Slide 1: Earnings Conference Call Second Quarter 2014
Earnings Conference Call Second Quarter 2014 July 17, 2014 – 9:00am CT
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 and risks. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file from time to time wit
Slide 3: Q2 2014 Performance
3 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q1* Q2* Q3* Q4* Q1* Q2 Q2 2014 Performance Adjusted Earnings Per Share* (continuing operations) Q2 Q2/Q2 * Excludes discrete & other tax benefits of $0.02 in Q1 2013, $0.36 in Q2 2013, $0.04 in Q3 2013, $0.04 in Q4 2013, and $0.01 in Q1 2014; excludes other one-
Slide 4: Revenue Q2 2014 and 1H 2014 growth components
4 Revenue Q2 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 3% 5% 2% 1% 3% Acquisitions 1% 4% 9% - 3% Currency -1% - 1% - - Total 3% 9% 12% 1% 6% 1H 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 3% 5% 7% -1% 3% Acquisitions 1% 3% 10% -
Slide 5: Sequential Results – Q1 2014 → Q2 2014
5 Printing & ID Industrial $428 $410 $478 $477 $283 $282 $363 $375 $494 $543 $0 $200 $400 $600 $800 DE Q1 DE Q2 DES Q1 DES Q2 DF Q1 DF Q2 DRE Q1 DRE Q2 Sequential Results – Q1 2014 → Q2 2014 5 $386 $412 $479 $481 $264 $287 $345 $346 $411 $522 $0 $200 $400 $600 $800 DE Q1 DE Q2 DES Q1 DES Q2 DF Q1 DF
Slide 6: Energy
6 Energy Drilling & Production revenue growth was strong in core U.S. markets; partially offset by tough comps related to Australian activity Bearings & Compression results impacted by softness in bearings relating to OEM build rates Overall margin remains strong and in-line with expectations
Slide 7: Engineered Systems
7 Engineered Systems Revenue growth is broad- based in Printing & Identification with very strong results in the US and Europe Revenue growth in Industrial is led by environmental solutions and vehicle services businesses Margin was steady at 16.1%; the benefits of productivity and volume leve
Slide 8: Fluids
8 Fluids Revenue growth driven by solid demand across most end-markets and acquisitions; partially offset by tough comps related to project shipments in Q2 2013 Pumps benefitting from strong demand in specialty chemical verticals; Fluid transfer benefitting from increased regulatory activity E
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue growth driven by strong performance in Food Equipment markets; partially offset by the timing of shipments as we completed the transition to our new Atlanta manufacturing center, and soft Latin American markets Margin improvement driven by productivity ga
Slide 10: Q2 2014 Overview
10 Q2 2014 Overview 10 Q2 2014 Net Interest Expense $32 million, up $2 million from last year and in- line with expectations Corporate Expense $29 million, down $6 million from last year, roughly in-line with expectations Effective Tax Rate (ETR) Q2 rate was 30.8%, in-line with expectations Capex $4
Slide 11: FY 2014 Guidance
11 FY 2014 Guidance Revenue – Organic revenue: 3% - 4% – Completed acquisitions: ≈ 3% – Total revenue: 6% - 7% Corporate expense: ≈ $125 million Interest expense: ≈ $133 million Full-year tax rate: ≈ 31.0% Capital expenditures: ≈ 2.5% of revenue FY free cash flow: ≈ 11% of revenue 2014 O
Slide 12: 2014 EPS Guidance Bridge – Continuing Ops
12 2014 EPS Guidance Bridge – Continuing Ops 2013 EPS – Continuing Ops $ 4.81 – Less 2013 tax benefits(1): (0.46) – Other one-times gains(2): (0.02) 2013 Adjusted EPS $ 4.33 – Volume, mix, price (inc. FX): 0.26 - 0.33 – Net benefits of productivity: 0.17 - 0.21 – Acquisitions: 0.05 - 0.06 – Inve
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