Dover Corporation · NYSE:DOV
Dover — Q3 2017 Earnings Presentation
13 slides from Dover's earnings presentation, Oct 19, 2017
Slide 1: Earnings Conference Call Third Quarter 2017
Earnings Conference Call Third Quarter 2017 October 19, 2017 – 9:00am CT Exhibit 99.2
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 2017 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 2017 Performance Earnings Per Share Q3 Q3/Q3 * Excludes gains on dispositions of $0.07 in Q1 2016, $0.36 in Q4 2016, $0.39 in Q1 2017, a $0.09 voluntary product recall charge in Q4 2016, and Wellsite separatio
Slide 4: Revenue Q3 2017
4 Revenue Q3 2017 Engineered Systems Fluids Refrigeration & Food Equip Energy Total Dover Organic 7% 5% 2% 31% 9% Acquisitions 8% 30% - - 10% Dispositions -3% - -6% - -3% Currency 1% 1% 1% - 1% Total 13% 36% -3% 32% 17% Note: Totals may be impacted due to rounding
Slide 5: Engineered Systems
5 Engineered Systems Organic revenue growth of 7% – Printing & Identification driven by strong digital printing markets and solid growth in marking & coding – Industrial’s growth was broad- based with particular strength in waste handling Margin slightly below expectations reflecting timing on i
Slide 6: Fluids
6 Fluids Revenue growth driven by acquisitions and 5% organic growth Return to organic revenue growth driven by: – Solid retail fueling, industrial pump and hygienic & pharma markets – Transport markets remain weak Margin primarily impacted by acquisitions – Sequentially up 220 basis points, s
Slide 7: Refrigeration & Food Equipment
7 Refrigeration & Food Equipment Organic revenue growth reflects strong Refrigeration activity – Solid results in retail refrigeration – Within Food Equipment, continued softness in commercial cooking equipment Margin performance reflects improved productivity and volume leverage in retail refri
Slide 8: Energy
8 Energy Organic revenue growth of 31% – Drilling & Production growth driven by continued improvement in U.S. rig count and increased well completions – Bearings & Compression growth driven by improved OEM build rates and strong service activity – Automation growth reflects improved customer capex
Slide 9: Q3 2017 Overview
9 Q3 2017 Overview 9 Q3 2017 Net Interest Expense $34 million Corporate Expense $32 million, includes Wellsite separation costs of $2 million Effective Tax Rate Q3 rate was 24.6%, reflecting the negative impact of geographic mix, more than offset by discrete tax benefits Capex $60 million Share Repu
Slide 10: FY 2017F Updated Guidance
10 FY 2017F Updated Guidance Corporate expense: ≈ $133 million Net interest expense: ≈ $134 million Q4 tax rate: ≈ 28% Capital expenditures: ≈ 2.4% of revenue FY free cash flow: ≈ 10% - 11% of revenue or 130% - 140% net income* 2017F Engineered Systems Fluids Refrigeration & Food Equip Ene
Slide 11: Slide 11
Slide 12: Appendix
12 Appendix
Slide 13: 2017F EPS Guidance – Updated Bridge
13 2017F EPS Guidance – Updated Bridge 2016 EPS – Continuing Ops (GAAP): $3.25 – Less 2016 gain on dispositions(1): (0.44) – Less 2016 earnings from dispositions(2) : (0.05) – Plus 2016 charges related to recall: 0.09 2016 Adjusted EPS $2.85 – Net restructuring(3): 0.08 - 0.10 – Performance incl