Dover Reports Third Quarter 2024 Results
DOWNERS GROVE, Ill., Oct. 24, 2024 /PRNewswire/ -- Dover (NYSE:DOV), a diversified global manufacturer, announced its financial results for the third quarter ended September 30, 2024. All comparisons are to the comparable period of the prior fiscal year, unless otherwise noted.
Three Months Ended September 30,
Nine Months Ended September 30,
($ in millions, except per share data)
2024
2023
% Change*
2024
2023
% Change*
U.S. GAAP
Revenue
$ 1,984
$ 1,958
1 %
$ 5,816
$ 5,780
1 %
Earnings from continuing operations
313
262
19 %
1,162
686
69 %
Diluted EPS from continuing operations
2.26
1.86
22 %
8.37
4.88
72 %
Non-GAAP
Organic revenue change
— %
— %
Adjusted earnings from continuing operations 1
314
301
4 %
846
812
4 %
Adjusted diluted EPS from continuing operations
2.27
2.14
6 %
6.09
5.78
5 %
1 Q3 and year-to-date 2024 and 2023 adjusted earnings from continuing operations exclude after tax purchase accounting expenses and restructuring and other costs. Q3 and year-to-date 2024 also exclude an after-tax gain on disposition of a minority owned equity method investment, and year-to-date 2024 excludes the after-tax gain and post-closing adjustments on the disposition of De-Sta-Co.
* Change may be impacted by rounding.
For the quarter ended September 30, 2024, Dover generated revenue of $2.0 billion, an increase of 1%. GAAP earnings from continuing operations of $313 million increased 19%, and GAAP diluted EPS from continuing operations of $2.26 was up 22%. On an adjusted basis, earnings from continuing operations of $314 million increased 4% and adjusted diluted EPS from continuing operations of $2.27 was up 6%.
For the nine months ended September 30, 2024, Dover generated revenue of $5.8 billion, an increase of 1% compared to the prior year. GAAP earnings from continuing operations of $1.2 billion increased by 69%, and GAAP diluted EPS from continuing operations of $8.37 was up 72%. On an adjusted basis, earnings from continuing operations of $846 million increased 4%, and adjusted diluted EPS from continuing operations of $6.09 was up 5% compared to the prior year.
A full reconciliation between GAAP and adjusted measures and definitions of non-GAAP and other performance measures are included as an exhibit herein.
MANAGEMENT COMMENTARY:
Dover's President and Chief Executive Officer, Richard J. Tobin, said, "Dover's third quarter results were in line with our expectations, driven by excellent production performance and positive margin mix from our growth platforms in clean energy, biopharma components, thermal connectors, and CO2 refrigeration systems. Top line performance was broad-based across the majority of the portfolio, more than offsetting near-term headwinds in polymer processing, beverage can-making, and heat exchangers for European heat pumps. Consolidated bookings continued their positive trajectory, with robust order rates in our secular-growth-exposed markets.
Our ongoing strategic portfolio evolution is aided by our strong balance sheet position. We closed the divestiture of our Environmental Solutions Group business in early October, reducing our exposure to cyclical capital goods. We expect to end the year with substantial firepower to pursue value-creating capital deployment as we continue to expand our businesses in high growth, high margin priority platforms.
We have a constructive outlook for the remainder of 2024 and for next year. Underlying end market demand is very healthy across the portfolio driven by our secular growth platforms, coupled with the bottoming of our long-cycle-exposed end markets in 2024. We expect to more than offset the dilution from the waste hauling equipment divestiture next year through a combination of solid top line organic growth, healthy margin accretion from positive mix and productivity, and value creating capital deployment."
FULL YEAR 2024 GUIDANCE:
In 2024, Dover expects to generate GAAP EPS from continuing operations in the range of $10.11 to $10.21 (adjusted EPS from continuing operations of $8.08 to $8.18), based on full year revenue growth of 1% to 3%. Full year 2024 guidance excludes the impact of the Environmental Solutions Group business unit, which was moved to discontinued operations for reporting purposes.
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its third quarter results at 9:30 A.M. Eastern Time (8:30 A.M. Central Time) on Thursday, October 24, 2024. The webcast can be accessed on the Dover website at dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover's results and its operating segments can be found on the Company's website.
ABOUT DOVER:
Dover is a diversified global manufacturer and solutions provider with annual revenue of over $7 billion. We deliver innovative equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services through five operating segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions and Climate & Sustainability Technologies. Dover combines global scale with operational agility to lead the markets we serve. Recognized for our entrepreneurial approach for over 65 years, our team of over 24,000 employees takes an ownership mindset, collaborating with customers to redefine what's possible. Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under "DOV."
FORWARD-LOOKING STATEMENTS:
This press release contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All statements in this document other than statements of historical fact are statements that are, or could be deemed, "forward-looking" statements. Forward-looking statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control. Factors that could cause actual results to differ materially from current expectations include, among other things, general economic conditions and conditions in the particular markets we serve; supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics; the impact of interest rate and currency exchange rate fluctuations; the impacts of natural or human-induced disasters, acts of war, terrorism, international conflicts, and public health crises on the global economy and on our customers, suppliers, employees, business and cash flows; changes in customer demand and capital spending; competitive factors and pricing pressures; our ability to develop and launch new products in a cost-effective manner; our ability to identify, consummate and successfully integrate acquisitions; acquisition valuation levels; and our ability to derive expected benefits from restructuring, productivity initiatives and other cost reduction actions. For details on the risks and uncertainties that could cause our results to differ materially from the forward-looking statements contained herein, we refer you to the documents we file with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. These documents are available from the Securities and Exchange Commission, and on our website, dovercorporation.com. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
INVESTOR SUPPLEMENT - THIRD QUARTER 2024
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data*)
Three Months Ended September 30,
Nine Months Ended September 30,
2024
2023
2024
2023
Revenue
$ 1,983,542
$ 1,958,428
$ 5,816,043
$ 5,779,664
Cost of goods and services
1,220,355
1,219,047
3,603,146
3,631,023
Gross profit
763,187
739,381
2,212,897
2,148,641
Selling, general and administrative expenses
429,570
402,838
1,301,606
1,234,223
Operating earnings
333,617
336,543
911,291
914,418
Interest expense
34,128
32,390
102,867
100,407
Interest income
(5,176)
(3,808)
(14,013)
(8,552)
Gain on dispositions
(68,633)
—
(597,913)
—
Other income, net
(13,032)
(10,274)
(33,016)
(20,758)
Earnings before provision for income taxes
386,330
318,235
1,453,366
843,321
Provision for income taxes
73,434
56,252
291,781
157,636
Earnings from continuing operations
312,896
261,983
1,161,585
685,685
Earnings from discontinued operations, net
34,204
27,770
99,558
74,881
Net earnings
$ 347,100
$ 289,753
$ 1,261,143
$ 760,566
Basic earnings per share:
Earnings from continuing operations
$ 2.28
$ 1.87
$ 8.42
$ 4.90
Earnings from discontinued operations, net
$ 0.25
$ 0.20
$ 0.72
$ 0.54
Net earnings
$ 2.53
$ 2.07
$ 9.14
$ 5.44
Weighted average shares outstanding
137,251
139,878
137,913
139,833
Diluted earnings per share:
Earnings from continuing operations
$ 2.26
$ 1.86
$ 8.37
$ 4.88
Earnings from discontinued operations, net
$ 0.25
$ 0.20
$ 0.72
$ 0.53
Net earnings
$ 2.51
$ 2.06
$ 9.08
$ 5.41
Weighted average shares outstanding
138,223
140,615
138,830
140,603
Dividends paid per common share
$ 0.515
$ 0.51
$ 1.54
$ 1.52
* Per share data may be impacted by rounding.
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
2024
2023
Q1
Q2
Q3
Q3 YTD
Q1
Q2
Q3
Q3 YTD
Q4
FY 2023
REVENUE
Engineered Products
$ 332,820
$ 285,297
$ 296,117
$ 914,234
$ 325,955
$ 287,408
$ 309,431
$ 922,794
$ 328,131
$ 1,250,925
Clean Energy & Fueling
445,053
463,014
500,685
1,408,752
430,729
441,166
466,959
1,338,854
449,423
1,788,277
Imaging & Identification
276,806
287,593
283,966
848,365
283,091
271,932
276,179
831,202
285,530
1,116,732
Pumps & Process Solutions
465,729
477,239
472,463
1,415,431
413,881
465,626
431,373
1,310,880
444,811
1,755,691
Climate & Sustainability Technologies
364,292
436,706
431,127
1,232,125
455,325
449,001
475,911
1,380,237
398,345
1,778,582
Intersegment eliminations
(981)
(1,067)
(816)
(2,864)
(1,552)
(1,326)
(1,425)
(4,303)
(1,428)
(5,731)
Total consolidated revenue
$ 1,883,719
$ 1,948,782
$ 1,983,542
$ 5,816,043
$ 1,907,429
$ 1,913,807
$ 1,958,428
$ 5,779,664
$ 1,904,812
$ 7,684,476
EARNINGS FROM CONTINUING OPERATIONS
Segment Earnings:
Engineered Products
$ 62,532
$ 52,095
$ 56,621
$ 171,248
$ 54,064
$ 38,872
$ 63,525
$ 156,461
$ 67,590
$ 224,051
Clean Energy & Fueling
69,675
87,536
99,536
256,747
73,605
83,616
92,483
249,704
78,900
328,604
Imaging & Identification
69,959
75,786
77,247
222,992
68,315
61,336
70,316
199,967
72,545
272,512
Pumps & Process Solutions
118,737
137,217
138,277
394,231
115,244
129,337
117,907
362,488
121,917
484,405
Climate & Sustainability Technologies
50,759
79,127
76,015
205,901
73,778
76,074
84,060
233,912
71,468
305,380
Total segment earnings
371,662
431,761
447,696
1,251,119
385,006
389,235
428,291
1,202,532
412,420
1,614,952
Purchase accounting
expenses 1
44,187
44,332
48,356
136,875
40,603
38,644
38,956
118,203
40,379
158,582
Restructuring and other costs 2
23,971
11,590
16,581
52,142
14,053
18,143
11,581
43,777
19,150
62,927
Disposition costs 3
—
—
—
—
—
—
—
—
1,302
1,302
(Gain) loss on dispositions 4
(529,943)
663
(68,633)
(597,913)
—
—
—
—
—
—
Corporate expense / other 5
42,159
39,526
36,110
117,795
40,301
34,138
30,937
105,376
45,957
151,333
Interest expense
36,365
32,374
34,128
102,867
34,214
33,803
32,390
100,407
30,897
131,304
Interest income
(4,756)
(4,081)
(5,176)
(14,013)
(2,091)
(2,653)
(3,808)
(8,552)
(4,944)
(13,496)
Earnings before provision for income taxes
759,679
307,357
386,330
1,453,366
257,926
267,160
318,235
843,321
279,679
1,123,000
Provision for income taxes 6
157,577
60,770
73,434
291,781
51,234
50,150
56,252
157,636
21,500
179,136
Earnings from continuing operations
$ 602,102
$ 246,587
$ 312,896
$ 1,161,585
$ 206,692
$ 217,010
$ 261,983
$ 685,685
$ 258,179
$ 943,864
SEGMENT EARNINGS MARGIN
Engineered Products
18.8 %
18.3 %
19.1 %
18.7 %
16.6 %
13.5 %
20.5 %
17.0 %
20.6 %
17.9 %
Clean Energy & Fueling
15.7 %
18.9 %
19.9 %
18.2 %
17.1 %
