Slide 1: Dover Corporation Third Quarter 2011 Conference Call
Dover Corporation Third Quarter 2011 Conference Call October 21, 2011 10:30 am ET
Slide 2: Forward Looking Statements
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 ou
Slide 3: Dover's Q3 2011 Performance
Revenue $ 2.2B ↑ 22% $ 6.1B ↑ 22% EPS (cont.) $1.21 ↑ 4% $3.43 ↑ 27% Bookings $2.1B ↑ 23% $6.4B ↑ 21% Seg. Margins 16.9% ↓ 70 bps 16.9% ↓ 10 bps Organic Rev. ↑ 10% ↑ 14% Acq. Growth ↑ 9% ↑ 6% FCF (a) $316M ↑ 128% $523M ↑ 48% FY $3.71 * Includes discrete tax benefits of $0.20 EPS in Q3 2010, $0.07 in
Slide 4: Revenue
Q3 2011 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic 16% 4% 23% 2% 10% Net Acquisitions 2% - 15% 24% 9% Currency 1% 4% 2% 3% 3% Total 19% 8% 40% 29% 22% YTD 2011 Industrial Products Engineered Systems Fluid Management Electronic Technologies Tot
Slide 5: Sequential Results - Q3 / Q2 11
↓ 1% ↑ 4% ↓ 13% ↓ 3% ↑ 5% ↑ 22% Sequential Results - Q3 11 / Q2 11 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products Electronic Technologies $ in millions
Slide 6: Industrial Products
Q3 2011 Q3 2010 % Change Revenue $459 $386 +19% Earnings $ 64 $ 55 +18% Margin 14.0% 14.2% ↓ 20 bps Bookings $447 $372 +20% YTD 2011 YTD 2010 % Change Revenue $1,348 $1,129 +19% Earnings $ 187 $166 +13% Margin 13.9% 14.7% ↓ 80 bps Bookings $1,481 $1,153 +28% Industrial Products • Revenue growth was
Slide 7: Engineered Systems
Q3 2011 Q3 2010 % Change Revenue $670 $620 + 8% Earnings $103 $ 91 +12% Margin 15.3% 14.7% ↑ 60 bps Bookings $617 $547 +13% YTD 2011 YTD 2010 % Change Revenue $1,876 $1,682 +12% Earnings $ 264 $ 231 +14% Margin 14.1% 13.7% ↑ 40 bps Bookings $1,890 $1,738 +9% Engineered Systems • Revenue growth was b
Slide 8: Fluid Management
Q3 2011 Q3 2010 % Change Revenue $585 $416 +40% Earnings $144 $102 +42% Margin 24.7% 24.5% ↑ 20 bps Bookings $582 $409 +42% YTD 2011 YTD 2010 % Change Revenue $1,628 $1,201 +36% Earnings $ 389 $ 285 +37% Margin 23.9% 23.7% ↑ 20 bps Bookings $1,709 $1,215 +41% Fluid Management • Revenue and earnings
Slide 9: Electronic Technologies
Q3 2011 Q3 2010 % Change Revenue $492 $381 +29% Earnings $ 60 $ 69 - 14% Margin 12.2% 18.3% ↓ 610 bps Bookings $479 $402 +19% YTD 2011 YTD 2010 % Change Revenue $1,278 $1,018 +26% Earnings $ 197 $ 174 +13% Margin 15.4% 17.1% ↓ 170 bps Bookings $1,293 $1,155 +12% Electronic Technologies • Revenue gro
Slide 10: Q3 2011 Overview
Q3 2011 Net Interest Expense $30.0 million, up $4 million from last year, due to higher outstanding long-term debt Corporate Expense $34.0 million, essentially flat with last year, and in-line with expectations Effective Tax Rate (ETR) Q3 rate was 25.6%. Rate reflects $0.01 EPS benefit on resolution
Slide 11: FY 2011 Guidance - Update
FY 2011 Guidance - Update • Revenue: – Core revenue: ≈ 13.0% – Acquisitions: ≈ 7.0% – Total revenue: ≈ 20.0% • Corporate expense: ≈ $135 million (unchanged) • Interest expense: ≈ $116 million (unchanged) • Full-Year Tax Rate: ≈ 27%* • Capital expenditures: ≈ 3% of rev. • Free cash flow for full year
Slide 12: 2011 EPS Guidance Bridge - Cont. Ops
• 2010 EPS $3.74 – Less 2010 operating earnings of Paladin / Crenlo: ($0.03) – Less 2010 tax benefits: ($0.27) • 2010 Adjusted EPS - Continuing Ops $3.44 – Volume, mix, price (inc. FX): $0.60 - $0.65 – Net benefits of productivity: $0.26 - $0.28 – Acquisitions: $0.07 - $0.08 – Investment / Compensat
Slide 13: Guidance Reconciliation
Low Mid High Prior EPS Guidance (7/21/11) $4.50 $4.55 $4.60 Adj. for Paladin and Crenlo Sale (0.14)* (0.14)* (0.14)* Adjusted Prior EPS Guidance $4.36 $4.41 $4.46 Performance 0.04 Q3 Tax (discrete & lower rate) 0.02 Revised EPS Guidance $4.45 $4.47 $4.50 Guidance Reconciliation * Includes 2011 Palad