- Reports revenue of $1.4 billion and diluted earnings per share of $0.54
- Delivers free cash flow of $165 million
- Sees stabilizing order rates across the majority of the portfolio
- Provides revised earnings per share guidance of $1.75 - $2.00
NEW YORK, July 24 /PRNewswire-FirstCall/ -- Dover Corporation (NYSE: DOV) announced today that for the second quarter ended June 30, 2009, earnings from continuing operations were $100.9 million or $0.54 diluted earnings per share ("EPS"), compared to $186.9 million or $0.98 EPS from continuing operations in the prior-year period, representing decreases of 46% and 45%, respectively. Revenue for the second quarter of 2009 was $1.4 billion, a decrease of 31% over the prior-year period. The revenue decrease was driven by a decline in core business revenue of 29%, a negative impact of foreign exchange of 3% and a 1% increase from net acquisitions.
Earnings from continuing operations for the six months ended June 30, 2009 were $162.0 million or $0.87 EPS, compared to $334.8 million or $1.74 EPS in the prior-year period, representing decreases of 52% and 50%, respectively. Revenue for the six month period ended June 30, 2009 was $2.8 billion, a decrease of 29% over the prior year period, and reflected a decline in core business revenue of 26% and a negative impact of foreign exchange of 3%. Earnings for both periods were favorably impacted by the expected benefits recognized for tax positions that were effectively settled in the quarter, resulting in a quarterly tax rate of 1.1% and a year-to-date tax rate of 17.4%.
Commenting on the second quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "The weak year-over-year revenue trends seen in the first quarter continued into the second quarter across a large portion of our portfolio. While revenue was consistent with first quarter levels, both operating margin and earnings before taxes improved sequentially, largely reflecting the net benefits of our restructuring actions. This improvement, though modest, was achieved as we continued to make significant investments in long-term value creating initiatives, such as global supply chain. Despite tepid market conditions, we continued to execute on our objectives of delivering double-digit margins and focusing on cash flow. I am pleased that we achieved 11%+ operating margins and generated free cash flow of $165.5 million in the quarter. Free cash flow was 11.9% of revenue for the quarter, and 9.0% of revenue year-to date, signifying the strong focus our business leaders have in delivering solid results in a down market.
