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): April 17, 2013
________________________________
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 April 17, 2013, Dover Corporation (i) issued the Press Release attached hereto as Exhibit 99.1 announcing its results of operations for the first quarter ended March 31, 2013; and (ii) posted on its website at
http://www.dovercorporation.com the presentation slides attached hereto as Exhibit 99.2 for the first quarter ended March 31, 2013.
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 April 17, 2013.
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: | April 17, 2013 | DOVER CORPORATION | ||
(Registrant) | ||||
By: | /s/ Ivonne M. Cabrera | |||
Ivonne M. Cabrera | ||||
Senior Vice President, General Counsel & Secretary | ||||
EXHIBIT INDEX
Number | Exhibit | |
99.1 | Press Release of Dover Corporation dated April 17, 2013 | |
99.2 | Presentation Slides posted on Dover Corporation’s website at http://www.dovercorporation.com | |
Exhibit 99.1
CONTACT: | ||
Paul Goldberg | ||
Vice President - Investor Relations | ||
(212) 922-1640 | ||
DOVER REPORTS FIRST QUARTER 2013 RESULTS; REAFFIRMS FULL- YEAR OUTLOOK
• | Reports quarterly revenue of $2.0 billion, an increase of 4% over the prior year |
• | Delivers quarterly diluted earnings per share from continuing operations of $1.12, an increase of 12% over last year |
• | Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.10, excluding tax benefits of $0.02, up 9% from an adjusted prior year |
• | Reaffirms outlook for full year revenue growth at 7% to 9%, and diluted earnings per share from continuing operations of $5.05 to $5.35 |
Downers Grove, Illinois, April 17, 2013 — Dover (NYSE: DOV) announced today that for the first quarter ended March 31, 2013, revenue was $2.0 billion, an increase of 4% over the prior-year period. The revenue increase was driven by a 6% increase from acquisitions offset by organic decline of 1% and a minor impact from foreign exchange. Earnings from continuing operations were $197.0 million, or $1.12 diluted earnings per share (“EPS”), compared to $186.4 million, or $1.00 EPS, in the prior-year period, representing increases of 6% and 12%, respectively. Excluding the impact of discrete tax items of $0.02 EPS recognized in the current quarter and $0.01 EPS recognized in the prior-year period, adjusted EPS from continuing operations for the first quarter of 2013 was $1.10, reflecting an increase of 9% over an adjusted EPS of $1.01 in the prior-year period.
Commenting on the first quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, “We were pleased with our first quarter results. We achieved solid revenue growth from our businesses serving the production and downstream energy markets and the consumer electronics market. These results helped offset the anticipated revenue decline driven by a lower North American rig count and reduced refrigeration activity, principally associated with a major retailer, as well as soft European industrial markets. In addition, our recently acquired refrigeration business, Anthony International, is off to a great start and we are enthusiastic about Dover's continued strength in that market. We also made progress on our $1 billion share repurchase program, repurchasing 4 million shares in the first quarter.”
“I am encouraged by our solid seasonal bookings growth as we begin the second quarter. In total, bookings grew 7% and resulted in a book-to-bill of 1.09.”
“Looking ahead, our full year view of 2013 is essentially unchanged from our previous guidance. We continue to expect full year organic growth of 3% to 5%, complemented by acquisition growth of 4%, resulting in total revenue growth of 7% to 9%. Accordingly, we are reaffirming our full year diluted EPS from continuing operations will be in the range of $5.05 - $5.35.”
Net earnings for the first quarter of 2013 were $210.0 million or $1.20 EPS, including earnings from discontinued operations of $13.0 million, or $0.07 EPS, compared to net earnings of $196.1 million, or $1.05 EPS, for the same period of 2012, which included earnings from discontinued operations of $9.7 million, or $0.05 EPS.
Dover will host a webcast of its first quarter 2013 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, April 17, 2013. The webcast can be accessed on the Dover website at www.dovercorporation.com. The conference call will also be made available for replay on the website. Additional information on Dover’s first quarter results and its operating segments can also be found on the Company’s website.
About Dover:
Dover is a diversified global manufacturer with annual revenues of over $8 billion. For over 50 years, Dover has been delivering outstanding products and services that reflect its market leadership and commitment to operational and technical excellence. The Company's entrepreneurial business model encourages, promotes and fosters deep customer engagement which has led to Dover's well-established and valued reputation for providing superior customer service and industry-leading product innovation. Dover 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. Headquartered in Downers Grove, Illinois, Dover employs 35,000 people worldwide. Dover is traded on the New York Stock Exchange under “DOV.” Additional information is available on our 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, operating and strategic plans, income, earnings, cash flows, changes in operations, operating improvements, industries in which Dover businesses operate and the U.S. and global economies. Statements in this press release that are not historical are hereby identified as “forward-looking statements” and 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,” or the use of the 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, the state of the worldwide economy and sovereign credit, especially in Europe; political events that could impact the worldwide economy; the impact of natural disasters and their effect on global supply chains and energy markets; current economic conditions and uncertainties in the credit and capital markets; instability in countries where Dover conducts business; possible future terrorist threats and their effect on the worldwide economy; the ability of Dover's businesses to expand into new geographic markets and to anticipate and meet customer demands for new products and product enhancements; increased competition and pricing pressures in the markets served by Dover's businesses; the impact of loss of a single-source manufacturing facility; changes in customer demand or loss of a significant customer; the relative mix of products and services which impacts margins and operating efficiencies; short-term capacity constraints; increases in the cost of raw materials; domestic and foreign governmental and public policy changes including environmental regulations, conflict minerals disclosure requirements, and tax policies (including domestic and international export subsidy programs, R&E credits and other similar programs); protection and validity of patent and other intellectual property rights; the ability to identify and successfully consummate value-adding acquisition opportunities; Dover's ability to achieve expected savings from integration, synergy and other cost-control initiatives; unforeseen developments in contingencies such as litigation; international economic conditions including interest rate and currency exchange rate fluctuations; and a downgrade in Dover's credit ratings. Dover 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 undertakes no obligation to update any forward-looking statement, except as required by law.
INVESTOR SUPPLEMENT - FIRST QUARTER 2013
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited)(in thousands, except per share data)
Three Months Ended March 31, | |||||||
2013 | 2012 | ||||||
Revenue | $ | 2,039,573 | $ | 1,954,614 | |||
Cost of goods and services | 1,262,951 | 1,208,534 | |||||
Gross profit | 776,622 | 746,080 | |||||
Selling and administrative expenses | 484,421 | 453,989 | |||||
Operating earnings | 292,201 | 292,091 | |||||
Interest expense, net | 30,244 | 30,031 | |||||
Other (income) expense, net | (4,719 | ) | 1,785 | ||||
Earnings before provision for income taxes and discontinued operations | 266,676 | 260,275 | |||||
Provision for income taxes | 69,687 | 73,866 | |||||
Earnings from continuing operations | 196,989 | 186,409 | |||||
Earnings from discontinued operations, net | 13,014 | 9,654 | |||||
Net earnings | $ | 210,003 | $ | 196,063 | |||
Comprehensive earnings | $ | 178,724 | $ | 237,305 | |||
Basic earnings per common share: | |||||||
Earnings from continuing operations | $ | 1.14 | $ | 1.01 | |||
Earnings from discontinued operations, net | 0.08 | 0.05 | |||||
Net earnings | 1.21 | 1.07 | |||||
Weighted average shares outstanding | 173,448 | 183,737 | |||||
Diluted earnings per common share: | |||||||
Earnings from continuing operations | $ | 1.12 | $ | 1.00 | |||
Earnings from discontinued operations, net | 0.07 | 0.05 | |||||
Net earnings | 1.20 | 1.05 | |||||
Weighted average shares outstanding | 175,567 | 186,706 | |||||
Dividends paid per common share | $ | 0.35 | $ | 0.315 | |||
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)
2013 | 2012 | ||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY 2012 | ||||||||||||||
REVENUE | |||||||||||||||||||
Communication Technologies | $ | 372,790 | $ | 357,575 | $ | 361,689 | $ | 396,470 | $ | 400,851 | $ | 1,516,585 | |||||||
Energy | 561,198 | 531,570 | 538,786 | 562,263 | 539,985 | 2,172,604 | |||||||||||||
Engineered Systems | |||||||||||||||||||
Fluid Solutions | 203,991 | 180,364 | 211,974 | 218,324 | 206,500 | 817,162 | |||||||||||||
Refrigeration & Industrial | 664,294 | 642,213 | 674,501 | 674,116 | 613,012 | 2,603,842 | |||||||||||||
Eliminations | (352 | ) | (453 | ) | (352 | ) | (319 | ) | (336 | ) | (1,460 | ) | |||||||
867,933 | 822,124 | 886,123 | 892,121 | 819,176 | 3,419,544 | ||||||||||||||
Printing & Identification | 237,877 | 243,570 | 251,875 | 246,945 | 254,141 | 996,531 | |||||||||||||
Intra-segment eliminations | (225 | ) | (225 | ) | (184 | ) | (194 | ) | (322 | ) | (925 | ) | |||||||
Total consolidated revenue | $ | 2,039,573 | $ | 1,954,614 | $ | 2,038,289 | $ | 2,097,605 | $ | 2,013,831 | $ | 8,104,339 | |||||||
NET EARNINGS | |||||||||||||||||||
Segment Earnings: | |||||||||||||||||||
Communication Technologies | $ | 44,208 | $ | 46,556 | $ | 50,322 | $ | 63,706 | $ | 58,376 | $ | 218,960 | |||||||
Energy | 139,545 | 132,115 | 133,936 | 139,038 | 133,561 | 538,650 | |||||||||||||
Engineered Systems | 117,178 | 122,092 | 133,808 | 144,245 | 101,807 | 501,952 | |||||||||||||
Printing & Identification | 29,752 | 26,089 | 28,918 | 39,502 | 40,650 | 135,159 | |||||||||||||
Total Segments | 330,683 | 326,852 | 346,984 | 386,491 | 334,394 | 1,394,721 | |||||||||||||
Corporate expense / other | 33,763 | 36,546 | 36,335 | 32,001 | 31,127 | 136,009 | |||||||||||||
Net interest expense | 30,244 | 30,031 | 29,715 | 30,399 | 30,996 | 121,141 | |||||||||||||
Earnings from continuing operations before provision for income taxes | 266,676 | 260,275 | 280,934 | 324,091 | 272,271 | 1,137,571 | |||||||||||||
Provision for income taxes | 69,687 | 73,866 | 75,778 | 90,761 | 64,047 | 304,452 | |||||||||||||
Earnings from continuing operations | 196,989 | 186,409 | 205,156 | 233,330 | 208,224 | 833,119 | |||||||||||||
Earnings (loss) from discontinued operations, net | 13,014 | 9,654 | 8,945 | 7,716 | (48,364 | ) | (22,049 | ) | |||||||||||
Net earnings | $ | 210,003 | $ | 196,063 | $ | 214,101 | $ | 241,046 | 159,860 | $ | 811,070 | ||||||||
SEGMENT OPERATING MARGIN | |||||||||||||||||||
Communication Technologies | 11.9 | % | 13.0 | % | 13.9 | % | 16.1 | % | 14.6 | % | 14.4 | % | |||||||
Energy | 24.9 | % | 24.9 | % | 24.9 | % | 24.7 | % | 24.7 | % | 24.8 | % | |||||||
Engineered Systems | 13.5 | % | 14.9 | % | 15.1 | % | 16.2 | % | 12.4 | % | 14.7 | % | |||||||
Printing & Identification | 12.5 | % | 10.7 | % | 11.5 | % | 16.0 | % | 16.0 | % | 13.6 | % | |||||||
Total Segment | 16.2 | % | 16.7 | % | 17.0 | % | 18.4 | % | 16.6 | % | 17.2 | % | |||||||
DEPRECIATION AND AMORTIZATION EXPENSE | |||||||||||||||||||
Communication Technologies | $ | 35,501 | $ | 31,513 | $ | 32,828 | $ | 32,997 | $ | 35,281 | $ | 132,619 | |||||||
Energy | 26,298 | 21,184 | 23,533 | 24,639 | 25,721 | 95,077 | |||||||||||||
Engineered Systems | 31,551 | 19,582 | 23,913 | 23,060 | 27,066 | 93,621 | |||||||||||||
Printing & Identification | 7,630 | 8,331 | 8,496 | 8,777 | 7,998 | 33,602 | |||||||||||||
Corporate | 859 | 700 | 765 | 842 | 359 | 2,666 | |||||||||||||
$ | 101,839 | $ | 81,310 | $ | 89,535 | $ | 90,315 | $ | 96,425 | $ | 357,585 | ||||||||
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)(in thousands)
2013 | 2012 | ||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY 2012 | ||||||||||||||
BOOKINGS | |||||||||||||||||||
Communication Technologies | $ | 379,122 | $ | 347,291 | $ | 387,058 | $ | 411,005 | $ | 363,624 | $ | 1,508,978 | |||||||
Energy | 620,640 | 585,775 | 530,352 | 526,824 | 550,091 | 2,193,042 | |||||||||||||
Engineered Systems | |||||||||||||||||||
Fluid Solutions | 223,764 | 184,711 | 204,139 | 197,767 | 209,872 | 796,489 | |||||||||||||
Refrigeration & Industrial | 755,026 | 711,911 | 666,223 | 600,065 | 606,931 | 2,585,130 | |||||||||||||
Eliminations | (373 | ) | (408 | ) | (376 | ) | (258 | ) | (399 | ) | (1,441 | ) | |||||||
978,417 | 896,214 | 869,986 | 797,574 | 816,404 | 3,380,178 | ||||||||||||||
Printing & Identification | 237,217 | 249,773 | 251,733 | 244,611 | 252,937 | 999,054 | |||||||||||||
Intra-segment eliminations | (720 | ) | (609 | ) | (221 | ) | (759 | ) | (1,020 | ) | (2,609 | ) | |||||||
Total consolidated bookings | $ | 2,214,676 | $ | 2,078,444 | $ | 2,038,908 | $ | 1,979,255 | $ | 1,982,036 | $ | 8,078,643 | |||||||
BACKLOG | |||||||||||||||||||
Communication Technologies | $ | 458,765 | $ | 451,110 | $ | 476,745 | $ | 491,041 | $ | 453,172 | |||||||||
Energy | 311,793 | 296,360 | 282,364 | 248,233 | 256,093 | ||||||||||||||
Engineered Systems | |||||||||||||||||||
Fluid Solutions | 178,854 | 191,327 | 172,300 | 156,191 | 160,890 | ||||||||||||||
Refrigeration & Industrial | 592,922 | 598,910 | 586,824 | 515,285 | 516,559 | ||||||||||||||
Eliminations | (178 | ) | (132 | ) | (155 | ) | (94 | ) | (157 | ) | |||||||||
771,598 | 790,105 | 758,969 | 671,382 | 677,292 | |||||||||||||||
Printing & Identification | 95,353 | 102,117 | 98,216 | 98,356 | 97,857 | ||||||||||||||
Intra-segment eliminations | (886 | ) | (986 | ) | (648 | ) | (324 | ) | (591 | ) | |||||||||
Total consolidated backlog | $ | 1,636,623 | $ | 1,638,706 | $ | 1,615,646 | $ | 1,508,688 | $ | 1,483,823 | |||||||||
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)
2013 | 2012 | ||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY 2012 | ||||||||||||||
Basic earnings (loss) per common share: | |||||||||||||||||||
Continuing operations | $ | 1.14 | $ | 1.01 | $ | 1.12 | $ | 1.28 | $ | 1.17 | $ | 4.59 | |||||||
Discontinued operations | 0.08 | 0.05 | 0.05 | 0.04 | (0.27 | ) | (0.12 | ) | |||||||||||
Net earnings | 1.21 | 1.07 | 1.17 | 1.33 | 0.90 | 4.47 | |||||||||||||
Diluted earnings (loss) per common share: | |||||||||||||||||||
Continuing operations | $ | 1.12 | $ | 1.00 | $ | 1.10 | $ | 1.27 | $ | 1.16 | $ | 4.53 | |||||||
Discontinued operations | 0.07 | 0.05 | 0.05 | 0.04 | (0.27 | ) | (0.12 | ) | |||||||||||
Net earnings | 1.20 | 1.05 | 1.15 | 1.31 | 0.89 | 4.41 | |||||||||||||
Adjusted diluted earnings per common share (calculated below): | |||||||||||||||||||
Continuing operations | $ | 1.10 | $ | 1.01 | $ | 1.10 | $ | 1.25 | $ | 1.09 | $ | 4.44 | |||||||
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows: | |||||||||||||||||||
Net earnings (loss): | |||||||||||||||||||
Continuing operations | $ | 196,989 | $ | 186,409 | $ | 205,156 | $ | 233,330 | $ | 208,224 | $ | 833,119 | |||||||
Discontinued operations | 13,014 | 9,654 | 8,945 | 7,716 | (48,364 | ) | (22,049 | ) | |||||||||||
Net earnings | 210,003 | 196,063 | 214,101 | 241,046 | 159,860 | 811,070 | |||||||||||||
Average shares outstanding: | |||||||||||||||||||
Basic | 173,448 | 183,737 | 183,494 | 181,763 | 177,257 | 181,551 | |||||||||||||
Diluted | 175,567 | 186,706 | 185,780 | 183,932 | 179,365 | 183,993 | |||||||||||||
Note: | |||||||||||||||||||
Earnings from continuing operations are adjusted by discrete tax items to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows: | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY 2012 | ||||||||||||||
Adjusted earnings from continuing operations: | |||||||||||||||||||
Earnings from continuing operations | $ | 196,989 | $ | 186,409 | $ | 205,156 | $ | 233,330 | $ | 208,224 | $ | 833,119 | |||||||
Gains (losses) from discrete and other tax items | 4,525 | (1,610 | ) | (372 | ) | 4,513 | 13,606 | 16,137 | |||||||||||
Adjusted earnings from continuing operations | $ | 192,464 | $ | 188,019 | $ | 205,528 | $ | 228,817 | $ | 194,618 | $ | 816,982 | |||||||
Adjusted diluted earnings per common share: | |||||||||||||||||||
Earnings from continuing operations | $ | 1.12 | $ | 1.00 | $ | 1.10 | $ | 1.27 | $ | 1.16 | $ | 4.53 | |||||||
Gains (losses) from discrete and other tax items | 0.02 | (0.01 | ) | — | 0.02 | 0.07 | 0.09 | ||||||||||||
Adjusted earnings from continuing operations | $ | 1.10 | $ | 1.01 | $ | 1.10 | $ | 1.25 | $ | 1.09 | $ | 4.44 | |||||||
* Per share data may not add due to rounding. | |||||||||||||||||||
DOVER CORPORATION
QUARTERLY FREE CASH FLOW
(unaudited)(in thousands)
2013 | 2012 | ||||||||||||||||||
Q1 | Q1 | Q2 | Q3 | Q4 | FY 2012 | ||||||||||||||
Cash flow from operating activities | $ | 78,326 | $ | 161,327 | $ | 243,363 | $ | 285,811 | $ | 570,659 | $ | 1,261,160 | |||||||
Less: Additions to property, plant and equipment | (47,153 | ) | (68,249 | ) | (72,758 | ) | (67,842 | ) | (88,163 | ) | (297,012 | ) | |||||||
Free cash flow | $ | 31,173 | $ | 93,078 | $ | 170,605 | $ | 217,969 | $ | 482,496 | $ | 964,148 | |||||||
Free cash flow as a percentage of earnings from continuing operations | 15.8 | % | 49.9 | % | 83.2 | % | 93.4 | % | 231.7 | % | 115.7 | % | |||||||
Free cash flow as a percentage of revenue | 1.5 | % | 4.8 | % | 8.4 | % | 10.4 | % | 24.0 | % | 11.9 | % | |||||||
First Quarter 2013 Earnings Conference Call April 17, 2013 - 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 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* Revenue $2.0B 4% (a) EPS (cont.) $1.12 12% Bookings $2.2B 7% Seg. Margins 16.2% -50 bps Organic Rev. -1% Acq. Growth 6% FCF (b) $31M -67% Q1 2013 Performance Continuing Earnings Per Share • Solid revenue growth in production and downstream markets within energy and consumer electronics market • North America and China markets remain solid, Europe remains slow • Margin of 16.2%, includes restructuring and one time costs of $11 million •Bookings growth of 9% in Engineered Systems and Communication Technologies, 6% in Energy and -5% in Printing & Identification • Overall book-to-bill of 1.09 Q1 Q1/Q1 2011 * Includes discrete & other tax benefits of $0.04 in Q1 2011, $0.13 in Q2 2011, $0.02 in Q3 2011, $0.03 in Q4 2011, -$0.01 in Q1 2012, $0.02 in Q3 2012, $0.07 in Q4 2012 and $0.02 in Q1 2013 FY $4.09 (b) 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 FY $4.53 2013 (a) Includes a minor negative impact from foreign currency
4 Revenue Q1 2013 Communication Technologies Energy Engineered Systems Printing & Identification Total Dover Organic 4% - -5% -1% -1% Acquisitions - 6% 11% - 6% Currency - - - -1% < -1% Total 4% 6% 6% -2% 4%
$613 $664 $254 $238 $401 $373 $540 $561 $207 $204 $0 $300 $600 $900 DCT Q4 DCT Q1 DE Q4 DE Q1 DES Q4 DES Q1 DPI Q4 DPI Q1 $607 $755 $253 $237 $364 $379 $550 $621 $210 $224 $0 $250 $500 $750 $1,000 DCT Q4 DCT Q1 DE Q4 DE Q1 DES Q4 DES Q1 DPI Q4 DPI Q1 Sequential Results – Q4 12 → Q1 13 Fluid Solutions ↓ 7% ↑ 4% Refrigeration & Industrial ↑ 4% ↑ 13% ↑ 20% ↓ 6% $ in millions 5 Bookings ↑ 6% ↓ 6% Revenue
6 Communication Technologies • Solid growth in Consumer Electronics and Medical Technology markets • Consumer Electronics revenue reflects normal seasonality • Aerospace/Defense and Telecom/Other markets generally stable • Margin impacted by customer mix, incremental restructuring costs and legal expense of $7M • Book-to-bill at 1.02 $ in millions Q1 2013 Q1 2012 % Change Revenue $373 $358 4% Earnings $ 44 $ 47 -5% Margin 11.9% 13.0% -110 bps Bookings $379 $347 9% Quarterly Comments Revenue by End-Market % of Q1 Revenue Y / Y Growth Consumer Electronics 47% 8% Medical Technology 16% 4% Aerospace / Defense 27% -1% Telecom / Other 10% 1%
7 Energy • Revenue and earnings growth driven by production and downstream markets and acquisitions; drilling continues to be soft as anticipated •Oil prices remain supportive of continued investment in production and international markets are robust • Operating margin of 24.9% reflects strong execution • Bookings growth led by the production market • Book-to-bill at a strong 1.11 $ in millions Quarterly Comments Q1 2013 Q1 2012 % Change Revenue $561 $532 6% Earnings $140 $132 6% Margin 24.9% 24.9% flat Bookings $621 $586 6% Revenue by End-Market % of Q1 Revenue Y / Y Growth Drilling 19% -9% Production 55% 12% Downstream 26% 5%
8 Engineered Systems • Revenue growth driven by recent acquisitions •Results in refrigeration impacted by non-repeating project in prior year period • Margin performance reflects impact of Anthony acquisition • Bookings grow seasonally • Book-to-bill at a strong 1.13 $ in millions Quarterly Comments Q1 2013 Q1 2012 % Change Revenue $868 $822 6% Earnings $117 $122 -4% Margin 13.5% 14.9% -140 bps Bookings $978 $896 9% Revenue by End-Market % of Q1 Revenue Y / Y Growth Fluids 24% 13% Refrigeration & Food Equipment 42% 9% Industrial 34% -3%
Printing & Identification • Stable revenue in fast moving consumer goods partially offsets a sluggish industrial market, particularly in bar coding • Operating margin increase reflects the benefits of prior restructuring, cost initiatives and a favorable product mix • Several new product introductions are scheduled in the coming months •Book-to-bill at 1.00 $ in millions Quarterly Comments Q1 2013 Q1 2012 % Change Revenue $238 $244 -2% Earnings $ 30 $ 26 14% Margin 12.5% 10.7% 180 bps Bookings $237 $250 -5% 9 Revenue by End-Market % of Q1 Revenue Y / Y Growth Fast Moving Consumer Goods 60% flat Industrial 40% -6%
Q1 2013 Overview Q1 2013 Net Interest Expense $30 million, essentially flat with last year, in-line with expectations Corporate Expense $34.0 million, down $3 million from last year. Effective Tax Rate (ETR) Q1 normalized rate was 27.8%, excluding $0.02 cents of discrete tax benefits(a) Capex $47 million, in-line with expectations Share Repurchases Repurchased 4 million shares ($290M) in quarter under the November $1 billion program. 10 (a) See press release filed under form 8-K for reconciliation
FY 2013 Guidance – Revenue Growth by Segment 11 Segment 2012 Revenue Mix 2013F Organic Growth 2013F Acquisition Growth* Total Communication Technologies 19% 9% - 11% - 9% - 11% Energy 27% 3% - 5% ≈ 2% 5% - 7% Engineered Systems 42% 2% - 4% ≈ 8% 10% - 12% Printing & Identification 12% 1% - 2% - 1% - 2% Total ≈ $8.1 B 3% - 5% ≈ 4% 7% - 9% * Acquisitions already completed
FY 2013 Guidance Revenue: • Organic revenue : ≈ 3% - 5% • Acquisitions: ≈ 4% • Total revenue: ≈ 7% - 9% Corporate expense: ≈ $150 million Interest expense: ≈ $127 million Full-Year Tax Rate: ≈ 27.5% - 28.0%(a) Capital expenditures: ≈ 3.4% of revenue FCF for full year: ≈ 10% of revenue 12 2013 EPS from continuing ops: $5.05 – $5.35 (a) Pre discrete tax adjustments
2012 EPS – Continuing Ops $4.53 • Less 2012 tax benefits (1): ($0.09) 2012 Adjusted EPS – Continuing Ops $4.44 • Volume, mix, price (inc. FX): $0.28 - $0.46 • Net benefits of productivity: $0.12 - $0.22 • Acquisitions: $0.13 - $0.16 • Investment / Compensation: ($0.12 - $0.18) • Corporate expense: (0.05) • Interest / Shares / Tax Rate (net): $0.25 - $0.30 2013 EPS – Continuing Ops $5.05 - $5.35 2013 EPS Guidance Bridge - Cont. Ops (1) Negligible amounts in Q1 2012 & Q2 2012, $0.02 in Q3 2012 and $0.07 in Q4 2012 13