Slide 1: Dover Corporation Fourth Quarter 2010 Conference Call
Dover Corporation Fourth Quarter 2010 Conference Call January 28, 2011 9:00 am ET
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 Q4 2010 Performance
3 Dover's Q4 2010 Performance Continuing Earnings Per Share 2008 FY $3.67 Revenue $ 1.9B ^ 24% $ 7.1B ^ 23% EPS (cont.) $1.01 ^ 85% $3.74 ^ 88% Bookings $1.9B ^ 23% $7.4B ^ 32% Segment Margins 16.3% ^ 320 bps 16.4% ^ 410 bps Organic Rev. Growth ^ 23% ^ 20% Acq. Growth ^ 2% ^ 4% FCF (a) $378M ^ 79% $
Slide 4: Revenue Growth by Segment Q4 and FY 2010
4 Revenue Q4 2010 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic 18% 14% 28% 41% 23% Acquisitions 1% 4% 4% 1% 2% Currency - (2%) (1%) (3%) (1%) Total 19% 16% 31% 39% 24% FY 2010 Industrial Products Engineered Systems Fluid Management Electronic Te
Slide 5: Sequential Results - Q4 / Q3
5 Sequential Results - Q4 10 / Q3 10 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products ^ 3% ^ 12% ^ 16% Electronic Technologies
Slide 6: Industrial Products
6 Industrial Products Broad-based revenue growth in Material Handling driven by infrastructure and energy activity Margin improvements driven by volume increases and leverage on productivity initiatives Quarterly bookings up 22% were broad-based, including recovering trailer markets Recovering marke
Slide 7: Engineered Systems
7 Engineered Systems Revenue gains driven by Hill Phoenix, Product ID and Belvac Operating margin reflects improved conversion at both platforms, partially offset by material cost increases at SWEP Product ID continues to perform well in developing economies; while Hill Phoenix did experience antici
Slide 8: Fluid Management
8 Fluid Management Revenue growth driven by NA rig count growth, gains in oil prices, horizontal drilling activity and strong international pump sales Operating margin improved to 23.6% on volume gains and favorable mix Fluid Solutions markets, such as chemical, sanitary and retail refueling continu
Slide 9: Electronic Technologies
9 Electronic Technologies Revenue growth driven by strong demand for electronic assembly equipment, MEMS microphones, and Solar equipment Operating margin of 18.8% resulting from strong leverage on higher volume and improved cost base Continued interest in Solar offering and active mobile communicat
Slide 10: Q4 2010 Overview
Q4 2010 Overview Q4 2010 FY 2010 Net Interest Expense $26 million, essentially flat with last year $106 million, up $6 million from last year driven by lower yields on cash investments Corporate Expense $35 million, up $6 million from prior year, reflecting higher accruals $136 million, up $17 milli
Slide 11: 2011 Guidance
11 2011 Guidance Revenue: Core revenue: ^ 6% - 8% Acquisitions: ^ 3% Total revenue: ^ 9% - 11% Corporate expense: ^ $135 million Interest expense: ^ $106 million Full-year tax rate: ^ 28% - 29% Capital expenditures: ^ 2.8% - 3.0% of rev. Free cash flow for full year: ^ 10% - 11% of rev.
Slide 12: 2011 EPS Guidance Bridge - Cont. Ops
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): $0.40 - $0.58 Acquisitions: $0.08 - $0.09 Net benefits of productivity: $0.23 - $0.28 Investment / Compensation: ($0.14 - $0.