Dover, a major manufacturer in sectors including foodservice equipment, announced its financial results for the fourth quarter and full year ended December 31, 2018.
The conglomerate owns refrigeration and food equipment brands Dover Food Retail, Anthony, Hillpheonix, Belvac, Swep and Unified Brands, amongst others.
Driven by organic growth of 3.7%, Dover’s full year ended with revenue of $7bn and net earnings were $570m compared to $811m the year before.
Earnings from continuing operations had decreased by 21% and were $591m, compared to $746.7m for the prior year. This was largely driven by net benefits from dispositions and a net benefit from the Tax Reform Act realized in 2017.
For the fourth quarter ended December 31, 2018, Dover’s revenue was $1.8bn, which represents organic growth of 6.2%.
Net earnings for the fourth quarter ended December 31, 2018, dropped by half at $141.6m, compared to net earnings of $296.4m in the prior year period, including the results of discontinued operations.
Earnings from continuing operations were $158m, a decrease of 45% as compared to $289.6m for the prior year period. This pushed by a $110.0m net benefit from a disposition and a $54.9m net benefit from the Tax Cuts and Jobs Act, both realized in the fourth quarter of 2017.
Richard J. Tobin, Dover’s president and chief executive officer, said: “Dover’s solid results for the quarter and the year reflect broad-based demand strength in Engineered Systems and Fluids, which posted 2018 annual organic growth of 5.8% and 8.7%, respectively, and more than offset weak demand in Refrigeration & Food Equipment. Our $7.0bn of revenue for the year reflects an organic growth rate of 3.7%, while adjusted net earnings and adjusted EPS improved 15% and 20%, respectively.
“Dover enters 2019 with solid momentum as represented by our Q4 organic growth rate, solid order backlogs across most of our portfolio, and margin expansion is driven by volume and cost initiatives. Our productivity and footprint initiatives are underway with several in the execution phase, and we have begun to reinvest a portion of our savings from rightsizing initiatives into our digital capabilities and customer-facing platforms.
“We believe we are well-positioned to deliver top-line growth and strong double-digit EPS accretion in 2019. Our guidance reflects a constructive demand environment, continued focus on our margin improvement and rightsizing programs, as well as disciplined deployment of capital.”