Slide 1: Earnings Conference Call First Quarter 2014
Earnings Conference Call First Quarter 2014 April 17, 2014 – 9:30am CT
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 and risks. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file from time to time wit
Slide 3: Q1 2014 Performance
3 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q1* Q2* Q3* Q4* Q1* Q1 2014 Performance Adjusted Earnings Per Share* (continuing operations) Q1 Q1/Q1 * Excludes discrete & other tax benefits of $0.02 in Q1 2013 , $0.36 in Q2 2013, $0.04 in Q3 2013, $0.04 in Q4 2013, and $0.01 in Q1 2014; excludes other one-ti
Slide 4: Revenue Q1 2014
4 Revenue Q1 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 4% 4% 14% -3% 4% Acquisitions 1% 3% 11% - 3% Currency -1% - 1% - - Total 4% 7% 26% -3% 7%
Slide 5: Sequential Results – Q4 2013 to Q1 2014
5 Printing & ID Industrial $372 $427 $440 $478 $270 $283 $352 $363 $451 $494 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF Q1 DRE Q4 DRE Q1 Sequential Results – Q4 2013 → Q1 2014 5 $375 $386 $458 $479 $277 $264 $344 $345 $426 $411 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF
Slide 6: Energy
6 Energy Drilling & Production revenue growth remains solid driven by increased well activity; winch markets remain weak Bearings & Compression markets are solid Overall margin remains strong and in-line with expectations at 24.8% Bookings down of 7%; excluding the impact of large internatio
Slide 7: Engineered Systems
7 Engineered Systems Revenue growth is broad- based in Printing & Identification with strong results in the US and China Revenue growth in Industrial is led by waste handling and vehicle services businesses Margin expansion reflects leverage on volume and benefits of productivity initiatives
Slide 8: Fluids
8 Fluids Revenue growth driven by strong demand across most end-markets and acquisitions Pumps continues to see solid plastics and petro-chemical end-markets; Fluid transfer benefitting from global retail fueling trends Excluding the impact of recent acquisitions, segment margin was 20% on str
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue impacted by project timing with customers in both refrigeration and food equipment – Activity will accelerate in seasonally strong 2nd quarter Margin impacted by lower volume and $5 million in net one-time items recorded in Q1 2013 Bookings and backlog
Slide 10: Q1 2014 Overview
10 Q1 2014 Overview 10 Q1 2014 Net Interest Expense $33 million, up $2 million from last year and in- line with expectations Corporate Expense $31 million, down $3 million from last year, in- line with expectations Effective Tax Rate (ETR) Q1 normalized rate was 30.7%, excluding $0.01 of discrete ta
Slide 11: FY 2014 Guidance (unchanged)
11 FY 2014 Guidance (unchanged) Revenue – Organic revenue: 3% - 4% – Completed acquisitions: 3% – Total revenue: 6% - 7% Corporate expense: ≈ $123 million Interest expense: ≈ $133 million Full-year tax rate: ≈ 31.0% Capital expenditures: ≈ 2.5% of revenue FY free cash flow: ≈ 11% of reve
Slide 12: 2014 EPS Guidance Bridge – Continuing Ops
12 2014 EPS Guidance Bridge – Continuing Ops 2013 EPS – Continuing Ops $ 4.81 – Less 2013 tax benefits(1): (0.46) – Other one-times gains(2): (0.02) 2013 Adjusted EPS $ 4.33 – Volume, mix, price (inc. FX): $0.16 - $0.28 – Net benefits of productivity: 0.14 - 0.22 – Acquisitions: 0.05 - 0.07 – In
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