Dover Corp.'s (DOV) second-quarter profit dropped 28% as demand
woes persist despite signs of a recovery, prompting the
manufacturing holding company to again cut its 2009 earnings
outlook.
Dover - which makes and services everything from printers to
garbage trucks - now expects earnings of $1.75 to $2 a share for
the year, down from April's reduced view of $2 to $2.30 a
share.
Though order rates stabilized across most of the company's
businesses, Chief Executive Robert A. Livingston he still doesn't
anticipate a "meaningful" second-half recovery. Sequential
improvements in operating margin and earnings before taxes among
other things suggest "a more stable demand environment."
Dover has cut jobs and has been restructuring as order rates
fall more sharply than expected. In May, moving to bolster its
position in the commercial-refrigeration market, it acquired assets
of Carrier's Tyler refrigeration unit.
Dover's earnings fell to $97.1 million, or 52 cents a share,
from $135.3 million, or 71 cents a share, a year earlier. The
results included losses from discontinued operations of 2 cents and
27 cents, respectively.
Revenue tumbled 31% to $1.4 billion.
Gross margin fell to 35.5% from 36.8%, as sales and margins
dropped in all four business segments.
Bookings fell 32% from a year ago and 30% from the prior
quarter.
An average of analysts surveyed by Thomson Reuters called for
earnings of 46 cents a share on revenue of $1.46 billion.
Dover's shares closed Thursday at $36.52 and were inactive
premarket.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com