Slide 1: Dover Corporation Third Quarter 2010 Conference Call
Dover Corporation Third Quarter 2010 Conference Call October 22, 2010 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 Q3 2010 Performance
3 Dover's Q3 2010 Performance Continuing Earnings Per Share 2008 FY $3.67 Revenue $ 1.9B ^ 26% $ 5.3B ^ 23% EPS (cont.) $1.18 ^ 103% $2.73 ^ 88% Segment Margins 17.1% ^ 280 bps 16.4% ^ 440 bps Organic Rev. Growth ^ 25% ^ 19% Net Acq. Growth ^ 3% ^ 4% FCF $157M ^ 29% $389M ^ 17% Quarterly revenue and
Slide 4: Revenue Q3 2010
4 Revenue Q3 2010 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic 20% 16% 32% 41% 25% Net Acquisitions - 5% 3% 1% 3% Currency (1%) (2%) - (3%) (2%) Total 19% 19% 35% 39% 26%
Slide 5: Sequential Results - Q3 / Q2
5 Sequential Results - Q3 10 / Q2 10 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products ^ 2% ^ 7% ^ 11% Electronic Technologies
Slide 6: Industrial Products
6 Industrial Products Broad-based revenue growth in Material Handling driving results Margin improvements driven by volume increases and leverage on productivity initiatives Quarterly bookings up 29% driven by better non-residential construction markets Book-to-bill of 0.97 reflecting normal seasona
Slide 7: Engineered Systems
7 Engineered Systems Revenue gains driven by strong Hill Phoenix business and Belvac Operating margin reflects material cost increases at SWEP and geographic & product mix, mostly offset by Hill Phoenix volume gains Product ID business trends remain solid; Hill Phoenix continues to benefit from acti
Slide 8: Fluid Management
8 Fluid Management Revenue growth driven by NA rig count growth, continued penetration of horizontal drilling and solid pump demand Operating margin improved to 24.5% on volume gains and favorable mix Fluid Solutions markets continue exhibiting broad-based recovery Book-to-bill of 0.98 reflects mode
Slide 9: Electronic Technologies
9 Electronic Technologies Year-over-year revenue growth driven by strong demand for electronic assembly equipment, MEMS microphones, passive components and emerging Solar equipment business Operating margin of 18.3% resulting from strong leverage on higher volume and improved cost base Product innov
Slide 10: Q3 2010 Overview
Q3 2010 Overview Q3 2010 Free Cash Flow $157 million, 8% of revenue, down $65 million from prior year. Result impacted by continued investments in capex and an increase in working capital to support expanding business Net Interest Expense $26 million, essentially flat with last year Net Debt to Capi
Slide 11: 2010 Guidance - Update
11 2010 Guidance - Update Revenue: Core revenue: ^ 16.5% - 17.5% 2009 Acquisitions: ^ 3.5% Total revenue: ^ 20.0% - 21.0% Corporate expense: ^ $134 million Interest expense: ^ $110 million Full-year tax rate: ^ 25% - 26%* Capital expenditures: ^ 2.5% of revenue Free cash flow for full year: ^ 10% of
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): $1.11 - $1.20 2009 acquisitions: $0.13 Net benefits of restructuring/productivity: $0.53 - $0.56 Compensation & benefits: ($0.24 - $0.32) Corporate expense: ($0.05) Interest: ($0.03) Q3 tax gains: $