Slide 1: Dover Corporation Fourth Quarter 2009 Conference Call
Dover Corporation Fourth Quarter 2009 Conference Call January 29, 2010 9:00 am
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 2009 Performance
3 Dover's Q4 2009 Performance Continuing Earnings Per Share 2006 2007 2008 $2.90 $3.30 $3.67 Revenue $ 1.5B -13% $ 5.8B -24% EPS (cont.) $0.55 -40% $1.99 -46% Segment Margins 13.1% -220 bps 12.3% -300 bps Organic Revenue - 19% - 24% Net Acq. Growth 4% 2% Free Cash Flow $211M -7% $682M -18% Quarterly
Slide 4: Revenue Q4 2009 and FY 2009 by segment
4 Revenue Q4 2009 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic -29% -15% -21% -6% -19% Net Acquisitions - 17% - - 4% Currency 1% 4% 2% 3% 2% Total -28% 6% -19% -3% -13% FY 2009 Industrial Products Engineered Systems Fluid Management Electronic T
Slide 5: Sequential Results - Q4 / Q3
5 Sequential Results - Q4 09 / Q3 09 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products ^ 3% ^ 9% ^ 22% Electronic Technologies
Slide 6: Industrial Products
6 Industrial Products Lower revenue due to continued weakness in construction, trailer and certain military applications Restructuring actions helped offset effects of low volume Quarterly bookings up 5% year over year and 22% sequentially aided by large military order at Heil Trailer Winch companie
Slide 7: Engineered Systems
7 Engineered Systems Revenue gains from Tyler & Barker acquisitions ($43M) Operating margin impacted by volume reduction and product mix at Hill Phoenix and $3.5 million in restructuring •Bookings up 17% year over year and 3% sequentially driven by acquisitions and Product ID; book-to-bill is 1.03 P
Slide 8: Fluid Management
8 Fluid Management Difficult comps continue, though sequential revenue growth was 9% Operating margin was strong at 20.1% Bookings up 7% sequentially, driven by Energy bookings improvement of 12% Rising NA rig count and improving pump markets help sequential order trend Q4 2009 Q4 2008 % Change Reve
Slide 9: Electronic Technologies
9 Electronic Technologies Year-over-year revenue decline moderated, driven by sequential improvements in electronic assembly and strong Knowles performance; sequential revenue improved 6% Operating margin of 13.6% negatively impacted by $2.4M in restructuring Year-over-year comps impacted by $7.5M g
Slide 10: Q4 2009 Overview
Q4 2009 Overview Q4 2009 FY 2009 Free Cash Flow $211.2 million, 14% of revenue $682.1 million, 12% of revenue Net Interest Expense $26.8 million $100.4 million, up $4.3 million reflecting lower interest income on cash balances Net Debt to Capital 18.4%, down 65 bps from prior year, reflecting lower
Slide 11: Restructuring Update
Restructuring Update 11 Highlights Fourth quarter restructuring activity reflects continuation of our previously announced plans FY Savings Savings from 2009 programs approximately $125M Incremental savings from 2009 programs is $30M-$40M in 2010 2010 No additional programs planned besides normal ac
Slide 12: 2010 Guidance
12 2010 Guidance Revenue: Core revenue: ^ 4% - 6% 2009 Acquisitions: ^ 3% Total revenue: ^ 7% - 9% Corporate expense: ^ $130 million Interest expense: $105 - $110 million Full-year tax rate: 29% - 30% Capital expenditures: ^ 2.3% - 2.5% of revenue Free cash flow for full year: ^ 10% of revenue Full
Slide 13: 2010 EPS Guidance Bridge - Cont. Ops
13 2010 EPS Guidance Bridge - Cont. Ops 2009 EPS - Continuing Ops $1.99 Volume, mix, price (inc. FX): $0.22 - $0.46 2009 acquisitions (inc. Tyler): $0.08 Net benefits of restructuring/productivity: $0.40 - $0.48 Compensation & benefits: ($0.08 - $0.12) Corporate expense: ($0.04) Interest: ($0.03) Ta