Dover Corporation · NYSE:DOV
Dover — Q2 2017 Earnings Presentation
13 slides from Dover's earnings presentation, Jul 20, 2017
Slide 1: Earnings Conference Call Second Quarter 2017
Earnings Conference Call Second Quarter 2017 July 20, 2017 – 9:00am CT Exhibit 99.2
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: Q2 2017 Performance
3 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Q1 Q2 Q3 Q4 Q1 Q2 Earnings per share Adj. EPS* Q2 2017 Performance Earnings Per Share Q2 Q2/Q2 * Excludes gains on dispositions of $0.07 in Q1 2016, $0.36 in Q4 2016, $0.39 in Q1 2017, and a $0.09 voluntary product recall charge in Q4 2016 (c) See Press Release
Slide 4: Revenue Q2 2017
4 Revenue Q2 2017 Engineered Systems Fluids Refrigeration & Food Equip Energy Total Dover Organic 5% 4% 5% 39% 10% Acquisitions 10% 34% - - 12% Dispositions -4% - -6% - -3% Currency -1% -2% - -1% -1% Total 11% 36% -1% 39% 18% Note: Totals may be impacted due to rounding
Slide 5: Engineered Systems
5 Engineered Systems Organic revenue growth of 5% – Printing & Identification driven by strong marking & coding markets – Industrial’s growth was broad- based with particular strength in waste handling Recent acquisitions performing well, driving 10% acquisition growth Margin in-line with expe
Slide 6: Fluids
6 Fluids Revenue growth driven by acquisitions and 4% organic growth Return to organic revenue growth driven by: – Solid retail fueling markets and industrial pump markets – Continued strong Hygienic & Pharma markets Margin primarily impacted by acquisitions and business mix – Sequentially up
Slide 7: Refrigeration & Food Equipment
7 Refrigeration & Food Equipment Organic revenue growth reflects strong activity in retail refrigeration market – Door and specialty case product lines continue to perform well – Within Food Equipment, can-shaping equipment growth offsets softness in commercial food equip. Margin performance ref
Slide 8: Energy
8 Energy Revenue increase driven by continued improvement in U.S. rig count and increased well completions – Bearings & Compression growth driven by improved OEM build rates – Automation benefitting from customer capex increases Margin of 14.9% reflects significantly higher volume and strong inc
Slide 9: Q2 2017 Overview
9 Q2 2017 Overview 9 Q2 2017 Net Interest Expense $35 million Corporate Expense $34 million Effective Tax Rate Q2 rate was 28.9%, including the impact of discrete costs. Excluding these costs, normalized rate was 27.8% Capex $48 million Share Repurchases No activity
Slide 10: FY 2017F Updated Guidance
10 FY 2017F Updated Guidance Corporate expense: ≈ $135 million Net interest expense: ≈ $134 million Q3 – Q4 tax rate: ≈ 28% Capital expenditures: ≈ 2.4% of revenue FY free cash flow: ≈ 11% of revenue or 140% of net income* 2017F Engineered Systems Fluids Refrigeration & Food Equip Energy T
Slide 11: Slide 11
Slide 12: Appendix
12 Appendix
Slide 13: 2017F EPS Guidance – Updated Bridge
13 2017F EPS Guidance – Updated Bridge 2016 EPS – Continuing Ops (GAAP): $3.25 – Less 2016 gain on dispositions(1): (0.44) – Less 2016 earnings from dispositions(2) : (0.05) – Plus 2016 charges related to recall: 0.09 2016 Adjusted EPS $2.85 – Net restructuring(3): 0.08 - 0.10 – Performance incl