DOVER Corp
For the period ended Jun 30, 2024. Filed Jul 25, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 25, 2024
DOV$203.85+0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-04-25.
0000029905-24-000020
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-25.
0000029905-24-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 145 current paragraphs.
75 unchanged; 47 reworded; 21 added; 9 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 14 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
In the second quarter of 2024, revenue was $2.2 billion, which increased $0.1 billion, or 3.7%, as compared to the second quarter of 2023. This was driven by organic revenue growth of 4.8% and acquisition-related revenue growth of 2.1%, partially offset by disposition-related decline of 2.6% and an unfavorable impact from foreign currency translation of 0.6%. Strong results were driven by excellent production performance and strong shipment rates on robust orders received.
Current report
In July 2024, the Company completed two business acquisitions for approximately $436.0 million, subject to post-closing adjustments, plus potential contingent consideration of up to approximately $14.0 million. In addition, the Company entered into a definitive agreement to sell Environmental Solutions Group ("ESG"), for approximately $2.0 billion on a cash-free and debt-free basis, subject to customary post-closing adjustments. The transaction is expected to close before year-end 2024, subject to customary closing conditions, including receipt of regulatory approvals. See Note 20 — Subsequent Events in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Current report
Revenue for the six months ended June 30, 2024 increased $0.1 billion, or 2.2%, from the prior year comparable period. The increase primarily reflects an acquisition-related growth of 2.1% and organic revenue growth of 1.8%. This growth was partially offset by a disposition-related decline of 1.3% and an unfavorable impact from foreign currency translation of 0.4%. Customer pricing favorably impacted revenue by approximately 1.8% for the six months ended June 30, 2024, and by 4.8% in the prior year comparable period.
Current report
Selling, general and administrative expenses for the six months ended June 30, 2024 increased $48.6 million, or 5.6%, from the prior year comparable period, primarily driven by increased employee compensation and benefits and acquisition-related amortization costs, partially offset by lower restructuring costs. Selling, general and administrative expenses as a percentage of revenue increased 70 basis points as compared to the prior year comparable period to 21.4% driven by a higher rate of increase in selling, general and administrative expenses compared to revenue.
Current report
Net earnings for the three months ended June 30, 2024 increased 16.3% to $281.8 million, or $2.04 diluted earnings per share, from $242.2 million, or $1.72 diluted earnings per share, in the prior year comparable quarter. The increase in net earnings is driven by increased revenue primarily driven by pricing initiatives and increased demand, partially offset by a higher provision for income taxes.
Current report
Engineered Products revenue for the six months ended June 30, 2024 increased $86.7 million, or 8.9%, compared to the prior year comparable period. This was comprised of organic revenue growth of 14.6%, a disposition-related decline of 5.5% and an unfavorable impact from foreign currency translation of 0.2%. The organic revenue growth was driven by robust demand in our waste handling business, improved production performance and increased demand in our vehicle service business and solid demand trends in our aerospace and defense business. Customer pricing favorably impacted revenue by approximately 1.8% and by 3.0% in the prior year comparable period.
Current report
Segment earnings for the six months ended June 30, 2024 increased $47.9 million, or 30.4%, as compared to the 2023 comparable period. The increase was primarily driven by organic volume increases, favorable price versus cost dynamics, and productivity initiatives, partially offset by disposition impacts and an unfavorable impact from foreign currency translation. Segment margin increased to 19.4% from 16.2% as compared to the prior year comparable period.
Current report
Clean Energy & Fueling revenue for the second quarter of 2024 increased $21.8 million, or 5.0%, as compared to the second quarter of 2023, driven by acquisition-related growth of 3.0%, organic growth of 2.3% and an unfavorable foreign currency translation of 0.3%. Customer pricing favorably impacted revenue in the second quarter of 2024 by approximately 3.2% and by 4.8% in the prior year comparable quarter.
Current report
The organic revenue growth was primarily driven by pricing initiatives, clean energy solutions, and strong demand in North America and Latin America above ground retail fueling equipment, partially offset by volume headwinds in the fluid transfer solutions business. We expect continued organic growth in the second half of the year driven by strong demand in North America above ground retail fueling equipment and the clean energy solutions business.
Current report
Clean Energy & Fueling segment earnings increased $3.9 million, or 4.7%, over the prior year comparable quarter. The increase was primarily driven by strategic pricing and cost actions, partially offset by inflationary impacts. Segment margin remained flat compared to prior year comparable quarter.
Current report
Overall bookings increased 0.4% as compared to the prior year comparable quarter, driven by acquisition growth of 2.4%, partially offset by an organic decline of 1.6% and an unfavorable impact from foreign currency translation of 0.4%. The organic bookings decline was primarily due to order timing in above ground retail fueling equipment and fluid transfer solutions. Segment book-to-bill was 0.95.
Current report
Clean Energy & Fueling segment revenue increased $36.2 million, or 4.1%, as compared to the six months ended June 30, 2023, attributable to acquisition-related growth of 2.4% and organic growth of 1.9%, partially offset by an unfavorable impact from foreign currency translation of 0.2%. Organic revenue was higher in the first six months of the year compared with the prior year comparable period, driven by pricing actions and above ground retail fueling equipment, partially offset by lower volume in fluid transfer solutions and below ground retail fueling businesses. Customer pricing favorably impacted revenue by approximately 3.0% and by approximately 4.7% in the prior year comparable period.
Current report
Clean Energy & Fueling segment earnings remained flat, for the six months ended June 30, 2024. Pricing actions and productivity initiatives were offset by lower volume and inflationary costs. Segment margin decreased to 17.3% from 18.0% in the prior year comparable period, mainly due to revenue mix.
Current report
Imaging & Identification revenue for the second quarter of 2024 increased $15.7 million, or 5.8%, as compared to the second quarter of 2023, comprised of organic growth of 6.9% and acquisition-related growth of 0.7%, partially offset by an unfavorable impact from foreign currency translation of 1.8%. Customer pricing favorably impacted revenue in the second quarter of 2024 by approximately 2.8% and by approximately 6.0% in the prior year comparable quarter.
Current report
Imaging & Identification segment revenue increased $9.4 million, or 1.7%, as compared to the six months ended June 30, 2023, attributable to organic growth of 2.6% and acquisition-related growth of 0.5%, partially offset by an unfavorable impact from foreign currency translation of 1.4%. The organic revenue growth was primarily driven by pricing initiatives, partially offset by weaker demand in our digital textile printing business. Customer pricing favorably impacted revenue by approximately 3.2% and by approximately 6.4% in the prior year comparable period.
Current report
Imaging & Identification segment earnings increased $16.1 million, or 12.4%, for the six months ended June 30, 2024 over the prior year comparable period. The increase was primarily driven by pricing initiatives and cost controls, partially offset by the unfavorable impact of foreign currency translation. Segment margin increased to 25.8% from 23.4% in the prior year comparable period.
Current report
Pumps & Process Solutions segment revenue increased $63.5 million, or 7.2%, as compared to the six months ended June 30, 2023, attributable to acquisition-related growth of 6.7% for the acquisition of FW Murphy and organic growth of 0.5%. The organic growth was primarily driven by pricing initiatives, increased revenue in precision components and single-use components used in biopharmaceutical manufacturing, partially offset by our polymer processing equipment business. Customer pricing favorably impacted revenue by approximately 1.6% and by approximately 5.0% in the prior year comparable period.
Current report
Pumps & Process Solutions segment earnings increased $11.4 million, or 4.6%, for the six months ended June 30, 2024 over the prior year comparable period. The increase was driven by the favorable impact from the FW Murphy acquisition, pricing initiatives and productivity, partially offset by lower volume. Segment margin decreased to 27.1% from 27.8% from the prior year comparable period.
Current report
Climate & Sustainability Technologies segment earnings increased $3.1 million, or 4.0%, as compared to the second quarter of 2023. The segment earnings increase was primarily driven by favorable retail refrigeration mix, productivity and cost actions, partially offset by the negative impact from lower volumes in heat exchangers and beverage can-making equipment, as well as the unfavorable impact from foreign currency translation. Segment margin increased to 18.1% from 16.9% in the prior year comparable quarter.
Current report
Climate & Sustainability Technologies segment revenue decreased $103.3 million, or 11.4%, compared to the six months ended June 30, 2023, reflecting an organic revenue decline of 11.4%, and an unfavorable foreign currency translation impact of 0.5%, partially offset by an acquisition-related growth of 0.5%. The organic revenue decline for the six months ended June 30, 2024 was due to near-term, transient slowing in heat exchanger demand in Europe due to HVAC OEMs efforts to reduce component inventories, as well as continued headwinds in new beverage can-making equipment sales as customers pivot from new equipment investment to scaling production and expanding utilization of recent capacity additions. This was partially offset by increased demand for retail refrigeration equipment and services, including the growing demand for low-GWP CO 2 refrigerant systems. Customer pricing unfavorably impacted revenue by approximately 0.2% and favorably impacted revenue by 5.6% in the prior year comparable period.
Current report
In July 2024, the Company completed two business acquisitions for approximately $436.0 million, subject to post-closing adjustments, plus potential contingent consideration of up to approximately $14.0 million. In addition, the Company entered into a definitive agreement to sell ESG for approximately $2.0 billion on a cash-free and debt-free basis, subject to customary post-closing adjustments. The transaction is expected to close before year-end 2024, subject to customary closing conditions, including receipt of regulatory approvals. See Note 20 — Subsequent Events in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Removed paragraphs (9)
Previous report
In the first quarter of 2024, revenue was $2.1 billion, which increased $14.9 million, or 0.7%, as compared to the first quarter of 2023. This was driven by acquisition-related revenue growth of 2.0% partially offset by organic revenue decline of 1.3%. The strong performance in several key markets was largely offset by known headwinds in Climate & Sustainability Technologies.
Previous report
During the three months ended March 31, 2024, the Company acquired three businesses in separate transactions for total consideration of $174.3 million, net of cash acquired and inclusive of contingent consideration of $29.4 million (a non-cash investing activity). See Note 3 — Acquisitions in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Previous report
On March 31, 2024, the Company completed the sale of the De-Sta-Co business for total consideration, net of cash transferred, of $674.7 million. This sale resulted in a preliminary pre-tax gain on disposition of $529.9 million included within the condensed consolidated statements of earnings for the three months ended March 31, 2024. See Note 4 — Dispositions in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Previous report
On February 29, 2024, the Company entered into a $500 million accelerated share repurchase agreement (the "ASR Agreement") with Citibank, N.A. ("Citibank") to repurchase its shares in an accelerated share repurchase program (the "ASR Program"). The Company funded the ASR Program with proceeds from commercial paper. Under the terms of the ASR Agreement, the Company paid Citibank $500 million on March 1, 2024 and on that date received initial delivery of 2,569,839 shares, representing a substantial majority of the shares expected to be retired over the course of the ASR Agreement. See Note 17 — Stockholders' Equity in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Previous report
Clean Energy & Fueling revenue for the first quarter of 2024 increased $14.3 million, or 3.3%, as compared to the first quarter of 2023, driven by acquisition growth of 1.9% and organic growth of 1.4%. Customer pricing favorably impacted revenue in the first quarter of 2024 by approximately 2.8% and by 4.5% in the prior year comparable quarter.
Previous report
The organic revenue growth was primarily driven by increased year-over-year pricing and demand in dispensers, especially in Europe and Latin America, growth in cryogenic gases, and the recovery in below ground retail fueling equipment, partially offset by lower shipments in liquefied petroleum gas components and higher cost of capital headwinds in vehicle wash solutions. We expect the organic growth rate to continue into the second quarter and remain positive in the second half of the year.
Previous report
Clean Energy & Fueling segment earnings decreased $3.9 million, or 5.3%, over the prior year comparable quarter. The decrease was primarily due to lower volumes and unfavorable product mix. Segment margin decreased to 15.7% from 17.1% in the prior year comparable quarter.
Previous report
Overall bookings increased 3.8% as compared to the prior year comparable quarter, driven by acquisition growth of 2.1%, organic growth of 1.6% and a favorable impact from foreign currency translation of 0.1%. The organic bookings growth was primarily driven by increased year over year orders in clean energy components, vehicle wash solutions, and fluid transfer systems equipment. Segment book-to-bill was 1.06.
Previous report
Imaging & Identification revenue for the first quarter of 2024 decreased $6.3 million, or 2.2%, as compared to the first quarter of 2023, comprised of an organic decline of 1.6% and an unfavorable impact from foreign currency translation of 0.9%, partially offset by acquisition-related growth of 0.3%. Customer pricing favorably impacted revenue in the first quarter of 2024 by approximately 3.6% and by 6.7% in the prior year comparable quarter.
Reworded paragraphs (47)
Previous wording
The 1.3% organic revenue decline for the first quarter of 2024 was due to our Climate & Sustainability Technologies and Imaging & Identification segments which had a decline of 20.3% and 1.6%, respectively. The decline was partially offset by the Engineered Products, Pumps & Process Solutions and Clean Energy & Fueling segments which had growth of 9.2%, 4.5% and 1.4%, respectively. For further information, see "Segment Results of Operations" within this Item 2.
Current wording
The 4.8% organic revenue growth for the second quarter of 2024 was driven by our Engineered Products, Imaging & Identification and Clean Energy & Fueling segments which grew 20.2%, 6.9%, and 2.3%, respectively. The growth was partially offset by the Pumps & Process Solutions and Climate & Sustainability Technologies segments which declined 3.1% and 2.3%, respectively. For further information, see "Segment Results of Operations" within this Item 2.
Previous wording
From a geographic perspective, organic revenue for the U.S., our largest market, increased 1.3% in the first quarter of 2024 compared to the prior year comparable quarter. Organic revenue decreased for Other Americas, Asia and Europe by 5.5%, 4.9% and 0.5%, respectively.
Current wording
From a geographic perspective, organic revenue for the U.S., our largest market, increased 11.4% in the second quarter of 2024 compared to the prior year comparable quarter driven by strong demand in our waste handling business and retail and refrigeration equipment and services. Organic revenue increased for Other Americas by 17.6%, and decreased for Asia and Europe by 8.5% and 3.8%, respectively.
Previous wording
Bookings were $2.2 billion for the three months ended March 31, 2024, an increase of $101.5 million, or 4.8% compared to the prior year comparable quarter. Included in this result was organic growth of 3.0% and acquisition-related growth of 1.9%, partially offset by an unfavorable impact from foreign currency translation of 0.1%. The organic bookings growth was primarily driven by prevailing demand conditions, normalized lead times and better customer and channel partner inventory levels.
Current wording
Bookings were $2.2 billion for the three months ended June 30, 2024, an increase of $0.3 billion, or 15.0% compared to the prior year comparable quarter. Included in this result was organic growth of 16.1% and acquisition-related growth of 2.1%, partially offset by disposition-related decline of 2.7% and an unfavorable impact from foreign currency translation of 0.5%. The organic bookings growth was primarily driven by positive demand trends and order timing.
Previous wording
Restructuring and other costs for the three months ended March 31, 2024 were $24.7 million which included restructuring charges of $18.7 million and other costs of $6.0 million. Restructuring and other costs were primarily related to product line exit costs in the Climate & Sustainability Technologies. For further discussion related to our restructuring and other costs, see "Restructuring and Other Costs (Benefits)," within this Item 2.
Current wording
Restructuring and other costs for the three months ended June 30, 2024 were $11.6 million which included restructuring charges of $9.1 million and other costs of $2.5 million. Restructuring and other costs were generally related to exit costs and headcount reductions across all segments. For further discussion related to our restructuring and other costs, see "Restructuring and Other Costs (Benefits)," within this Item 2.
Previous wording
Revenue for the three months ended March 31, 2024 increased $14.9 million, or 0.7%, from the prior year comparable quarter. The increase in revenue was driven by acquisition-related revenue growth of 2.0% partially offset by organic revenue which declined 1.3%, primarily due to lower revenue in our Climate & Sustainability Technologies segment. Customer pricing favorably impacted revenue by approximately 1.6% in the first quarter of 2024 and by 5.1% in the prior year comparable quarter.
Current wording
Revenue for the three months ended June 30, 2024 increased $0.1 billion, or 3.7%, from the prior year comparable quarter. The increase in revenue was driven by organic revenue growth of 4.8% and acquisition-related growth of 2.1%, partially offset by disposition-related decline of 2.6% and an unfavorable impact from foreign currency translation of 0.6%. Customer pricing favorably impacted revenue by approximately 2.0% in the second quarter of 2024 and by 4.5% in the prior year comparable quarter.
Previous wording
Gross profit for the three months ended March 31, 2024 increased $10.2 million, or 1.4%, and gross profit margin increased 30 basis points to 36.2%, versus the prior year comparable quarter. Gross profit margin increased driven by benefits from pricing and productivity actions, partially offset by lower volumes across some of the Company's businesses.
Current wording
Gross profit for the six months ended June 30, 2024 increased $73.0 million, or 4.8%, and gross profit margin increased by 100 basis points to 37.0%, from the prior year comparable period. Gross profit margin increased driven by pricing and productivity actions.
Previous wording
Selling, general and administrative expenses for the three months ended March 31, 2024 increased $30.7 million, or 7.1%, from the prior year comparable quarter, primarily driven by increased employee compensation and benefits, amortization costs and insurance costs. As a percentage of revenue, selling, general and administrative expenses increased 130 basis points as compared to the prior year comparable quarter to 22.1%.
Current wording
Selling, general and administrative expenses for the three months ended June 30, 2024 increased $17.9 million, or 4.1%, from the prior year comparable quarter, primarily driven by increased employee compensation and benefits and acquisition-related amortization costs. As a percentage of revenue, selling, general and administrative expenses increased 10 basis points as compared to the prior year comparable quarter to 20.8%.
Previous wording
Research and development costs, including qualifying engineering costs, are expensed when incurred and amounted to $40.1 million and $38.0 million for the three months ended March 31, 2024 and 2023, respectively. These costs as a percentage of revenue were 1.9% and 1.8% for the three months ended March 31, 2024 and 2023, respectively.
Current wording
Research and development costs, including qualifying engineering costs, are expensed when incurred and amounted to $40.6 million and $39.3 million for the three months ended June 30, 2024 and 2023, respectively, and $80.6 million and $77.3 million, for the six months ended June 30, 2024 and 2023, respectively. The costs as a percentage of revenue are 1.9% for the three and six months ended June 30, 2024 and 2023.
Previous wording
Gain on disposition of $529.9 million was due to the sale of the De-Sta-Co business on March 31, 2024. See Note 4 — Dispositions in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Current wording
Gain on disposition of $529.3 million for the six months ended June 30, 2024 was due to the sale of the De-Sta-Co business on March 31, 2024 and includes net post-closing adjustments of $0.7 million recorded during the three months ended June 30, 2024. See Note 4 — Dispositions in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Previous wording
Other income, net includes non-service pension benefit, deferred compensation plan investments gain or loss, earnings or charges from equity method investments, foreign exchange gain or loss, and various other items. Other income, net for the three months ended March 31, 2024 increased $2.6 million from the prior year comparable quarter driven by various immaterial items.
Current wording
Other income, net includes non-service pension benefit, deferred compensation plan investments gain or loss, earnings or charges from equity method investments, foreign exchange gain or loss, and various other items. Other income, net for the three and six months ended June 30, 2024 increased $6.2 million and increased $8.8 million, respectively, from the comparable prior period driven by various immaterial items.
Previous wording
The effective tax rates for the three months ended March 31, 2024 and 2023 were 20.9% and 20.2%, respectively. The increase in the effective tax rate for the three months ended March 31, 2024 relative to the prior year comparable quarter was primarily driven by the gain on the sale of De-Sta-Co.
Current wording
The effective tax rates for the six months ended June 30, 2024 and 2023 were 20.7% and 19.7%, respectively. The increase in the effective tax rate for the six months ended June 30, 2024 relative to the prior year comparable period was primarily driven by the gain on the sale of De-Sta-Co.
Previous wording
Net earnings for the three months ended March 31, 2024 increased 176.6% to $632.2 million, or $4.52 diluted earnings per share, from $228.6 million, or $1.63 diluted earnings per share, in the prior year comparable quarter. The increase in net earnings is driven by the after-tax gain on the sale of De-Sta-Co of $415.0 million.
Current wording
Net earnings for the six months ended June 30, 2024 increased 94.1% to $914.0 million, or $6.57 diluted earnings per share, from $470.8 million, or $3.35 diluted earnings per share, in the prior year comparable period. The increase in net earnings is driven by the after-tax gain on the sale of De-Sta-Co of $414.5 million.
Previous wording
Engineered Products revenue for the first quarter of 2024 increased $45.6 million, or 9.2%, as compared to the first quarter of 2023, driven by organic growth of 9.2%. Customer pricing favorably impacted revenue in the first quarter of 2024 by approximately 1.6% and by 4.1% in the prior year comparable quarter.
Current wording
Engineered Products revenue for the second quarter of 2024 increased $41.2 million, or 8.7%, as compared to the second quarter of 2023, driven by organic growth of 20.2%, partially offset by a disposition-related decline of 11.3% and an unfavorable impact from foreign currency translation of 0.2%. The disposition-related decline was due to the divestiture of De-Sta-Co in the first quarter of 2024. Customer pricing favorably impacted revenue by approximately 2.1% in the second quarter of 2024 and in the prior year comparable quarter.
Previous wording
The organic revenue growth was primarily driven by continued robust demand in our waste handling business as national and regional waste haulers and municipal governments invest to upgrade their refuse collection vehicle fleets and implement our leading digital technologies to drive efficiencies in waste collection. Our aerospace and defense business also saw continued solid demand in the quarter. We expect positive organic growth trends to continue through 2024 on the back of robust customer demand in waste handling, growth in aerospace and defense, and improving demand conditions and easier comparable periods in our vehicle service business.
Current wording
The organic revenue growth was primarily driven by continued robust demand in our waste handling business as national and regional waste haulers continue to upgrade their refuse collection vehicle fleets and implement our leading digital technologies to drive efficiencies in waste collection. We also saw increased revenue in our vehicle service business driven by increasing demand in Europe and improved production performance, along with continued solid demand trends in our aerospace and defense business. We expect positive organic growth trends to continue in the second half of 2024 on the back of robust customer demand in waste handling, growth in aerospace and defense, and improving demand conditions and production performance in our vehicle service business.
Previous wording
Engineered Products segment earnings increased $19.7 million, or 23.4%, compared to the first quarter of 2023. The increase was primarily driven by organic volume increases, favorable price versus cost dynamics, and productivity initiatives. As a result, segment margin increased to 19.1% from 16.9% as compared to the prior year comparable quarter.
Current wording
Engineered Products segment earnings increased $28.2 million, or 38.6%, compared to the second quarter of 2023. The increase was primarily driven by organic volume increases, favorable price versus cost dynamics, and productivity initiatives, partially offset by disposition impacts. As a result, segment margin increased to 19.7% from 15.4% as compared to the prior year comparable quarter.
Previous wording
Bookings increased 1.0% for the segment, driven by organic growth of 1.0%. The organic bookings growth was broad-based, but most notable in our waste handling and vehicle service businesses. Segment book-to-bill was 1.00.
Current wording
Bookings increased 18.9% for the segment, driven by organic growth of 29.3%, partially offset by a disposition-related decline of 10.3% and an unfavorable impact from foreign currency translation of 0.1%. The organic bookings growth was broad-based, but most notable in our waste handling, vehicle service, and aerospace and defense businesses. Segment book-to-bill was 1.13.
Previous wording
The organic revenue decline was primarily due to lower marking and coding printer shipments in the United States and Europe, partially offset by strong consumables and aftermarket sales. We expect the organic growth outlook to improve as we move through the year in 2024, driven by customer pricing, increased demand for marking and coding equipment and consumables, and serialization software.
Current wording
The organic revenue growth was primarily driven by pricing actions, serialization software, and strong consumables and aftermarket sales. We expect continued favorable organic growth in the second half of the year driven by pricing and increased demand for marking and coding equipment, particularly in the United States and Latin America.
Previous wording
Imaging & Identification segment earnings increased $1.6 million, or 2.4%, over the prior year comparable quarter. This increase was primarily driven by pricing initiatives, cost controls, and higher mix of consumables and aftermarket shipments, which more than offset the negative impact of reduced organic volumes and an unfavorable impact from foreign currency translation. Segment margin increased to 25.3% from 24.1% in the prior year comparable quarter.
Current wording
Imaging & Identification segment earnings increased $14.5 million, or 23.6%, over the prior year comparable quarter. This increase was primarily driven by pricing initiatives, higher volume and cost controls, partially offset by an unfavorable impact from foreign currency translation. Segment margin increased to 26.4% from 22.6% in the prior year comparable quarter.
Previous wording
Overall bookings decreased 4.2% as compared to the prior year comparable quarter, reflecting an organic decline of 3.4% and an unfavorable impact from foreign currency translation of 1.0%, offset by acquisition growth 0.2%. The organic bookings decline was primarily due to reduced order intake and timing in our marking and coding and digital textile printing businesses. Segment book-to-bill was 1.01.
Current wording
Overall bookings increased 10.1% as compared to the prior year comparable quarter, reflecting organic growth of 11.1% and acquisition-related growth of 1.0%, partially offset by an unfavorable impact from foreign currency translation of 2.0%. The organic bookings growth was primarily driven by order intake and timing in marking and coding and digital textile printing businesses. Segment book-to-bill was 1.00.
Previous wording
Pumps & Process Solutions revenue for the first quarter of 2024 increased $51.8 million, or 12.5%, as compared to the first quarter of 2023, driven by acquisition-related growth of 7.5%, organic growth of 4.5%, and a favorable impact from foreign currency translation of 0.5%. Acquisition-related growth was driven by the acquisition of FW Murphy Production Controls business ("FW Murphy") in the fourth quarter of 2023. Customer pricing favorably impacted revenue in the first quarter of 2024 by approximately 1.4% and by 4.9% in the prior year comparable quarter.
Current wording
Pumps & Process Solutions revenue for the second quarter of 2024 increased $11.6 million, or 2.5%, as compared to the second quarter of 2023, driven by acquisition-related growth of 6.0%, partially offset by organic decline of 3.1% and an unfavorable impact from foreign currency translation of 0.4%. Acquisition-related growth was driven by the acquisition of FW Murphy Production Controls business ("FW Murphy") in the fourth quarter of 2023. Customer pricing favorably impacted revenue in the second quarter of 2024 by approximately 1.8% and by approximately 5.1% in the prior year comparable quarter.
Previous wording
The organic revenue growth was primarily driven by increased revenues in our precision components and plastics and polymer processing solutions businesses, as well as increased shipments for single-use components used in biopharmaceutical manufacturing as our channel partners and end customers have largely completed multi-year inventory reduction initiatives. Overall, we expect positive demand trends for the remainder of the year in connectors, supported by improving customer sentiment in bioprocessing along with recent specification wins in liquid cooling for high performance computing and data center applications, as well as continued solid demand in precision components. We expect this to be partially offset by slower expected demand in our polymer processing equipment business.
Current wording
The organic revenue decline was primarily due to decreased revenue in our plastics and polymer processing solutions business, partially offset by increased revenue in our precision components business and increased demand for connectors used in bioprocessing and high performance computing and data center applications. We expect overall revenue to trend favorably in the second half of the year driven by the FW Murphy acquisition, positive demand trends in bioprocessing and recent specification wins for thermal connectors in liquid cooling for high performance computing and data center applications. We expect this to be partially offset by slower expected demand in our polymer processing equipment business.
Previous wording
Pumps & Process Solutions segment earnings increased $3.5 million, or 3.0%, over the prior year comparable quarter. The increase was driven by the favorable impact from the FW Murphy acquisition, along with the positive impact of increased volumes, pricing initiatives and productivity actions, partially offset by a negative impact from product mix. Segment margin decreased to 25.5% from 27.8% from the prior year comparable quarter due to project mix within polymer processing solutions and growth investments in thermal connectors.
Current wording
Pumps & Process Solutions segment earnings increased $7.9 million, or 6.1%, over the prior year comparable quarter. The increase was driven by the favorable impact from the FW Murphy acquisition, along with the positive impact of pricing initiatives and productivity actions, partially offset by a negative impact from lower volume. Segment margin increased to 28.8% from 27.8% from the prior year comparable quarter driven by productivity initiatives and favorable portfolio mix.
Previous wording
Overall bookings increased 2.0% as compared to the prior year comparable quarter, with an acquisition-related growth of 6.3% and a favorable impact from foreign currency translation of 0.3%, partially offset by an organic decline of 4.6%. The organic bookings decline was primarily due to reduced orders in our polymer processing equipment business, partially offset by positive demand trends in connectors, supported by improving customer sentiment in bioprocessing along with recent specification wins in high performance computing applications. Segment book-to-bill was 1.02.
Current wording
Overall bookings increased 17.0% as compared to the prior year comparable quarter with organic growth of 10.5% and acquisition-related growth of 6.9%, partially offset by an unfavorable impact from foreign currency translation of 0.4%. The organic bookings growth was primarily driven by positive demand trends in connectors, supported by improving customer sentiment in bioprocessing along with recent specification wins in high performance computing applications. Segment book-to-bill was 0.97.
Previous wording
Climate & Sustainability Technologies revenue decreased $91.0 million, or 20.0%, as compared to the first quarter of 2023, reflecting organic revenue decline of 20.3% and an unfavorable impact from foreign currency translation of 0.3%, partially offset by acquisition-related growth of 0.6%. Customer pricing unfavorably impacted revenue in the first quarter of 2024 by approximately 0.6% and favorably impacted by 5.9% in the prior year comparable quarter.
Current wording
Climate & Sustainability Technologies revenue decreased $12.3 million, or 2.7%, as compared to the second quarter of 2023, reflecting organic revenue decline of 2.3% and an unfavorable impact from foreign currency translation of 0.8%, partially offset by acquisition-related growth of 0.4%. Customer pricing favorably impacted revenue in the second quarter of 2024 by approximately 0.3% and by approximately 5.3% in the prior year comparable quarter.
Previous wording
The organic revenue decline was due primarily to near-term, transient slowing in heat exchanger demand in Europe due to HVAC OEMs efforts to reduce component inventories, as well as continued headwinds in new beverage can-making equipment sales as customers pivot from new equipment investment to scaling production and expanding utilization of recent capacity additions. We expect organic revenue declines to continue into the second quarter, with improvement expected in the second half of 2024 on continued strong retail refrigeration demand, driven by growing demand for low-GWP (global warming potential) CO 2 refrigerant systems, as well as improved demand for heat exchangers in Europe.
Current wording
The organic revenue decline was primarily due to near-term, transient slowing in heat exchanger demand in Europe due to HVAC OEMs efforts to reduce component inventories, as well as continued headwinds in new beverage can-making equipment sales as customers pivot from new equipment investment to scaling production and expanding utilization of recent capacity additions. This was partially offset by increased demand for retail refrigeration equipment and services, including the growing demand for low-global warming potential ("GWP") CO 2 refrigerant systems. We expect organic revenue declines to continue into the second half of the year as continued growth in demand for retail refrigeration equipment is more than offset by year-over-year reductions in sales of beverage can-making equipment and heat exchangers in Europe. Despite continued year-over-year headwinds, we do expect demand in heat exchangers to improve sequentially from the first half of 2024 to the second half of 2024.
Previous wording
Bookings in the first quarter of 2024 increased 21.9% from the prior year comparable quarter, reflecting organic growth of 22.3% partially offset by an unfavorable impact from foreign currency translation of 0.4%. The organic bookings growth was principally driven by favorable demand trends across retail refrigeration, including continued strong demand for low-GWP (global warming potential) CO 2 refrigerant systems which resulted in the booking of several large customer orders in the first quarter. This was partially offset by temporary reductions in heat exchanger demand in Europe. Segment book-to-bill for the first quarter of 2024 was 1.24.
Current wording
Bookings in the second quarter of 2024 increased 30.7% from the prior year comparable quarter, reflecting organic growth of 31.6% and acquisition-related growth of 0.1%, partially offset by an unfavorable impact from foreign currency translation of 1.0%. The organic bookings growth was principally driven by favorable demand trends across retail refrigeration, including continued strong demand for low-GWP CO 2 refrigerant systems. This was partially offset by temporary reductions in heat exchanger demand in Europe. Segment book-to-bill was 0.93.
Previous wording
Climate & Sustainability Technologies segment earnings decreased $23.0 million, or 31.2%, as compared to the first quarter of 2023. The segment earnings decrease was primarily due to lower volumes in heat exchangers and beverage can-making equipment, partially offset by productivity initiatives and cost reduction actions. Segment margin decreased to 13.9% from 16.2% in the prior year comparable quarter.
Current wording
Climate & Sustainability Technologies segment earnings decreased $20.0 million, or 13.3%, for the six months ended June 30, 2024, as compared to the prior year comparable period. Segment margin decreased to 16.2% from 16.6% in the prior year comparable period. The earnings decrease was due to lower volumes in heat exchangers and beverage can-making equipment, partially offset by increased retail refrigeration volumes, productivity initiatives and cost reduction actions.
Previous wording
(3) Gain on disposition due to the sale of De-Sta-Co in the Engineered Products segment.
Current wording
(3) Loss (gain) on disposition due to the sale of De-Sta-Co in the Engineered Products segment.
Previous wording
Restructuring and other costs are not presented in our segment earnings because these costs are excluded from the segment operating performance measure reviewed by management. During the three months ended March 31, 2024, we incurred restructuring charges of $18.7 million and other costs, net of $6.0 million. Restructuring charges for the three months ended March 31, 2024 primarily related to product line exit costs and headcount reductions in the Climate & Sustainability Technologies, Clean Energy & Fueling and Pumps & Process Solutions segments. These restructuring programs were initiated in 2023 and 2024 and the Company will continue to make proactive adjustments to its cost structure to align with current demand trends. Other costs, net of $6.0 million for the three months ended March 31, 2024, were primarily due to a non-cash asset impairment charge in our Climate & Sustainability Technologies segment. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statement of earnings. Additional programs beyond the scope of the announced programs may be implemented during 2024 with related restructuring charges.
Current wording
Restructuring and other costs are not presented in our segment earnings because these costs are excluded from the segment operating performance measure reviewed by management. During the three and six months ended June 30, 2024, we incurred restructuring charges of $9.1 million and $27.8 million and other costs, net of $2.5 million and $8.5 million. Restructuring charges for the three months ended June 30, 2024 were primarily related to exit costs and headcount reductions across all segments. Restructuring charges for the six months ended June 30, 2024 were primarily related to product line exit costs and headcount reductions in the Climate & Sustainability Technologies, Clean Energy & Fueling and Pumps & Process Solutions segments. These restructuring programs were initiated in 2023 and 2024 and the Company will continue to make proactive adjustments to its cost structure to align with current demand trends. Other costs, net of $8.5 million for the six months ended June 30, 2024, were primarily due to a non-cash asset impairment charge in our Climate & Sustainability Technologies segment. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statement of earnings. Additional programs beyond the scope of the announced programs may be implemented during 2024 with related restructuring charges.
Previous wording
We recorded the following restructuring and other costs for the three months ended March 31, 2024:
Current wording
We recorded the following restructuring and other costs for the three and six months ended June 30, 2024:
Previous wording
During the three months ended March 31, 2023 restructuring and other activities include restructuring charges of $12.5 million and other costs (benefits) of $1.6 million. Restructuring expenses for the three months ended March 31, 2023 were primarily related toheadcount reductions and exit costs in the Clean Energy & Fueling segment. These programs were initiated in 2022 and 2023 and were undertaken in light of current market conditions. Other costs (benefits), net for the three months ended March 31, 2023 was comprised primarily of $1.1 million for product line rationalization in the Clean Energy & Fueling segment. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statement of earnings.
Current wording
Restructuring and other costs for the three and six months ended June 30, 2023 included restructuring charges of $16.4 million and $28.9 million, respectively, and other costs, net of $1.7 million and $3.3 million, respectively. Restructuring charges for the three and six months ended June 30, 2023 were primarily related toheadcount reductions and exit costs in the Clean Energy & Fueling, Engineered Products and Pumps & Process Solutions segments. These restructuring programs were initiated in 2022 and 2023 and were undertaken in light of current market conditions. Other costs, net of $2.0 million within the Clean Energy & Fueling segment for the six months ended June 30, 2023 were primarily due to product line rationalization. These restructuring and other charges were recorded in cost of goods and services and selling, general and administrative expenses in the condensed consolidated statement of earnings.
Previous wording
We recorded the following restructuring and other costs for the three months ended March 31, 2023:
Current wording
We recorded the following restructuring and other costs for the three and six months ended June 30, 2023:
Previous wording
Cash flow from operating activities for the three months ended March 31, 2024 decreased by $74.7 million compared to March 31, 2023, primarily due to the timing of receivables collections and investments in inventory ahead of higher expected shipment volumes in the next several quarters.
Current wording
Cash flow from operating activities for the six months ended June 30, 2024 decreased by $66.3 million compared to June 30, 2023, primarily due to tax payments related to the gain from the De-Sta-Co divestiture.
Previous wording
Adjusted working capital increased by $96.4 million, or 5.7%, in the three months ended March 31, 2024, which reflected an increase of $87.4 million in accounts receivable, an increase of $20.2 million in inventory and an increase in accounts payable of $11.2 million. These amounts include the effects of acquisitions, dispositions and foreign currency translation. The change in accounts receivable and payable reflect the timing of payments and collections. The increase in inventories is driven by production planning ahead of higher expected shipment volumes in the next several quarters.
Current wording
Adjusted working capital increased by $125.5 million, or 7.4%, in the six months ended June 30, 2024, which reflected an increase of $127.9 million in accounts receivable, net, an increase of $13.4 million in inventory, net and an increase in accounts payable of $15.8 million. These amounts include the effects of acquisitions, dispositions and foreign currency translation. The change in accounts receivable and payable reflect the timing of payments and collections. The increase in inventories is driven by production planning ahead of higher expected shipment volumes in the next several quarters.
Previous wording
Cash flow from investing activities is derived from cash inflows from proceeds from a disposition, partially offset by cash outflows for acquisitions and capital expenditures. The majority of the activity in investing activities was comprised of the following:
Current wording
Cash flow from investing activities is derived from cash inflows from proceeds from disposition, partially offset by cash outflows for acquisitions and capital expenditures. The majority of the activity in investing activities was comprised of the following:
Previous wording
•Proceeds from disposition: During the three months ended March 31, 2024, we received net proceeds of $611.7 million from the sale of De-Sta-Co within the Engineered Products segment. There were no proceeds from disposition during the three months ended March 31, 2023.
Current wording
•Proceeds from disposition: During the six months ended June 30, 2024, we received net proceeds of $674.7 million from the sale of De-Sta-Co within the Engineered Products segment. There were no proceeds from disposition during the six months ended June 30, 2023.
Previous wording
•Acquisitions: During the three months ended March 31, 2024, we deployed approximately $144.9 million, net, to acquire Transchem Group and Bulloch Technologies, Inc. within the Climate & Sustainability Technologies segment and one other immaterial acquisition within the Imaging & Identification segment. In comparison, during the three months ended March 31, 2023, there were no acquisitions.
Current wording
•Acquisitions: During the six months ended June 30, 2024, we deployed approximately $144.9 million, net, to acquire Transchem Group and Bulloch Technologies, Inc. within the Clean Energy & Fueling segment and one other immaterial acquisition within the Imaging & Identification segment. In comparison, during the six months ended June 30, 2023, there were no acquisitions.
Previous wording
•Capital spending: Capital expenditures decreased $3.9 million during the three months ended March 31, 2024 compared to the three months ended March 31, 2023, in line with our planned capital expenditures for the year.
Current wording
•Capital spending: Capital expenditures decreased $3.1 million during the six months ended June 30, 2024, compared to the six months ended June 30, 2023, in line with our planned capital expenditures for the year.
Previous wording
•Repurchase of common stock, including prepayment under accelerated share repurchase program: During the three months ended March 31, 2024, we used $500 million to repurchase 2,569,839 shares on March 1, 2024, under an accelerated share repurchase transaction. During the three months ended March 31, 2023, we repurchased no shares. See Note 17 — Stockholders' Equity in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Current wording
•Repurchase of common stock, including prepayment under accelerated share repurchase program: During the six months ended June 30, 2024, we used $500 million to repurchase 2,569,839 shares on March 1, 2024, under an accelerated share repurchase transaction. During the six months ended June 30, 2023, we repurchased no shares. See Note 17 — Stockholders' Equity in the condensed consolidated financial statements in Item 1 of this Form 10-Q for further details.
Previous wording
•Commercial paper and other short-term borrowings, net: During the three months ended March 31, 2024, we received net proceeds of $500.7 million from commercial paper borrowings, primarily used to fund our accelerated share repurchase transaction. During the three months ended March 31, 2023, we used $221.2 million to pay off commercial paper borrowings.
Current wording
•Commercial paper and other short-term borrowings, net: During the six months ended June 30, 2024, we used $257.8 million to pay off commercial paper borrowings, with net proceeds received from the sale of De-Sta-Co. During the six months ended June 30, 2023, we used $289.6 million to pay off commercial paper borrowings.
Showing the first 40 of 47 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Gross profit for the three months ended June 30, 2024 increased $62.7 million, or 8.3%, and gross profit margin increased 160 basis points to 37.7%, versus the prior year comparable quarter. Gross profit margin increased driven by volume leverage and mix, pricing and productivity actions.
Current report — wording carried from elsewhere
The effective tax rates for the three months ended June 30, 2024 and 2023 were 20.2% and 19.3%, respectively. The increase in the effective tax rate for the three months ended June 30, 2024 relative to the prior year comparable quarter was primarily driven by favorable audit resolutions in the prior year.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
2024, respectively. On April 4, 2024, the Company entered into a new $500.0 million 364-day unsecured revolving credit facility with a syndicate of banks which expires on April 3, 2025. The Credit Agreements are designated as a liquidity back-stop for the Company's commercial paper program and also are available for general corporate purposes.