SEC Filing | Dover Corporation

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2012.06.30 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

FORM 8-K

________________________________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 18, 2012

________________________________

DOVER CORPORATION

(Exact name of registrant as specified in its charter)

________________________________



State of Delaware	1-4018	53-0257888
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

3005 Highland Parkway
Downers Grove, Illinois		60515
(Address of principal executive offices)		(Zip Code)

(630) 541-1540

(Registrant’s telephone number, including area code)

______________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:



¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 18, 2012, Dover Corporation (i) issued the Press Release attached hereto as Exhibit 99.1 announcing its results of operations for the second quarter ended June 30, 2012; and (ii) posted on its website at

http://www.dovercorporation.com the presentation slides attached hereto as Exhibit 99.2 for the quarter ended June 30, 2012.

The information in this Current Report on Form 8-K, including exhibits, is being furnished to the Securities and Exchange Commission (the “SEC”) and shall not be deemed to be incorporated by reference into any of Dover’s filings with the SEC under the Securities Act of 1933.

Item 9.01 Financial Statements and Exhibits.


(a)	Financial statements of businesses acquired.

Not applicable.


(b)	Pro forma financial information.

Not applicable.


(c)	Shell company transactions.

Not applicable.


(d)	Exhibits.

The following exhibits are furnished as part of this report:

99.1 Dover Corporation Press Release dated July 18, 2012.

99.2 Presentation Slides posted on Dover Corporation’s website at http://www.dovercorporation.com.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.




Date: July 18, 2012	DOVER CORPORATION
	(Registrant)

	By:	/s/ Joseph W. Schmidt
		Joseph W. Schmidt
		Senior Vice President, General Counsel & Secretary

EXHIBIT INDEX



Number		Exhibit
99.1		Press Release of Dover Corporation, dated July 18, 2012

99.2		Presentation Slides posted on Dover Corporation’s website at http://www.dovercorporation.com

2012.06.30 8-K Exhibit 99.1

Exhibit 99.1



CONTACT:		READ IT ON THE WEB
Paul Goldberg		www.dovercorporation.com
Vice President - Investor Relations
(212) 922-1640

DOVER CORPORATION REPORTS SECOND QUARTER 2012 RESULTS


•	Reports revenue of $2.2 billion, an increase of 8% over the prior year


•	Delivers quarterly diluted earnings per share from continuing operations of $1.15


•	Expects full-year revenue growth of 8% - 10%, and full-year earnings per share from continuing operations to be $4.70 - $4.85

Downers Grove, Illinois, July 18, 2012 — Dover Corporation (NYSE: DOV) announced today that for the second quarter ended June 30, 2012, revenue was $2.2 billion, an increase of 8% over the prior-year period. The revenue increase was driven by organic growth of 3% and a 7% increase from acquisitions, offset in part by a 2% unfavorable impact from foreign exchange. Earnings from continuing operations were $212.9 million, or $1.15 diluted earnings per share (“EPS”), compared to $239.2 million, or $1.26 EPS, in the prior-year period, representing decreases in earnings from continuing operations and EPS of 11% and 9%, respectively. Excluding $0.12 of tax benefits in the prior-year period, EPS from continuing operations increased 1% in the 2012 second quarter.

Revenue for the six months ended June 30, 2012 was $4.2 billion, an increase of 11% over the prior-year period, reflecting organic growth of 6%, a 6% increase from acquisitions and a 1% unfavorable impact from foreign exchange. Earnings from continuing operations for the six months ended June 30, 2012 were $409.7 million, or $2.20 EPS, compared to $414.0 million, or $2.18 EPS in the prior-year period, representing a decrease in earnings from continuing operations of 1% and an increase in EPS of 1%. Excluding the impact of tax benefits of $0.16 EPS in the prior-year period, adjusted diluted EPS for the six months ended June 30, 2012 increased 9%.

Commenting on the second quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, “Our strong positions in the energy, handset and refrigeration & food equipment markets enabled us to offset significant macroeconomic headwinds, most notably a weak European economy. While our second quarter results were less than we expected, business activity remains solid in most of our businesses as evidenced by our 0.99 book-to-bill.”

“I was especially encouraged with increasing order rates for our new products connected with OEM handset launches. The continuation of this activity, coupled with our solid outlook for our businesses serving the oil production, downstream energy, fast moving consumer goods and U.S. industrial markets, give me confidence that we will be able to deliver a stronger second half of 2012.”

“Looking forward, we now expect full-year 2012 revenue growth of 8% - 10%, comprised of organic revenue growth of 3% - 5%, plus growth from completed acquisitions of 5%. Based on this revenue assumption, we expect full-year diluted EPS from continuing operations in the range of $4.70 - $4.85.”

Net earnings for the second quarter of 2012 were $214.1 million or $1.15 EPS, including a net gain from discontinued operations of $1.2 million, compared to net earnings of $249.8 million, or $1.32 EPS, for the same period of 2011, which included a gain from discontinued operations of $10.6 million, or $0.06 EPS. Net earnings for the six months ended June 30, 2012 were $410.2 million, or $2.20 EPS, including a net gain from discontinued operations of $0.4 million, compared to net earnings of $444.7 million, or $2.34 EPS for the same period of 2011, which included a gain from discontinued operations of $30.7 million or $0.16 EPS.

Dover will host a webcast of its second quarter 2012 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, July 18, 2012. The webcast can be accessed at the Dover Corporation website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover’s second quarter results and its operating segments can also be found on the company’s website.

About Dover:

Dover Corporation is a multi-billion dollar diversified global manufacturer. For over 50 years, Dover has been providing its customers with outstanding products and services that reflect the company’s commitment to operational excellence, innovation and market leadership. The company focuses on innovative equipment and components, specialty systems and support services through its four major operating segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification. Dover is headquartered in Downers Grove, Illinois and employs 35,000 people worldwide. Dover Corporation is traded on the New York Stock Exchange under "DOV." Additional information is available on the company’s website at www.dovercorporation.com.

Forward-Looking Statement:

This press release contains “forward-looking” statements within the meaning of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover companies operate and the U.S. and global economies. Statements in this press release that are not historical may be indicated by words or phrases such as “anticipates,” “expects,” “believes,” “indicates,” “suggests,” “will,” “plans,” “supports,” “projects,” “should,” “would,” “could,” “hope,” “forecast” and “management is of the opinion,” use of future tense and similar words or phrases. Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from current expectations, including, but not limited to, uncertainties in the credit and capital markets, interest rates, currency exchange rates, the world economy and sovereign credit, especially in Europe; political events and possible future terrorist threats that could impact countries where Dover does business or the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; increases in the cost of raw materials; the Company’s ability to achieve expected savings from integration, synergy and other cost-control initiatives; the ability to identify and successfully consummate value-adding acquisition opportunities; increased competition and pricing pressures in the markets served by Dover’s operating companies; the ability of Dover’s companies to expand into new geographic markets and to anticipate and meet customer demands for new products and product enhancements; the impact of loss of a single-source manufacturing facility; changes in customer demand; a downgrade in Dover’s credit ratings; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints; domestic and foreign governmental and public policy changes including environmental regulations, tax policies, export subsidy programs, R&E credits and other similar programs; unforeseen developments in contingencies such as litigation; protection and validity of patent and other intellectual property rights; and the cyclical nature of some of Dover’s companies. Dover Corporation refers you to the documents that it files from time to time with the Securities and

Exchange Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a discussion of these and other risks and uncertainties that could cause its actual results to differ materially from its current expectations and from the forward-looking statements contained in this press release. Dover Corporation undertakes no obligation to update any forward-looking statement.

INVESTOR SUPPLEMENT - SECOND QUARTER 2012

DOVER CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS

(unaudited)(in thousands, except per share data)



	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Revenue	$	2,156,508	$	1,994,970	$	4,219,872	$	3,807,048
Cost of goods and services	1,338,911		1,218,974		2,621,951		2,319,301
Gross profit	817,597		775,996		1,597,921		1,487,747
Selling and administrative expenses	494,050		448,399		974,930		901,826
Operating earnings	323,547		327,597		622,991		585,921
Interest expense, net	29,717		28,157		59,744		56,475
Other expense, net	142		1,477		2,764		2,665
Earnings before provision for income taxes and discontinued operations	293,688		297,963		560,483		526,781
Provision for income taxes	80,786		58,765		150,754		112,792
Earnings from continuing operations	212,902		239,198		409,729		413,989
Earnings from discontinued operations, net	1,199		10,571		435		30,685
Net earnings	$	214,101	$	249,769	$	410,164	$	444,674

Comprehensive earnings	$	120,514	$	269,404	$	357,819	$	535,970

Basic earnings per common share:
Earnings from continuing operations	$	1.16	$	1.28	$	2.23	$	2.22
Earnings from discontinued operations, net	0.01		0.06		—		0.16
Net earnings	1.17		1.34		2.23		2.38

Weighted average shares outstanding	183,494		186,443		183,625		186,522

Diluted earnings per common share:
Earnings from continuing operations	$	1.15	$	1.26	$	2.20	$	2.18
Earnings from discontinued operations, net	0.01		0.06		—		0.16
Net earnings	1.15		1.32		2.20		2.34

Weighted average shares outstanding	185,780		189,705		186,171		189,905

Dividends paid per common share	$	0.315	$	0.275	$	0.63	$	0.55

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(unaudited)(in thousands)



	2012									2011
	Q1			Q2			Q2 YTD			Q1			Q2			Q2 YTD			Q3			Q4			FY 2011
REVENUE
Communication Technologies	$	357,575		$	361,689		$	719,264		$	269,582		$	288,843		$	558,425		$	405,357		$	396,295		$	1,360,077

Energy	531,570			538,786			1,070,356			425,424			454,327			879,751			510,608			510,390			1,900,749

Engineered Systems
Fluid Solutions	180,364			211,974			392,338			163,196			178,031			341,227			173,804			162,590			677,621
Refrigeration & Industrial	642,213			674,501			1,316,714			560,453			645,573			1,206,026			649,768			568,844			2,424,638
Eliminations	(453		)	(352		)	(805		)	(382		)	(424		)	(806		)	(431		)	(287		)	(1,524		)
	822,124			886,123			1,708,247			723,267			823,180			1,546,447			823,141			731,147			3,100,735

Printing & Identification	352,332			370,173			722,505			394,627			429,497			824,124			400,515			368,325			1,592,964

Intra-segment eliminations	(237		)	(263		)	(500		)	(822		)	(877		)	(1,699		)	(1,015		)	(1,671		)	(4,385		)

Total consolidated revenue	$	2,063,364		$	2,156,508		$	4,219,872		$	1,812,078		$	1,994,970		$	3,807,048		$	2,138,606		$	2,004,486		$	7,950,140

NET EARNINGS
Segment Earnings:
Communication Technologies	$	46,556		$	50,322		$	96,878		$	47,325		$	54,527		$	101,852		$	53,433		$	71,097		$	226,382
Energy	132,115			133,936			266,051			93,051			110,447			203,498			125,268			121,871			450,637
Engineered Systems	122,092			133,808			255,900			98,235			128,570			226,805			125,529			92,852			445,186
Printing & Identification	32,605			41,674			74,279			54,637			67,967			122,604			59,447			44,483			226,534
Total Segments	333,368			359,740			693,108			293,248			361,511			654,759			363,677			330,303			1,348,739
Corporate expense / other	36,546			36,335			72,881			36,112			35,391			71,503			34,083			32,393			137,979
Net interest expense	30,027			29,717			59,744			28,318			28,157			56,475			30,061			29,060			115,596
Earnings from continuing operations before provision for income taxes	266,795			293,688			560,483			228,818			297,963			526,781			299,533			268,850			1,095,164
Provision for income taxes	69,968			80,786			150,754			54,027			58,765			112,792			76,095			59,912			248,799
Earnings from continuing operations	196,827			212,902			409,729			174,791			239,198			413,989			223,438			208,938			846,365
Earnings (loss) from discontinued operations, net	(764		)	1,199			435			20,114			10,571			30,685			(51,158		)	69,351			48,878
Net earnings	$	196,063		$	214,101		$	410,164		$	194,905		$	249,769		444,674			$	172,280		278,289			$	895,243

SEGMENT OPERATING MARGIN
Communication Technologies	13.0		%	13.9		%	13.5		%	17.6		%	18.9		%	18.2		%	13.2		%	17.9		%	16.6		%
Energy	24.9		%	24.9		%	24.9		%	21.9		%	24.3		%	23.1		%	24.5		%	23.9		%	23.7		%
Engineered Systems	14.9		%	15.1		%	15.0		%	13.6		%	15.6		%	14.7		%	15.2		%	12.7		%	14.4		%
Printing & Identification	9.3		%	11.3		%	10.3		%	13.8		%	15.8		%	14.9		%	14.8		%	12.1		%	14.2		%
Total Segment	16.2		%	16.7		%	16.4		%	16.2		%	18.1		%	17.2		%	17.0		%	16.5		%	17.0		%

DEPRECIATION AND AMORTIZATION EXPENSE
Communication Technologies	$	31,513		$	32,828		$	64,341		$	18,685		$	18,533		$	37,218		$	34,360		$	30,261		$	101,839
Energy	21,184			23,533			44,717			18,573			18,765			37,338			19,399			21,082			77,819
Engineered Systems	19,582			23,913			43,495			18,415			18,816			37,231			18,332			19,213			74,776
Printing & Identification	11,206			11,448			22,654			11,372			11,685			23,057			11,548			11,543			46,148
Corporate	700			765			1,465			586			626			1,212			636			713			2,561
	$	84,185		$	92,487		$	176,672		$	67,631		$	68,425		$	136,056		$	84,275		$	82,812		$	303,143

DOVER CORPORATION

QUARTERLY SEGMENT INFORMATION

(continued)

(unaudited)(in thousands)



	2012									2011
	Q1			Q2			Q2 YTD			Q1			Q2			Q2 YTD			Q3			Q4			FY 2011
BOOKINGS
Communication Technologies	$	356,386		$	383,135		$	739,521		$	274,611		$	309,734		$	584,345		$	410,616		$	349,579		$	1,344,540

Energy	585,775			530,352			1,116,127			495,125			472,543			967,668			498,212			519,525			1,985,405

Engineered Systems
Fluid Solutions	184,711			204,139			388,850			173,626			175,539			349,165			174,772			158,895			682,832
Refrigeration & Industrial	711,911			666,223			1,378,134			660,449			623,929			1,284,378			602,488			625,840			2,512,706
Eliminations	(408		)	(376		)	(784		)	(733		)	(884		)	(1,617		)	179			(1,378		)	(2,816		)
	896,214			869,986			1,766,200			833,342			798,584			1,631,926			777,439			783,357			3,192,722

Printing & Identification	347,368			357,648			705,016			438,526			386,259			824,785			384,085			353,849			1,562,719

Intra-segment eliminations	(609		)	(222		)	(831		)	(2,736		)	(3,370		)	(6,106		)	(2,452		)	(3,153		)	(11,711		)

Total consolidated bookings	$	2,185,134		$	2,140,899		$	4,326,033		$	2,038,868		$	1,963,750		$	4,002,618		$	2,067,900		$	2,003,157		$	8,073,675

BACKLOG
Communication Technologies	$	435,912		$	457,624					$	410,843		$	431,558					$	483,512		$	437,320

Energy	296,360			282,364						240,198			255,889						243,401			246,351

Engineered Systems
Fluid Solutions	191,327			172,300						57,357			54,945						55,230			54,194
Refrigeration & Industrial	598,910			586,824						544,995			523,011						469,876			528,118
Eliminations	(132		)	(155		)				(339		)	(526		)				(94		)	(177		)
	790,105			758,969						602,013			577,430						525,012			582,135

Printing & Identification	177,511			160,311						262,629			220,619						197,792			180,871

Intra-segment eliminations	(987		)	(647		)				(704		)	(1,178		)				(891		)	(193		)

Total consolidated backlog	$	1,698,901		$	1,658,621					$	1,514,979		$	1,484,318					$	1,448,826		$	1,446,484

DOVER CORPORATION

QUARTERLY EARNINGS PER SHARE

(unaudited)(in thousands, except per share data)



	2012							2011
	Q1			Q2		Q2 YTD		Q1		Q2		Q2 YTD		Q3			Q4		FY 2011
Basic earnings (loss) per common share:
Continuing operations	$	1.07		$	1.16	$	2.23	$	0.94	$	1.28	$	2.22	$	1.20		$	1.13	$	4.55
Discontinued operations	—			0.01		—		0.11		0.06		0.16		(0.28		)	0.38		0.26
Net earnings	1.07			1.17		2.23		1.04		1.34		2.38		0.93			1.51		4.82

Diluted earnings (loss) per common share:
Continuing operations	$	1.05		$	1.15	$	2.20	$	0.92	$	1.26	$	2.18	$	1.19		$	1.12	$	4.48
Discontinued operations	—			0.01		—		0.11		0.06		0.16		(0.27		)	0.37		0.26
Net earnings	1.05			1.15		2.20		1.03		1.32		2.34		0.91			1.49		4.74

Adjusted diluted earnings per common share (calculated below):
Continuing operations	$	1.05		$	1.15	$	2.20	$	0.88	$	1.14	$	2.02	$	1.18		$	1.07	$	4.26


Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:

Net earnings (loss):
Continuing operations	$	196,827		$	212,902	$	409,729	$	174,791	$	239,198	$	413,989	$	223,438		$	208,938	$	846,365
Discontinued operations	(764		)	1,199		435		20,114		10,571		30,685		(51,158		)	69,351		48,878
Net earnings	196,063			214,101		410,164		194,905		249,769		444,674		172,280			278,289		895,243

Average shares outstanding:
Basic	183,737			183,494		183,625		186,659		186,443		186,522		185,770			184,686		185,882
Diluted	186,706			185,780		186,171		190,090		189,705		189,905		188,436			187,208		188,887

NOTE:

Earnings from continuing operations are adjusted by discrete and other tax items to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:



	2012							2011
	Q1		Q2			Q2 YTD		Q1		Q2		Q2 YTD		Q3		Q4		FY 2011
Adjusted earnings from continuing operations:
Earnings from continuing operations	$	196,827	$	212,902		$	409,729	$	174,791	$	239,198	$	413,989	$	223,438	$	208,938	$	846,365
Gains (losses) from discrete and other tax items	1,432		(372		)	1,060		8,016		22,338		30,354		2,390		8,590		41,334
Adjusted earnings from continuing operations	$	195,395	$	213,274		$	408,669	$	166,775	$	216,860	$	383,635	$	221,048	$	200,348	$	805,031

Adjusted diluted earnings per common share:
Earnings from continuing operations	$	1.05	$	1.15		$	2.20	$	0.92	$	1.26	$	2.18	$	1.19	$	1.12	$	4.48
Gains (losses) from discrete and other tax items	—		—			—		0.04		0.12		0.16		0.01		0.05		0.22
Adjusted earnings from continuing operations	$	1.05	$	1.15		$	2.20	$	0.88	$	1.14	$	2.02	$	1.18	$	1.07	$	4.26

DOVER CORPORATION

QUARTERLY FREE CASH FLOW

(unaudited)(in thousands)



	2012									2011
	Q1			Q2			Q2 YTD			Q1			Q2			Q2 YTD			Q3			Q4			FY 2011
Cash flow from operating activities	$	160,127		$	252,120		$	412,247		$	117,503		$	205,260		$	322,763		$	376,614		$	358,852		$	1,058,229
Less: Additions to property, plant and equipment	(71,429		)	(74,358		)	(145,787		)	(51,379		)	(72,338		)	(123,717		)	(65,000		)	(83,092		)	(271,809		)
Free cash flow	$	88,698		$	177,762		$	266,460		$	66,124		$	132,922		$	199,046		$	311,614		$	275,760		$	786,420

Free cash flow as a percentage of earnings from continuing operations	45.1		%	83.5		%	65.0		%	37.8		%	55.6		%	48.1		%	139.5		%	132.0		%	92.9		%

Free cash flow as a percentage of revenue	4.3		%	8.2		%	6.3		%	3.6		%	6.7		%	5.2		%	14.6		%	13.8		%	9.9		%

a201206308kexhibit992

Second Quarter 2012 Earnings Conference Call July 18, 2012 - 9:00am CT

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 our results to differ from those anticipated in any such forward-looking statements. We would also direct your attention to our internet site, www.dovercorporation.com, where considerably more information can be found. 2

$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’s Q2 2012 Performance Continuing Earnings Per Share FY $3.65 • Results driven by strong energy, solid refrigeration & food equipment and handset markets; Europe weak, China slowing • Strong organic revenue growth continues in Energy (up 14%) , with growth in Engineered Systems and Communication Technologies up 4% each •Segment operating margin driven by strong Energy performance, offset by lower volume in Printing & ID, and lower volume and ramp costs in Comm. Tech. • Increasing order rates for new OEM handset product launches; overall book-to-bill of 0.99 Q2 Q2/Q2 2010 2011 * Includes discrete & other tax benefits of $0.20 EPS in Q3 2010, $0.07 in Q4 2010, $0.04 in Q1 2011, $0.12 in Q2 2011, $0.01 in Q3 2011 and $0.05 in Q4 2011 FY $4.48 (a) See Press Release filed under Form 8-K for free cash flow reconciliation 3 Quarterly Comments Discrete tax benefits 2012 Adjusted continuing earnings per share 1H 1H/1H

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 & Identification Total Dover Organic 6% 19% 8% -9% 6% Acquisitions 24% 4% 4% - 6% Currency -1% -1% -1% -3% -1% Total 29% 22% 11% -12% 11%

$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% ↑ 1% Refrigeration & Industrial ↑ 7% ↓ 9% ↓ 3% ↑ 3% $ in millions 5 Bookings ↑ 8% ↑ 5% Revenue

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 handset markets; orders for new OEM product launches received during quarter • Book-to-bill at 1.06 $ in millions Q2 2012 Q2 2011 % Change Revenue $362 $289 25% Earnings $ 50 $ 55 -8% Margin 13.9% 18.9% -500 bps Bookings $383 $310 24% Quarterly Comments Revenue by End-Market % of Q2 Revenue Y / Y Growth Handsets 34% 163%* Life Sciences 19% 5% Aerospace / Industrial 17% 6% Military / Defense 14% 2% Telecom / Other 16% -15% * Growth was 29% excluding Sound Solutions

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 downstream markets • Book-to-bill at 0.98 $ in millions Quarterly Comments Q2 2012 Q2 2011 % Change Revenue $539 $454 19% Earnings $134 $110 21% Margin 24.9% 24.3% +60 bps Bookings $530 $473 12% Revenue by End-Market % of Q2 Revenue Y / Y Growth Drilling 19% 6% Production 54% 28% Downstream 27% 11%

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 growth, led by Refrigeration & Food Equipment and Fluids • Book-to-bill at 0.98 $ in millions Quarterly Comments Q2 2012 Q2 2011 % Change Revenue $886 $823 8% Earnings $134 $129 4% Margin 15.1% 15.6% -50 bps Bookings $870 $799 9% Revenue by End-Market % of Q2 Revenue Y / Y Growth Fluids 24% 19% Refrigeration & Food Equipment 41% 8% Industrial 35% 1%

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 electronics; bookings for businesses serving fast moving consumer goods and industrial markets remain stable •Book-to-bill at 0.97 $ in millions Quarterly Comments Q2 2012 Q2 2011 % Change Revenue $370 $429 -14% Earnings $ 42 $ 68 -39% Margin 11.3% 15.8% -450 bps Bookings $358 $386 -7% 9 Revenue by End-Market % of Q2 Revenue Y / Y Growth Fast Moving Consumer Goods 38% Flat Industrial 25% - 1% Electronics 37% -30%

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 geographic earnings. 10

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% - 10% * Includes completed deals only

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 continuing ops: $4.70 – $4.85

 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 expense: ($0.02) • Interest / Shares / Tax Rate: $0.01  2012 EPS – Continuing Ops $4.70 - $4.85 2012 EPS Guidance Bridge - Cont. Ops (1) $0.04 in Q1 2011, $0.12 in Q2 2011, $0.01 in Q3 2011 and $0.05 in Q4 2011 13 2012 EPS from continuing ops. up 12% at mid-point