Slide 1: Earnings Conference Call Second Quarter 2016
Earnings Conference Call Second Quarter 2016 July 21, 2016 – 9:00am CT
Slide 2: Forward looking statements and non-GAAP measures
2 Forward looking statements and non-GAAP measures 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
Slide 3: Q2 2016 Performance
3 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Q1 Q2 Q3* Q4* Q1* Q2 Earnings per share Adj. EPS* Q2 2016 Performance Earnings Per Share (continuing operations) Q2 Q2/Q2 * Excludes discrete tax benefits of $0.05 in Q3 2015, $0.06 in Q4 2015, $0.05 in Q1 2016, a $0.01 discrete tax expense in Q2 2016, and $0.07
Slide 4: Revenue Q2 2016
4 Revenue Q2 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover Organic -28% 2% -8% 1% -7% Acquisitions - 3% 24% - 6% Dispositions - -4% - -5% -3% Currency -1% -1% - - - Total -29% - 16% -4% -4% 6M 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover
Slide 5: Energy
5 Energy Revenue decrease driven by declines in oil & gas market fundamentals Q2 2016 expected to be low point in Energy performance Market macro stabilization – NA rig count steadied in Q2 – Oil prices remained in $45 - $50 range Adjusted margin of 5.0% reflects volume and price declines
Slide 6: Engineered Systems
6 Engineered Systems Organic revenue growth of 2% – 9% organic growth in P & I driven by strong marking & coding and digital textile printing equipment markets – Industrial’s organic decline of 2% primarily driven by activity deferrals and tough comps in Environmental Solutions Margin of 17.6% r
Slide 7: Fluids
7 Fluids Revenue growth driven by acquisitions and hygienic & pharma markets – Organic revenue decline driven by Direct oil & gas exposure Lower capital spending from integrated energy customers Project timing Margin impacted by lower organic volume, acquisitions, restructuring costs and d
Slide 8: Refrigeration & Food Equipment
8 Refrigeration & Food Equipment Organic revenue growth of 1% offset by dispositions and FX – Retail refrigeration wins driving organic growth – Can shaping and commercial foodservice businesses are solid, food processing business is soft Margin performance reflects product mix Organic booking
Slide 9: Q2 2016 Overview
9 Q2 2016 Overview 9 Q2 2016 Net Interest Expense $32 million, in-line with forecast Corporate Expense $25 million, in-line with forecast Effective Tax Rate (ETR) Q2 rate was 28.1%. Excluding discrete tax costs, tax rate was 27.3%, slightly lower than expected Capex $35 million, generally in-line wi
Slide 10: FY 2016 Guidance
10 FY 2016 Guidance Revenue – Organic revenue: (8% - 6%) – Acquisitions: ≈ 7% – Dispositions: (≈ 3%) – FX impact: (≈ 1%) – Total revenue: (5% - 3%) Corporate expense: ≈ $108 million Interest expense: ≈ $128 million Full-year tax rate: ≈ 27.5% - 28% Capital expenditures: ≈ 2.3% of revenue
Slide 11: 2016F EPS Guidance – Bridge
11 2016F EPS Guidance – Bridge 2015 EPS – Continuing Ops (GAAP) $ 3.74 – Less 2015 tax items(1): (0.11) 2015 Adjusted EPS $ 3.63 – Net restructuring(2): ≈ 0.07 – Performance including restructuring benefits(3): (0.37 - 0.31) – Compensation & investment: (0.20 - 0.17) – Net acquisitions(4): ≈ 0.1
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