Dover reports 3Q profit up absent year-ago charge
DOWNERS GROVE, Ill. -- Dover Corp.'s third-quarter net income rose 40 percent, helped by acquisitions and by the absence of a big loss tied to discontinued operations from a year ago. But CEO Robert Livingston said Wednesday that the company faces challenges in the handset and electronics markets, along with uncertainty in the global economy, and the manufacturer cut its forecast for the year.
The Downers Grove, Ill., company makes products including communications equipment, machinery used in oil and gas drilling and printing and identification technology.
Dover earned $241 million, or $1.31 per share, in the quarter ended Sept. 30, compared with $172.3 million, or 91 cents per share, a year earlier. Last year's results included a $51.2 million loss from discontinued operations.
Excluding a $1.2 million loss from discontinued operations this year, earnings were $1.32 per share. The performance beat Wall Street's expectations. Analysts polled by FactSet expected earnings of $1.28 per share.
Revenue rose 3 percent to $2.21 billion, buoyed by acquisitions. Wall Street was looking for $2.25 billion.
But looking forward, Dover now expects revenue growth of 7 percent in 2012, rather than the 8 to 10 percent growth it predicted before. Analysts forecast revenue of $8.61 billion, which would be growth of nearly 8 percent from 2011.
It also predicted profit of $4.55 to $4.65 per share this year, down from a previous estimate of $4.70 to $4.85 per share. Analysts expect profit of $4.69 per share.
Dover's stock fell 68 cents, or 1.2 percent, to $56.50 in Wednesday late morning trading. The shares peaked this year at $67.20 in February.