Previous Statements by DOV
» Dover Corp. Q2 2010 Earnings Call Transcript
» Dover Corporation Q1 2010 Earnings Call Transcript
» Dover Corporation Q4 2009 Earnings Call Transcript
Before we get started, I'd like to remind everyone that our comments today, which are intended to supplement your understanding of Dover, may contain certain forward-looking statements that are inherently subject to uncertainties. We caution everyone to be guided in their analysis of Dover Corporation by referring to our Form 10-K for a list of factors that could cause our results to differ from those anticipated in any such forward-looking statements. Also, we undertake no obligation to publicly update or revise any forward-looking statements except as required by law. We would also direct your attention to our website, where considerably more information can be found.And with that, I'd like to turn the call over to Bob. Robert Livingston Thanks, Paul. Good morning, everyone, and thank you for joining us for this morning's conference call. Well, it's fair to say we had a great year capped off by a strong fourth quarter. Our fourth quarter orders were up 23%, and revenue increased 24%. I was pleased to see broad-based revenue gains and margin expansion with all segments achieving double-digit revenue growth and higher margins. Furthermore, we saw the continuing improvement in the majority of our end markets, most notably those served by Electronic Technologies, Energy and Material Handling. Many of the tailwinds that helped produce our strong 2010 results are continuing. To name just a few: Knowles continues to benefit from the growing handset market, especially the strong growth in smartphones. As a result of this growth, we expanded capacity for MEMS microphones 20% in 2010. And in 2011, capacity will increase at an even greater rate. Our electronic equipment companies had a very strong year and continue to diversify their end markets. This is best illustrated by DEK's significant penetration in the solar equipment space. Solar products represented 37% of DEK's fourth quarter revenue, and we expect it to continue to grow. Our Energy platform continues to benefit from increased rig count deployment, rising oil prices and an increase in shale drilling. We see this market remaining robust in 2011.
Businesses within our Material Handling platform are seeing improved industrial production and rising investment in infrastructure projects, which have provided them a much better marketplace. The fourth quarter marks the sixth consecutive quarter of sequential revenue increases in this platform. A personal objective of mine is our geographic expansion. I was pleased to see our focus on developing economies result in full year growth of 50% for Asia and 52% for Latin America. The fourth quarter marked the second consecutive quarter our Asian revenue exceeded Europe's revenue. Acquisitions have also been a major focus for us, as we worked on a full pipeline of deals. In 2010, we closed on six add-on acquisitions for a combined purchase price of $105 million. We've closed four more deals this month for a total price of $425 million, including Harbison-Fischer.In December, we announced our intention to acquire the Sound Solutions business of NXP Semiconductors, and we still expect this acquisition to close around the end of the first quarter. I'm extremely excited with all of our recent acquisitions. As our pipeline rebuilds, we will continue to be acquisitive in our five growth spaces. I am very pleased with our excellent performance in 2010 and our focus on customers, share gains, geographic expansion and productivity. I am convinced we have built a foundation to produce even stronger results in 2011. With that, let me turn it over to Brad. Brad Cerepak Thanks, Bob. Good morning, everyone. Let's start by turning to Slide 3. Today, we reported fourth quarter revenue of $1.9 billion, an increase of 24% over last year. Earnings per share increased 85% to $1.01. After adjusting for tax benefits of $0.07, EPS was $0.94, a 71% improvement. Bookings increased 23% over last year to $1.9 billion, and backlog grew 30% to $1.4 billion. Book-to-bill finished solid at 1.03. Margins increased at all segments on both a quarterly and full year basis. Segment margin for the quarter was 16.3%, up 320 basis points. For the full year, segment margin was a record 16.4%. Read the rest of this transcript for free on seekingalpha.com