Slide 1: Second Quarter 2012 Earnings Conference Call
Second Quarter 2012 Earnings Conference Call July 18, 2012 - 9:00am CT
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 Q2 2012 Performance
$0.40 $0.50 $0.60 $0.70 $0.80 $0.90 $1.00 $1.10 $1.20 $1.30 $1.40 Q1 Q2 Q3* Q4* Q1* Q2* Q3* Q4* Q1 Q2 Revenue $2.2B 8% $4.2B 11% EPS (cont.) $1.15 -9% $2.20 1% Bookings $2.1B 9% $4.3B 8% Seg. Margins 16.7% -140 bps 16.4% -80 bps Organic Rev. 3% 6% Acq. Growth 7% 6% FCF (a) $178M 34% $266M 34% Dover’
Slide 4: Revenue Growth Q2 2012 and 1H 2012
4 Revenue Q2 2012 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic 4% 14% 4% -10% 3% Acquisitions 22% 6% 6% - 7% Currency -1% -1% -2% -4% -2% Total 25% 19% 8% -14% 8% 1H 2012 Communication Technologies Energy Engineered Systems Printing & Identificat
Slide 5: Sequential Results – Q1 12 / Q2 12
$642 $674 $352 $370 $358 $362 $532 $539 $180 $212 $0 $300 $600 $900 DCT Q1 DCT Q2 DE Q1 DE Q2 DES Q1 DES Q2 DPI Q1 DPI Q2 $712 $666 $347 $358 $356 $383 $586 $530 $185 $204 $0 $300 $600 $900 DCT Q1 DCT Q2 DE Q1 DE Q2 DES Q1 DES Q2 DPI Q1 DPI Q2 Sequential Results – Q1 12 / Q2 12 Fluid Solutions ↑ 1%
Slide 6: Communication Technologies
6 Communication Technologies • Revenue growth was led by strong handset, life science and aerospace/industrial, partially offset by soft telecom/other market • Margin impacted by lower telecom volume, costs associated with new design wins and lower volume at Sound Solutions • Bookings growth led by
Slide 7: Energy
7 Energy • Revenue and earnings growth were broad-based across all end- markets •Average NA rig count grew 6% over prior year; oil prices remain constructive for continued capex investment in production • Operating margin of 24.9% reflects strong positioning • Bookings growth led by production and d
Slide 8: Engineered Systems
8 Engineered Systems • Revenue growth was led by Refrigeration & Food Equipment and acquisitions in Fluids •Results in Fluids impacted by weak Europe and softer China • Margin of 15.1% includes incremental amortization costs of recent acquisitions (100 bps) • Bookings up 9%, as most businesses saw g
Slide 9: Printing & Identification
Printing & Identification • Revenue and earnings decline driven by slow electronics markets, a weak Europe & softer China; Markem-Imaje up 5% organically • Operating margin decline reflects volume decreases, product mix and $5 million in restructuring charges • Bookings decline primarily seen in ele
Slide 10: Q2 2012 Overview
Q2 2012 Overview Q2 2012 Net Interest Expense $30.0 million, up $2 million from last year, in-line with expectations Corporate Expense $36.0 million, up $1 million from last year, in-line with expectations Effective Tax Rate (ETR) Q2 rate was 27.5%. Higher tax rate was driven by unfavorable mix of g
Slide 11: FY 2012 Guidance – Revenue Growth by Segment
FY 2012 Guidance – Revenue Growth by Segment 11 2012F Organic Growth 2012F Acquisition Growth* Total Communication Technologies 7% - 8% 10% 17% - 18% Energy 10% - 11% ≈ 5% 15% - 16% Engineered Systems 3% - 4% ≈ 6% 9% - 10% Printing & Identification (8.5%) - (7%) - (8.5%) - (7%) Total 3% - 5% ≈ 5% 8%
Slide 12: FY 2012 Guidance
FY 2012 Guidance Revenue: • Organic revenue: ≈ 3% - 5% • Acquisitions: ≈ 5% • Total revenue: ≈ 8% - 10% Corporate expense: ≈ $145 million Interest expense: ≈ $118 million Full-Year Tax Rate: ≈ 27.0% Capital expenditures: ≈ 3.8% of rev. FCF for full year: ≈ 10% of revenue 12 2012 EPS from
Slide 13: 2012 EPS Guidance Bridge - Cont. Ops
2011 EPS – Continuing Ops $4.48 • Less 2011 tax benefits (1): ($0.22) 2011 Adjusted EPS – Continuing Ops $4.26 • Volume, mix, price (inc. FX): $0.28 - $0.37 • Net benefits of productivity: $0.22 - $0.32 • Acquisitions: $0.03 - $0.05 • Investment / Compensation: ($0.08 - $0.14) • Corporate expens