Slide 1: Dover Corporation Second Quarter 2011 Conference Call
Dover Corporation Second Quarter 2011 Conference Call July 22, 2011 10:30 am ET
Slide 2: Forward Looking Statements
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 ou
Slide 3: Dover's Q2 2011 Performance
Revenue $ 2.2B ↑ 21% $ 4.1B ↑ 22% EPS (cont.) $1.31 ↑ 44% $2.28 ↑ 47% Bookings $2.2B ↑ 15% $4.5B ↑ 21% Seg. Margins 17.4% ↑ 50 bps 16.5% ↑ 50 bps Organic Rev. ↑ 14% ↑ 16% Acq. Growth ↑ 4% ↑ 4% FCF (a) $136M ↓ 26% $215M ↓ 7% FY $3.74 FY $1.99 * Includes discrete tax benefits of $0.15 EPS in Q2 2009,
Slide 4: Revenue
Q2 2011 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic 20% 8% 16% 17% 14% Net Acquisitions 2% - 14% - 4% Currency 1% 4% 2% 2% 3% Total 23% 12% 32% 19% 21% 1H 2011 Industrial Products Engineered Systems Fluid Management Electronic Technologies Tota
Slide 5: Sequential Results - Q1 / Q2 11
↑ 9% ↑ 15% ↑ 1% ↑ 1% ↓ 3% ↓ 6% Sequential Results - Q1 11 / Q2 11 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products Electronic Technologies $ in millions
Slide 6: Industrial Products
Q2 2011 Q2 2010 % Change Revenue $567 $462 +23% Earnings $ 73 $ 62 +19% Margin 12.9% 13.3% ↓ 40 bps Bookings $628 $512 +23% 1H 2011 1H 2010 % Change Revenue $1,086 $891 +22% Earnings $ 138 $113 +22% Margin 12.7% 12.6% ↑ 10 bps Bookings $1,254 $947 +32% Industrial Products • Revenue and bookings grow
Slide 7: Engineered Systems
Q2 2011 Q2 2010 % Change Revenue $646 $577 +12% Earnings $ 94 $ 85 +11% Margin 14.6% 14.7% ↓ 10 bps Bookings $640 $602 +6% 1H 2011 1H 2010 % Change Revenue $1,206 $1,061 +14% Earnings $ 161 $ 139 +16% Margin 13.4% 13.1% ↑ 30 bps Bookings $1,273 $1,191 +7% Engineered Systems • All companies posted re
Slide 8: Fluid Management
Q2 2011 Q2 2010 % Change Revenue $535 $404 +32% Earnings $131 $ 96 +37% Margin 24.6% 23.8% ↑ 80 bps Bookings $555 $418 +33% 1H 2011 1H 2010 % Change Revenue $1,043 $784 +33% Earnings $ 245 $183 +34% Margin 23.5% 23.3% ↑ 20 bps Bookings $1,127 $806 +40% Fluid Management • Revenue growth was broad- ba
Slide 9: Electronic Technologies
Q2 2011 Q2 2010 % Change Revenue $413 $346 +19% Earnings $ 77 $ 60 +29% Margin 18.6% 17.2% ↑ 140 bps Bookings $394 $394 Flat 1H 2011 1H 2010 % Change Revenue $786 $637 +23% Earnings $137 $104 +31% Margin 17.4% 16.4% ↑ 100 bps Bookings $814 $753 +8% Electronic Technologies • Revenue growth was driven
Slide 10: Q2 2011 Overview
Q2 2011 Net Interest Expense $28.1 million, up $1 million from last year, due to higher outstanding debt Corporate Expense $35.3 million, up $3 million from last year, and in-line with expectations Effective Tax Rate (ETR) Q2 rate was 20.2%. Rate reflects $0.12 EPS benefit on resolution of certain d
Slide 11: FY 2011 Guidance - Update
FY 2011 Guidance - Update • Revenue: – Core revenue: ≈ 12.0% - 14.0% – Acquisitions: ≈ 6.0% – Total revenue: ≈ 18.0% - 20.0% • Corporate expense: ≈ $135 million (unchanged) • Interest expense: ≈ $116 million (unchanged) • Full-Year Tax Rate: ≈ 27% - 27.5%* • Capital expenditures: ≈ 2.8% - 3.0% of re
Slide 12: 2011 EPS Guidance Bridge - Cont. Ops
• 2010 EPS - Continuing Ops $3.74 – Less 2010 tax benefits: ($0.27) • 2010 Adjusted EPS - Continuing Ops $3.47 – Volume, mix, price (inc. FX): $0.67 - $0.76 – Net benefits of productivity: $0.26 - $0.30 – Acquisitions: $0.06 - $0.07 – Investment / Compensation: ($0.16 - $0.20) – Corporate expense: -
Slide 13: 2011 & 2012 Knowles Sound Solutions
2H 2011 FY 2012 Revenue $190M - $200M $400M - $410M EPS -$0.03 to -$0.05 (a) +$0.18 to +$0.22 2011 & 2012 Knowles Sound Solutions Q3 2011 EPS dilution is expected to be -$0.06 to -$0.08; Q4 2011 EPS accretion is expected to be $0.03 (a) Marginal tax rate for Knowles Sound Solutions is expected to be