Slide 1: Dover Corporation Second Quarter 2009 Conference Call
Dover Corporation Second Quarter 2009 Conference Call July 24, 2009 9:00 am
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. 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 Q2 2009 Performance
3 Dover's Q2 2009 Performance Continuing Earnings Per Share 2006 2007 2008 $2.90 $3.30 $3.67 Revenue $ 1.4B -31% EPS (continuing) $0.54 -45% Segment Margins 11.3% -450 bps Organic Revenue - 29% Net Acquisition Growth 1% Free Cash Flow $165M -13% Quarterly revenue decline reflected weakness in virtua
Slide 4: Revenue Q2 2009
4 Revenue Q2 2009 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic -39% -14% -31% -29% -29% Net Acquisitions (A) 0% 6% 0% -2%(B) 1% Currency -2% -5% -3% -4% -3% Total -41% -13% -34% -35% -31% (A) Acquisition growth was 1.6% for Q2 before disposition
Slide 5: PERFORMANCECOUNTS
5 PERFORMANCECOUNTS Target Q2 2009 Inventory Turns 8.0 6.4 Earnings Growth 10% -46% Segment Operating Margins 15% 11.3% WC as a % of Revenue <20% 19.9% ROI (Operating) 25% 21.7% Dover met 1 out of 5 metrics for Q2 2009
Slide 6: Sequential Results - Q2
6 Sequential Results - Q2 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products ^ 12% ^ 17% ^ 13% Electronic Technologies
Slide 7: Industrial Products
7 Industrial Products Revenue ($ in millions) Operating Earnings ($ in millions) ^ 35% ^ 41% ^ 64% ^ 71% Lower revenue primarily driven by continued weakness in infrastructure and energy end- markets Restructuring actions ongoing, helped dampen effects of low volume Quarterly bookings improved seque
Slide 8: Engineered Systems
8 Engineered Systems Revenue ($ in millions) Operating Earnings ($ in millions) ^ 16% ^ 13% Revenue gains from Tyler acquisition ($33M) were offset by weakness in most other end- markets; Refrigeration cases and systems remained solid •Earnings impacted by lower volume, partially offset by restructu
Slide 9: Fluid Management
9 Fluid Management Revenue ($ in millions) Operating Earnings ($ in millions) ^ 26% ^ 34% ^ 28% ^ 43% Revenue decrease driven by substantially lower volume, particularly in oil and gas drilling and production Earnings decrease driven by volume decline, offset by internal initiatives and restructurin
Slide 10: Electronic Technologies
10 Electronic Technologies Revenue ($ in millions) Operating Earnings ($ in millions) ^ 37% ^ 35% ^ 93% ^ 65% Revenue decline driven by significantly weaker volume in electronic assembly markets, partially offset by growth at Knowles Earnings decline primarily driven by volume; substantial sequentia
Slide 11: Geographic Revenue Mix
11 Geographic Revenue Mix (6 months ended June 30, 2009) Dover Growth Rate: -29% YTD 2009 Growth Rate - -31.0% - -33.5% - -34.6% - -24.7%
Slide 12: Q2 2009 Overview
Q2 2009 Overview Q2 2009 YTD 2009 Free Cash Flow $165.5 million, 12% of revenue, and 164% of net earnings $248.9 million, 9% of revenue, and 154% of net earnings Net Interest Expense $24.8 million, down $2.5 million from lower CP outstanding at lower rates $47.2 million, down $3.6 million YTD Net De
Slide 13: Restructuring Update - Q2 Highlights
Restructuring Update - Q2 13 Highlights Electronic Technologies continued to right-size operations and completed restructuring efforts Industrial Products continues to respond to markets weaker than anticipated Engineered Systems takes cost out of Product Identification platform FY Savings Savings f
Slide 14: Revised 2009 Guidance
14 Revised 2009 Guidance Revenue: Core revenue: ^ (21% - 23%) Impact of FX: ^ ( 3%) Total revenue: ^ (24% - 26%) Capital expenditures: $100 - $120 million Interest expense: $92 - $97 million Full-year tax rate: 25% - 26% Free cash flow for full year: > 10% of revenue Corporate expenses: $110 - $115