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): January 25, 2012
________________________________
 
DOVER CORPORATION
 
(Exact Name of Registrant as Specified in Charter)
________________________________
 
Delaware
(State or other Jurisdiction
of Incorporation)	1-4018
(Commission File Number)	53-0257888
(I.R.S. Employer
Identification No.)	

3005 Highland Parkway, Suite 200
Downers Grove, Illinois 60515
(Address of Principal Executive Offices)	
 
(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 ( see  General Instruction A.2. below):
 
o	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o	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 January 25, 2012, Dover Corporation (i) issued the press release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter and full year ended December 31, 2011; and (ii) posted on its website at http://www.dovercorporation.com  the presentation slides attached hereto as Exhibit 99.2 for the quarter and year ended December 31, 2011.
 
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 Press Release of Dover Corporation, dated January 25, 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: January 25, 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 January 25, 2012.	
 	 	 	
99.2	 	Presentation Slides Posted on Dover Corporation’s Website at http://www.dovercorporation.com	

Exhibit 99.1

 
CONTACT:	READ IT ON THE WEB	
Paul Goldberg	www.dovercorporation.com	
Vice President - Investor Relations	 	
(212) 922-1640	 	
 
DOVER CORPORATION REPORTS FOURTH QUARTER AND FULL YEAR 2011 RESULTS

●	Reports quarterly revenue of $2.0 billion, an increase of 15% over the prior year	
 	 	
●	Delivers quarterly diluted earnings per share from continuing operations of $1.12, up 15% over last year	
 	 	
●	Achieves adjusted quarterly diluted earnings per share from continuing operations of $1.07, excluding tax benefits of $0.05, up 19% from an adjusted prior year	
 	 	
●	Expects 2012 full year revenue growth of 7% - 10%, and diluted earnings per share from continuing operations in the range of $4.70 - $5.00	

Downers Grove, Illinois, January 25, 2012 — Dover Corporation (NYSE: DOV) announced today that for the fourth quarter ended December 31, 2011, revenue was $2.0 billion, an increase of 15% over the prior-year period.  The revenue increase was driven by organic growth of 6% and a 9% increase from acquisitions.  Earnings from continuing operations for the fourth quarter of 2011 were $208.9 million, or diluted earnings per share (“EPS”) of $1.12, compared to $184.9 million, or $0.97 EPS, in the prior-year period, representing increases of 13% and 15%, respectively.  Excluding the impact of tax benefits of $0.05 EPS recognized in the current quarter and $0.07 EPS recognized in the prior-year period, adjusted EPS from continuing operations for the fourth quarter of 2011 was $1.07, reflecting an increase of 19% over an adjusted EPS of $0.90 in the prior-year period.
 
Revenue for the year ended December 31, 2011 was $8.0 billion, an increase of 20% over the prior year, reflecting organic growth of 11%, a 7% increase from acquisitions and a 2% impact from foreign exchange. Earnings from continuing operations for the year ended December 31, 2011 were $846.4 million, or $4.48 EPS, compared to $690.8 million, or $3.65 EPS in the prior year, representing a 23% increase in both earnings and EPS. Excluding the impact of tax benefits of $0.22 EPS in the current year and $0.27 EPS in the prior year, adjusted EPS from continuing operations for the year ended December 31, 2011 was $4.26, an increase of 26% over an adjusted EPS of $3.38 in the prior year.
 
Commenting on the fourth quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “Capped off by a solid fourth quarter, Dover delivered a record setting 2011 in terms of revenue, earnings, EPS and bookings.  Organic revenue growth in the fourth quarter of 6% was driven by broad-based strength in energy, handsets, fluids, and industrial end-markets. Our segment margin was 16.5%, where solid performances in our Energy, Communication Technologies and Engineered Systems segments partially offset weakness in Printing & Identification and acquisition-related costs. The majority of our businesses continued to book well as we ended the year with a seasonally normal book-to-bill of 1.00.”
 
“In addition to our strong financial results, we accomplished several important strategic initiatives in 2011. Importantly, we realigned our businesses into a new segment structure to more closely match our targeted growth markets.  We also deployed $1.4 billion in 2011 on acquisitions and divested three businesses consistent with our strategy of focusing on our growth spaces.  Lastly, we generated nearly $800 million in free cash flow, which enabled us to aggressively invest in higher growth economies and innovation, and to continue our long tradition of raising our annual dividend, now standing at 56 consecutive years.”
 
“Looking forward, we expect full year 2012 revenue growth of 7% - 10%, comprising organic revenue growth of 4% - 7%, plus growth from completed acquisitions of 3%. Based on this revenue assumption, we expect full-year diluted EPS from continuing operations to be in the range of $4.70 - $5.00.”
 
Net earnings for the fourth quarter of 2011 were $278.3 million, or $1.49 EPS, including net income from discontinued operations of $69.4 million, or $0.37 EPS (inclusive of a $0.34 EPS gain on the sale of a business), compared to net earnings of $198.3 million, or $1.04 EPS, for the same period of 2010, which included net income from discontinued operations of $13.4 million, or $0.07 EPS.  Net earnings for the year ended December 31, 2011 were $895.2 million, or $4.74 EPS, including net income from discontinued operations of $48.9 million, or $0.26 EPS (inclusive of a $0.02 EPS net loss, primarily reflecting the sale of three businesses), compared to net earnings of $700.1 million, or $3.70 EPS for the year ended December 31, 2010, which included net income from discontinued operations of $9.4 million, or $0.05 EPS.
 
Dover will host a webcast of its fourth quarter 2011 conference call at 10:00 A.M. Eastern Time (9:00 A.M. Central Time) on Wednesday, January 25, 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 fourth quarter and full year 2011 results and its operating companies 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 segments: Communication Technologies, Energy, Engineered Systems and Printing & Identification. Dover employs over 33,000 people worldwide. The company is headquartered in Downers Grove, Illinois. Additional information is available 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, 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; 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; current economic conditions and uncertainties in the credit and capital markets; a downgrade in Dover’s credit ratings; international economic conditions including interest rate and currency exchange rate fluctuations; 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 and tax policies (including domestic and international 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; the cyclical nature of some of Dover’s companies; domestic housing industry weakness; instability in countries where Dover conducts business; and possible future terrorist threats and their effect on the worldwide economy. 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 - FOURTH QUARTER 2011
 
DOVER CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)(in thousands, except per share data)
 
 	 	Three Months Ended December 31,	 	 	Year Ended Ended December 31,	 	
 	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
Revenue	 	$	2,004,486	 	 	$	1,737,436	 	 	$	7,950,140	 	 	$	6,640,191	 	
Cost of goods and services	 	 	1,247,091	 	 	 	1,050,664	 	 	 	4,898,716	 	 	 	4,023,586	 	
Gross profit	 	 	757,395	 	 	 	686,772	 	 	 	3,051,424	 	 	 	2,616,605	 	
Selling and administrative expenses	 	 	462,143	 	 	 	427,198	 	 	 	1,840,609	 	 	 	1,607,327	 	
Operating earnings	 	 	295,252	 	 	 	259,574	 	 	 	1,210,815	 	 	 	1,009,278	 	
Interest expense, net	 	 	29,060	 	 	 	25,930	 	 	 	115,596	 	 	 	106,422	 	
Other (income) expense, net	 	 	(2,658	)	 	 	(237	)	 	 	55	 	 	 	3,652	 	
Earnings before provision for income taxes and discontinued operations	 	 	268,850	 	 	 	233,881	 	 	 	1,095,164	 	 	 	899,204	 	
Provision for income taxes	 	 	59,912	 	 	 	48,975	 	 	 	248,799	 	 	 	208,453	 	
Earnings from continuing operations	 	 	208,938	 	 	 	184,906	 	 	 	846,365	 	 	 	690,751	 	
Earnings from discontinued operations, net	 	 	69,351	 	 	 	13,442	 	 	 	48,878	 	 	 	9,353	 	
Net earnings	 	$	278,289	 	 	$	198,348	 	 	$	895,243	 	 	$	700,104	 	

Basic earnings per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from continuing operations	 	$	1.13	 	 	$	0.99	 	 	$	4.55	 	 	$	3.70	 	
Earnings from discontinued operations, net	 	 	0.38	 	 	 	0.07	 	 	 	0.26	 	 	 	0.05	 	
Net earnings	 	 	1.51	 	 	 	1.06	 	 	 	4.82	 	 	 	3.75	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding	 	 	184,686	 	 	 	186,923	 	 	 	185,882	 	 	 	186,897	 	

Diluted earnings per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from continuing operations	 	$	1.12	 	 	$	0.97	 	 	$	4.48	 	 	$	3.65	 	
Earnings from discontinued operations, net	 	 	0.37	 	 	 	0.07	 	 	 	0.26	 	 	 	0.05	 	
Net earnings	 	 	1.49	 	 	 	1.04	 	 	 	4.74	 	 	 	3.70	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding	 	 	187,208	 	 	 	189,863	 	 	 	188,887	 	 	 	189,170	 	

Dividends paid per common share	 	$	0.315	 	 	$	0.275	 	 	$	1.18	 	 	$	1.07	 	

 

 
 
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited)(in thousands)  
 	 	2011	 	 	2010	 	
 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2011	 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2010	 	
REVENUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Communication Technologies	 	$	269,582	 	 	$	288,843	 	 	$	405,357	 	 	$	396,295	 	 	$	1,360,077	 	 	$	246,531	 	 	$	269,107	 	 	$	280,031	 	 	$	280,343	 	 	$	1,076,012	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy	 	 	425,424	 	 	 	454,327	 	 	 	510,608	 	 	 	510,390	 	 	 	1,900,749	 	 	 	296,792	 	 	 	319,305	 	 	 	326,149	 	 	 	361,261	 	 	 	1,303,507	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Engineered Systems	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
       Fluid Solutions	 	 	163,196	 	 	 	178,031	 	 	 	173,804	 	 	 	162,590	 	 	 	677,621	 	 	 	134,542	 	 	 	139,218	 	 	 	150,302	 	 	 	143,852	 	 	 	567,914	 	
       Refrigeration & Industrial	 	 	560,453	 	 	 	645,573	 	 	 	649,768	 	 	 	568,844	 	 	 	2,424,638	 	 	 	487,588	 	 	 	581,187	 	 	 	620,030	 	 	 	531,039	 	 	 	2,219,844	 	
       Eliminations	 	 	(382	)	 	 	(424	)	 	 	(431	)	 	 	(287	)	 	 	(1,524	)	 	 	(252	)	 	 	(365	)	 	 	(354	)	 	 	(345	)	 	 	(1,316	)	
 	 	 	723,267	 	 	 	823,180	 	 	 	823,141	 	 	 	731,147	 	 	 	3,100,735	 	 	 	621,878	 	 	 	720,040	 	 	 	769,978	 	 	 	674,546	 	 	 	2,786,442	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Printing & Identification	 	 	394,627	 	 	 	429,497	 	 	 	400,515	 	 	 	368,325	 	 	 	1,592,964	 	 	 	316,472	 	 	 	356,732	 	 	 	381,636	 	 	 	421,990	 	 	 	1,476,830	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intra-segment eliminations	 	 	(822	)	 	 	(877	)	 	 	(1,015	)	 	 	(1,671	)	 	 	(4,385	)	 	 	(618	)	 	 	(737	)	 	 	(541	)	 	 	(704	)	 	 	(2,600	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated revenue	 	$	1,812,078	 	 	$	1,994,970	 	 	$	2,138,606	 	 	$	2,004,486	 	 	$	7,950,140	 	 	$	1,481,055	 	 	$	1,664,447	 	 	$	1,757,253	 	 	$	1,737,436	 	 	$	6,640,191	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET EARNINGS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Segment Earnings:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Communication Technologies	 	$	47,325	 	 	$	54,527	 	 	$	53,433	 	 	$	71,097	 	 	$	226,382	 	 	$	46,125	 	 	$	52,593	 	 	$	55,852	 	 	$	50,645	 	 	$	205,215	 	
   Energy	 	 	93,051	 	 	 	110,447	 	 	 	125,268	 	 	 	121,871	 	 	 	450,637	 	 	 	68,277	 	 	 	81,552	 	 	 	78,959	 	 	 	87,325	 	 	 	316,113	 	
   Engineered Systems	 	 	98,235	 	 	 	128,570	 	 	 	125,529	 	 	 	92,852	 	 	 	445,186	 	 	 	81,038	 	 	 	106,590	 	 	 	115,878	 	 	 	79,138	 	 	 	382,644	 	
   Printing & Identification	 	 	54,637	 	 	 	67,967	 	 	 	59,447	 	 	 	44,483	 	 	 	226,534	 	 	 	42,043	 	 	 	54,759	 	 	 	62,471	 	 	 	78,095	 	 	 	237,368	 	
Total Segments	 	 	293,248	 	 	 	361,511	 	 	 	363,677	 	 	 	330,303	 	 	 	1,348,739	 	 	 	237,483	 	 	 	295,494	 	 	 	313,160	 	 	 	295,203	 	 	 	1,141,340	 	
Corporate expense / other	 	 	36,112	 	 	 	35,391	 	 	 	34,083	 	 	 	32,393	 	 	 	137,979	 	 	 	33,325	 	 	 	32,444	 	 	 	34,553	 	 	 	35,392	 	 	 	135,714	 	
Net interest expense	 	 	28,318	 	 	 	28,157	 	 	 	30,061	 	 	 	29,060	 	 	 	115,596	 	 	 	27,188	 	 	 	26,955	 	 	 	26,349	 	 	 	25,930	 	 	 	106,422	 	
Earnings from continuing operations before provision for income taxes	 	 	228,818	 	 	 	297,963	 	 	 	299,533	 	 	 	268,850	 	 	 	1,095,164	 	 	 	176,970	 	 	 	236,095	 	 	 	252,258	 	 	 	233,881	 	 	 	899,204	 	
Provision for income taxes	 	 	54,027	 	 	 	58,765	 	 	 	76,095	 	 	 	59,912	 	 	 	248,799	 	 	 	54,682	 	 	 	68,869	 	 	 	35,927	 	 	 	48,975	 	 	 	208,453	 	
Earnings from continuing operations	 	 	174,791	 	 	 	239,198	 	 	 	223,438	 	 	 	208,938	 	 	 	846,365	 	 	 	122,288	 	 	 	167,226	 	 	 	216,331	 	 	 	184,906	 	 	 	690,751	 	
Earnings (loss) from discontinued operations, net	 	 	20,114	 	 	 	10,571	 	 	 	(51,158	)	 	 	69,351	 	 	 	48,878	 	 	 	(14,161	)	 	 	2,644	 	 	 	7,428	 	 	 	13,442	 	 	 	9,353	 	
Net earnings	 	$	194,905	 	 	$	249,769	 	 	$	172,280	 	 	$	278,289	 	 	$	895,243	 	 	$	108,127	 	 	$	169,870	 	 	$	223,759	 	 	$	198,348	 	 	$	700,104	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SEGMENT OPERATING MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
   Communication Technologies	 	 	17.6	%	 	 	18.9	%	 	 	13.2	%	 	 	17.9	%	 	 	16.6	%	 	 	18.7	%	 	 	19.5	%	 	 	19.9	%	 	 	18.1	%	 	 	19.1	%	
   Energy	 	 	21.9	%	 	 	24.3	%	 	 	24.5	%	 	 	23.9	%	 	 	23.7	%	 	 	23.0	%	 	 	25.5	%	 	 	24.2	%	 	 	24.2	%	 	 	24.3	%	
   Engineered Systems	 	 	13.6	%	 	 	15.6	%	 	 	15.2	%	 	 	12.7	%	 	 	14.4	%	 	 	13.0	%	 	 	14.8	%	 	 	15.0	%	 	 	11.7	%	 	 	13.7	%	
   Printing & Identification	 	 	13.8	%	 	 	15.8	%	 	 	14.8	%	 	 	12.1	%	 	 	14.2	%	 	 	13.3	%	 	 	15.4	%	 	 	16.4	%	 	 	18.5	%	 	 	16.1	%	
Total Segment	 	 	16.2	%	 	 	18.1	%	 	 	17.0	%	 	 	16.5	%	 	 	17.0	%	 	 	16.0	%	 	 	17.8	%	 	 	17.8	%	 	 	17.0	%	 	 	17.2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DEPRECIATION AND AMORTIZATION EXPENSE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Communication Technologies	 	$	18,685	 	 	$	18,533	 	 	$	34,360	 	 	$	30,261	 	 	$	101,839	 	 	$	17,345	 	 	$	17,494	 	 	$	18,081	 	 	$	19,342	 	 	$	72,262	 	
Energy	 	 	18,573	 	 	 	18,765	 	 	 	19,399	 	 	 	21,082	 	 	 	77,819	 	 	 	11,511	 	 	 	12,349	 	 	 	11,942	 	 	 	13,040	 	 	 	48,842	 	
Engineered Systems	 	 	18,415	 	 	 	18,816	 	 	 	18,332	 	 	 	19,213	 	 	 	74,776	 	 	 	18,194	 	 	 	17,775	 	 	 	18,434	 	 	 	18,123	 	 	 	72,526	 	
Printing & Identification	 	 	11,372	 	 	 	11,685	 	 	 	11,548	 	 	 	11,543	 	 	 	46,148	 	 	 	11,857	 	 	 	11,556	 	 	 	11,322	 	 	 	11,567	 	 	 	46,302	 	
Corporate	 	 	586	 	 	 	626	 	 	 	636	 	 	 	713	 	 	 	2,561	 	 	 	369	 	 	 	336	 	 	 	658	 	 	 	674	 	 	 	2,037	 	
 	 	$	67,631	 	 	$	68,425	 	 	$	84,275	 	 	$	82,812	 	 	$	303,143	 	 	$	59,276	 	 	$	59,510	 	 	$	60,437	 	 	$	62,746	 	 	$	241,969	 	

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

 	 	2011	 	 	2010	 	
 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2011	 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2010	 	
BOOKINGS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Communication Technologies	 	 $	274,611	 	 	 $	309,734	 	 	 $	410,616	 	 	 $	349,579	 	 	$	1,344,540	 	 	 $	257,767	 	 	 $	304,026	 	 	 $	278,686	 	 	 $	287,786	 	 	 $	1,128,265	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy	 	 	495,125	 	 	 	472,543	 	 	 	498,212	 	 	 	519,525	 	 	 	1,985,405	 	 	 	300,441	 	 	 	326,217	 	 	 	326,080	 	 	 	366,277	 	 	 	1,319,015	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Engineered Systems	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
       Fluids	 	 	173,626	 	 	 	175,539	 	 	 	174,772	 	 	 	158,895	 	 	 	682,832	 	 	 	136,459	 	 	 	147,215	 	 	 	145,823	 	 	 	144,389	 	 	 	573,886	 	
       Refrigeration & Industrial	 	 	660,449	 	 	 	623,929	 	 	 	602,488	 	 	 	625,840	 	 	 	2,512,706	 	 	 	596,293	 	 	 	605,034	 	 	 	527,269	 	 	 	563,300	 	 	 	2,291,896	 	
       Eliminations	 	 	(733	)	 	 	(884	)	 	 	179	 	 	 	(1,378	)	 	 	(2,816	)	 	 	(486	)	 	 	(638	)	 	 	(640	)	 	 	(648	)	 	 	(2,412	)	
 	 	 	833,342	 	 	 	798,584	 	 	 	777,439	 	 	 	783,357	 	 	 	3,192,722	 	 	 	732,266	 	 	 	751,611	 	 	 	672,452	 	 	 	707,041	 	 	 	2,863,370	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Printing & Identification	 	 	438,526	 	 	 	386,259	 	 	 	384,085	 	 	 	353,849	 	 	 	1,562,719	 	 	 	370,598	 	 	 	404,088	 	 	 	399,788	 	 	 	398,570	 	 	 	1,573,044	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intra-segment eliminations	 	 	(2,736	)	 	 	(3,370	)	 	 	(2,452	)	 	 	(3,153	)	 	 	(11,711	)	 	 	(1,641	)	 	 	(2,317	)	 	 	(2,396	)	 	 	(2,689	)	 	 	(9,043	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated bookings	 	$	2,038,868	 	 	$	1,963,750	 	 	$	2,067,900	 	 	$	2,003,157	 	 	$	8,073,675	 	 	$	1,659,431	 	 	$	1,783,625	 	 	$	1,674,610	 	 	$	1,756,985	 	 	$	6,874,651	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BACKLOG	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Communication Technologies	 	 $	410,843	 	 	 $	431,558	 	 	 $	483,512	 	 	 $	437,320	 	 	 	 	 	 	 $	347,980	 	 	 $	381,828	 	 	 $	396,581	 	 	 $	404,374	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Energy	 	 	240,198	 	 	 	255,889	 	 	 	243,401	 	 	 	246,351	 	 	 	 	 	 	 	123,456	 	 	 	128,058	 	 	 	136,374	 	 	 	152,183	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Engineered Systems	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
       Fluids	 	 	57,357	 	 	 	54,945	 	 	 	55,230	 	 	 	54,194	 	 	 	 	 	 	 	42,882	 	 	 	50,346	 	 	 	46,556	 	 	 	47,123	 	 	 	 	 	
       Refrigeration & Industrial	 	 	544,995	 	 	 	523,011	 	 	 	469,876	 	 	 	528,118	 	 	 	 	 	 	 	480,604	 	 	 	502,479	 	 	 	413,318	 	 	 	446,267	 	 	 	 	 	
       Eliminations	 	 	(339	)	 	 	(526	)	 	 	(94	)	 	 	(177	)	 	 	 	 	 	 	(189	)	 	 	(324	)	 	 	(267	)	 	 	(315	)	 	 	 	 	
 	 	 	602,013	 	 	 	577,430	 	 	 	525,012	 	 	 	582,135	 	 	 	 	 	 	 	523,297	 	 	 	552,501	 	 	 	459,607	 	 	 	493,075	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Printing & Identification	 	 	262,629	 	 	 	220,619	 	 	 	197,792	 	 	 	180,871	 	 	 	 	 	 	 	166,439	 	 	 	209,178	 	 	 	235,360	 	 	 	213,589	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Intra-segment eliminations	 	 	(704	)	 	 	(1,178	)	 	 	(891	)	 	 	(193	)	 	 	 	 	 	 	(362	)	 	 	(569	)	 	 	(483	)	 	 	(729	)	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total consolidated backlog	 	$	1,514,979	 	 	$	1,484,318	 	 	$	1,448,826	 	 	$	1,446,484	 	 	 	 	 	 	$	1,160,810	 	 	$	1,270,996	 	 	$	1,227,439	 	 	$	1,262,492	 	 	 	 	 	

 

 
 
DOVER CORPORATION 
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data)
 
 	 	2011	 	 	2010	 	
 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2011	 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings (loss) per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.94	 	 	$	1.28	 	 	$	1.20	 	 	$	1.13	 	 	$	4.55	 	 	$	0.65	 	 	$	0.90	 	 	$	1.16	 	 	$	0.99	 	 	$	3.70	 	
Discontinued operations	 	 	0.11	 	 	 	0.06	 	 	 	(0.28	)	 	 	0.38	 	 	 	0.26	 	 	 	(0.08	)	 	 	0.01	 	 	 	0.04	 	 	 	0.07	 	 	 	0.05	 	
Net earnings	 	 	1.04	 	 	 	1.34	 	 	 	0.93	 	 	 	1.51	 	 	 	4.82	 	 	 	0.58	 	 	 	0.91	 	 	 	1.20	 	 	 	1.06	 	 	 	3.75	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings (loss) per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.92	 	 	$	1.26	 	 	$	1.19	 	 	$	1.12	 	 	$	4.48	 	 	$	0.65	 	 	$	0.89	 	 	$	1.15	 	 	$	0.97	 	 	$	3.65	 	
Discontinued operations	 	 	0.11	 	 	 	0.06	 	 	 	(0.27	)	 	 	0.37	 	 	 	0.26	 	 	 	(0.08	)	 	 	0.01	 	 	 	0.04	 	 	 	0.07	 	 	 	0.05	 	
Net earnings	 	 	1.03	 	 	 	1.32	 	 	 	0.91	 	 	 	1.49	 	 	 	4.74	 	 	 	0.58	 	 	 	0.90	 	 	 	1.19	 	 	 	1.04	 	 	 	3.70	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted diluted earnings per common share (calculated below):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	0.88	 	 	$	1.14	 	 	$	1.18	 	 	$	1.07	 	 	$	4.26	 	 	$	0.65	 	 	$	0.89	 	 	$	0.95	 	 	$	0.90	 	 	$	3.38	 	

Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net earnings (loss) :	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Continuing operations	 	$	174,791	 	 	$	239,198	 	 	$	223,438	 	 	$	208,938	 	 	$	846,365	 	 	$	122,288	 	 	$	167,226	 	 	$	216,331	 	 	$	184,906	 	 	$	690,751	 	
Discontinued operations	 	 	20,114	 	 	 	10,571	 	 	 	(51,158	)	 	 	69,351	 	 	 	48,878	 	 	 	(14,161	)	 	 	2,644	 	 	 	7,428	 	 	 	13,442	 	 	 	9,353	 	
Net earnings	 	 	194,905	 	 	 	249,769	 	 	 	172,280	 	 	 	278,289	 	 	 	895,243	 	 	 	108,127	 	 	 	169,870	 	 	 	223,759	 	 	 	198,348	 	 	 	700,104	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average shares outstanding:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic	 	 	186,659	 	 	 	186,443	 	 	 	185,770	 	 	 	184,686	 	 	 	185,882	 	 	 	187,093	 	 	 	186,823	 	 	 	186,721	 	 	 	186,923	 	 	 	186,897	 	
Diluted	 	 	190,090	 	 	 	189,705	 	 	 	188,436	 	 	 	187,208	 	 	 	188,887	 	 	 	187,886	 	 	 	188,720	 	 	 	188,565	 	 	 	189,863	 	 	 	189,170	 	

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:

 	 	2011	 	 	2010	 	
 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2011	 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2010	 	
Adjusted earnings from continuing operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from continuing operations	 	$	174,791	 	 	$	239,198	 	 	$	223,438	 	 	$	208,938	 	 	$	846,365	 	 	$	122,288	 	 	$	167,226	 	 	$	216,331	 	 	$	184,906	 	 	$	690,751	 	
Gains from discrete and other tax items	 	 	8,016	 	 	 	22,338	 	 	 	2,390	 	 	 	8,590	 	 	 	41,334	 	 	 	-	 	 	 	-	 	 	 	36,956	 	 	 	13,296	 	 	 	50,252	 	
Adjusted earnings from continuing operations	 	$	166,775	 	 	$	216,860	 	 	$	221,048	 	 	$	200,348	 	 	$	805,031	 	 	$	122,288	 	 	$	167,226	 	 	$	179,375	 	 	$	171,610	 	 	$	640,499	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted diluted earnings per common share:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings from continuing operations	 	$	0.92	 	 	$	1.26	 	 	$	1.19	 	 	$	1.12	 	 	$	4.48	 	 	$	0.65	 	 	$	0.89	 	 	$	1.15	 	 	$	0.97	 	 	$	3.65	 	
Gains from discrete and other tax items	 	 	0.04	 	 	 	0.12	 	 	 	0.01	 	 	 	0.05	 	 	 	0.22	 	 	 	-	 	 	 	-	 	 	 	0.20	 	 	 	0.07	 	 	 	0.27	 	
Adjusted earnings from continuing operations	 	$	0.88	 	 	$	1.14	 	 	$	1.18	 	 	$	1.07	 	 	$	4.26	 	 	$	0.65	 	 	$	0.89	 	 	$	0.95	 	 	$	0.90	 	 	$	3.38	 	

 

 
 
DOVER CORPORATION 
QUARTERLY FREE CASH FLOW
(unaudited)(in thousands)
 
 	 	2011	 	 	2010	 	
 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2011	 	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	FY 2010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash from operations	 	$	117,503	 	 	$	205,260	 	 	$	376,614	 	 	$	358,852	 	 	$	1,058,229	 	 	$	77,127	 	 	$	221,561	 	 	$	183,444	 	 	$	419,730	 	 	$	901,862	 	
Less:  Additions to property, plant and equipment	 	 	(51,379	)	 	 	(72,338	)	 	 	(65,000	)	 	 	(83,092	)	 	 	(271,809	)	 	 	(38,467	)	 	 	(45,642	)	 	 	(39,718	)	 	 	(51,018	)	 	 	(174,845	)	
Free cash flow	 	$	66,124	 	 	$	132,922	 	 	$	311,614	 	 	$	275,760	 	 	$	786,420	 	 	$	38,660	 	 	$	175,919	 	 	$	143,726	 	 	$	368,712	 	 	$	727,017	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow as a percentage of earnings from continuing operations	 	 	37.8	%	 	 	55.6	%	 	 	139.5	%	 	 	132.0	%	 	 	92.9	%	 	 	31.6	%	 	 	105.2	%	 	 	66.4	%	 	 	199.4	%	 	 	105.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow as a percentage of revenue	 	 	3.6	%	 	 	6.7	%	 	 	14.6	%	 	 	13.8	%	 	 	9.9	%	 	 	2.6	%	 	 	10.6	%	 	 	8.2	%	 	 	21.2	%	 	 	10.9	%	

 

 
 
DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited)(in thousands)
 
 	 	At December 31, 2011	 	 	At December 31, 2010	 	
Assets:	 	 	 	 	 	 	
Cash and cash equivalents	 	 $	1,206,755	 	 	$	1,189,079	 	
Short-term investments	 	 	-	 	 	 	121,734	 	
Receivables, net of allowances	 	 	1,190,265	 	 	 	1,023,099	 	
Inventories, net	 	 	803,346	 	 	 	657,962	 	
Deferred tax and other current assets	 	 	196,764	 	 	 	139,751	 	
Property, plant and equipment, net	 	 	1,000,870	 	 	 	785,624	 	
Goodwill	 	 	3,787,117	 	 	 	3,107,478	 	
Intangible assets, net	 	 	1,207,084	 	 	 	799,281	 	
Other assets	 	 	104,808	 	 	 	107,642	 	
Assets of discontinued operations	 	 	4,441	 	 	 	627,093	 	
 	 	$	9,501,450	 	 	$	8,558,743	 	
 	 	 	 	 	 	 	 	 	
Liabilities and Stockholders' Equity	 	 	 	 	 	 	 	 	
Notes payable and current maturities of long-term debt	 	$	1,022	 	 	$	16,590	 	
Payables and accrued expenses	 	 	1,201,959	 	 	 	1,128,458	 	
Deferred taxes and other noncurrent liabilities   	 	 	1,061,767	 	 	 	866,720	 	
Long-term debt	 	 	2,186,230	 	 	 	1,790,886	 	
Liabilities of discontinued operations	 	 	119,917	 	 	 	229,527	 	
Stockholders' equity	 	 	4,930,555	 	 	 	4,526,562	 	
 	 	$	9,501,450	 	 	$	8,558,743	 	

 

 
 
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)(in thousands)
 
 	 	Year Ended December 31,	 	
 	 	2011	 	 	2010	 	
Operating activities:	 	 	 	 	 	 	
Net earnings	 	$	895,243	 	 	$	700,104	 	
Gain from discontinued operations, net of tax	 	 	(48,878	)	 	 	(9,353	)	
Depreciation and amortization	 	 	303,143	 	 	 	241,969	 	
Stock-based compensation	 	 	25,991	 	 	 	21,207	 	
Contributions to employee benefit plans	 	 	(63,567	)	 	 	(58,201	)	
Net change in assets and liabilities	 	 	(53,703	)	 	 	6,136	 	
Net cash provided by operating activities of continuing operations	 	 	1,058,229	 	 	 	901,862	 	
 	 	 	 	 	 	 	 	 	
Investing activities:	 	 	 	 	 	 	 	 	
Proceeds from sale of short-term investments	 	 	124,410	 	 	 	553,466	 	
Purchase of short-term investments	 	 	-	 	 	 	(466,881	)	
Proceeds from the sale of property and equipment	 	 	9,986	 	 	 	16,660	 	
Additions to property, plant and equipment	 	 	(271,809	)	 	 	(174,845	)	
Proceeds from sale of businesses	 	 	516,901	 	 	 	4,500	 	
Settlement of net investment hedge	 	 	(18,211	)	 	 	-	 	
Acquisitions (net of cash acquired)	 	 	(1,382,217	)	 	 	(104,418	)	
Net cash used in investing activities of continuing operations	 	 	(1,020,940	)	 	 	(171,518	)	
 	 	 	 	 	 	 	 	 	
Financing activities:	 	 	 	 	 	 	 	 	
Increase (decrease) in debt, net	 	 	371,315	 	 	 	(60,855	)	
Purchase of common stock	 	 	(242,488	)	 	 	(123,555	)	
Proceeds from exercise of stock options, including tax benefits	 	 	39,826	 	 	 	79,721	 	
Dividends to stockholders	 	 	(219,154	)	 	 	(200,099	)	
Net cash used in financing activities of continuing operations	 	 	(50,501	)	 	 	(304,788	)	
 	 	 	 	 	 	 	 	 	
Net cash provided by discontinued operations	 	 	14,898	 	 	 	37,079	 	
 	 	 	 	 	 	 	 	 	
Effect of exchange rate changes on cash	 	 	15,990	 	 	 	10,008	 	
 	 	 	 	 	 	 	 	 	
Net increase in cash and cash equivalents	 	 	17,676	 	 	 	472,643	 	
Cash and cash equivalents at beginning of period	 	 	1,189,079	 	 	 	716,436	 	
Cash and cash equivalents at end of period	 	$	1,206,755	 	 	$	1,189,079	 	

 

 
 
ADDITIONAL INFORMATION
 
FOURTH QUARTER AND FULL YEAR 2011
 
Acquisitions
 
During the fourth quarter of 2011, the Company completed two add-on acquisitions in the Engineered Systems segment.  For the full year 2011, Dover made a total of nine acquisitions for consideration totaling $1.4 billion. This included the acquisition of Harbison-Fischer within the Energy segment in the first quarter and the acquisition of Sound Solutions within the Communication Technologies segment in the third quarter.
 
Dispositions
 
In the fourth quarter of 2011, the Company completed the sale of Heil Trailer International, resulting in an after-tax gain of $0.34 diluted earnings per share ("EPS"). Fourth quarter net earnings from discontinued operations was $0.37 EPS, which includes income from the operations of Heil prior to sale as well as adjustments to other discontinued assets and liabilities. On a full-year basis, the Company generated a net loss on sale of $0.02 EPS, which includes the $0.35 EPS loss on the sale of Paladin and Crenlo in the third quarter and other adjustments for prior year dispositions. For the full year, net earnings from discontinued operations was $0.26 EPS, which includes income from the operations of the businesses sold in 2011 as well as adjustments to other discontinued assets and liabilities.
 
Tax Rate
 
The effective tax rate on continuing operations for the fourth quarter of 2011 was 22.3%, compared to the prior-year fourth quarter rate of 20.9%. On a full year basis, the effective tax rates on continuing operations for 2011 and 2010 were 22.7% and 23.2%, respectively. The 2011 and 2010 rates were favorably impacted by discrete and other items, as shown in the reconciliation for quarterly earnings per share included herein. After adjusting for discrete and other items, the full year rates of 26.5% for 2011 and 28.8% for 2010 primarily reflect the impact of changes in the geographic mix of earnings.
 
Revenue Growth Factors

 	 	 	2011	
 	Q1	 	Q2	 	Q3	 	Q4	 	Full Year	
Organic	 	 	17.5%	 	13.2%	 	9.7%	 	5.9%	 	11.3%	
Acquisitions	 	4.1%	 	3.9%	 	9.2%	 	9.4%	 	6.8%	
Currency translation	0.8%	 	2.8%	 	2.8%	 	0.1%	 	1.6%	
 	 	 	22.4%	 	19.9%	 	21.7%	 	15.4%	 	19.7%	

 

 
 
Free Cash Flow
 
The following table is a reconciliation of free cash flow (a non-GAAP measure) from cash flow provided by operating activities:
 
 	 	Three Months Ended December 31,	 	 	Year Ended December 31,	 	
Free Cash Flow  (in thousands)	 	2011	 	 	2010	 	 	2011	 	 	2010	 	
Cash flow provided by operating activities	 	$	358,852	 	 	$	419,730	 	 	$	1,058,229	 	 	$	901,862	 	
Less: Additions to property, plant and equipment	 	 	(83,092	)	 	 	(51,018	)	 	 	(271,809	)	 	 	(174,845	)	
Free cash flow	 	$	275,760	 	 	$	368,712	 	 	$	786,420	 	 	$	727,017	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow as a percentage of revenue	 	 	13.8	%	 	 	21.2	%	 	 	9.9	%	 	 	10.9	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Free cash flow as a percentage of earnings from continuing operations	 	 	 	92.9	%	 	 	105.3	%	
 
The full year increase in 2011 free cash flow reflects higher earnings from continuing operations before depreciation and amortization and lower investment in working capital, partially offset by higher tax payments in 2011. In 2011, the Company made tax payments of approximately $280 million compared to $103 million in the prior year. Free cash flow is also impacted by higher capital expenditures in 2011 necessary to fund expansion in the Company’s high-growth businesses.
 
Share Repurchases
 
During the year ended December 31, 2011, pursuant to a five-year 10,000,000 share repurchase program authorized by the Board of Directors in May 2007, the Company purchased approximately 4.0 million shares of its common stock in the open market at an average price of $58.78 per share.  Approximately 2.5 million shares remain authorized for repurchase under this five-year authorization as of December 31, 2011.
 
Capitalization
 
The following table provides a summary reconciliation of total debt and net debt to net capitalization to the most directly comparable GAAP measures:

Net Debt to Net Capitalization Ratio (in thousands)	 	 
At December 31, 2011	 	 
At December 31, 2010	
Current maturities of long-term debt	 	$	1,022	 	 $            1,590	
Commercial paper	 	 	                     -	 	             15,000	
Long-term debt	 	 	          2,186,230	 	         1,790,886	
Total debt	 	 	          2,187,252	 	         1,807,476	
Less: Cash, cash equivalents and short-term investments	 	         (1,206,755)	 	        (1,310,813)	
Net debt	 	 	             980,497	 	            496,663	
Add:  Stockholders' equity	 	 	          4,930,555	 	         4,526,562	
Net capitalization	 	$	5,911,052	 	 $      5,023,225	
Net debt to net capitalization	 	 	16.6%	 	9.9%	
 
The Company’s net debt to net capitalization ratio increased at December 31, 2011 primarily due to the use of cash and debt to fund acquisitions totaling $1.4 billion during the year. Total debt increased by $380 million during 2011, primarily due to net borrowings of $789 million under the 4.3% 10-year Notes due 2021 and 5.375% 30-year Notes due 2041 issued in February, part of which were used to repay $400 million of other borrowings, principally commercial paper used to repay the 6.50% 10-year Notes which came due earlier in February 2011.  In 2011, the Company also received cash proceeds of $517 million primarily from the sale of three businesses.

 
Non-GAAP Information:
 
These Investor Supplement tables contain historical financial information presented under Dover’s new segment structure, as discussed within this release. These segment level disclosures are considered “Non-GAAP” financial information until such time that the new segment reporting structure is included within a periodic filing with the Securities and Exchange Commission. Management believes this non-GAAP financial information is useful to investors to better understand historical trends under the revised segment structure, which the company will be reporting under in its Form 10-K for the year ending December 31, 2011. Dover has disclosed herein non-GAAP measures of adjusted earnings from continuing operations used in calculating adjusted diluted earnings per common share, as management believes this information is useful to investors to better understand the company’s ongoing profitability and facilitates easier comparisons of the company’s profitability to prior and future periods and to its peers.  The company has also disclosed herein the non-GAAP measure of free cash flow. Management believes free cash flow is an important measure of the company's operating performance and liquidity that provides both management and investors a measurement of cash generated from operations that is available to fund acquisitions, pay dividends, repay debt and repurchase its common stock.

Exhibit 99.2