Dover second-quarter profit tops forecasts
NEW YORK (Reuters) - Diversified manufacturer Dover Corp (DOV.N) reported better-than-expected results on Wednesday, helped by double-digit sales and profit gains in its fluid management segment, and reaffirmed its profit target for the year.
Dover, which makes products ranging from garbage trucks to supermarket equipment, said net earnings fell to $135.3 million, or 71 cents per share, from $172.2 million, or 84 cents per share, for the same period of 2007, largely related to the discontinuation of its Triton business last year.
Earnings from continuing operations, however, rose to $186.9 million or 98 cents per share, beating analysts' EPS forecasts by 3 cents, according to Reuters Estimates and up from $174.7 million or 85 cents per share in the same quarter of 2007.
Revenue rose 10 percent to $2.0 billion, driven by organic growth of 5 percent, acquisition growth of 1 percent and 4 percent from foreign-currency-related gains.
Sales and profit gains were strongest in Dover's fluid management segment, reflecting global demand from the oil and gas and power generation markets. The business makes products such as valves and sensors used in oil production.
New York-based Dover said activity levels and backlog remain healthy despite high raw material costs and an unsettled economy, and said it is confident it will grow full-year profits by at least 12 percent and "core" sales from existing businesses by mid single digits.
(Reporting by Christopher Kaufman and Nick Zieminski, editing by Gerald E. McCormick)
