Dover Corporation (DOV) Q4 2022 Earnings Call Transcript

Dover Corporation. (NYSE:DOV) Q4 2022 Earnings Conference Call January 31, 2023 9:00 AM ET

Company Participants

Jack Dickens - Senior Director of Investor Relations

Richard Tobin - President & Chief Executive Officer

Brad Cerepak - Senior Vice President & Chief Financial Officer

Conference Call Participants

David Ridley-Lane - Bank of America

Jeff Sprague - Vertical Research

Steve Tusa - JPMorgan

Joe Ritchie - Goldman Sachs

Andrew Kaplowitz - Citigroup

Scott Davis - Melius Research

Joshua Pokrzywinski - Morgan Stanley

Guy Hardwick - Credit Suisse

Nigel Coe - Wolfe Research

Julian Mitchell - Barclays

Operator

Good morning and welcome to Dover's Fourth Quarter and Full Year 2022 Earnings Conference Call. Speaking today are Richard J. Tobin, President and Chief Executive Officer; Brad Cerepak, Senior Vice President and Chief Financial Officer; and Jack Dickens, Senior Director of Investor Relations. After the speakers’ remarks, there will be a question-and-answer period. [Operator Instructions]

As a reminder, ladies and gentlemen, this conference call is being recorded, and your participation implies consent to our recording of this call. If you do not agree with these terms, please disconnect at this time.

Thank you. I would now like to turn the call over to Mr. Jack Dickens. Please go ahead, sir.

Jack Dickens

Thank you, Gretchen. Good morning, everyone, and thank you for joining our call. An audio version of this call will be available on our website through February 21, and a replay link of the webcast will be archived for 90 days.

Dover provides non-GAAP information, and reconciliations between GAAP and adjusted measures are included in our investor supplement and presentation materials, which are available on our website.

Our comments today will include forward-looking statements based on current expectations. Actual results and events could differ from those statements due to a number of risks and uncertainties, which are discussed in our SEC filings. We assume no obligation to update our forward-looking statements.

With that, I will turn the call over to Rich.

Richard Tobin

Thanks Jack. Let’s get started with the performance highlights on Slide 3. Dover delivered strong organic revenue growth of 9% and margin improvement of 150 basis points in the fourth quarter. Volume mix, price cost and prior period cost reduction actions all contributed to the positive performance. As we've been forecasting throughout 2021, the relationship between supply chain constraints and bookings has continued to play out into Q4. The majority of the labor and component availability and logistics constraints have dissipated resulting in production lead times returning to pre pandemic levels.