Dover on Thursday beat first-quarter profit estimates, helped by strong sales at its segment that makes components to cool down servers at data centers.
Global appetite for artificial intelligence has fueled demand for data centers, benefiting industrial parts makers and maintenance service providers such as Dover.The Grove, Illinois-based company's profit from the pumps and process unit rose 27.4% to $151 million. The unit makes liquid cooling systems, heat connectors and other components used to cool down IT equipment at data centers.
"We tend to manufacture in the same regions in which we sell, with our cost and revenue bases largely aligned," CEO Richard Tobin said.
This may largely shield the company from U.S. President Donald Trump's sweeping tariffs on imports, which have stoked worries of increased costs for businesses and led to a steep drop in consumer sentiment.
Earnings at its engineered products segment, which makes equipment and provides services to the vehicle aftermarket, aerospace and defense industries, fell 29.4% from last year to $44 million. Margin for the segment narrowed 150 basis points to 17.3%.
It lowered full-year adjusted profit range to $9.20 to $9.40 per share, compared with $9.30 to $9.50 expected previously, sending shares down 2% in light premarket trading.The company's adjusted income in the quarter ended March 31 came in at $283 million, or $2.05 per share. This was higher than Wall Street estimates of $1.98 apiece, according to data compiled by LSEG.
Its quarterly revenue came in at $1.87 billion, roughly in-line analysts' estimates.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Leroy Leo)
