Slide 1: Dover Corporation Second Quarter 2010 Conference Call
Dover Corporation Second Quarter 2010 Conference Call July 23, 2010 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 2010 Performance
3 Dover’s Q2 2010 Performance Continuing Earnings Per Share 2008 $3.67 Revenue $ 1.8B 29% $ 3.4B 22% EPS (cont.) $0.91 69% $1.55 80% Segment Margins 16.9% 560 bps 16.0% 530 bps Organic Rev. Growth 24% 15% Net Acq. Growth 4% 5% FCF $184M 12% $232M 7% Quarterly revenue and earnings increases reflect i
Slide 4: Revenue Q2 2010
4 Revenue Q2 2010 Industrial Products Engineered Systems Fluid Management Electronic Technologies Total Dover Organic 21% 14% 32% 37% 24% Net Acquisitions - 9% 4% 1% 4% Currency - - 1% 3% 1% Total 21% 23% 37% 41% 29%
Slide 5: Sequential Results - Q2 / Q1
5 Sequential Results - Q2 10 / Q1 10 Material Handling Fluid Solutions Mobile Equipment Energy Product Identification Engineered Products 8% 19% 18% Electronic Technologies
Slide 6: Industrial Products
6 Industrial Products Revenue growth in Material Handling partially offset by softness in dry-bulk trailers and commercial aerospace Margin improvements driven by volume increases, prior restructuring and one-time gains of $4.1M Quarterly bookings up 38% driven by better non-residential construction
Slide 7: Engineered Systems
7 Engineered Systems Revenue gains from Product ID and Hill Phoenix (including 2009 acquisitions) Improved operating margin driven by volume increases at Hill Phoenix, partially offset by net material costs at SWEP Markem-Imaje business trends remain solid; Hill Phoenix continues to benefit from act
Slide 8: Fluid Management
8 Fluid Management Revenue growth driven by NA rig count growth, continued penetration of horizontal drilling and solid pump demand Operating margin improved to 23.8% on volume gains and favorable mix Fluid Solutions markets showing broad-based recovery in end- market demand Bookings growth solid ac
Slide 9: Electronic Technologies
9 Electronic Technologies Year-over-year revenue growth driven by strong demand for electronic assembly equipment, solar equipment and MEMS microphones Operating margin of 17.2% resulting from strong leverage on higher volume and improved cost base Product innovation driving results at Knowles and D
Slide 10: Q2 2010 Overview
Q2 2010 Overview Q2 2010 Free Cash Flow $184.3 million, 12% of revenue Net Interest Expense $26.9 million, up $3 million from prior year reflecting lower yield on investments Net Debt to Capital 18.1%, largely unchanged from year-end 2009 Effective Tax Rate (ETR) 29.2%, in-line with full-year expect
Slide 11: 2010 Guidance - Update
11 2010 Guidance - Update Revenue: Core revenue: 13% - 15% 2009 Acquisitions: 3% Total revenue: 16% - 18% Corporate expense: $130 million Interest expense: $110 million Full-year tax rate: 29% - 30% Capital expenditures: 2.5% of revenue Free cash flow for full year: > 10% of revenue Full year EPS: $
Slide 12: 2010 EPS Guidance Bridge - Cont. Ops
12 2010 EPS Guidance Bridge - Cont. Ops 2009 EPS - Continuing Ops $1.99 Volume, mix, price (inc. FX): $0.98 - $1.15 2009 acquisitions: $0.12 Net benefits of restructuring/productivity: $0.51 - $0.58 Compensation & benefits: ($0.20 - $0.28) Corporate expense: ($0.04) Interest: ($0.03) Tax rate / othe