Dover CEO Discusses Q2 Results - Earnings Call Transcript

Now, let me provide some comments on our second quarter results. We posted revenue of $2.2 billion in the quarter, an increase of 8%. Our second quarter EPS of $1.15 was a slight improvement over the prior year adjusted EPS.

In our Energy segment, we continued to see growth across our end markets with production in downstream being the strongest. As a result, we posted strong organic revenue growth in the quarter.

As I have shared with you before, while rig count has flattened, market dynamics provide a solid environment for our products and services. These dynamics include the ongoing shift from gas to oil, oil prices supporting continued CapEx for production and a strengthening downstream market. We expect Energy results to remain solid for the balance of the year.

At our Communication Technology segment, we saw the continuation of a strong smartphone market as well as solid commercial aerospace and life science markets. Telecom markets remained weak.

The highway was 25% organic growth in our MEM sales to the handset market in the second quarter and we expect even stronger MEMS performance in the second half. Although results at Sound Solutions continue to be significantly impacted by further OEM share shifts, I was especially encouraged by increasing order rates on new design wins in the quarter and expect shipments at Sound Solutions to accelerate through the second half.

Within our Engineered Systems segment, refrigeration and food equipment markets were solid as were most of our U.S. industrial end markets.

Regarding our Fluids platform. The strong start for Maag Pump was offset by a weaker Europe and China. The result for this segment was lower than anticipated revenue in fluids, largely offset by 8% revenue growth in refrigeration and food equipment.

Going forward, we believe second half results in refrigeration will remain solid on the strength of an active remodeling market, our leading technology and our customers' continued focus on energy efficiency. Our U.S. industrial markets which account for 65% of segment revenue should be rather stable.

Within our Printing & Identification segment, we continue to see a weak, but improving market for electronics equipment. Within our consumer goods and industrial markets, our focus on new products, channel expansion and service is making a difference.

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