NEW YORKDover reported fourth-quarter revenue of $1.7 billion, down 8% from last year, and net earnings from continuing operations of $170 million, down 3%.
 
For the quarter, the revenue decline was the result of a 6% decline in core revenue coupled with the negative impact of currency of 3%, partially offset by 1% net growth from acquisitions. Bookings were down 21% over the prior year to $1.4 billion and did weaken sequentially through the quarter. Year-end backlog was $1.2 billion, down 20% from last year and down 22% sequentially. Operating margin was 15.3%, up 70 basis points over the prior year.
 
“The fourth quarter proved to be most challenging, with significant declines in order rates across most of our end-markets, conditions which appear to be continuing into 2009,” said president and chief executive Robert A. Livingston on a conference call with analysts.
 
For the full year, the company reported revenue rose 3% to $7.6 billion, a record, and net earnings from continuing operations rose 4% to $695 million. The revenue growth included a 1% increase in organic growth, net acquisitions and the impact of currency. Operating margins were also 15.3%, a 40 basis point improvement over 2007.
 
The company’s Electronic Technologies segment, which includes Everett-Charles, DEK and OK International, among others, reported revenue fell 17% to $302 million, while earnings rose 11% to $53 million. Margin was 17.4%, an improvement of 450 basis points over the prior year. Strong earnings and margin results were primarily driven by excellent performances at Knowles and MPG, and a one-time gain of $8 million on the sale of Rasco, formerly part of Everett Charles. “The balance of our markets, particularly our electronic assembly and semiconductor-related markets, experienced a significant decline in demand as the quarter wore on,” said CFO Robert Kuhbach. “We expect a challenging first quarter, partly due to seasonality, weak activity in China, and restructuring charges.”  The company aims for 10% or higher margins for the segment in 2009.
 
Geographically, there were declines of 3% in revenue year-over-year in the fourth quarter in North America, 8% in Europe, and 20% in Asia. Electronic Technologies’ electronic assembly businesses felt the decline in Asia. The March quarter is expected to be the worst for Electronic Technologies, with business gradually improving as the year goes on.
 
Dover said it would take $50 million in restructuring charges, $40 million in 2009. Of that, $20 million will be incurred in the first quarter, the rest primarily in the second quarter.
 
On the call, Livingston said there would be selective decisions with respect to divestitures, but there was no anticipation of a major divestiture this year.
Submit to FacebookSubmit to Google PlusSubmit to TwitterSubmit to LinkedInPrint Article
Don't have an account yet? Register Now!

Sign in to your account