Dover Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Fiscal 2018
January 30, 2018 at 06:52 am
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Dover Corporation announced unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2017. For the quarter, the company reported revenue was $2,017,438,000 against $1,777,961,000 a year ago. Operating earnings was $199,344,000 against $164,082,000 a year ago. Earnings before (benefit) provision for income taxes were $273,652,000 against $216,033,000 a year ago. Net earnings were $296,448,000 against $161,162,000 a year ago. Diluted earnings per share were $1.88 against $1.03 a year ago. Adjusted net earnings were $178,678,000 or $1.13 diluted per share against $118,424,000 or $0.76 diluted per share a year ago. Net cash provided by operating activities was $319,594,000 against $289,029,000 a year ago. Capital expenditures was $46,586,000 against $49,437,000 a year ago. Adjusted free cash flow was strong at $303 million in the quarter, up 26% over last year.
For the full year, the company reported revenue was $7,830,436,000 against $6,794,342,000 a year ago. Operating earnings was $914,445,000 against $714,446,000 a year ago. Earnings before (benefit) provision for income taxes were $973,843,000 against $689,332,000 a year ago. Net earnings were $811,665,000 against $508,892,000 a year ago. Diluted earnings per share were $5.15 against $3.25 a year ago. Adjusted net earnings were $635,743,000 or $4.03 diluted per share against $454,926,000 or $2.90 diluted per share a year ago. Net cash provided by operating activities was $821,559,000 against $861,975,000 a year ago. Additions to property, plant and equipment was $196,735,000 against $165,205,000 a year ago. Net debt as of December 31, 2017 was $2,813,840,000 against $3,272,041,000 as of December 31, 2016. The company generated $703 million of adjusted free cash flow, representing 9% of revenue.
For the fiscal 2018, the company expected net earnings per share of $4.75 to $4.95, adjusted net earnings per share of $4.80 to $5.00 and adjusted net earnings per share on new basis of $5.73 to $5.93, representing an increase of 19% over the prior year on a comparable basis. This guidance is based on full year revenue growth of 3% to 5%, and is comprised of organic growth of 5% to 7% and a favorable impact from FX of 1%, partially offset by a 3% impact from dispositions. The impact of completed acquisitions is expected to be negligible. Net interest expense of $130 million, tax rate of 22% to 23%, capital expenditure of $2.4% of revenue and adjusted free cash flow of $10% to 11% of revenue.
Dover Corporation is a diversified industrial group. Net sales break down by family of products as follows:
- material handling equipment (23.7%): industrial and recreational winches, construction and demolition machinery attachments, hydraulic parts, industrial automation tools, etc.;
- fluid management products (21.2%): sucker rods, drill bit inserts for oil and gas exploration, control valves, piston and seal rings, nozzles, swivels, suction system equipment, etc.;
- refrigeration equipment (21.1%): refrigeration systems, commercial kitchen air and ventilation systems, heat transfer equipment, food and beverage packaging machines, etc.;
- mobile equipment (20.8%): tank trailers, compactors, balers, car wash systems, internal engine components, etc.;
- identification products (13.2%): industrial marking and coding systems used to code information on products, product traceability, etc.
Net sales are distributed geographically as follows: the United States (55.8%), Americas (8.1%), Europe (20.8%), Asia (11%) and other (4.3%).
Dover Corporation Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Full Year Ended December 31, 2017; Provides Earnings Guidance for the Fiscal 2018