Dover (DOV) 8-K Dover Reports Record Fourth Quarter and Full Year 2006 Results

EXHIBIT 99.1

	READ IT ON THE WEB
CONTACT:
Paul Goldberg	www.dovercorporation.com
Treasurer and Director of Investor Relations
(212) 922-1640	January 31, 2007

DOVER REPORTS RECORD FOURTH QUARTER AND FULL YEAR 2006 RESULTS

New York, New York, January 31, 2007 — Dover Corporation (NYSE: DOV) announced that for the fourth quarter ended December 31, 2006, earnings from continuing operations were $156.1 million or $0.76 diluted earnings per share (“EPS”), compared to $121.6 million or $0.60 EPS in the prior-year period, representing increases of 28% and 27%, respectively. Earnings from continuing operations for the fourth quarter of 2006 included a charge of $0.02 EPS related to stock option expense. Revenue for the fourth quarter of 2006 was $1,714.7 million, an increase of 20% over the prior-year period.

For the year ended December 31, 2006, Dover’s earnings from continuing operations increased 35% to $603.3 million, or $2.94 EPS, compared to the prior year, and included a charge of $0.08 EPS related to stock option expense. Revenue for the year ended December 31, 2006 was $6,511.6 million, an increase of 22% over the prior year.

Dover’s President and Chief Executive Officer, Ronald L. Hoffman, stated: “We are very pleased to report record fourth quarter and full year results. Our organic growth was 14%, we made further progress with our “PerformanceCOUNTS”program and we generated strong operating cash flow of over $880 million, up 57% over the prior year. We also invested a record $1.1 billion in 2006 in new companies, including Paladin and Markem, which are expected to be value creating for many years to come.

“Looking to 2007, we anticipate building upon the successes of 2006 and the progress made through our “PerformanceCOUNTS”program, along with contributions from our acquisitions to deliver another record setting year. As always, we will face challenges as we try to achieve these ambitious goals. We start the year with a good backlog, up 21% over the prior year period, and many of our groups continue to exhibit strength and participate in healthy end-markets, including energy, product identification and heat exchangers. However, given our normal quarterly seasonality pattern, the impact of recent acquisitions, and some near-term softness in end-markets related to construction, foodservice, and electronics, we expect the first quarter to moderate from the 2006 fourth quarter. Thereafter, assuming economic conditions remain positive, we anticipate meaningful improvements in quarterly performance over comparable prior year periods through the balance of the year.”

Net earnings for the fourth quarter of 2006 were $118.5 million or $0.58 EPS, including a loss from discontinued operations of $37.6 million or $0.18 EPS, compared to $116.1 million or $0.57 EPS for the same period in 2005, which included a loss from discontinued operations of $5.5 million or $0.03 EPS. Full year 2006 net earnings were $561.8 million or $2.73 EPS, including a loss from discontinued operations of $41.5 million or $0.20 EPS, compared to $510.1 million or $2.50 EPS in the prior year, which included earnings from discontinued operations of $63.9 million or $0.31 EPS.

2

Acquisitions and Divestitures

During the fourth quarter of 2006, the Company acquired three companies: Markem in the Technologies segment Product Identification group, and two small add-ons in the Resources segment, for a total purchase price of $605 million. It also discontinued three small businesses in the Diversified segment, completed the sales of five companies and adjusted the carrying value of other previously discontinued businesses resulting in an after-tax loss of $37.4 million, or $0.18 EPS. The three businesses discontinued in the fourth quarter had a negligible impact on operating results. At year end 2006, six business units were being held for sale. Current year acquisitions, which totaled $1.1 billion, were primarily funded by cash from operations and proceeds from dispositions.

Growth Factors

							2006
Revenue Growth	Q1			Q2			Q3			Q4			YTD
Organic		16.8	%		16.8	%		10.5	%		9.6	%		13.8	%
Acquisitions		8.3	%		7.8	%		9.4	%		8.3	%		7.8	%
Currency translation		-1.9	%		-0.2	%		1.4	%		1.9	%		0.5	%
		23.2	%		24.4	%		21.3	%		19.8	%		22.1	%

Cash Flow

The following table is a reconciliation of free cash flow with cash flows from operating activities.

	Three Months Ended December 31,						Twelve Months Ended December 31,
Free Cash Flow(in thousands)	2006			2005			2006			2005
Cash flow provided by operating activities	$	291,677		$	243,441		$	884,264		$	564,852
Less: Capital expenditures		(57,637	)		(42,992	)		(194,735	)		(130,492	)
Free cash flow	$	234,040		$	200,449		$	689,529		$	434,360
Free cash flow as a percentage of revenue		13.6	%		14.0	%		10.6	%		8.1	%

The full year increase reflects higher earnings from continuing operations before depreciation and amortization, and lower tax payments, partially offset by higher capital expenditures. In addition, adjusted working capital (calculated as accounts receivable, plus inventory, less accounts payable) increased from the prior year end by $262.3 million as a result of acquisitions, foreign exchange translation and the Company’s organic growth. Excluding acquisitions and the effects of foreign exchange translation, working capital increased $41.3 million. Working capital as a percentage of revenue decreased to 18.9% from 20.7% at year end 2005.

Capitalization

The following table provides a summary reconciliation of total debt and net debt to total capitalization to the most directly comparable GAAP measures:

	At December 31,			At December 31,
Net Debt to Total Capitalization Ratio (in thousands)	2006			2005
Current maturities of long-term debt	$	32,267		$	1,201
Commercial paper and other short-term debt		258,282			192,961
Long-term debt		1,480,491			1,344,173
Total debt		1,771,040			1,538,335
Less: Cash and cash equivalents		373,616			185,832
Net debt		1,397,424			1,352,503
Add: Stockholders’ equity		3,811,022			3,329,523
Total capitalization	$	5,208,446		$	4,682,026
Net debt to total capitalization		26.8	%		28.9	%

3

Net debt at December 31, 2006 remained relatively flat as a result of the increase in cash flow from operations and cash proceeds generated from the sales of discontinued businesses that funded Dover’s acquisition program. The percentage decrease in net debt to total capital, after record acquisition spending, reflects strong operational free cash flow and proceeds from dispositions of $446.0 million.

Tax Rate

The 2006 fourth quarter effective tax rate for continuing operations was 22.6%, which reflected the effect of the full year retroactive extension of the U.S. Federal research credit and a favorable mix of foreign earnings in low-taxed overseas jurisdictions. The 2005 fourth quarter tax rate for continuing operations was 25.6%, which included benefits related to the settlement of certain U.S. federal and state tax issues.

The 2006 tax rate for continuing operations was 26.7%, reflecting the same factors that impacted the fourth quarter rate, as well as a lower relative United States federal tax exclusion for foreign sales in 2006. The 2005 tax rate for continuing operations of 26.5% included a $9.5 million provision related to the repatriation of $373.7 million of dividends and a $25.5 million benefit primarily related to the resolution of U.S. tax issues and a $5.5 million benefit related to a favorable federal tax court decision. Excluding the repatriation provision, the full year 2005 tax rate for continuing operations was 24.9%.

Dover will host a webcast of its fourth quarter 2006 conference call at 8:00 AM Eastern Time on Wednesday January 31, 2007. The webcast can be accessed at the Dover Corporation website atwww.dovercorporation.com. The conference call will also be made available for replay on the website.

Dover Corporation makes information available to the public, orally and in writing, which may use words like “anticipates,” “expects,” “believes,” “indicates,” “suggests,” “will,” “plans” and “should,” which are “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements concerning future events and the performance of Dover Corporation that involve inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, failure to achieve expected synergies, the impact of continued events in the Middle East on the worldwide economy, economic conditions, increases in the cost of raw materials, changes in customer demand, increased competition in the markets served by Dover Corporation’s operating companies, the impact of natural disasters, such as hurricanes, and their effect on global energy markets and other risks. Dover Corporation refers you to the documents that it files from time to time with the Securities and Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained in this press release. Dover Corporation undertakes no obligation to update any forward-looking statement.

TABLES FOLLOW

4

DOVER CORPORATION
SUMMARY SEGMENT RESULTS

Diversified

	Three Months Ended December 31,									Twelve Months Ended December 31,
(in thousands)	2006			2005			% Change			2006			2005			% Change
Revenue	$	190,336		$	176,260			8	%	$	778,125		$	722,054			8	%
Segment earnings		19,779			21,038			-6	%		90,055			87,617			3	%
Operating margin		10.4	%		11.9	%					11.6	%		12.1	%
Bookings		213,243			189,216			13	%		830,756			785,983			6	%
Book-to-Bill		1.12			1.07						1.07			1.09
Backlog											358,385			304,781			18	%
Electronics
Revenue	$	232,969		$	194,582			20	%	$	880,685		$	546,043			61	%
Segment earnings		37,191			20,194			84	%		119,425			46,888			155	%
Operating margin		16.0	%		10.4	%					13.6	%		8.6	%
Bookings		213,374			213,304			—			888,244			571,983			55	%
Book-to-Bill		0.92			1.10						1.01			1.05
Backlog											150,143			141,102			6	%
Industries
Revenue	$	231,197		$	207,267			12	%	$	876,494		$	817,947			7	%
Segment earnings		35,057			29,764			18	%		123,982			104,282			19	%
Operating margin		15.2	%		14.4	%					14.1	%		12.7	%
Bookings		236,523			224,942			5	%		939,149			846,258			11	%
Book-to-Bill		1.02			1.09						1.07			1.03
Backlog											288,835			222,793			30	%
Resources
Revenue	$	517,135		$	395,247			31	%	$	1,841,491		$	1,518,939			21	%
Segment earnings		75,971			67,302			13	%		316,328			260,671			21	%
Operating margin		14.7	%		17.0	%					17.2	%		17.2	%
Bookings		505,186			393,148			28	%		1,873,241			1,550,000			21	%
Book-to-Bill		0.98			0.99						1.02			1.02
Backlog											237,987			167,561			42	%
Systems
Revenue	$	201,902		$	174,695			16	%	$	834,854		$	705,377			18	%
Segment earnings		23,880			21,920			9	%		114,113			100,088			14	%
Operating margin		11.8	%		12.5	%					13.7	%		14.2	%
Bookings		171,112			176,185			-3	%		841,913			755,436			11	%
Book-to-Bill		0.85			1.01						1.01			1.07
Backlog											181,530			174,402			4	%
Technologies
Revenue	$	344,469		$	287,151			20	%	$	1,313,546		$	1,033,853			27	%
Segment earnings		46,075			39,498			17	%		206,728			134,963			53	%
Operating margin		13.4	%		13.8	%					15.7	%		13.1	%
Bookings		325,609			288,104			13	%		1,297,719			1,058,873			23	%
Book-to-Bill		0.95			1.00						0.99			1.02
Backlog											125,929			102,207			23	%

5

DOVER CORPORATION
MARKET SEGMENT INFORMATION (unaudited) (in thousands)

	2005															2006
	Q1			Q2			Q3			Q4			YTD			Q1			Q2			Q3			Q4			YTD
REVENUE
Diversified	$	177,342		$	189,399		$	179,053		$	176,260		$	722,054		$	193,676		$	202,358		$	191,755		$	190,336		$	778,125
Electronics		116,980			121,700			112,781			194,582			546,043			199,496			222,751			225,469			232,969			880,685
Industries		193,956			210,450			206,274			207,267			817,947			208,572			215,338			221,387			231,197			876,494
Resources		356,308			377,135			390,249			395,247			1,518,939			425,162			435,341			463,853			517,135			1,841,491
Systems		155,871			177,735			197,076			174,695			705,377			181,285			234,124			217,543			201,902			834,854
Technologies		219,085			252,005			275,612			287,151			1,033,853			294,942			343,367			330,768			344,469			1,313,546
Intramarket eliminations		(2,401	)		(2,676	)		(2,446	)		(3,352	)		(10,875	)		(3,091	)		(3,672	)		(3,453	)		(3,356	)		(13,572	)
Total consolidated revenue	$	1,217,141		$	1,325,748		$	1,358,599		$	1,431,850		$	5,333,338		$	1,500,042		$	1,649,607		$	1,647,322		$	1,714,652		$	6,511,623
NET EARNINGS
Segment Earnings:
Diversified	$	20,546		$	22,590		$	23,443		$	21,038		$	87,617		$	22,584		$	23,384		$	24,308		$	19,779		$	90,055
Electronics		9,227			12,259			5,208			20,194			46,888			20,754			29,862			31,618			37,191			119,425
Industries		21,920			24,418			28,180			29,764			104,282			27,328			30,208			31,389			35,057			123,982
Resources		62,747			65,545			65,077			67,302			260,671			82,797			80,919			76,641			75,971			316,328
Systems		22,037			26,910			29,221			21,920			100,088			26,972			38,341			24,920			23,880			114,113
Technologies		17,590			33,284			44,591			39,498			134,963			47,712			60,684			52,257			46,075			206,728
Total segments		154,067			185,006			195,720			199,716			734,509			228,147			263,398			241,133			237,953			970,631
Corporate expense / other		(15,229	)		(14,753	)		(13,414	)		(11,549	)		(54,945	)		(18,559	)		(18,692	)		(16,352	)		(17,174	)		(70,777	)
Net interest expense		(16,118	)		(15,230	)		(16,257	)		(24,626	)		(72,231	)		(21,486	)		(19,247	)		(17,183	)		(19,068	)		(76,984	)
Earnings from continuing operations before provision for income taxes		122,720			155,023			166,049			163,541			607,333			188,102			225,459			207,597			201,711			822,869
Provision for income taxes		30,757			45,667			42,817			41,897			161,138			56,812			66,699			50,454			45,576			219,541
Earnings from continuing operations		91,963			109,356			123,232			121,644			446,195			131,290			158,760			157,143			156,135			603,328
Earnings (loss) from discontinued operations, net		6,172			63,845			(552	)		(5,518	)		63,947			72,538			(86,850	)		10,381			(37,615	)		(41,546	)
Net earnings	$	98,135		$	173,201		$	122,680		$	116,126		$	510,142		$	203,828		$	71,910		$	167,524		$	118,520		$	561,782
SEGMENT OPERATING MARGIN
Diversified		11.6	%		11.9	%		13.1	%		11.9	%		12.1	%		11.7	%		11.6	%		12.7	%		10.4	%		11.6	%
Electronics		7.9	%		10.1	%		4.6	%		10.4	%		8.6	%		10.4	%		13.4	%		14.0	%		16.0	%		13.6	%
Industries		11.3	%		11.6	%		13.7	%		14.4	%		12.7	%		13.1	%		14.0	%		14.2	%		15.2	%		14.1	%
Resources		17.6	%		17.4	%		16.7	%		17.0	%		17.2	%		19.5	%		18.6	%		16.5	%		14.7	%		17.2	%
Systems		14.1	%		15.1	%		14.8	%		12.5	%		14.2	%		14.9	%		16.4	%		11.5	%		11.8	%		13.7	%
Technologies		8.0	%		13.2	%		16.2	%		13.8	%		13.1	%		16.2	%		17.7	%		15.8	%		13.4	%		15.7	%

QUARTERLY EPS (unaudited) (in thousands)

	2005									2006
	1 Qtr.		2 Qtr.		3 Qtr.		4 Qtr.			1 Qtr.		2 Qtr.			3 Qtr.		4 Qtr.
Basic earnings (loss) per common share:
Continuing operations	$	0.45	$	0.54	$	0.61	$	0.60		$	0.65	$	0.78		$	0.77	$	0.76
Discontinued operations		0.03		0.31		—		(0.03	)		0.36		(0.43	)		0.05		(0.18	)
Net earnings		0.48		0.85		0.61		0.57			1.00		0.35			0.82		0.58
Diluted earnings (loss) per common share:
Continuing operations	$	0.45	$	0.54	$	0.60	$	0.60		$	0.64	$	0.77		$	0.77	$	0.76
Discontinued operations		0.03		0.31		—		(0.03	)		0.35		(0.42	)		0.05		(0.18	)
Net earnings		0.48		0.85		0.60		0.57			0.99		0.35			0.82		0.58

6

DOVER CORPORATION
MARKET SEGMENT INFORMATION
(continued)
(unaudited) (in thousands)

	2005										2006
									Q4											Q4
	Q1		Q2		Q3		Q4		YTD		Q1		Q2		Q3		��	Q4		YTD
BOOKINGS
Diversified	$	224,032	$	194,091	$	178,644	$	189,216	$	785,983	$	208,245	$	210,061	$	199,207		$	213,243	$	830,756
Electronics		122,961		117,234		118,484		213,304		571,983		223,559		219,784		231,527			213,374		888,244
Industries		196,456		209,887		214,973		224,942		846,258		219,424		232,185		251,017			236,523		939,149
Resources		387,121		375,164		394,567		393,148		1,550,000		454,669		441,761		471,625			505,186		1,873,241
Systems		156,182		221,709		201,360		176,185		755,436		231,036		229,633		210,132			171,112		841,913
Technologies		233,611		275,436		261,722		288,104		1,058,873		339,124		325,101		307,885			325,609		1,297,719
BOOK-TO-BILL
Diversified		1.26		1.02		1.00		1.07		1.09		1.08		1.04		1.04			1.12		1.07
Electronics		1.05		0.96		1.05		1.10		1.05		1.12		0.99		1.03			0.92		1.01
Industries		1.01		1.00		1.04		1.09		1.03		1.05		1.08		1.13			1.02		1.07
Resources		1.09		0.99		1.01		0.99		1.02		1.07		1.01		1.02			0.98		1.02
Systems		1.00		1.25		1.02		1.01		1.07		1.27		0.98		0.97			0.85		1.01
Technologies		1.07		1.09		0.95		1.00		1.02		1.15		0.95		0.93			0.95		0.99
BACKLOG
Diversified	$	287,663	$	292,288	$	292,557	$	304,781		—	$	317,750	$	323,567	$	334,638		$	358,385		—
Electronics		83,269		78,197		93,459		141,102		—		165,253		163,182		169,151			150,143		—
Industries		197,043		196,445		205,286		222,793		—		234,174		251,301		282,234			288,835		—
Resources		167,810		165,087		169,580		167,561		—		196,379		203,757		249,040			237,987		—
Systems		125,037		170,238		172,806		174,402		—		223,843		218,360		211,939			181,530		—
Technologies		90,426		109,210		102,232		102,207		—		147,984		141,526		123,416			125,929		—

7

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited) (in thousands, except per share figures)

	Three Months Ended December 31,						Twelve Months Ended December 31,
	2006			2005			2006			2005
Revenue	$	1,714,652		$	1,431,850		$	6,511,623		$	5,333,338
Cost of goods and services		1,111,324			932,188			4,163,581			3,454,634
Gross profit		603,328			499,662			2,348,042			1,878,704
Selling and administrative expenses		380,148			314,410			1,436,237			1,211,461
Operating earnings		223,180			185,252			911,805			667,243
Interest expense, net		19,068			24,626			76,984			72,231
Other expense (income), net		2,401			(2,915	)		11,952			(12,321	)
Total interest/other expense, net		21,469			21,711			88,936			59,910
Earnings before provision for income taxes and discontinued operations		201,711			163,541			822,869			607,333
Provision for income taxes		45,576			41,897			219,541			161,138
Earnings from continuing operations		156,135			121,644			603,328			446,195
Earnings (loss) from discontinued operations, net		(37,615	)		(5,518	)		(41,546	)		63,947
Net earnings	$	118,520		$	116,126		$	561,782		$	510,142
Basic earnings (loss) per common share:
Earnings from continuing operations	$	0.76		$	0.60		$	2.96		$	2.20
Earnings (loss) from discontinued operations		(0.18	)		(0.03	)		(0.20	)		0.32
Net earnings		0.58			0.57			2.76			2.51
Weighted average shares outstanding		204,182			202,736			203,773			202,979
Diluted earnings (loss) per common share:
Earnings from continuing operations	$	0.76		$	0.60		$	2.94		$	2.19
Earnings (loss) from discontinued operations		(0.18	)		(0.03	)		(0.20	)		0.31
Net earnings		0.58			0.57			2.73			2.50
Weighted average shares outstanding		205,978			204,050			205,497			204,177
Dividends paid per common share	$	0.19		$	0.17		$	0.72		$	0.66
The following table is a reconciliation of the share amounts used in computing earnings per share:
	Three Months Ended December 31,						Twelve Months Ended December 31,
	2006			2005			2006			2005
Weighted average shares outstanding — Basic		204,182			202,736			203,773			202,979
Dilutive effect of assumed exercise of employee stock options		1,796			1,314			1,724			1,198
Weighted average shares outstanding — Diluted		205,978			204,050			205,497			204,177
Anti-dilutive shares excluded from diluted EPS computation		—			3,640			1,716			4,339

8

DOVER CORPORATION
CONDENSED BALANCE SHEET AND STATEMENT OF CASH FLOWS
(unaudited) (in thousands)

	At December 31,		At December 31,
	2006		2005
BALANCE SHEET
Assets:
Cash and cash equivalents	$	373,616	$	185,832
Receivables, net of allowances for doubtful accounts		1,056,828		850,084
Inventories		709,647		573,265
Deferred tax and other current assets		131,415		96,597
Property, plant and equipment, net		856,799		706,744
Goodwill		3,201,983		2,555,596
Intangibles, net		1,065,382		696,267
Other assets		123,045		239,367
Assets of discontinued operations		107,943		676,740
	$	7,626,658	$	6,580,492
Liabilities & Stockholders’ Equity:
Short-term debt	$	290,549	$	194,162
Payables and accrued expenses		996,711		815,497
Taxes payable and other deferrals		916,599		684,424
Long-term debt		1,480,491		1,344,173
Liabilities of discontinued operations		131,286		212,713
Stockholders’ equity		3,811,022		3,329,523
	$	7,626,658	$	6,580,492

	Twelve Months Ended December 31,
	2006			2005
CASH FLOWS
Operating activities:
Net earnings	$	561,782		$	510,142
Loss (earnings) from discontinued operations, net of tax		41,546			(63,947	)
Depreciation and amortization		201,501			155,047
Stock-based compensation		26,396			—
Contributions to defined benefit pension plan		(3,004	)		(19,709	)
Net change in assets and liabilities		56,043			(16,681	)
Net cash provided by operating activities		884,264			564,852
Investing activities:
Proceeds from the sale of property and equipment		19,017			11,807
Additions to property, plant and equipment		(194,735	)		(130,492	)
Proceeds from sale of discontinued business		445,905			159,278
Acquisitions (net of cash and cash equivalents acquired)		(1,116,780	)		(1,089,650	)
Net cash used in investing activities		(846,593	)		(1,049,057	)
Financing activities:
Increase in debt, net		228,107			441,226
Cash dividends to stockholders		(144,799	)		(133,913	)
Purchase of treasury stock		(48,329	)		(51,929	)
Proceeds from exercise of stock options		93,311			19,220
Net cash provided by financing activities		128,290			274,604
Effect of exchange rate changes on cash		19,816			(17,234	)
Net cash provided by discontinued operations		2,007			102,849
Net increase (decrease) in cash and equivalents		187,784			(123,986	)
Cash and cash equivalents at beginning of period		185,832			309,818
Cash and cash equivalents at end of period	$	373,616		$	185,832