Dover announces new structure to enhance future performance
Sep 18, 2007
Operating companies grouped by end markets
Dover Corporation (NYSE: DOV) announced that, effective for Dover's third quarter 2007 financial results, it has realigned its operating companies into four business segments highlighting broad end markets served and six focused market platforms, as follows:
INDUSTRIAL PRODUCTS: (LTM Revenue $2.1 billion)
Material Handling
Mobile Equipment
ENGINEERED SYSTEMS: (LTM Revenue $1.9 billion)
Engineered Products
Product Identification
FLUID MANAGEMENT: (LTM Revenue $1.4 billion)
Energy
Fluid Solutions
ELECTRONIC TECHNOLOGIES: (LTM Revenue $1.4 billion)
Commenting on this announcement, Ronald L. Hoffman, Dover's President and Chief Executive Officer, said: "This new structure is the logical extension of the strategic portfolio review we initiated in 2005 and accomplishes several important objectives. First, it groups our companies into four more defined market segments. Second, this structure enhances the sharing of best practices as well as identifying and capturing synergy opportunities. Third, it provides increased direction for our acquisition program, focusing on the segment end markets. Fourth, it creates additional leadership opportunities to develop the executive talent needed to drive Dover's future progress. Last, it provides shareholders and the financial community with greater clarity, simplicity and insight into the strategic business segments and operating platforms of Dover.
"We are very proud of the progress and improvements we have made over the last several years. We are now focused on companies that have higher growth, higher profit potential and less volatility. We have directed our acquisition program toward larger companies, which we expect will enhance the growth of our core business segments while maintaining our successful and synergistic add-on acquisition program. Equally important, we initiated the PerformanceCOUNTS program, which incorporates world-class metrics to drive significant operational improvements. The combination of these actions has resulted in a 47% increase in revenues and a 68% improvement in earnings per share for the two-year period ending December 2006. The new organization will act as a catalyst for further improvements throughout Dover while at the same time enhancing Dover's strong operating culture," Hoffman concluded.
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