Dover announces new subsidiary structure
Oct 26, 2004
Effective January 1, 2005 and creating two additional reporting segments, this realigns operating companies into more focused business groupings
Internal promotions fill new subsidiary CEO positions
Dover Corporation (NYSE: DOV) announced that it will expand its existing subsidiary structure from four to six reporting market segments and concurrently realign its 49 operating businesses into 13 more focused business groupings.
The company believes that this realignment will better-position Dover for enhanced growth by providing increased management oversight of its operating businesses, by expanding the company's acquisition capacity and by supporting the development of future executive management talent.
Effective January 1, 2005, the six subsidiaries and their respective operating company groupings will be:
* Industrial Equipment: Crenlo, Performance Motorsports, Sargent
* Process Equipment: Graphics Microsystems, Hydratight Sweeney, SWEP,
Tranter PHE, Waukesha Bearings
* Components: Dielectric, Dow-Key, K&L Microwave, Kurz-Kasch, Novacap,
* Commercial Equipment: Hydro Systems, Triton
* Mobile Equipment: Heil Environmental, Heil Trailer, Marathon, Somero
* Service Equipment: Chief Automotive, Koolant Koolers, PDQ, Rotary Lift
* Petroleum Equipment: C. Lee Cook, Energy Products Group
* Fluid Solutions: Blackmer, OPW Fluid Transfer Group, OPW Fueling
Components, RPA Technologies, Wilden
* Material Handling: De-Sta-Co Industries, Texas Hydraulics, Tulsa
* Food Equipment: DI Foodservice, Hill Phoenix
* Packaging: Belvac, SWF, Tipper Tie
* Circuit Assembly and Test: Alphasem, DEK, Everett Charles, Hover-Davis,
OK International, Universal, Vitronics Soltec
* Product Identification: Imaje, Mark Andy
John Pomeroy, Dave Ropp and Tim Sandker will remain the Chief Executive Officers of the Technologies, Resources and Industries subsidiaries, respectively. Bill Spurgeon, previously Executive Vice President of Dover Diversified, has been named Chief Executive Officer of Dover Diversified, succeeding Jerry Yochum, who will retire at the end of 2004. Bob Livingston, previously President of Vectron International, has been promoted to Chief Executive Officer of the newly-created Dover Electronics subsidiary. Ralph Coppola, previously President of Hill Phoenix, is the Chief Executive Officer of the newly-created Dover Systems subsidiary. Vectron International and Hill Phoenix have promoted internal candidates as their new Presidents, who will provide successful leadership going forward.
Commenting on the announcement, Ron Hoffman, Dover's President and Chief Operating Officer, said, "Our highly successful four-subsidiary structure was put in place in 1985 at a time when Dover's manufacturing, sourcing and sales activities were much smaller and largely based in North America. Today, Dover is a truly global company, both in terms of the breadth of the markets we serve and our geographic locations, and our subsidiaries have grown significantly larger and more complex. The changes we announced today establish the appropriate operating framework for our current size and structure and, as we near our fiftieth anniversary in 2005, will help ensure that we are developing the right leaders to build on Dover's solid track record of creating value for our shareholders. I am particularly delighted that we had strong internal candidates for all three subsidiary CEO positions, attesting to the strength of our management development process. In addition to the internal enhancements which these changes will provide, we believe the six segment financial information disclosure, beginning in 2005, will assist our shareholders in their understanding of the Company. Finally, I want to reaffirm that we remain committed to Dover's unique culture and operating philosophy of extending autonomy to all of our operating companies and encouraging our Presidents to run their companies as if they owned them."
The current four-subsidiary structure will remain in effect for internal and external financial reporting through December 31, 2004. Dover's executive management team will provide additional details about these changes at the Company's previously-announced annual Investor Day meeting on Wednesday, November 3, 2004 at the Waldorf Astoria in New York City. Dover Corporation is a diversified industrial manufacturer with over $5 billion in annualized revenues and is comprised of 49 operating companies that manufacture specialized industrial products and manufacturing equipment. For more information on Dover, see http://www.dovercorporation.com.
Statements in this release may be "forward-looking," which involve risks and uncertainties. These include economic and currency conditions, market demand, pricing, and competitive and technological factors, among others, as set forth in the company's SEC filings.