accomplishments in 2010. We were able to achieve full-year organic revenue growth of 20%, benefitting from improved end-markets, product innovation and geographic expansion. Full-year segment operating margins were a record 16.4%. We also generated free cash flow of $767 million in 2010, representing 11% of revenue, which funded re-investment in our businesses, our acquisition program and our 55th consecutive annual dividend increase.

“Looking forward, we expect full year 2011 revenue growth of 9% – 11%, representing organic revenue growth of 6% – 8%, plus growth from acquisitions of 3%. Based on this revenue assumption, we expect full-year diluted EPS from continuing operations to be in the range of $4.05 – $4.25.”

Net earnings for the fourth quarter of 2010 were $198.3 million or $1.04 diluted EPS, including income from discontinued operations of $6.6 million or $0.03 diluted EPS, compared to net earnings of $99.0 million or $0.53 diluted EPS for the same period of 2009, which included a loss from discontinued operations of $3.4 million or $0.02 diluted EPS. Net earnings for the year ended December 31, 2010 were $700.1 million or $3.70 diluted EPS, which included a loss from discontinued operations of $7.8 million or $0.04 diluted EPS, compared to net earnings of $356.4 million or $1.91 diluted EPS for the same period of 2009, including a loss from discontinued operations of $15.5 million or $0.08 diluted EPS.

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