Slide 1: Earnings Conference Call Third Quarter 2014
Earnings Conference Call Third Quarter 2014 October 16, 2014 – 9:00am 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: Q3 2014 Performance
3 $0.50 $0.70 $0.90 $1.10 $1.30 $1.50 Q1* Q2* Q3* Q4* Q1* Q2 Q3* Q3 2014 Performance Adjusted Earnings Per Share* (continuing operations) Q3 Q3/Q3 * 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, $0.01 in Q1 2014, and $0.03 in Q3 201
Slide 4: Revenue Q3 2014
4 Revenue Q3 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 5% 4% 6% 1% 4% Acquisitions 3% 4% 11% - 4% Currency - - - - - Total 8% 8% 17% 1% 8% 9M 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 4% 5% 7% - 4% Acquisitions 2% 3% 10% - 3%
Slide 5: Sequential Results – Q2 2014 to Q3 2014
5 Printing & ID Industrial $410 $386 $477 $526 $282 $281 $375 $351 $543 $459 $0 $200 $400 $600 $800 DE Q2 DE Q3 DES Q2 DES Q3 DF Q2 DF Q3 DRE Q2 DRE Q3 Sequential Results – Q2 2014 → Q3 2014 5 $412 $405 $481 $507 $287 $291 $346 $362 $522 $529 $0 $200 $400 $600 $800 DE Q2 DE Q3 DES Q2 DES Q3 DF Q2 DF
Slide 6: Energy
6 Energy Drilling & Production revenue growth was strong in core U.S. markets; partially offset by tough comps related to Australia and lower Canada activity Bearings & Compression results reflect improving compression end-markets Overall margin remains strong at 24.2% and includes 100 bps dil
Slide 7: Engineered Systems
7 Engineered Systems Revenue growth is broad- based – Printing & Identification had very strong results in the US and from MS Printing – Industrial growth is led by auto-related businesses Margin was solid at 17.2%; the benefits of productivity and volume leverage largely offset business mix (lo
Slide 8: Fluids
8 Fluids Revenue growth driven by strong demand in Fluid Transfer and acquisitions Fluid transfer benefitting from increased regulatory activity around the safe transport of fuels and flammable materials Pumps results driven by North America and new products Segment margin of 18.7% impacted
Slide 9: Refrigeration & Food Equipment
9 Refrigeration & Food Equipment Revenue growth driven by Refrigeration markets, partially offset by customer push-outs and the timing of Belvac shipments in Food Equipment Margin performance reflects the impact of unanticipated supply chain costs, inefficiencies connected with customer push-out
Slide 10: Q3 2014 Overview
10 Q3 2014 Overview 10 Q3 2014 Net Interest Expense $31 million, up $1 million from last year and in- line with expectations Corporate Expense $28 million, down $5 million from last year, generally in-line with expectations Effective Tax Rate (ETR) Q3 rate was 30.8%, excluding $0.03 discrete tax ben
Slide 11: FY 2014 Guidance
11 FY 2014 Guidance Revenue – Organic revenue: ≈ 4% – Completed acquisitions: ≈ 4% – Total revenue: ≈ 8% Corporate expense: ≈ $120 million Interest expense: ≈ $130 million Full-year tax rate: ≈ 31.0% Capital expenditures: ≈ 2.3% of revenue FY free cash flow: ≈ 11% of revenue 2014 Organic
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-time gains(2): (0.02) 2013 Adjusted EPS $ 4.33 – Volume, mix, price (inc. FX): 0.26 - 0.29 – Net benefits of productivity: 0.16 - 0.18 – Acquisitions(3): (0.01) - 0.00 –
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