Dover Corporation (NYSE: DOV) is a Fortune 500 and S&P 500 manufacturer of specialized industrial products and equipment within six segments. Dover Corporation is based in Downers Grove, Illinois, a western suburb of Chicago. The company relocated its headquarters from New York in mid-2010.
Dover Corporation (Dover), incorporated in 1947, owns and operates a global portfolio of manufacturing companies providing components and equipment, specialty systems and support services for a variety of applications in the industrial products, engineered systems, fluid management and electronic technologies markets. The Company operates in four business segments: Industrial Products, Engineered Systems, Fluid Management and Electronic Technologies. The products designed, manufactured, assembled and/or serviced by the Company includes material handling equipment, mobile equipment related products, engineered products, product identification related products, energy market production and distribution products, fluid solution products, and electronic technology equipment and devices/components.
Industrial Products
The Industrial Products segment provides material handling products and services, as well as products used in various mobile equipment applications in the transportation equipment, vehicle service and solid waste management markets. The segment manages and sells its products and services through two business platforms Material Handling and Mobile Equipment.
The Material Handling platform serves two global markets comprising infrastructure and industrial automation. The companies in this platform develop and manufacture customer productivity enhancing systems. The products are produced in the United States, Mexico, Germany, Belgium, Thailand, India, China, Brazil and France and are marketed globally on a direct basis to original equipment manufacturers (OEMs) and through a global dealer and distribution network to industrial end users.
The Material Handling platform companies in the infrastructure market sell to segments of the construction, utility, demolition, recycling, scrap processing, material handling, forestry, energy, military, marine, towing/recovery, refuse and automotive OEM markets. The products include mobile shears, concrete demolition tools, buckets, backhoes, trenchers, augers, worm gear and planetary winches, and hydraulic lift and electronic control/monitoring systems for mobile and structural cranes, four-wheel drive (4WD) and all wheel drive (AWD) powertrain systems, and other accessories for off-road vehicles and operator cabs and rollover structures. The Material Handling platform companies in the industrial automation market provide a range of modular automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, as well as end-of-arm robotic grippers, slides and end effectors.
The Mobile Equipment platform serves three markets, such as transportation equipment, solid waste management and vehicle service. The companies in this platform manufacture tank trailers, specialty trailers, refuse collection bodies (garbage trucks), container lifts, onsite waste management and recycling systems, vehicle service lifts, touch-free and friction vehicle wash systems, vehicle collision measuring and repair systems, aerospace and submarine-related fluid control assemblies, fasteners and bearings, internal engine components and other engine accessories. The businesses also provide components for off-road sports vehicles and autos. The platform has manufacturing operations in North and South America, Asia and Europe.
The businesses in the transportation equipment markets, manufactures and sells aluminum, stainless steel and steel tank trailers that carry petroleum products, chemical, edible and dry bulk products, as well as specialty trailers focused on the heavy haul, oil field and recovery markets. Trailers are marketed both directly and indirectly through distributors to customers in the construction, trucking, railroad, oilfield and heavy haul industries.
The businesses in the solid waste management market provide products and services for the refuse collection industry and for onsite processing and compaction of trash and recyclable materials. Products are sold to municipal customers, national accounts and independent waste haulers through a network of distributors and directly in certain geographic areas. The onsite waste management and recycling systems include a range of stationery compactors, wire processing and separation machines, and balers that are manufactured and sold in the United States to distribution centers, malls, stadiums, arenas, office complexes, retail stores and recycling centers.
The businesses in the vehicle service market provide a range of products and services that are utilized in vehicle services, maintenance, repair and modification. Vehicle lifts and collision equipment are sold through equipment distribution and directly to a range of markets, including independent service and repair shops, collision repair shops, national chains and franchised service facilities, new vehicle dealers, and governments and directly to consumers through the Internet. Car wash sustems are sold in the United States and Canada to oil companies, convenience store chains and individual investors. The products are sold through a distribution network that installs the equipment and provides after sale service and support. The internal combustion engine components, including pistons, connecting rods and accessories, and fuel and combustion management devices are designed to meet customer specifications for the racing and enthusiast markets in both the motor sports and automotive market segments. These products are sold directly and through distribution networks on a global basis.
Engineered Systems
The Engineered Systems segment provides products and services for the refrigeration, storage, packaging and preparation of food products, as well as industrial marking and coding systems for various markets. The segment serves its markets by managing these products and services through two business platforms comprising Product Identification (PI) platform and Engineered Products.
The PI platform is a global supplier of industrial marking and coding systems that serves the food, beverage, cosmetic, pharmaceutical, electronic, automotive and other markets where variable marking is required. Its printing products are used for marking variable information, such as date codes or serial numbers on consumer products. PI provides solutions for product marking on primary packaging, secondary packaging, such as cartons and pallet marking for use in warehouse logistics operations. PI also manufactures bar code printers and portable printers used where on demand labels/receipts are required. The PI manufacturing facilities are in the United States, France and China with sales operations globally.
The Engineered Products platform manufactures refrigeration systems, refrigeration display cases, walk-in coolers and freezers, electrical distribution products and engineering services, commercial foodservice equipment, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, beverage can-making machinery, and packaging machines used for meat, poultry and other food products. The platform also manufactures copper-brazed compact heat exchangers, designs software for heating and cooling substations. The platform’s manufacturing facilities and distributing operations are in North America and Europe with additional distribution facilities in South America and Asia.
Fluid Management
The Fluid Management segment provides products and services for end-to-end stewardship of its customers’ fluids, including liquids, gases, powders and other solutions that are hazardous, valuable or process-critical. The segment provides technologies that help contain, control, move, measure and monitor the fluids. The products and services are channeled through two business platforms, including Energy and Fluid Solutions.
The Energy platform serves the oil, gas and power generation industries. The products manufactured by companies within this platform include polycrystalline diamond cutters (PDCs) used in drill bits for oil and gas wells, steel sucker rods and accessories used in onshore oil and gas production, pressure, temperature and flow monitoring equipment used in oil and gas exploration and production applications, and control valves and instrumentation for oil and gas production. The Company also manufactures various compressor parts used in the natural gas production, distribution and oil refining markets, as well as bearings and remote condition monitoring systems that are used for rotating machinery applications, such as turbo machinery, motors, generators and compressors used in energy, utility, marine and other industries.
The Fluid Solutions platform manufactures pumps, compressors, vehicle fuel dispensing products, and products for the transfer, monitoring, measuring and protection of hazardous, liquid and dry bulk commodities. The Company also manufactures quick disconnect couplings and chemical proportioning and dispensing products. The products are manufactured in the United States, South America, Asia and Europe and marketed globally through a network of distributors or via direct channels.
Vehicle fuel dispensing products include conventional, vapor recovery, clean energy nozzles, swivels and breakaways, as well as tank pressure management systems. Products manufactured for the transportation, storage and processing of hazardous liquid and dry-bulk commodities include relief valves, loading/unloading angle valves, rupture disc devices, actuator systems, level measurement gauges, swivel joints, butterfly valves, lined ball valves, actuators, aeration systems, industrial access ports, manholes, hatches, coamings, collars, weld rings and fill covers.
The platform’s pumps and compressors are used to transfer liquid and bulk products and are sold to a range of markets, including the refined fuels, liquefied petroleum gas (LPG), pulp and paper, wastewater, food/sanitary, military, transportation and chemical process industries. The quick disconnect couplings provide fluid control solutions to the industrial, food handling, life sciences and chemical handling markets.
Electronic Technologies
The Electronic Technologies segment designs and manufactures electronic test, material deposition and manual soldering equipment, micro-acoustic components, and specialty electronic components. The products are manufactured in North America, Europe and Asia and are sold globally through a network of distributors.
The test equipment products include machines, test fixtures and related products used in testing bare and loaded electronic circuit boards, and semiconductors. The segment also manufactures precision material deposition machines and other related tools used in the assembly process for printed circuit boards and other specialty applications, as well as precision manual soldering, de-soldering, and other hand tools.
The micro-acoustic components manufactured include audio communications components, primarily miniaturized microphones, receivers and electromechanical components for use in hearing aids, as well as transducers for use in pro-audio devices, high-end headsets, medical devices, military headsets and far field arrays. The platform also designs, manufactures and assembles microphones for use in the personal mobile device and communications markets, including mobile phones, personal digital assistant (PDAs), Bluetooth headsets and laptop computers.
The specialty electronic components include frequency control/select components and modules employing quartz technologies, microwave electro-mechanical switches, radio frequency and microwave filters, and integrated assemblies, multi-layer ceramic capacitors and high frequency capacitors. The components are sold to communication, medical, defense, aerospace and automotive manufacturers worldwide.
Starting in 1993, Dover also stepped up its acquisition activity in the friendlier postrecession environment. The company acquired the privately held Heil Company in 1993 for about $150 million in cash, making this one of the largest acquisitions in company history. The Chattanooga, Tennessee-based Heil, a manufacturer of garbage truck bodies and refuse equipment, had annual sales of about $165 million. In addition to seeking out larger acquisitions and more of them, Dover made another shift starting in 1994: encouraging the presidents of Dover subsidiaries to be on the lookout for "add-on" acquisitions--companies that could be merged into their own company, thereby strengthening its market position. For instance, Phoenix Refrigeration Systems, a maker of cooling units for supermarket display cases that Dover had acquired in 1993, itself acquired Hill Refrigeration Inc., a display case manufacturer, in 1994. The newly named Hill Phoenix, Inc. was then able to make complete display case units and thereby compete more effectively against its rivals. Dover's more aggressive approach to acquisition also began to be reflected in its financial statements. The company had typically held its debt to less than 15 percent of total capital. But, in part to fund acquisitions, long-term debt increased from $1.2 million in 1992 to $252.1 million in 1993, the latter translating into 81.9 percent of capital. From 1993 through 1997, the average long-term debt to capital ratio was 74.3 percent.
After acquiring ten companies in 1994, Dover spent $323.3 million in 1995 to make another nine acquisitions. The largest of these, and the company's largest purchase to date, also represented the company's increasing concentration on overseas growth. In September 1995 Dover paid $200 million for an 88 percent interest in Valance, France-based Imaje, S.A., one of the world's three largest manufacturers of industrial continuous ink-jet printers and specialized inks. Dover soon increased its interest to virtually 100 percent. In October 1995 the company ventured overseas again to buy the U.K.-based Hammond Engineering, Limited, a maker of rotary vane and screw compressors and hydraulic control units for the trucking industry.
Dover made ten more acquisitions in 1996, with an aggregate price of $281.7 million. The largest of these was the purchase of Pomona, California-based Everett Charles Technologies, Inc., a leading manufacturer of circuit board testing equipment. During 1997 Dover made 17 acquisitions, 15 of which were the add-on type, spending $261.4 million. The two stand-alone acquisitions made that year were not "blockbusters" like Heil, Imaje, and Everett Charles were; added to the Dover Resources group was Hydro Systems Company of Cincinnati, Ohio, a maker of cleaning chemical dispensing systems, while Dover Diversified gained Sanger, California-based Sanger Works Factory Holdings, Inc., the leading manufacturer of production equipment for making corrugated boxes in the United States.
Also in 1997 Dover divested its European elevator operations. In May of the following year, Dover announced that it would spin off its North American elevator operations--and its best-known brand, Dover Elevator--in early 1999. But, instead, Dover in early January 1999 sold Dover Elevator for $1.1 billion to the Thyssen Industries unit of Thyssen AG (which became Thyssen Krupp AG later in 1999 following a merger with Fried. Krupp AG Hoesch-Krupp). The divestment left Dover with four operating groups: Dover Diversified, Dover Industries, Dover Resources, and Dover Technologies. Meanwhile, 1998 was another record year for Dover Corporation as the company completed ten add-on acquisitions and four stand-alones, spending a total of $556 million, the most ever. Among the stand-alones was the largest acquisition yet in terms of price, namely the approximately $220 million purchase of privately held Wilden Pump and Engineering Company, Inc. Wilden was based in Grand Terrace, California, and was the world leader in air-operated double-diaphragm pumps, a worldwide $250 million market. The other stand-alone companies acquired in 1998 were Salt Lake City-based Quartzdyne, Inc., the world leader in quartz-based pressure transducers, which are used in gas and oil drilling; Mentor, Ohio-based Wiseco Piston Company, Inc., the leading U.S. maker of high-performance pistons used in racing engines for autos, motorcycles, boats, and snowmobiles; and PDQ Manufacturing, Inc., a leading manufacturer of touchless car-washing equipment.
Despite the impact of the late 1990s Asian economic crisis, which hit the electronics sector--and consequently, Dover Technologies--particularly hard, Dover Corporation posted record revenues of $3.98 billion in 1998. Net earnings, however, fell from the 1997 total of $405.4 million to $378.8 million. With $800 million in aftertax proceeds in hand from the sale of Dover Elevator, the company planned to make additional acquisitions and repurchase stock. Dover could also be expected to use some of its cash to pay down its burgeoning debt, which ballooned to $610.1 million in 1998, thanks to the record acquisition activity.
Principal Subsidiaries: A-C Compressor Corporation; Avtec Industries, Inc.; Belvac Production Machinery, Inc.; Chief Automotive Systems, Inc.; Communications Techniques, Inc.; Conmec, Inc.; Davenport Machine, Inc.; DEK U.S.A., Inc.; Delaware Capital Formation, Inc.; Delaware Capital Holdings, Inc.; Dielectric Laboratories, Inc.; Dover Diversified, Inc.; Dover Europe Corporation; Dover Industries, Inc.; Dover Resources, Inc.; Dover Technologies International, Inc.; Dow-Key Microwave, Inc.; Duncan Industries Parking Control Systems Corp.; Everett Charles Technologies; The Heil Company; Hill Phoenix, Inc.; Hydro Systems Company; K&L Microwave, Inc.; Marathon Equipment Company; Mark Andy, Inc.; Midland Manufacturing, Inc.; Pathway Bellows, Inc.; PDQ Manufacturing, Inc.; Petro Vend, Inc.; PRC Corporation; Preco Turbine and Compressor Services, Inc.; Quartzdyne, Inc.; Randell Manufacturing, Inc.; Refrigeration Systems, Inc.; Revod Corporation; Robohand, Inc.; Ronningen-Petter; Sanger Works Factory Holdings, Inc.; Sonic Industries, Inc.; Texas Hydraulics, Inc.; Thermal Equipment Corporation; Tipper Tie, Inc.; TNI, Inc.; Tranter, Inc.; Tulsa Winch, Inc.; Universal Instruments Corporation; Vectron Laboratories, Inc.; Vectron Technologies, Inc.; Waukesha Bearings Corporation; Weldcraft Products, Inc.; Wilden Pump and Engineering Company, Inc.; Wiseco Piston Company, Inc.; The Wittemann Company, Inc.; atg test systems GmbH (Germany); DEK Printing Machines Ltd. (U.K.); Dover Corporation (Canada) Ltd.; Dover Europe Afzug GmbH (Germany); Dover Europe GmbH (Germany); Dover Exports, Ltd. (Barbados); Dover France Holdings SARL; Dover International Finance Services Ltd.; Dover UK Holdings Limited; HTT Heat Transfer Technologies, S.A. (Switzerland); Imaje S.A. (France); Imaje GmbH (Germany); Langbein & Englebracht, GmbH (Germany); Luther & Maezler GmbH (Germany); Soltec International, B.V. (Netherlands); SWEP International AB (Sweden); SWEP Technologies AB (Sweden); Universal Electronics Systems H.K. Ltd. (Hong Kong).
Principal Operating Units: Dover Diversified, Inc.; Dover Industries, Inc.; Dover Resources, Inc.; Dover Technologies International, Inc.
OVERALL
Beta: 1.26
Market Cap (Mil.): $12,463.48
Shares Outstanding (Mil.): 186.58
Annual Dividend: 1.10
Yield (%): 1.65
FINANCIALS
DOV Industry Sector
P/E (TTM): 16.43 18.20 16.70
EPS (TTM): 75.89 -- --
ROI: 10.31 5.47 3.22
ROE: 17.49 6.86 5.81
Statistics:
Public Company
Incorporated: 1955
Employees: 23,314
Sales: $3.98 billion (1998)
Stock Exchanges: New York London
Ticker Symbol: DOV
NAIC: [hy]332722 Bolt, Nut, Screw, Rivet, & Washer Manufacturing; 326199 All Other Plastics Product Manufacturing; 332313 Plate Work Manufacturing; 332116 Metal Stampings; 332618 Other Fabricated Wire Product Manufacturing; 333923 Overhead Traveling Crane, Hoist, & Monorail System Manufacturing; 333518 Other Metalworking Machinery Manufacturing; 333992 Welding & Soldering Equipment Manufacturing; 33321 Sawmill & Woodworking Machinery Manufacturing; 332991 Ball & Roller Bearing Manufacturing; 333412 Industrial & Commercial Fan & Blower Manufacturing; 333415 Air-Conditioning & Warm Air Heating Equipment & Commercial & Industrial Refrigeration Equipment Manufacturing; 3586 Measuring & Dispensing Pump Manufacturing; 333319 Other Commercial & Service Industry Machinery; 334412 Bare Printed Circuit Board Manufacturing; 334417 Electronic Connector Manufacturing; 334419 Other Electronic Component Manufacturing; 336211 Motor Vehicle Body Manufacturing; 334512 Automatic Environmental Control Manufacturing for Regulating Residential, Commercial, & Appliance Use
Name Age Since Current Position
Cremin, Robert 70 2009 Independent Chairman of the Board
Livingston, Robert 57 2008 President, Chief Executive Officer, Director
Cerepak, Brad 51 2009 Chief Financial Officer, Vice President - Finance
Schmidt, Joseph 64 2003 Vice President, General Counsel, Secretary
McKay, Raymond 57 2004 Vice President, Controller
Kloosterboer, Jay 50 2009 Vice President - Human Resources
Spurgeon, William 52 2007 Vice President; President and Chief Executive Officer of Dover Fluid Management, Inc.
Van Loan, David 62 2007 Vice President; President and Chief Executive Officer of Dover Electronic Technologies, Inc.
Somasundaram, Sivasankaran 45 2010 Vice President; Exec. VP of Dover Fluid Management, President of Fluid Solutions Platform
Giacomini, Thomas 45 2009 Vice President; President and Chief Executive Officer of Dover Industrial Products, Inc
Sellhausen, Stephen 52 2009 Vice President - Corporate Development
Hoglund, Raymond 60 2008 Vice President; President and Chief Executive Officer of Dover Engineered Systems
Moyle, James 58 2009 Vice President - Supply Chain and Global Sourcing
Buchanan, Kevin 55 2010 Vice President - Taxation
Cabrera, Ivonne 44 2010 Vice President
Zhang, Michael 47 2010 Vice President
Goldberg, Paul 47 2006 Treasurer, Director - Investor Relations
Benson, David 73 1995 Independent Director
Ergas, Jean-Pierre 71 1994 Independent Director
Koley, James 79 2009 Independent Director
Graham, Kristiane 53 1999 Independent Director
Lochridge, Richard 67 1999 Independent Director
Stubbs, Michael 62 1999 Independent Director
Rethore, Bernard 69 2001 Independent Director
Winston, Mary 49 2005 Independent Director
Francis, Peter 58 2007 Independent Director
Todd, Stephen 62 2010 Independent Director
Wagner, Stephen 63 2010 Independent Director
Address:
280 Park Avenue
New York, New York 10017-1292
U.S.A.
Dover Corporation (Dover), incorporated in 1947, owns and operates a global portfolio of manufacturing companies providing components and equipment, specialty systems and support services for a variety of applications in the industrial products, engineered systems, fluid management and electronic technologies markets. The Company operates in four business segments: Industrial Products, Engineered Systems, Fluid Management and Electronic Technologies. The products designed, manufactured, assembled and/or serviced by the Company includes material handling equipment, mobile equipment related products, engineered products, product identification related products, energy market production and distribution products, fluid solution products, and electronic technology equipment and devices/components.
Industrial Products
The Industrial Products segment provides material handling products and services, as well as products used in various mobile equipment applications in the transportation equipment, vehicle service and solid waste management markets. The segment manages and sells its products and services through two business platforms Material Handling and Mobile Equipment.
The Material Handling platform serves two global markets comprising infrastructure and industrial automation. The companies in this platform develop and manufacture customer productivity enhancing systems. The products are produced in the United States, Mexico, Germany, Belgium, Thailand, India, China, Brazil and France and are marketed globally on a direct basis to original equipment manufacturers (OEMs) and through a global dealer and distribution network to industrial end users.
The Material Handling platform companies in the infrastructure market sell to segments of the construction, utility, demolition, recycling, scrap processing, material handling, forestry, energy, military, marine, towing/recovery, refuse and automotive OEM markets. The products include mobile shears, concrete demolition tools, buckets, backhoes, trenchers, augers, worm gear and planetary winches, and hydraulic lift and electronic control/monitoring systems for mobile and structural cranes, four-wheel drive (4WD) and all wheel drive (AWD) powertrain systems, and other accessories for off-road vehicles and operator cabs and rollover structures. The Material Handling platform companies in the industrial automation market provide a range of modular automation components, including manual clamps, power clamps, rotary and linear mechanical indexers, conveyors, pick and place units, as well as end-of-arm robotic grippers, slides and end effectors.
The Mobile Equipment platform serves three markets, such as transportation equipment, solid waste management and vehicle service. The companies in this platform manufacture tank trailers, specialty trailers, refuse collection bodies (garbage trucks), container lifts, onsite waste management and recycling systems, vehicle service lifts, touch-free and friction vehicle wash systems, vehicle collision measuring and repair systems, aerospace and submarine-related fluid control assemblies, fasteners and bearings, internal engine components and other engine accessories. The businesses also provide components for off-road sports vehicles and autos. The platform has manufacturing operations in North and South America, Asia and Europe.
The businesses in the transportation equipment markets, manufactures and sells aluminum, stainless steel and steel tank trailers that carry petroleum products, chemical, edible and dry bulk products, as well as specialty trailers focused on the heavy haul, oil field and recovery markets. Trailers are marketed both directly and indirectly through distributors to customers in the construction, trucking, railroad, oilfield and heavy haul industries.
The businesses in the solid waste management market provide products and services for the refuse collection industry and for onsite processing and compaction of trash and recyclable materials. Products are sold to municipal customers, national accounts and independent waste haulers through a network of distributors and directly in certain geographic areas. The onsite waste management and recycling systems include a range of stationery compactors, wire processing and separation machines, and balers that are manufactured and sold in the United States to distribution centers, malls, stadiums, arenas, office complexes, retail stores and recycling centers.
The businesses in the vehicle service market provide a range of products and services that are utilized in vehicle services, maintenance, repair and modification. Vehicle lifts and collision equipment are sold through equipment distribution and directly to a range of markets, including independent service and repair shops, collision repair shops, national chains and franchised service facilities, new vehicle dealers, and governments and directly to consumers through the Internet. Car wash sustems are sold in the United States and Canada to oil companies, convenience store chains and individual investors. The products are sold through a distribution network that installs the equipment and provides after sale service and support. The internal combustion engine components, including pistons, connecting rods and accessories, and fuel and combustion management devices are designed to meet customer specifications for the racing and enthusiast markets in both the motor sports and automotive market segments. These products are sold directly and through distribution networks on a global basis.
Engineered Systems
The Engineered Systems segment provides products and services for the refrigeration, storage, packaging and preparation of food products, as well as industrial marking and coding systems for various markets. The segment serves its markets by managing these products and services through two business platforms comprising Product Identification (PI) platform and Engineered Products.
The PI platform is a global supplier of industrial marking and coding systems that serves the food, beverage, cosmetic, pharmaceutical, electronic, automotive and other markets where variable marking is required. Its printing products are used for marking variable information, such as date codes or serial numbers on consumer products. PI provides solutions for product marking on primary packaging, secondary packaging, such as cartons and pallet marking for use in warehouse logistics operations. PI also manufactures bar code printers and portable printers used where on demand labels/receipts are required. The PI manufacturing facilities are in the United States, France and China with sales operations globally.
The Engineered Products platform manufactures refrigeration systems, refrigeration display cases, walk-in coolers and freezers, electrical distribution products and engineering services, commercial foodservice equipment, cook-chill production systems, custom food storage and preparation products, kitchen ventilation systems, conveyer systems, beverage can-making machinery, and packaging machines used for meat, poultry and other food products. The platform also manufactures copper-brazed compact heat exchangers, designs software for heating and cooling substations. The platform’s manufacturing facilities and distributing operations are in North America and Europe with additional distribution facilities in South America and Asia.
Fluid Management
The Fluid Management segment provides products and services for end-to-end stewardship of its customers’ fluids, including liquids, gases, powders and other solutions that are hazardous, valuable or process-critical. The segment provides technologies that help contain, control, move, measure and monitor the fluids. The products and services are channeled through two business platforms, including Energy and Fluid Solutions.
The Energy platform serves the oil, gas and power generation industries. The products manufactured by companies within this platform include polycrystalline diamond cutters (PDCs) used in drill bits for oil and gas wells, steel sucker rods and accessories used in onshore oil and gas production, pressure, temperature and flow monitoring equipment used in oil and gas exploration and production applications, and control valves and instrumentation for oil and gas production. The Company also manufactures various compressor parts used in the natural gas production, distribution and oil refining markets, as well as bearings and remote condition monitoring systems that are used for rotating machinery applications, such as turbo machinery, motors, generators and compressors used in energy, utility, marine and other industries.
The Fluid Solutions platform manufactures pumps, compressors, vehicle fuel dispensing products, and products for the transfer, monitoring, measuring and protection of hazardous, liquid and dry bulk commodities. The Company also manufactures quick disconnect couplings and chemical proportioning and dispensing products. The products are manufactured in the United States, South America, Asia and Europe and marketed globally through a network of distributors or via direct channels.
Vehicle fuel dispensing products include conventional, vapor recovery, clean energy nozzles, swivels and breakaways, as well as tank pressure management systems. Products manufactured for the transportation, storage and processing of hazardous liquid and dry-bulk commodities include relief valves, loading/unloading angle valves, rupture disc devices, actuator systems, level measurement gauges, swivel joints, butterfly valves, lined ball valves, actuators, aeration systems, industrial access ports, manholes, hatches, coamings, collars, weld rings and fill covers.
The platform’s pumps and compressors are used to transfer liquid and bulk products and are sold to a range of markets, including the refined fuels, liquefied petroleum gas (LPG), pulp and paper, wastewater, food/sanitary, military, transportation and chemical process industries. The quick disconnect couplings provide fluid control solutions to the industrial, food handling, life sciences and chemical handling markets.
Electronic Technologies
The Electronic Technologies segment designs and manufactures electronic test, material deposition and manual soldering equipment, micro-acoustic components, and specialty electronic components. The products are manufactured in North America, Europe and Asia and are sold globally through a network of distributors.
The test equipment products include machines, test fixtures and related products used in testing bare and loaded electronic circuit boards, and semiconductors. The segment also manufactures precision material deposition machines and other related tools used in the assembly process for printed circuit boards and other specialty applications, as well as precision manual soldering, de-soldering, and other hand tools.
The micro-acoustic components manufactured include audio communications components, primarily miniaturized microphones, receivers and electromechanical components for use in hearing aids, as well as transducers for use in pro-audio devices, high-end headsets, medical devices, military headsets and far field arrays. The platform also designs, manufactures and assembles microphones for use in the personal mobile device and communications markets, including mobile phones, personal digital assistant (PDAs), Bluetooth headsets and laptop computers.
The specialty electronic components include frequency control/select components and modules employing quartz technologies, microwave electro-mechanical switches, radio frequency and microwave filters, and integrated assemblies, multi-layer ceramic capacitors and high frequency capacitors. The components are sold to communication, medical, defense, aerospace and automotive manufacturers worldwide.
Starting in 1993, Dover also stepped up its acquisition activity in the friendlier postrecession environment. The company acquired the privately held Heil Company in 1993 for about $150 million in cash, making this one of the largest acquisitions in company history. The Chattanooga, Tennessee-based Heil, a manufacturer of garbage truck bodies and refuse equipment, had annual sales of about $165 million. In addition to seeking out larger acquisitions and more of them, Dover made another shift starting in 1994: encouraging the presidents of Dover subsidiaries to be on the lookout for "add-on" acquisitions--companies that could be merged into their own company, thereby strengthening its market position. For instance, Phoenix Refrigeration Systems, a maker of cooling units for supermarket display cases that Dover had acquired in 1993, itself acquired Hill Refrigeration Inc., a display case manufacturer, in 1994. The newly named Hill Phoenix, Inc. was then able to make complete display case units and thereby compete more effectively against its rivals. Dover's more aggressive approach to acquisition also began to be reflected in its financial statements. The company had typically held its debt to less than 15 percent of total capital. But, in part to fund acquisitions, long-term debt increased from $1.2 million in 1992 to $252.1 million in 1993, the latter translating into 81.9 percent of capital. From 1993 through 1997, the average long-term debt to capital ratio was 74.3 percent.
After acquiring ten companies in 1994, Dover spent $323.3 million in 1995 to make another nine acquisitions. The largest of these, and the company's largest purchase to date, also represented the company's increasing concentration on overseas growth. In September 1995 Dover paid $200 million for an 88 percent interest in Valance, France-based Imaje, S.A., one of the world's three largest manufacturers of industrial continuous ink-jet printers and specialized inks. Dover soon increased its interest to virtually 100 percent. In October 1995 the company ventured overseas again to buy the U.K.-based Hammond Engineering, Limited, a maker of rotary vane and screw compressors and hydraulic control units for the trucking industry.
Dover made ten more acquisitions in 1996, with an aggregate price of $281.7 million. The largest of these was the purchase of Pomona, California-based Everett Charles Technologies, Inc., a leading manufacturer of circuit board testing equipment. During 1997 Dover made 17 acquisitions, 15 of which were the add-on type, spending $261.4 million. The two stand-alone acquisitions made that year were not "blockbusters" like Heil, Imaje, and Everett Charles were; added to the Dover Resources group was Hydro Systems Company of Cincinnati, Ohio, a maker of cleaning chemical dispensing systems, while Dover Diversified gained Sanger, California-based Sanger Works Factory Holdings, Inc., the leading manufacturer of production equipment for making corrugated boxes in the United States.
Also in 1997 Dover divested its European elevator operations. In May of the following year, Dover announced that it would spin off its North American elevator operations--and its best-known brand, Dover Elevator--in early 1999. But, instead, Dover in early January 1999 sold Dover Elevator for $1.1 billion to the Thyssen Industries unit of Thyssen AG (which became Thyssen Krupp AG later in 1999 following a merger with Fried. Krupp AG Hoesch-Krupp). The divestment left Dover with four operating groups: Dover Diversified, Dover Industries, Dover Resources, and Dover Technologies. Meanwhile, 1998 was another record year for Dover Corporation as the company completed ten add-on acquisitions and four stand-alones, spending a total of $556 million, the most ever. Among the stand-alones was the largest acquisition yet in terms of price, namely the approximately $220 million purchase of privately held Wilden Pump and Engineering Company, Inc. Wilden was based in Grand Terrace, California, and was the world leader in air-operated double-diaphragm pumps, a worldwide $250 million market. The other stand-alone companies acquired in 1998 were Salt Lake City-based Quartzdyne, Inc., the world leader in quartz-based pressure transducers, which are used in gas and oil drilling; Mentor, Ohio-based Wiseco Piston Company, Inc., the leading U.S. maker of high-performance pistons used in racing engines for autos, motorcycles, boats, and snowmobiles; and PDQ Manufacturing, Inc., a leading manufacturer of touchless car-washing equipment.
Despite the impact of the late 1990s Asian economic crisis, which hit the electronics sector--and consequently, Dover Technologies--particularly hard, Dover Corporation posted record revenues of $3.98 billion in 1998. Net earnings, however, fell from the 1997 total of $405.4 million to $378.8 million. With $800 million in aftertax proceeds in hand from the sale of Dover Elevator, the company planned to make additional acquisitions and repurchase stock. Dover could also be expected to use some of its cash to pay down its burgeoning debt, which ballooned to $610.1 million in 1998, thanks to the record acquisition activity.
Principal Subsidiaries: A-C Compressor Corporation; Avtec Industries, Inc.; Belvac Production Machinery, Inc.; Chief Automotive Systems, Inc.; Communications Techniques, Inc.; Conmec, Inc.; Davenport Machine, Inc.; DEK U.S.A., Inc.; Delaware Capital Formation, Inc.; Delaware Capital Holdings, Inc.; Dielectric Laboratories, Inc.; Dover Diversified, Inc.; Dover Europe Corporation; Dover Industries, Inc.; Dover Resources, Inc.; Dover Technologies International, Inc.; Dow-Key Microwave, Inc.; Duncan Industries Parking Control Systems Corp.; Everett Charles Technologies; The Heil Company; Hill Phoenix, Inc.; Hydro Systems Company; K&L Microwave, Inc.; Marathon Equipment Company; Mark Andy, Inc.; Midland Manufacturing, Inc.; Pathway Bellows, Inc.; PDQ Manufacturing, Inc.; Petro Vend, Inc.; PRC Corporation; Preco Turbine and Compressor Services, Inc.; Quartzdyne, Inc.; Randell Manufacturing, Inc.; Refrigeration Systems, Inc.; Revod Corporation; Robohand, Inc.; Ronningen-Petter; Sanger Works Factory Holdings, Inc.; Sonic Industries, Inc.; Texas Hydraulics, Inc.; Thermal Equipment Corporation; Tipper Tie, Inc.; TNI, Inc.; Tranter, Inc.; Tulsa Winch, Inc.; Universal Instruments Corporation; Vectron Laboratories, Inc.; Vectron Technologies, Inc.; Waukesha Bearings Corporation; Weldcraft Products, Inc.; Wilden Pump and Engineering Company, Inc.; Wiseco Piston Company, Inc.; The Wittemann Company, Inc.; atg test systems GmbH (Germany); DEK Printing Machines Ltd. (U.K.); Dover Corporation (Canada) Ltd.; Dover Europe Afzug GmbH (Germany); Dover Europe GmbH (Germany); Dover Exports, Ltd. (Barbados); Dover France Holdings SARL; Dover International Finance Services Ltd.; Dover UK Holdings Limited; HTT Heat Transfer Technologies, S.A. (Switzerland); Imaje S.A. (France); Imaje GmbH (Germany); Langbein & Englebracht, GmbH (Germany); Luther & Maezler GmbH (Germany); Soltec International, B.V. (Netherlands); SWEP International AB (Sweden); SWEP Technologies AB (Sweden); Universal Electronics Systems H.K. Ltd. (Hong Kong).
Principal Operating Units: Dover Diversified, Inc.; Dover Industries, Inc.; Dover Resources, Inc.; Dover Technologies International, Inc.
OVERALL
Beta: 1.26
Market Cap (Mil.): $12,463.48
Shares Outstanding (Mil.): 186.58
Annual Dividend: 1.10
Yield (%): 1.65
FINANCIALS
DOV Industry Sector
P/E (TTM): 16.43 18.20 16.70
EPS (TTM): 75.89 -- --
ROI: 10.31 5.47 3.22
ROE: 17.49 6.86 5.81
Statistics:
Public Company
Incorporated: 1955
Employees: 23,314
Sales: $3.98 billion (1998)
Stock Exchanges: New York London
Ticker Symbol: DOV
NAIC: [hy]332722 Bolt, Nut, Screw, Rivet, & Washer Manufacturing; 326199 All Other Plastics Product Manufacturing; 332313 Plate Work Manufacturing; 332116 Metal Stampings; 332618 Other Fabricated Wire Product Manufacturing; 333923 Overhead Traveling Crane, Hoist, & Monorail System Manufacturing; 333518 Other Metalworking Machinery Manufacturing; 333992 Welding & Soldering Equipment Manufacturing; 33321 Sawmill & Woodworking Machinery Manufacturing; 332991 Ball & Roller Bearing Manufacturing; 333412 Industrial & Commercial Fan & Blower Manufacturing; 333415 Air-Conditioning & Warm Air Heating Equipment & Commercial & Industrial Refrigeration Equipment Manufacturing; 3586 Measuring & Dispensing Pump Manufacturing; 333319 Other Commercial & Service Industry Machinery; 334412 Bare Printed Circuit Board Manufacturing; 334417 Electronic Connector Manufacturing; 334419 Other Electronic Component Manufacturing; 336211 Motor Vehicle Body Manufacturing; 334512 Automatic Environmental Control Manufacturing for Regulating Residential, Commercial, & Appliance Use
Name Age Since Current Position
Cremin, Robert 70 2009 Independent Chairman of the Board
Livingston, Robert 57 2008 President, Chief Executive Officer, Director
Cerepak, Brad 51 2009 Chief Financial Officer, Vice President - Finance
Schmidt, Joseph 64 2003 Vice President, General Counsel, Secretary
McKay, Raymond 57 2004 Vice President, Controller
Kloosterboer, Jay 50 2009 Vice President - Human Resources
Spurgeon, William 52 2007 Vice President; President and Chief Executive Officer of Dover Fluid Management, Inc.
Van Loan, David 62 2007 Vice President; President and Chief Executive Officer of Dover Electronic Technologies, Inc.
Somasundaram, Sivasankaran 45 2010 Vice President; Exec. VP of Dover Fluid Management, President of Fluid Solutions Platform
Giacomini, Thomas 45 2009 Vice President; President and Chief Executive Officer of Dover Industrial Products, Inc
Sellhausen, Stephen 52 2009 Vice President - Corporate Development
Hoglund, Raymond 60 2008 Vice President; President and Chief Executive Officer of Dover Engineered Systems
Moyle, James 58 2009 Vice President - Supply Chain and Global Sourcing
Buchanan, Kevin 55 2010 Vice President - Taxation
Cabrera, Ivonne 44 2010 Vice President
Zhang, Michael 47 2010 Vice President
Goldberg, Paul 47 2006 Treasurer, Director - Investor Relations
Benson, David 73 1995 Independent Director
Ergas, Jean-Pierre 71 1994 Independent Director
Koley, James 79 2009 Independent Director
Graham, Kristiane 53 1999 Independent Director
Lochridge, Richard 67 1999 Independent Director
Stubbs, Michael 62 1999 Independent Director
Rethore, Bernard 69 2001 Independent Director
Winston, Mary 49 2005 Independent Director
Francis, Peter 58 2007 Independent Director
Todd, Stephen 62 2010 Independent Director
Wagner, Stephen 63 2010 Independent Director
Address:
280 Park Avenue
New York, New York 10017-1292
U.S.A.