Slide 1: Dover Corporation First Quarter 2010 Conference Call
Dover Corporation First Quarter 2010 Conference Call April 23, 2010 9:00 am
Slide 2: Forward Looking Statements
2 Forward Looking Statements We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties. We caution everyone to be guided in their analysis of Dover Corporation by referring to our Form 10-K for a list of factors that could cause
Slide 3: Dover's Q1 2010 Performance
3 Dover's Q1 2010 Performance Continuing Earnings Per Share 2008 $3.67 Revenue $ 1.6B ^ 15% EPS (cont.) $0.65 ^ 97% Segment Margins 15.0% ^ 480 bps Organic Revenue ^ 7% Net Acq. Growth ^ 5% Free Cash Flow $48M ^ 43% Quarterly revenue and earnings increases reflect improving end-markets, and benefits
Slide 4: Revenue Q1 2010
4 Revenue Q1 2010 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic -2% 2% 10% 33% 7% Net Acquisitions - 15% 3% - 5% Currency 1% 4% 2% 3% 3% Total -1% 21% 15% 36% 15%
Slide 5: Sequential Results - Q1 / Q4
5 Sequential Results - Q1 10 / Q4 09 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products ^ 5% ^ 2% Flat Electronic Technologies
Slide 6: Industrial Products
6 Industrial Products Revenue growth in military winch and auto service, offset by weakness in construction, trailer and certain military applications Margin improvements driven by prior restructuring efforts Quarterly bookings up 32% year-over-year on strong military winch orders and improving auto
Slide 7: Engineered Systems
7 Engineered Systems Revenue gains from Product ID and 2009 acquisitions; Tyler & Barker acquisitions: $57M Improved operating margin negatively impacted by product mix, material inflation at SWEP and weakness in commercial cooking equipment Markem-Imaje business trends remain solid; Datamax-O'Neil
Slide 8: Fluid Management
8 Fluid Management Revenue growth driven by NA rig count growth, shale basin activity and solid pump demand Operating margin remained strong at 22.8% Pump markets showing nice recovery and Inpro-Seal acquisition off to a good start Bookings growth solid across the segment; book-to-bill 1.02 $ in mil
Slide 9: Electronic Technologies
9 Electronic Technologies Year-over-year revenue growth driven by strong demand for electronic assembly equipment and MEMS microphones MEMS, hearing aid, electronic assembly and commercial telecom continue to improve sequentially Operating margin of 15.4% resulting from higher volume and restructuri
Slide 10: Q1 2010 Overview
Q1 2010 Overview Q1 2010 Free Cash Flow $47.7 million, 3% of revenue Net Interest Expense $27.2 million, up $5 million from prior year reflecting lower yield on cash balances Net Debt to Capital 19.4%, up 100 bps from year-end 2009, as a result of investments in working capital Effective Tax Rate (E
Slide 11: 2010 Guidance - Update
11 2010 Guidance - Update Revenue: Core revenue: ^ 7% - 10% 2009 Acquisitions: ^ 3% Total revenue: ^ 10% - 13% Corporate expense: ^ $130 million Interest expense: $105 - $110 million Full-year tax rate: 29% - 30% Capital expenditures: ^ 2.5% of revenue Free cash flow for full year: ^ 10% of revenue
Slide 12: 2010 EPS Guidance Bridge - Cont. Ops
12 2010 EPS Guidance Bridge - Cont. Ops 2009 EPS - Continuing Ops $1.99 Volume, mix, price (inc. FX): $0.60 - $0.84 2009 acquisitions: $0.10 Net benefits of restructuring/productivity: $0.45 - $0.51 Compensation & benefits: ($0.10 - $0.18) Corporate expense: ($0.04) Interest: ($0.03) Tax rate / othe