Slide 1: Earnings Conference Call Third Quarter 2016
Earnings Conference Call Third Quarter 2016 October 19, 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: Q3 2016 Performance
3 $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 Q1 Q2 Q3* Q4* Q1* Q2 Q3 Earnings per share Adj. EPS* Q3 2016 Performance Earnings Per Share (continuing operations) Q3 Q3/Q3 * 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
Slide 4: Revenue Q3 2016
4 Revenue Q3 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Dover Organic -24% 1% -9% -2% -7% Acquisitions - 3% 27% - 6% Dispositions - -5% - -6% -4% Currency -1% -1% -1% - - Total -25% -2% 17% -8% -5% 9M 2016 Energy Engineered Systems Fluids Refrigeration & Food Equip Total
Slide 5: Energy
5 Energy Revenue decrease driven by year-over-year declines in oil & gas market fundamentals – Q3 2016 revenue up 5% sequentially Market macros were more constructive – NA rig count grew in Q3 – Oil prices in $45 - $50 range Adjusted margin of 6.8% reflects volume and price declines Bookings
Slide 6: Engineered Systems
6 Engineered Systems Organic revenue growth of 1% – 5% organic growth in P & I driven by strong marking & coding and digital textile markets – Industrial’s organic decline of 2% primarily driven by activity deferrals and tough comps in Environmental Solutions Margin of 17.0% primarily reflects u
Slide 7: Fluids
7 Fluids Revenue growth driven by acquisitions and strong hygienic & pharma markets – Organic revenue decline driven by Project timing Weak longer cycle upstream & midstream markets Lower capital spending from integrated energy customers Margin impacted by lower organic volume, acquisition
Slide 8: Refrigeration & Food Equipment
8 Refrigeration & Food Equipment Organic revenue decline of 2% primarily driven by project timing in can-shaping equipment business Margin performance reflects production inefficiencies at Hillphoenix and product mix Organic bookings growth of 6% driven by strong order activity in can-shaping
Slide 9: Q3 2016 Overview
9 Q3 2016 Overview 9 Q3 2016 Net Interest Expense $33 million, in-line with forecast Corporate Expense $27 million, in-line with forecast Effective Tax Rate (ETR) Q3 rate was 28% Capex $43 million, generally in-line with forecast Share Repurchases No activity
Slide 10: FY 2016 Guidance
10 FY 2016 Guidance Revenue – Organic revenue: (8% - 7%) – Acquisitions: ≈ 7% – Dispositions: (≈ 3%) – FX impact: (≈ 1%) – Total revenue: (5% - 4%) Corporate expense: ≈ $110 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): ≈ 0.05 – Performance including restructuring benefits(3): (0.73 - 0.71) – Compensation & investment: (0.11 - 0.09) – Net acquisitions(4): ≈ 0.0
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