Slide 1: Dover Corporation First Quarter 2009 Conference Call
Dover Corporation First Quarter 2009 Conference Call April 22, 2009 8:00am Exhibit 99.3
Slide 2: Forward Looking Statements
3 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
Slide 3: Dover's Q1 2009 Performance
5 Dover's Q1 2009 Performance Continuing Earnings Per Share 2006 2007 2008 $2.90 $3.30 $3.67 Revenue $1.4B -26.1% EPS (continuing) $0.33 -57% Segment Margins 10.2% -390 bps Organic Revenue -22.6% Acquisition Growth Flat Free Cash Flow $83M -25% Quarterly revenue decline reflected weakness in virtual
Slide 4: Revenue Q1 2009
7 Revenue Q1 2009 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic -27.7% -14.1% -16.2% -33.2% -22.6% Net Acquisitions -0.1%(A) 0.0% 2.4% -2.6%(B) 0.0%(C) Currency -1.7% -5.6% -3.8% -3.4% -3.5% Total -29.5% -19.7% -17.6% -39.2% -26.1% (A) Acquisitio
Slide 5: Industrial Products
9 Industrial Products Revenue ($ in millions) Operating Earnings ($ in millions) Continued weakness in automotive service and infrastructure markets; military markets & Heil Environmental remain strong Earnings decline was driven by volume and restructuring charges of $6 million Bookings were below
Slide 6: Engineered Systems
11 Engineered Systems Revenue ($ in millions) Operating Earnings ($ in millions) Solid refrigeration equipment markets partially offset softness in food packaging and Product ID markets • First quarter earnings impacted by significant restructuring costs of $8 million, partially offset by ongoing MA
Slide 7: Fluid Management
13 Fluid Management Revenue ($ in millions) Operating Earnings ($ in millions) Revenue decrease driven by downturn in oil and gas sectors and industrial markets within Fluid Solutions, slightly offset by solid performance in power generation Strong margin performance driven by restructuring efforts
Slide 8: Electronic Technologies
15 Electronic Technologies Revenue ($ in millions) Operating Earnings ($ in millions) Electronic assembly equipment markets experienced significant further demand declines in the quarter $19 million of restructuring charges were taken during the first quarter of 2009 MEMS and military markets contin
Slide 9: Geographic Revenue Mix (Q1 2009)
17 Geographic Revenue Mix (Q1 2009) Dover Growth Rate: -26% Q1 2009 Growth Rate - -27.0% - -37.5% - -32.3% - -21.0%
Slide 10: PERFORMANCECOUNTS
19 PERFORMANCECOUNTS Target Q1 2009 Inventory Turns 8 6.8 Earnings Growth 10% -58.7% Operating Margins 15% 10.2% WC as a % of Revenue 20% 18.9% ROI (Operating) 25% 24.5% Dover exceeded 1 out of 5 metrics for Q1 2009
Slide 11: Q1 2009 Overview
21 Q1 2009 Overview Free Cash Flow First Quarter 2009: $83.4 million; 6.0% of revenue Free Cash Flow to Net Earnings from Continuing Operations: 136% Interest Expense First Quarter 2009: $22.4 million, down $1 million Driven by lower commercial paper costs and favorable investment mix Net Debt to Ca
Slide 12: Synergy & Global Supply Chain Programs
Synergy & Global Supply Chain Programs 23 2009 Synergy programs $0.04 EPS benefit in Q1 2009 Full year EPS benefit expected to be approximately $0.13 FY 2008 Savings Q1 09 Savings Projected Incremental 09 Savings Global supply chain initiative Comprehensive review of supply chain sourcing and spendi
Slide 13: Restructuring Update - 2009 Q1 & Q2
Restructuring Update - 2009 Q1 & Q2 25 Q1 & Q2 2009 Costs Electronic Technologies restructuring efforts accelerated in Q1 Closed 12 facilities; headcount reduction of 3,700 in Q1 Continued restructuring anticipated in Q2, with emphasis at Engineered Systems and Electronic Technologies Q1 Savings Ach
Slide 14: Restructuring Update - 2009 Full Year
Restructuring Update - 2009 Full Year 27 Projected 2009 Full Year Costs Restructuring efforts projected to cost $73 million in 2009 Net headcount reduction of 4,800 for year; 6,800 over 2008 -2009 Will closed over 20 facilities Electronic Technologies moved bulk of manufacturing capacity to Asia Pro
Slide 15: Revised 2009 Guidance
29 Revised 2009 Guidance Revenue: Core revenue: ^ 15% - 17% Impact of FX: ^ 3% Total revenue: ^ 18% - 20% Capital expenditures: $100 - $120 million Interest expense: $92 - $97 million Full-year tax rate: 29% - 30% Free cash flow for full year: > 10% of revenue Corporate expenses: $90 - $100 million