DOWNERS GROVE, Ill.,
Sept. 11, 2018 /PRNewswire/
-- Dover (NYSE: DOV) today announced a rightsizing plan
designed to increase operating margin, enhance operations and
position the Company for sustained growth and investment.
The plan is primarily comprised of broad-based SG&A
reduction initiatives which will position the Company for
meaningful operating margin expansion. The Company expects the
program to deliver $130 million of
annualized pre-tax earnings by year-end 2019, of which $30 million will be reinvested in high-return
growth initiatives. The program will not affect the Company's
research and development activities.
The one-time pre-tax costs to implement the program are
estimated to be $40 million, with
approximately $30 million of the
costs to be recorded in the second half of 2018, and the remaining
$10 million to be recorded in the
first half of 2019. The costs associated with the program will be
excluded from Dover's reported adjusted earnings and adjusted
diluted earnings per share from continuing operations, both of
which are non-GAAP measures.
As previously announced, Dover will discuss the program and
provide a general corporate update during a meeting with sell-side
analysts today. A webcast of the meeting will be available
live to all interested parties beginning at 9:30 a.m. Eastern
time. A link to the live audio webcast and presentation
materials will be available on Dover's website
(dovercorporation.com) prior to the webcast, and the replay will be
archived on the website for 90 days.
About Dover:
Dover is a diversified global manufacturer with annual revenue
of approximately $7 billion. We
deliver innovative equipment and components, specialty systems,
consumable supplies, software and digital solutions, and support
services through three operating segments: Engineered Systems,
Fluids and Refrigeration & Food Equipment. Dover combines
global scale with operational agility to lead the markets we serve.
Recognized for our entrepreneurial approach for over 60 years, our
team of 26,000 employees takes an ownership mindset, collaborating
with customers to redefine what's possible. Headquartered in
Downers Grove, Illinois, Dover
trades on the New York Stock Exchange under "DOV." Additional
information is available at dovercorporation.com.
Forward-Looking Statements:
This press release contains "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements in this document other than statements of
historical fact are statements that are, or could be deemed,
"forward-looking" statements. Some of these statements may be
indicated by words such as "may", "anticipate", "expect", believe",
"intend", "guidance", "estimates", "suggest", "will", "plan",
"should", "would", "could", "forecast" and other words and terms
that use the future tense or have a similar meaning.
Forward-looking statements are based on current expectations and
are subject to numerous important risks, uncertainties, assumptions
and other factors, some of which are beyond the Company's control.
Factors that could cause actual results to differ materially from
current expectations include, among other things, general economic
conditions and conditions in the particular markets in which we
operate, changes in customer demand and capital spending,
competitive factors and pricing pressures, our ability to develop
and launch new products in a cost-effective manner, our ability to
identify and complete acquisitions and integrate and realize
synergies from newly acquired businesses, the impact of interest
rate and currency exchange rate fluctuations, capital allocation
plans and changes in those plans, including with respect to
dividends, share repurchases, investments in research and
development, capital expenditures and acquisitions, changes in law,
including the effect of U.S. tax reform and developments with
respect to trade policy and tariffs, our ability to derive expected
benefits from restructuring, productivity initiatives and other
cost reduction actions, changes in sourcing input costs or the
supply of input materials, the impact of legal compliance risks and
litigation, including with respect to product quality and safety,
cybersecurity and privacy, our ability to capture and protect
intellectual property rights, and various other factors that are
described in the Company's periodic reports filed with or furnished
to the Securities and Exchange Commission, including our Annual
Report on Form 10-K/A for the year ended December 31, 2017. The Company undertakes no
obligation to publicly update any forward- looking statement,
whether as a result of new information, future events or
otherwise.
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SOURCE Dover Corporation