- Reports revenue of $1.5 billion, up 8% sequentially- Delivers diluted earnings per share from continuing operations of $0.58- Generates free cash flow of $222 million for the quarter, 14.8% of revenue- Expects full year EPS to be around the midpoint of
Oct. 23, 2009 (PR Newswire) --
NEW YORK, Oct. 23 /PRNewswire-FirstCall/ -- Dover Corporation (NYSE: DOV) announced today that for the third quarter ended September 30, 2009, earnings from continuing operations were $107.5 million or $0.58 diluted earnings per share ("EPS"), compared to $190.3 million or $1.01 EPS from continuing operations in the prior-year period, representing decreases of 44% and 43%, respectively. Revenue for the third quarter of 2009 was $1.5 billion, a decrease of 24% over the prior-year period. The revenue decrease was driven by a decline in core business revenue of 24%, a negative impact of foreign exchange of 2% and a 2% increase from net acquisitions.
Earnings from continuing operations for the nine months ended September 30, 2009 were $269.5 million or $1.45 EPS, compared to $525.2 million or $2.76 EPS in the prior-year period, representing decreases of 49% and 47%, respectively. Revenue for the nine month period ended September 30, 2009 was $4.3 billion, a decrease of 27% over the prior year period, and reflected a decline in core business revenue of 26%, a negative impact of foreign exchange of 3% and a 2% increase from net acquisitions.
Commenting on the third quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, "The signs of stability we observed during the second quarter carried through to the third quarter across the majority of our businesses. I am pleased that we were able to leverage an 8% sequential improvement in revenue into a 38% sequential improvement in segment earnings. Operating margins expanded sequentially at all segments and came in at 14.3%, reflecting our year-long restructuring efforts. Quarterly free cash flow was $222 million, representing 14.8% of revenue for the quarter, and we are well on track to deliver another year in which our free cash flow exceeds 10% of revenue. Further, order trends continue to be stable, with some businesses, particularly our refrigeration business in Engineered Systems, beginning to see the effects of a normal seasonal slowdown.
"Consistent with our comments last quarter, we continue to anticipate full year revenue to be 24% - 26% lower than last year. Based on this expectation, we estimate full year earnings per share will be around the midpoint of our previously provided range of $1.75 - $2.00.
