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, 2014 
________________________________
 
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, 2014, Dover Corporation (i) issued the Press Release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter ended March 31, 2014; and (ii) posted on its website at
http://www.dovercorporation.com the presentation slides attached hereto as Exhibit 99.2 for the quarter ended March 31, 2014.
 
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.

(d) Exhibits.

The following exhibits are furnished as part of this report:
 
99.1 Dover Corporation Press Release dated April 17, 2014.
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, 2014	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, 2014	
 	 	 	
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 2014 RESULTS AND REAFFIRMS 2014 GUIDANCE
 	 	
•	Reports quarterly revenue of $1.9 billion, an increase of 7% over the prior year	
 	 	
•	Delivers quarterly diluted earnings per share from continuing operations of $1.02, an increase of 7% over prior year	
 	 	
•	Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.01, excluding minor tax benefits, up 9% from an adjusted prior year	
 	 	
•	Reaffirms 2014 full year revenue growth of 6% to 7% and diluted earnings per share from continuing operations in the range of $4.60 to $4.80.	

Downers Grove, Illinois, April 17, 2014 — Dover (NYSE: DOV) announced today that for the first quarter ended March 31, 2014, revenue was $1.9 billion, an increase of 7% over the prior year. The revenue increase was driven by organic growth of 4% and an increase of 3% from acquisitions. Earnings from continuing operations were $176.3 million, or $1.02 diluted earnings per share (“EPS”), compared to $167.2 million, or $0.95 EPS, in the prior year period, representing increases of 5% and 7%, respectively. EPS from continuing operations for the quarter ended March 31, 2014 and 2013 include discrete tax benefits of $0.01 and $0.02 EPS, respectively. Excluding these items, adjusted EPS from continuing operations for the first quarter of 2014 was $1.01, reflecting an increase of 9% over an adjusted EPS of $0.93 in the prior year period.

Commenting on the first quarter results, Dover's President and Chief Executive Officer, Robert A. Livingston, said, “Our strong first quarter results were highlighted by solid revenue growth, broad-based bookings growth, and building momentum as we moved through the quarter. Revenue growth was led by Fluids and Engineered Systems, along with solid growth in Energy. Our book-to-bill of 1.09 was driven by strong order activity at Refrigeration & Food Equipment, Fluids and Engineered Systems. The combination of a strong first quarter, growing bookings and backlog, and our positioning with customers give me great confidence that Dover will have an outstanding year."

“In addition to our strong results, we also completed several important initiatives in the first quarter. We successfully spun off Knowles, completed our $1 billion share repurchase program, and realigned our businesses into a new segment structure organized around our key end-markets to better focus on growth strategies. Our new structure will also provide greater opportunities to leverage scale and capitalize on productivity initiatives.”

“Looking forward, our view of 2014 remains unchanged. We continue to expect full year organic revenue growth of 3% to 4%, complemented by growth from completed acquisitions of 3%, resulting in total revenue growth of 6% to 7%. Our full year segment margin expectations of around 18% are also unchanged. As a result, we are re-affirming our full year EPS to be in the range of $4.60 to $4.80.”

Net earnings for the first quarter of 2014 were $160.1 million or $0.93 EPS, compared to net earnings of $210.0 million, or $1.20 EPS, for the same period of 2013. 2014 results reflected a

loss from discontinued operations of $16.2 million, or $0.09 EPS, which included $25.8 million in spin off costs. 2013 results included earnings from discontinued operations of $42.8 million, or $0.24 EPS.

Dover will host a webcast of its first quarter 2014 conference call at 10:30 A.M. Eastern Time (9:30 A.M. Central Time) on Thursday, April 17, 2014. 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$8 billion. We deliver innovative equipment and components, specialty systems and support services through four major operating segments: Energy, Engineered Systems, Fluids, and Refrigeration & Food Equipment. Dover combines global scale with operational agility to lead the markets we serve.  Recognized for our entrepreneurial approach for nearly 60 years, our team of 27,000 employees takes an ownership mindset, collaborating with customers to redefine what’s possible.  Headquartered in Downers Grove, Illinois, Dover trades on the New York Stock Exchange under “DOV.” Additional information is available at www.dovercorporation.com.

Forward-Looking Statements:

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,” “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; political events; 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; the ability of Dover's businesses to expand into new geographic markets and to anticipate and meet customer demands for new products; increased competition and pricing pressures in the markets served by Dover's businesses; the terms and timing of the sale of any business in discontinued operations; 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; possible future terrorist threats and their effect on the worldwide economy; 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 2014

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)(in thousands, except per share data)

 	Three Months Ended March 31,	
 	2014	 	2013	
Revenue	$	1,884,647	
 	 	$	1,763,977	
 	
Cost of goods and services	1,148,438	
 	 	1,082,359	
 	
Gross profit	736,209	
 	 	681,618	
 	
Selling and administrative expenses	452,282	
 	 	416,437	
 	
Operating earnings	283,927	
 	 	265,181	
 	
Interest expense, net	32,665	
 	 	30,284	
 	
Other expense (income), net	356	
 	 	(2,889	)	
Earnings before provision for income taxes and discontinued operations	250,906	
 	 	237,786	
 	
Provision for income taxes	74,582	
 	 	70,573	
 	
Earnings from continuing operations	176,324	
 	 	167,213	
 	
(Loss) earnings from discontinued operations, net	(16,186	)	 	42,790	
 	
Net earnings	$	160,138	
 	 	$	210,003	

Basic earnings per common share:	 	 	 	
Earnings from continuing operations	$	1.04	
 	 	$	0.96	
 	
Earnings (loss) from discontinued operations, net	(0.10	)	 	0.25	
 	
Net earnings	0.94	
 	 	1.21	

Weighted average shares outstanding	169,750	 	173,448	
 	 	 	 	
Diluted earnings per common share:	 	 	 	
Earnings from continuing operations	$	1.02	
 	 	$	0.95	
 	
Earnings (loss) from discontinued operations, net	(0.09	)	 	0.24	
 	
Net earnings	0.93	
 	 	1.20	

Weighted average shares outstanding	172,013	 	175,567	
 	 	 	 	
Dividends paid per common share	$	0.375	
 	 	$	0.350	

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)

 	2014	 	2013	
 	Q1	 	Q1	Q2	Q3	Q4	FY 2013	
REVENUE	 	 	 	 	 	 	 	
Energy	$	478,773	
 	 	$	462,679	
 	$	465,906	
 	$	467,688	
 	$	457,580	
 	$	1,853,853	

Engineered Systems	 	 	 	 	 	 	 	
Printing & Identification	263,533	
 	 	237,869	
 	250,616	
 	256,565	
 	276,672	
 	1,021,722	
 	
Industrials	386,245	
 	 	367,456	
 	388,810	
 	385,640	
 	374,934	
 	1,516,840	
 	
 	649,778	
 	 	605,325	
 	639,426	
 	642,205	
 	651,606	
 	2,538,562	

Fluids	345,009	
 	 	273,638	
 	310,137	
 	309,241	
 	343,822	
 	1,236,838	

Refrigeration & Food Equipment	411,493	
 	 	422,468	
 	517,574	
 	521,322	
 	426,476	
 	1,887,840	

Intra-segment eliminations	(406	)	 	(133	)	(632	)	(245	)	(430	)	(1,440	)	
Total consolidated revenue	$	1,884,647	
 	 	$	1,763,977	
 	$	1,932,411	
 	$	1,940,211	
 	$	1,879,054	
 	$	7,515,653	

NET EARNINGS	 	 	 	 	 	 	 	
Segment Earnings:	 	 	 	 	 	 	 	
Energy	$	118,968	
 	 	$	118,708	
 	$	109,662	
 	$	119,086	
 	$	112,193	
 	$	459,649	
 	
Engineered Systems	92,320	
 	 	83,283	
 	102,804	
 	111,850	
 	101,511	
 	399,448	
 	
Fluids	57,942	
 	 	47,601	
 	58,768	
 	63,056	
 	55,098	
 	224,523	
 	
Refrigeration & Food Equipment	44,862	
 	 	52,110	
 	82,177	
 	86,446	
 	46,574	
 	267,307	
 	
Total Segments	314,092	
 	 	301,702	
 	353,411	
 	380,438	
 	315,376	
 	1,350,927	
 	
Corporate expense / other	30,521	
 	 	33,632	
 	34,860	
 	32,532	
 	28,752	
 	129,776	
 	
Net interest expense	32,665	
 	 	30,284	
 	30,232	
 	30,236	
 	29,920	
 	120,672	
 	
Earnings from continuing operations before provision for income taxes	250,906	
 	 	237,786	
 	288,319	
 	317,670	
 	256,704	
 	1,100,479	
 	
Provision for income taxes	74,582	
 	 	70,573	
 	30,261	
 	91,435	
 	74,138	
 	266,407	
 	
Earnings from continuing operations	176,324	
 	 	167,213	
 	258,058	
 	226,235	
 	182,566	
 	834,072	
 	
Earnings (loss) from discontinued operations, net	(16,186	)	 	42,790	
 	71,991	
 	42,879	
 	11,397	
 	169,057	
 	
Net earnings	$	160,138	
 	 	$	210,003	
 	$	330,049	
 	$	269,114	
 	$	193,963	
 	$	1,003,129	

SEGMENT OPERATING MARGIN	 	 	 	 	 	 	
Energy	24.8	%	 	25.7	%	23.5	%	25.5	%	24.5	%	24.8	%	
Engineered Systems	14.2	%	 	13.8	%	16.1	%	17.4	%	15.6	%	15.7	%	
Fluids	16.8	%	 	17.4	%	18.9	%	20.4	%	16.0	%	18.2	%	
Refrigeration & Food Equipment	10.9	%	 	12.3	%	15.9	%	16.6	%	10.9	%	14.2	%	
Total Segment	16.7	%	 	17.1	%	18.3	%	19.6	%	16.8	%	18.0	%	
 	 	 	 	 	 	 	 	
DEPRECIATION AND AMORTIZATION EXPENSE	 	 	 	 	 	 	
Energy	$	25,575	
 	 	$	24,448	
 	$	24,714	
 	$	24,707	
 	$	25,206	
 	$	99,075	
 	
Engineered Systems	18,977	
 	 	17,450	
 	17,885	
 	18,110	
 	18,137	
 	71,582	
 	
Fluids	16,366	
 	 	11,361	
 	11,570	
 	11,790	
 	14,091	
 	48,812	
 	
Refrigeration & Food Equipment	17,212	
 	 	16,585	
 	16,611	
 	16,962	
 	17,070	
 	67,228	
 	
Corporate	869	
 	 	858	
 	1,029	
 	1,030	
 	944	
 	3,861	
 	
 	$	78,999	
 	 	$	70,702	
 	$	71,809	
 	$	72,599	
 	$	75,448	
 	$	290,558	

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(continued)
(unaudited)(in thousands)

 	2014	 	2013	
 	Q1	 	Q1	Q2	Q3	Q4	FY 2013	
BOOKINGS	 	 	 	 	 	 	 	
Energy	$	478,469	
 	 	$	515,388	
 	$	416,892	
 	$	481,021	
 	$	440,261	
 	$	1,853,562	

Engineered Systems	 	 	 	 	 	 	 	
Printing & Identification	282,867	
 	 	237,291	
 	259,380	
 	256,210	
 	270,392	
 	1,023,273	
 	
Industrials	427,557	
 	 	405,555	
 	396,886	
 	344,764	
 	371,797	
 	1,519,002	
 	
Eliminations	(17	)	 	(82	)	(129	)	(5	)	279	
 	63	
 	
 	710,407	
 	 	642,764	
 	656,137	
 	600,969	
 	642,468	
 	2,542,338	

Fluids	362,943	
 	 	303,609	
 	298,817	
 	307,729	
 	351,767	
 	1,261,922	

Refrigeration & Food Equipment	493,731	
 	 	482,742	
 	515,320	
 	433,426	
 	450,850	
 	1,882,338	

Intra-segment eliminations	(506	)	 	(560	)	(708	)	(416	)	734	
 	(950	)	
 	 	 	 	 	 	 	 	
Total consolidated bookings	$	2,045,044	
 	 	$	1,943,943	
 	$	1,886,458	
 	$	1,822,729	
 	$	1,886,080	
 	$	7,539,210	

BACKLOG	 	 	 	 	 	 	 	
Energy	$	210,846	
 	 	$	274,733	
 	$	218,764	
 	$	233,820	
 	$	206,790	

Engineered Systems	 	 	 	 	 	 	 	
Printing & Identification	136,309	
 	 	95,353	
 	103,864	
 	105,699	
 	100,032	
 	 	
Industrials	414,979	
 	 	415,478	
 	421,834	
 	379,457	
 	374,008	
 	 	
 	551,288	
 	 	510,831	
 	525,697	
 	485,155	
 	474,040	

Fluids	328,617	
 	 	222,255	
 	228,212	
 	228,880	
 	310,330	

Refrigeration & Food Equipment	431,298	
 	 	417,246	
 	412,366	
 	324,042	
 	347,004	

Intra-segment eliminations	(374	)	 	(385	)	(526	)	(387	)	(592	)	 	
 	 	 	 	 	 	 	 	
Total consolidated backlog	$	1,521,675	
 	 	$	1,424,680	
 	$	1,384,513	
 	$	1,271,510	
 	$	1,337,572	

DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)

 	2014	 	2013	
 	Q1	 	Q1	Q2	Q3	Q4	FY 2013	
Basic earnings (loss) per common share:	 	 	 	 	 	 	
Continuing operations	$	1.04	
 	 	$	0.96	
 	$	1.51	
 	$	1.33	
 	$	1.07	
 	$	4.87	
 	
Discontinued operations	(0.10	)	 	0.25	
 	0.42	
 	0.25	
 	0.07	
 	0.99	
 	
Net earnings	0.94	
 	 	1.21	
 	1.93	
 	1.58	
 	1.14	
 	5.86	

Diluted earnings (loss) per common share:	 	 	 	 	 	 	
Continuing operations	$	1.02	
 	 	$	0.95	
 	$	1.49	
 	$	1.31	
 	$	1.06	
 	$	4.81	
 	
Discontinued operations	(0.09	)	 	0.24	
 	0.42	
 	0.25	
 	0.07	
 	0.97	
 	
Net earnings	0.93	
 	 	1.20	
 	1.91	
 	1.56	
 	1.13	
 	5.78	

Adjusted diluted earnings per common share (calculated below):	
Continuing operations	$	1.01	
 	 	$	0.93	
 	$	1.13	
 	$	1.25	
 	$	1.02	
 	$	4.33	

Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:	
 	 	 	 	 	 	 	 	
Net earnings (loss):	 	 	 	 	 	 	 	
Continuing operations	$	176,324	
 	 	$	167,213	
 	$	258,058	
 	$	226,235	
 	$	182,566	
 	$	834,072	
 	
Discontinued operations	(16,186	)	 	42,790	
 	71,991	
 	42,879	
 	11,397	
 	169,057	
 	
Net earnings	160,138	
 	 	210,003	
 	330,049	
 	269,114	
 	193,963	
 	1,003,129	

Average shares outstanding:	 	 	 	 	 	 	
Basic	169,750	
 	 	173,448	
 	171,111	
 	170,544	
 	170,027	
 	171,271	
 	
Diluted	172,013	
 	 	175,567	
 	173,097	
 	172,734	
 	172,265	
 	173,547	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Note:	 	 	 	 	 	 	 	
Earnings from continuing operations are adjusted by discrete tax items and other one-time gains to derive adjusted earnings from continuing operations and adjusted diluted earnings per common share as follows:	
 	 	 	 	 	 	 	 	
 	2014	 	2013	
 	Q1	 	Q1	Q2	Q3	Q4	FY 2013	
Adjusted earnings from continuing operations:	 	 	 	 	 	 	
Earnings from continuing operations	$	176,324	
 	 	$	167,213	
 	$	258,058	
 	$	226,235	
 	$	182,566	
 	$	834,072	
 	
Gains from discrete and other tax items	2,541	
 	 	4,343	
 	61,477	
 	7,751	
 	6,084	
 	79,655	
 	
Other one-time gains, net of tax	—	
 	 	—	
 	—	
 	2,866	
 	—	
 	2,866	
 	
Adjusted earnings from continuing operations	$	173,783	
 	 	$	162,870	
 	$	196,581	
 	$	215,618	
 	$	176,482	
 	$	751,551	

Adjusted diluted earnings per common share:	 	 	 	 	 	 	
Earnings from continuing operations	$	1.02	
 	 	$	0.95	
 	$	1.49	
 	$	1.31	
 	$	1.06	
 	$	4.81	
 	
Gains from discrete and other tax items	0.01	
 	 	0.02	
 	0.36	
 	0.04	
 	0.04	
 	0.46	
 	
Other one-time gains, net of tax	—	
 	 	—	
 	—	
 	0.02	
 	—	
 	0.02	
 	
Adjusted earnings from continuing operations	$	1.01	
 	 	$	0.93	
 	$	1.13	
 	$	1.25	
 	$	1.02	
 	$	4.33	

* Per share data may not add due to rounding.	 	 	 	 	 	 	

DOVER CORPORATION
QUARTERLY FREE CASH FLOW
(unaudited)(in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	2014	 	2013	
 	Q1	 	Q1	Q2	Q3	Q4	FY 2013	
Cash flow from operating activities	$	39,778	
 	 	$	57,713	
 	$	249,053	
 	$	279,375	
 	$	418,280	
 	$	1,004,421	
 	
Less: Additions to property, plant and equipment	(33,402	)	 	(26,326	)	(32,017	)	(39,644	)	(47,579	)	(145,566	)	
Free cash flow	$	6,376	
 	 	$	31,387	
 	$	217,036	
 	$	239,731	
 	$	370,701	
 	$	858,855	

Free cash flow as a percentage of earnings from continuing operations	3.6	%	 	18.8	%	84.1	%	106.0	%	203.1	%	103.0	%	
 	 	 	 	 	 	 	 	
Free cash flow as a percentage of revenue	0.3	%	 	1.8	%	11.2	%	12.4	%	19.7	%	11.4	%	

Earnings Conference Call First Quarter 2014 April 17, 2014 – 9:30am CT

 

2 Forward looking statements We want to remind everyone that our comments may contain forward-looking statements that are inherently subject to uncertainties and risks. We caution everyone to be guided in their analysis of Dover Corporation by referring to the documents we file from time to time with the SEC, including our Form 10-K for 2013 and our Form 10-Q for the first quarter of 2014, 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 website, dovercorporation.com, where considerably more information can be found. 2

 

3 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 Q1* Q2* Q3* Q4* Q1* Q1 2014 Performance Adjusted Earnings Per Share* (continuing operations) Q1 Q1/Q1 * Excludes discrete & other tax benefits of $0.02 in Q1 2013 , $0.36 in Q2 2013, $0.04 in Q3 2013, $0.04 in Q4 2013, and $0.01 in Q1 2014; excludes other one-time gains of $0.02 in Q3 2013 (a) See Press Release for free cash flow reconciliation 3 Quarterly Comments 2013 2014 Revenue $1.9B 7% Adj. EPS (cont.) $1.01 9% Bookings $2.0B 5% Seg. Margins 16.7% -40 bps Organic Rev. 4% Acq. Growth 3% FCF (a) $6M -80%  Revenue growth led by Fluids and Engineered Systems, along with solid growth in Energy  US markets were strong; Europe markets continue to grow; China markets moderated  Segment margin of 16.7% as expected, impacted 70 bps by recent acquisitions  Bookings growth of 5% is broad-based  Overall book-to-bill of 1.09 shows seasonal strength

 

4 Revenue Q1 2014 Energy Engineered Systems Fluids Refrigeration & Food Equip Total Organic 4% 4% 14% -3% 4% Acquisitions 1% 3% 11% - 3% Currency -1% - 1% - - Total 4% 7% 26% -3% 7%

 

5 Printing & ID Industrial $372 $427 $440 $478 $270 $283 $352 $363 $451 $494 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF Q1 DRE Q4 DRE Q1 Sequential Results – Q4 2013 → Q1 2014 5 $375 $386 $458 $479 $277 $264 $344 $345 $426 $411 $0 $200 $400 $600 $800 DE Q4 DE Q1 DES Q4 DES Q1 DF Q4 DF Q1 DRE Q4 DRF Q1 Revenue ↑ 5% ↑ 10% ↓ 4% ↑ 3% Flat ↑ 11% Flat ↑ 9% Bookings

 

6 Energy  Drilling & Production revenue growth remains solid driven by increased well activity; winch markets remain weak  Bearings & Compression markets are solid  Overall margin remains strong and in-line with expectations at 24.8%  Bookings down of 7%; excluding the impact of large international artificial lift orders in Q1 2013 bookings grew 5%  Book-to-bill at 1.00 6 Q1 2014 Q1 2013 % Change Revenue $479 $463 4% Earnings $119 $119 Flat Margin 24.8% 25.7% -90 bps Bookings $478 $515 -7% Revenue by End-Market % of Q1 Revenue Y / Y Growth Drilling & Production 82% 4% Bearings & Compression 18% 3% $ in millions

 

7 Engineered Systems  Revenue growth is broad- based in Printing & Identification with strong results in the US and China  Revenue growth in Industrial is led by waste handling and vehicle services businesses  Margin expansion reflects leverage on volume and benefits of productivity initiatives  Broad-based bookings growth  Book-to-bill of 1.09 7 Q1 2014 Q1 2013 % Change Revenue $650 $605 7% Earnings $ 92 $ 83 11% Margin 14.2% 13.8% 40 bps Bookings $710 $643 11% Revenue by End-Market % of Q1 Revenue Y / Y Growth Printing & Identification 41% 11% Industrial 59% 5% $ in millions

 

8 Fluids  Revenue growth driven by strong demand across most end-markets and acquisitions  Pumps continues to see solid plastics and petro-chemical end-markets; Fluid transfer benefitting from global retail fueling trends  Excluding the impact of recent acquisitions, segment margin was 20% on strong leverage on volume  Bookings activity remains strong across the segment  Book-to-bill at 1.05 8 Q1 2014 Q1 2013 % Change Revenue $345 $274 26% Earnings $ 58 $ 48 22% Margin 16.8% 17.4% -60 bps Bookings $363 $304 20% Revenue by End-Market % of Q1 Revenue Y / Y Growth Pumps 48% 34% Fluid Transfer 52% 19% $ in millions

 

9 Refrigeration & Food Equipment  Revenue impacted by project timing with customers in both refrigeration and food equipment – Activity will accelerate in seasonally strong 2nd quarter  Margin impacted by lower volume and $5 million in net one-time items recorded in Q1 2013  Bookings and backlog growth reflective of normal seasonality  Book-to-bill at a strong 1.20 9 Q1 2014 Q1 2013 % Change Revenue $411 $422 -3% Earnings $ 45 $ 52 -14% Margin 10.9% 12.3% -140 bps Bookings $494 $483 2% Revenue by End-Market % of Q1 Revenue Y / Y Growth Refrigeration 77% -3% Food Equipment 23% -3% $ in millions

 

10 Q1 2014 Overview 10 Q1 2014 Net Interest Expense $33 million, up $2 million from last year and in- line with expectations Corporate Expense $31 million, down $3 million from last year, in- line with expectations Effective Tax Rate (ETR) Q1 normalized rate was 30.7%, excluding $0.01 of discrete tax benefits Capex $33 million, in-line with expectations Share Repurchases Repurchased 3.6M shares ($293M) in quarter. Completed $1 billion program.

 

11 FY 2014 Guidance (unchanged)  Revenue – Organic revenue: 3% - 4% – Completed acquisitions: 3% – Total revenue: 6% - 7%  Corporate expense: ≈ $123 million  Interest expense: ≈ $133 million  Full-year tax rate: ≈ 31.0%  Capital expenditures: ≈ 2.5% of revenue  FY free cash flow: ≈ 11% of revenue 2014 Organic growth rate Energy 4% - 5% Engineered Systems 3% - 4% Fluids 4% - 5% Refrigeration & Food Equipment 2% - 3% Total organic 3% - 4% Acquisitions ≈ 3% (a) Total growth 6% - 7% (a): Reflects completed acquisitions

 

12 2014 EPS Guidance Bridge – Continuing Ops  2013 EPS – Continuing Ops $ 4.81 – Less 2013 tax benefits(1): (0.46) – Other one-times gains(2): (0.02)  2013 Adjusted EPS $ 4.33 – Volume, mix, price (inc. FX): $0.16 - $0.28 – Net benefits of productivity: 0.14 - 0.22 – Acquisitions: 0.05 - 0.07 – Investment / Compensation: (0.19 - 0.23) – Corporate expenses: 0.03 - 0.04 – Interest / Shares / Tax rate (net): 0.08 - 0.09  2014 EPS – Continuing Ops $4.60 - $4.80 (1) $0.02 in Q1 2013 , $0.36 in Q2 2013, $0.04 in Q3 2013, $0.04 in Q4 2013 (2) $0.02 in Q3 2013