Dover Cuts Earnings And Revenue Outlook
Dover Corp. lowered on Monday its profit and sales outlook for the year, citing a weaker capital spending across oil and gas end markets amid a weak global economy. The maker of equipment and components for the energy, engineered systems and refrigeration and food equipment industries, said it now expects full-year earnings per share of $3.00 to $3.05 and a revenue decline of 4% to 5%, compared with its previous forecast for EPS of $3.35 to $3.45 and revenue to fall 3% to 5%. Separately, Dover said it now expects its pending acquisition of Wayne Fueling Systems to close in the first quarter of 2017, after U.K. regulators decided to refer the acquisition for a Phase II investigation. "While our upstream drilling and production businesses showed solid improvement in the third quarter, and our printing & identification businesses continued to perform well, our overall results were well below our expectations," said Chief Executive Robert Livingston. "We also expect the macro global economy to remain soft, later cycle oil & gas exposed businesses to remain weak, and continued margin pressures in refrigeration & food equipment through the end of the year, as we work to streamline and improve our production systems." The stock, which was indicated lower in premarket trade, has climbed 18% year to date while the S&P 500 has gained 5.4%.
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