Slide 1: Third Quarter 2012 Earnings Conference Call
Third Quarter 2012 Earnings Conference Call October 17, 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 Q3 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 Q3 Revenue $2.2B 3% $6.4B 8% EPS (cont.) $1.32 11% $3.51 4% Bookings $2.1B 1% $6.4B 6% Seg. Margins 18.0% 100 bps 17.0% -10 bps Organic Rev. 1% 4% Acq. Growth 4% 6% FCF (a) $230M -26% $496M -3% Dove
Slide 4: Revenue Growth Q3 2012 and YTD 2012
4 Revenue Q3 2012 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic -1% 3% 4% -6% 1% Acquisitions - 8% 7% - 4% Currency -1% -1% -3% -5% -2% Total -2% 10% 8% -11% 3% YTD 2012 Communication Technologies Energy Engineered Systems Printing & Identificatio
Slide 5: Sequential Results – Q2 12 / Q3 12
$674 $674 $370 $358 $362 $396 $539 $562 $212 $218 $0 $300 $600 $900 DCT Q2 DCT Q3 DE Q2 DE Q3 DES Q2 DES Q3 DPI Q2 DPI Q3 $666 $600 $358 $343 $383 $412 $530 $527 $204 $198 $0 $300 $600 $900 DCT Q2 DCT Q3 DE Q2 DE Q3 DES Q2 DES Q3 DPI Q2 DPI Q3 Sequential Results – Q2 12 / Q3 12 Fluid Solutions ↑ 10%
Slide 6: Communication Technologies
6 Communication Technologies • Modest revenue declines in most served end-markets •Within the handset market, strong MEMs revenue growth offset by lower Sound Solutions volume • Margin gains driven by strong leverage on MEMS volume, and absence of one-time acquisition related costs realized in prior
Slide 7: Energy
7 Energy • Revenue and earnings growth driven by production and downstream markets; drilling slowing as anticipated •Average NA rig count declined 7% over prior year; oil prices remain supportive of continued investment in production • Operating margin of 24.7% reflects strong execution • Bookings g
Slide 8: Engineered Systems
8 Engineered Systems • Revenue growth in Refrigeration & Industrial was broad-based; revenue gains in Fluids were driven by recent acquisitions •Results in Fluids continue to be impacted by weak Europe and softer China • Strong margin performance driven by productivity and cost improvements • Bookin
Slide 9: Printing & Identification
Printing & Identification • Revenue and earnings decline driven by a weaker electronics market, a weak Europe & softer China; Fast moving consumer goods market up 6% organically (ex.impact of FX) • Operating margin decline reflects volume decreases and product mix • Bookings decline most evident in
Slide 10: Q3 2012 Overview
Q3 2012 Overview Q3 2012 Net Interest Expense $30.4 million, largely unchanged from last year, in- line with expectations Corporate Expense $32.0 million, down $2 million from last year Effective Tax Rate (ETR) Q3 rate was 27.9%. Higher tax rate was driven by mix of geographic earnings, and included
Slide 11: FY 2012 Guidance – Revenue Growth by Segment
FY 2012 Guidance – Revenue Growth by Segment 11 2012F Organic Growth 2012F Acquisition Growth (b) Total Communication Technologies ≈ 1% 10% ≈ 11% Energy ≈ 11% ≈ 5% ≈ 16% Engineered Systems ≈ 4% ≈ 5% ≈ 9% Printing & Identification ≈ (9%) - ≈ (9%) Total ≈ 3% (a) ≈ 4% ≈ 7% (b) Includes completed deals
Slide 12: FY 2012 Guidance
FY 2012 Guidance Revenue: • Organic revenue : ≈ 3% (inc. -2% FX) • Acquisitions: ≈ 4% • Total revenue: ≈ 7% Corporate expense: ≈ $138 million Interest expense: ≈ $120 million Full-Year Tax Rate: ≈ 27.9% Capital expenditures: ≈ 3.8% of rev. FCF for full year: ≈ 10% of revenue 12 2012 EPS
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): $0.24 - $0.30 • Net benefits of productivity: $0.20 - $0.24 • Acquisitions: ($0.14) • Investment / Compensation: ($0.05) • Corporate expense: - • Interes