DOWNERS GROVE, Ill., July 21, 2022 /PRNewswire/— Dover (NYSE: DOV), a diversified global manufacturer, announced its financial results for the second quarter ended June 30, 2022.
For the quarter ended June 30, 2022, Dover generated revenue of $2.2 billion, an increase of 6% (+7% organic) compared to the second quarter of the prior year. GAAP net earnings of $290 million increased 9%, and GAAP diluted EPS of $2.00 was up 10%. On an adjusted basis, net earnings of $309 million increased 3% and adjusted diluted EPS of $2.14 was up 4% versus the comparable quarter of the prior year.
For the six months ended June 30, 2022, Dover generated revenue of $4.2 billion, an increase of 8% (+8%% organic) compared to the comparable period of the prior year. GAAP net earnings of $516 million increased 4%, and GAAP diluted EPS of $3.56 was also up 4% year-over-year. On an adjusted basis, net earnings of $585 million increased 4%, and adjusted diluted EPS of $4.03 was also up 4% versus the comparable period of 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, “Our team delivered a strong second quarter performance which led to record quarterly revenue and sequential and year-over-year earnings growth, despite a difficult operating environment and significant foreign currency headwinds. Our backlog remains at a historically high level, providing a good line of sight for operational execution while new order bookings normalize as our lead times improve.
“Input shortages and the COVID-19 lockdowns in China negatively impacted shipment volumes and fixed cost absorption across multiple businesses. Despite these headwinds, our operating margin improved sequentially in the quarter, driven by cost controls, overall strong volume and meaningfully improving price-cost dynamics, which we expect to drive profitability in the second half of the year.
“Our strong balance sheet supports our disciplined capital allocation initiatives. We are investing in capacity expansions and productivity improvements across many operating companies to capture secular revenue growth opportunities and continue driving efficiencies. The recently-announced Malema acquisition closed on July 1 and we continue our pursuit of attractive bolt-on acquisitions. We also repurchased $85 million of our common stock in the second quarter and will continue to proactively evaluate various capital deployment alternatives through the remainder of the year.
“Our strong backlog, constructive demand and execution playbook tailored to various operating scenarios position us well to deliver revenue and earnings growth amidst continuing economic uncertainty. We are maintaining our 2022 adjusted full-year guidance.”
FULL YEAR 2022 GUIDANCE:
In 2022, Dover expects to generate GAAP EPS in the range of $7.44 to $7.64 (adjusted EPS of $8.45 to $8.65), based on full year revenue growth of 8% to 10% (8% to 10% on an organic basis).
CONFERENCE CALL INFORMATION:
Dover will host a webcast and conference call to discuss its second quarter and year-to-date 2022 results at 9:00 A.M. Eastern Time (8:00 A.M. Central Time) on Thursday, July 21, 2022. 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 second quarter 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 approximately $8 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 25,000 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, the impacts of COVID-19, or other future pandemics, on the global economy and on our customers, suppliers, employees, business and cash flows, supply chain constraints and labor shortages that could result in production stoppages, inflation in material input costs and freight logistics, other general economic conditions and conditions in the particular markets in which we operate, the impact on global or a regional economy due to the outbreak or escalation of hostilities or war, 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 realize synergies from newly acquired businesses, 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, 2021, 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.