Dover Corporation (DOV - Free Report) has announced promotions in two of its segments, to maintain strength across all industries it caters. The leadership changes will also drive innovation and create value for customers.
William W. Spurgeon, Jr. will join the Engineered Systems Segment as President and Chief Executive Officer (CEO). Spurgeon served as President and CEO of Dover’s Energy segment since 2011. On the other hand, S. Somasundaram has been elevated to the post of President and CEO from Executive Vice President in the Energy segment.
Both the segments performed well in the in the second quarter of 2013. The Energy segment, which serves the oil, gas and power generation industries, posted revenues of $573 million, up 6% year over year. The improvement was attributable to organic growth of 4.5% as well acquisition-related growth of 2.3%.
Additionally, revenues in the Engineered Systems segment increased 13% year over year to $1003.8 million in the quarter, driven by an 8.8% increase from recent acquisitions and organic growth of 4.4%.
For fiscal 2013, Dover reiterated revenue growth in the range of 7–9% on the back of organic revenue growth of 3–5%, while acquisitions are expected to add 4%. Management forecasts earnings in the band of $5.56–$5.71 per share.
Recently, Dover announced that it will acquire Italy-based Finder to strengthen its Pump Solutions Group’s position in the energy market. Finder will immediately provide the group with its product portfolio, application expertise, customer reference list, and key certifications required to serve the fast-growing upstream, midstream and downstream oil & gas markets. Finder will also expand Dover’s presence in key growth markets in Europe, the Middle East and the Americas.
In addition, Dover’s decision to spin off certain parts of its communication technologies businesses will simplify its business profile and enable it to focus on key growth spaces, namely, Energy, Fluids, Refrigeration & Food Equipment and Printing & Identification.
Dover will continue to benefit from its active acquisition pipeline, bookings and orders growth. However, a volatile semiconductor market and weak industrial market might weigh on the Printing and Identification segments. Moreover, lower North American rig count will constrain growth in the company’s Energy segment.
Dover currently retains a Zacks Rank #3 (Hold).
Other stocks in the diversified machinery industry with favorable Zacks rank include Gorman-Rupp Co. (GRC - Free Report) , Graham Corp. and Barnes Group Inc. (B - Free Report) . While Gorman-Rupp and Graham Corp. sport a Zacks Rank #1 (Strong Buy), Barnes Group holds a Zacks Rank #2 (Buy).