Slide 1: Earnings Conference Call Third Quarter 2015
Earnings Conference Call Third Quarter 2015 October 20, 2015 – 9:00am CT
Slide 2: Forward looking statements and non-GAAP measures
2 Forward looking statements and non-GAAP measures We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file
Slide 3: Q3 2015 Performance
3 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q1* Q2 Q3* Q4* Q1 Q2 Q3* Q3 2015 Performance Adjusted Earnings Per Share* (continuing operations) Q3 Q3/Q3 * Excludes discrete & other tax benefits of $0.01 in Q1 2014, $0.03 in Q3 2014, $0.02 in Q4 2014, and $0.05 in Q3 2015 (b) See Press Release for free
Slide 4: Revenue growth by segment Q3 2015 and 9M 2015
4 Revenue Q3 2015 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic -37% 1% 1% -6% -10% Acquisitions 11% - 1% 1% 3% Currency -2% -6% -5% -2% -4% Total -28% -5% -3% -7% -11% 9M 2015 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic -32% 3% 3% -8% -9% Ac
Slide 5: Sequential Results – Q2 2015 to Q3 2015
5 Printing & ID Industrial $336 $339 $345 $352 $224 $227 $334 $357 $487 $431 $0 $200 $400 $600 $800 DE Q2 DE Q3 DES Q2 DES Q3 DF Q2 DF Q3 DRE Q2 DRE Q3 Sequential Results – Q2 2015 → Q3 2015 5 $363 $352 $366 $364 $230 $228 $352 $352 $448 $492 $0 $200 $400 $600 $800 DE Q2 DE Q3 DES Q2 DES Q3 DF Q2 DF
Slide 6: Energy
6 Energy Revenue decline driven by persistent low demand and inventory adjustments in NA oil & gas markets – Middle East markets holding up well – Bearings & Compression’s energy-related markets weakened on slower OEM build rates Adjusted margin of 15.1% reflects negative product mix and price p
Slide 7: Engineered Systems
7 Engineered Systems Modest organic revenue growth offset by impact of FX – Printing & Identification was flat organically, where solid North American results were offset by a softer Asia and order timing in Europe – Industrial’s organic growth of 1% was led by waste handling and microwave compone
Slide 8: Fluids
8 Fluids Revenue decline driven by FX; organic growth of 1% reflects: – Solid Fluid Transfer businesses – Strong shipments of plastics-related projects in Pumps, offset by oil & gas market weakness Strong segment margin reflects positive product mix, leverage on volume and productivity Booking
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue decline primarily reflects anticipated reduced volume from a key retail refrigeration customer – Within Food Equipment, can- shaping equipment results were improved, but were impacted by a delayed large shipment Margin improvement reflects reduced manufac
Slide 10: Q3 2015 Overview
10 Q3 2015 Overview 10 Q3 2015 Net Interest Expense $32 million, inline with forecast Corporate Expense $26 million, down $2 million from last year; reflecting continuing cost management initiatives Effective Tax Rate (ETR) Q3 rate was 27.3%, excluding discrete tax benefits of $0.05 cents. Rate refl
Slide 11: FY 2015 Guidance
11 FY 2015 Guidance Revenue – Organic revenue: (10% - 9%) – Completed acquisitions: ≈ 3% – FX impact: (4%) – Total revenue: (11% - 10%) Corporate expense: ≈ $107 million Interest expense: ≈ $127 million Full-year tax rate: ≈ 28.5% Capital expenditures: ≈ 2.3% of revenue FY free cash flow
Slide 12: 2015 EPS Guidance – Continuing Ops
12 2015 EPS Guidance – Continuing Ops 2014 EPS – Continuing Ops (GAAP) $ 4.61 – Less 2014 tax items(1): (0.07) 2014 Adjusted EPS $ 4.54 – Net restructuring and one-time items(2): (0.04 - 0.02) – Performance including restructuring benefits & deal costs (3): (1.15 - 1.11) – Acquisitions(4): ≈ 0.0
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