Dover boosts 2013 forecast after winning tax audit

Thu Jul 18, 2013 8:06am EDT

(Reuters) - Dover Corp (DOV.N), the maker of refrigeration display cases, drill bits for oil rigs and scores of other industrial products, boosted its 2013 forecast on Thursday, citing a gain from a U.S. tax audit and improving sales across units.

The conglomerate said it received a "favorable resolution to a domestic tax audit," aiding second-quarter profit by 36 cents per share.

As a result, Dover now expects to earn $5.56 to $5.71 per share this year, up from a previously forecast $5.05 to $5.35. The company received another small tax gain in the first quarter and will spend money as it prepares to spin off its Knowles communications unit early next year.

The new estimate well exceeds the average analyst estimate of $5.24 per share. Still, Wall Street shrugged at the news, which wasn't unexpected, and Dover's shares fell 2 cents to $80.39 in premarket trading.

For the second quarter, Dover posted a better-than-expected profit, helped largely by a gain in sales of refrigeration display cases in emerging markets. Wal-Mart's (WMT.N) grocery division, for instance, is Dover's top customer in Brazil.

Second-quarter net earnings rose to $330 million, or $1.91 per share, from $214.1 million, or $1.15 per share, in the year-ago period.

Excluding the tax gain and other one-time items, the company earned $1.36 per share.

By that measure, analysts expected earnings of $1.29 per share, according to Thomson Reuters I/B/E/S.

Revenue was up 9 percent to $2.23 billion. Analysts expected revenue of $2.19 billion.

(Reporting by Ernest Scheyder; Editing by Jeffrey Benkoe and Chizu Nomiyama)

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