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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): October 21, 2011
________________________________
DOVER CORPORATION
(Exact Name of Registrant as Specified in Charter)
________________________________
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Delaware
(State or other Jurisdiction
of Incorporation)
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1-4018
(Commission File Number)
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53-0257888
(I.R.S. Employer
Identification No.)
|
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3005 Highland Parkway, Suite 200
Downers Grove, Illinois 60515
(Address of Principal Executive Offices)
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(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):
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o
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On October 21, 2011, Dover Corporation (i) issued the press release attached hereto as Exhibit 99.1 announcing its results of operations for the quarter ended September 30, 2011; and (ii) posted on its website at http://www.dovercorporation.com the investor supplement attached hereto as Exhibit 99.2 for the quarter ended September 30, 2011 and the presentation slides attached hereto as Exhibit 99.3 for the quarter ended September 30, 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.
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(a)
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Financial statements of businesses acquired.
Not applicable.
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(b)
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Pro forma financial information.
Not applicable.
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(c)
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Shell company transactions.
Not applicable.
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(d)
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Exhibits.
The following exhibits are furnished as part of this report:
99.1 Press Release of Dover Corporation, dated October 21, 2011.
99.2 Investor Supplement Posted on Dover Corporation’s Website at http://www.dovercorporation.com.
99.3 Presentation Slides Posted on Dover Corporation’s Website at http://www.dovercorporation.com.
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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: October 21, 2011 | DOVER CORPORATION | ||
| (Registrant) | |||
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By:
|
/s/ Joseph W. Schmidt | ||
| Joseph W. Schmidt | |||
| Senior Vice President, General Counsel & Secretary | |||
EXHIBIT INDEX
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Number
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Exhibit
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|
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99.1
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Press Release of Dover Corporation, dated October 21, 2011
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99.2
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Investor Supplement Posted on Dover Corporation’s Website at http://www.dovercorporation.com
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99.3
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Presentation Slides Posted on Dover Corporation’s Website at http://www.dovercorporation.com
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Exhibit 99.1
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CONTACT:
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READ IT ON THE WEB
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Paul Goldberg
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www.dovercorporation.com
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Treasurer & Director of Investor Relations
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| (212) 922-1640 |
DOVER CORPORATION REPORTS THIRD QUARTER 2011 RESULTS
| ● | Reports revenue of $2.2 billion, an increase of 22% over the prior year |
| ● | Delivers quarterly diluted earnings per share from continuing operations of $1.21 |
| ● | Achieves adjusted quarterly diluted earnings per share of $1.20, excluding tax benefits of $0.01, up 25% from prior year |
| ● | Raises guidance for full-year earnings per share from continuing operations to $4.45 - $4.50, after adjusting for divested businesses |
Downers Grove, Illinois, October 21, 2011 — Dover Corporation (NYSE: DOV) announced today that for the third quarter ended September 30, 2011, revenue was $2.2 billion, an increase of 22% over the prior-year period. The revenue increase was driven by organic growth of 10%, a 9% increase from acquisitions and a 3% favorable impact from foreign exchange. Earnings from continuing operations were $228.6 million, or $1.21 diluted earnings per share (“EPS”), compared to $219.3 million, or $1.16 EPS, in the prior-year period, representing increases in both earnings from continuing operations and EPS of 4%. Excluding the impact of tax benefits of $0.01 EPS recognized in the current quarter and $0.20 EPS recognized in the third quarter of 2010, adjusted diluted EPS from continuing operations was $1.20, an increase of 25%.
Revenue for the nine months ended September 30, 2011 was $6.1 billion, an increase of 22% over the prior year period, reflecting organic growth of 14%, a 6% increase from acquisitions and a 2% favorable impact from foreign exchange. Earnings from continuing operations for the nine months ended September 30, 2011 were $650.0 million, or $3.43 EPS, compared to $512.4 million, or $2.71 EPS in the prior-year period, representing increases in both earnings from continuing operations and EPS of 27%. Excluding the impact of tax benefits of $0.17 EPS in the current year and $0.20 EPS in the prior year period, adjusted diluted EPS for the nine months ended September 30, 2011 was $3.26, an increase of 30%.
Commenting on the third quarter results, Dover’s President and Chief Executive Officer, Robert A. Livingston, said, “I am pleased Dover delivered strong third quarter performance driven by solid organic growth supported by acquisitions. Quarterly revenue, earnings, bookings and backlog all increased over the prior year. Revenue growth of 22% was largely driven by continued strength in our energy-related markets, our strong position in the handset market and improved results in the refrigeration equipment and Product ID markets. Our segment margin was 16.9%, notwithstanding significant one-time costs associated with our Sound Solutions acquisition. Adjusting for these costs segment margin was 17.5%. The majority of our businesses continued to book well during the quarter, resulting in a seasonally normal book-to-bill of 0.96.”
“We also made important progress on our strategic initiatives. In September, we divested the Paladin and Crenlo businesses, which was an important step in our continued efforts to focus on our higher margin growth spaces. Further supporting the success of our strategy is the recent addition of Knowles Sound Solutions, which is off to a great start and performing at the high end of our expectations. We were also pleased to close the Oil Lift acquisition in the quarter, further bolstering our position in the artificial lift market.”
“Our third quarter results were strong and we expect most of our businesses to continue to perform well. As a result, we are maintaining our full-year 2011 revenue growth forecast of approximately 20%, which is largely unchanged from last quarter. This forecast represents full-year organic revenue growth of around 13% with 7% growth from acquisitions. After adjusting our full-year guidance $0.14 EPS for the operating results of Paladin and Crenlo included in our prior forecast, we are slightly raising guidance, and now expect full-year diluted EPS from continuing operations to be in the range of $4.45 - $4.50.”
Net earnings for the third quarter of 2011 were $172.3 million or $0.91 diluted EPS, including a net loss from discontinued operations of $56.3 million, or $0.30 EPS, compared to net earnings of $223.8 million, or $1.19 EPS, for the same period of 2010, which included a gain from discontinued operations of $4.5 million, or $0.02 EPS. Net earnings for the nine months ended September 30, 2011 were $617.0 million, or $3.26 EPS, including a net loss from discontinued operations of $33.0 million, or $0.17 EPS, compared to net earnings of $501.8 million, or $2.66 EPS for the same period of 2010, which included a loss from discontinued operations of $10.7 million or $0.06 EPS.
Dover will host a webcast of its third quarter 2011 conference call at 10:30 A.M. Eastern Time (9:30 A.M. Central Time) on Friday, October 21, 2011. 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 third quarter 2011 results and its operating companies can also be found on the Company website.
Dover Corporation is a global manufacturer providing innovative components and equipment, specialty systems and support services for a variety of applications in the industrial products, engineered systems, fluid management and electronic technologies markets. For more information, please visit www.dovercorporation.com.
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; current economic conditions and uncertainties in the credit and capital markets; 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; changes in customer demand; the impact of loss of a single-source manufacturing facility; 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.
Exhibit 99.2
INVESTOR SUPPLEMENT - THIRD QUARTER 2011
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited) (in thousands, except per share figures)
|
Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
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2011
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2010
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2011
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2010
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|||||||||||||
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Revenue
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$ | 2,203,388 | $ | 1,802,158 | $ | 6,122,287 | $ | 5,023,750 | ||||||||
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Cost of goods and services
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1,381,337 | 1,111,364 | 3,786,458 | 3,065,621 | ||||||||||||
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Gross profit
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822,051 | 690,794 | 2,335,829 | 1,958,129 | ||||||||||||
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Selling and administrative expenses
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484,350 | 397,927 | 1,401,198 | 1,198,645 | ||||||||||||
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Operating earnings
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337,701 | 292,867 | 934,631 | 759,484 | ||||||||||||
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Interest expense, net
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30,048 | 26,335 | 86,468 | 80,446 | ||||||||||||
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Other expense, net
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252 | 9,786 | 2,848 | 3,836 | ||||||||||||
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Earnings before provision for income taxes and discontinued operations
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307,401 | 256,746 | 845,315 | 675,202 | ||||||||||||
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Provision for income taxes
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78,824 | 37,437 | 195,319 | 162,789 | ||||||||||||
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Earnings from continuing operations
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228,577 | 219,309 | 649,996 | 512,413 | ||||||||||||
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(Loss) earnings from discontinued operations, net
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(56,297 | ) | 4,450 | (33,042 | ) | (10,657 | ) | |||||||||
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Net earnings
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$ | 172,280 | $ | 223,759 | $ | 616,954 | $ | 501,756 | ||||||||
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Basic earnings (loss) per common share:
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||||||||||||||||
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Earnings from continuing operations
|
$ | 1.23 | $ | 1.17 | $ | 3.49 | $ | 2.74 | ||||||||
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(Loss) earnings from discontinued operations, net
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(0.30 | ) | 0.02 | (0.18 | ) | (0.06 | ) | |||||||||
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Net earnings
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0.93 | 1.20 | 3.31 | 2.68 | ||||||||||||
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Weighted average shares outstanding
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185,770 | 186,721 | 186,246 | 186,917 | ||||||||||||
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Diluted earnings (loss) per common share:
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||||||||||||||||
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Earnings from continuing operations
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$ | 1.21 | $ | 1.16 | $ | 3.43 | $ | 2.71 | ||||||||
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(Loss) earnings from discontinued operations, net
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(0.30 | ) | 0.02 | (0.17 | ) | (0.06 | ) | |||||||||
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Net earnings
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0.91 | 1.19 | 3.26 | 2.66 | ||||||||||||
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Weighted average shares outstanding
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188,436 | 188,565 | 189,420 | 188,898 | ||||||||||||
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Dividends paid per common share
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$ | 0.315 | $ | 0.28 | $ | 0.865 | $ | 0.80 | ||||||||
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The following table is a reconciliation of the share amounts used in computing earnings per share:
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||||||||||||||||
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Three Months Ended September 30,
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Nine Months Ended September 30,
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|||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
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Weighted average shares outstanding - Basic
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185,770 | 186,721 | 186,246 | 186,917 | ||||||||||||
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Dilutive effect of assumed exercise of employee stock options, SARs and Performance Shares
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2,666 | 1,844 | 3,174 | 1,981 | ||||||||||||
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Weighted average shares outstanding - Diluted
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188,436 | 188,565 | 189,420 | 188,898 | ||||||||||||
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Anti-dilutive options/SARs excluded from diluted EPS computation
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1,495 | 3,709 | 1,287 | 1,432 | ||||||||||||
DOVER CORPORATION - INVESTOR SUPPLEMENT
THIRD QUARTER 2011
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited) (in thousands)
|
2011
|
2010
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|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 |
Q3 YTD
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Q1 | Q2 | Q3 |
Q3 YTD
|
Q4 |
FY 2010
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|||||||||||||||||||||||||||||||
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REVENUE
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||||||||||||||||||||||||||||||||||||||||
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Industrial Products
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||||||||||||||||||||||||||||||||||||||||
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Material Handling
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$ | 158,731 | $ | 173,806 | $ | 182,232 | $ | 514,769 | $ | 122,265 | $ | 132,695 | $ | 135,987 | $ | 390,947 | $ | 145,106 | $ | 536,053 | ||||||||||||||||||||
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Mobile Equipment
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266,675 | 290,668 | 277,696 | 835,039 | 240,139 | 248,523 | 250,664 | 739,326 | 255,833 | 995,159 | ||||||||||||||||||||||||||||||
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Eliminations
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(623 | ) | (713 | ) | (507 | ) | (1,843 | ) | (379 | ) | (432 | ) | (428 | ) | (1,239 | ) | (353 | ) | (1,592 | ) | ||||||||||||||||||||
| 424,783 | 463,761 | 459,421 | 1,347,965 | 362,025 | 380,786 | 386,223 | 1,129,034 | 400,586 | 1,529,620 | |||||||||||||||||||||||||||||||
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Engineered Systems
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||||||||||||||||||||||||||||||||||||||||
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Product Identification
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226,330 | 239,035 | 246,395 | 711,760 | 212,500 | 219,551 | 221,677 | 653,728 | 236,743 | 890,471 | ||||||||||||||||||||||||||||||
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Engineered Products
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334,315 | 406,620 | 423,476 | 1,164,411 | 271,773 | 357,570 | 398,685 | 1,028,028 | 311,176 | 1,339,204 | ||||||||||||||||||||||||||||||
| 560,645 | 645,655 | 669,871 | 1,876,171 | 484,273 | 577,121 | 620,362 | 1,681,756 | 547,919 | 2,229,675 | |||||||||||||||||||||||||||||||
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Fluid Management
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||||||||||||||||||||||||||||||||||||||||
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Energy
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303,540 | 321,076 | 367,889 | 992,505 | 205,327 | 216,020 | 220,001 | 641,348 | 244,234 | 885,582 | ||||||||||||||||||||||||||||||
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Fluid Solutions
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205,563 | 213,599 | 217,138 | 636,300 | 175,505 | 187,759 | 196,554 | 559,818 | 194,832 | 754,650 | ||||||||||||||||||||||||||||||
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Eliminations
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(163 | ) | (137 | ) | (22 | ) | (322 | ) | (32 | ) | (105 | ) | (127 | ) | (264 | ) | (178 | ) | (442 | ) | ||||||||||||||||||||
| 508,940 | 534,538 | 585,005 | 1,628,483 | 380,800 | 403,674 | 416,428 | 1,200,902 | 438,888 | 1,639,790 | |||||||||||||||||||||||||||||||
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Electronic Technologies
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373,330 | 412,630 | 492,250 | 1,278,210 | 290,989 | 345,607 | 381,386 | 1,017,982 | 405,682 | 1,423,664 | ||||||||||||||||||||||||||||||
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Intra-segment eliminations
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(2,656 | ) | (2,727 | ) | (3,159 | ) | (8,542 | ) | (1,590 | ) | (2,093 | ) | (2,241 | ) | (5,924 | ) | (2,362 | ) | (8,286 | ) | ||||||||||||||||||||
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Total consolidated revenue
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$ | 1,865,042 | $ | 2,053,857 | $ | 2,203,388 | $ | 6,122,287 | $ | 1,516,497 | $ | 1,705,095 | $ | 1,802,158 | $ | 5,023,750 | $ | 1,790,713 | $ | 6,814,463 | ||||||||||||||||||||
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NET EARNINGS
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||||||||||||||||||||||||||||||||||||||||
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Segment Earnings:
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||||||||||||||||||||||||||||||||||||||||
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Industrial Products
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$ | 57,430 | $ | 65,194 | $ | 64,481 | $ | 187,105 | $ | 52,848 | $ | 58,567 | $ | 54,728 | $ | 166,143 | $ | 50,061 | $ | 216,204 | ||||||||||||||||||||
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Engineered Systems
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67,313 | 94,116 | 102,564 | 263,993 | 54,843 | 84,655 | 91,442 | 230,940 | 70,966 | 301,906 | ||||||||||||||||||||||||||||||
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Fluid Management
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113,685 | 131,382 | 144,327 | 389,394 | 86,767 | 96,168 | 101,847 | 284,782 | 103,638 | 388,420 | ||||||||||||||||||||||||||||||
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Electronic Technologies
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59,775 | 76,917 | 60,163 | 196,855 | 44,905 | 59,582 | 69,617 | 174,104 | 76,324 | 250,428 | ||||||||||||||||||||||||||||||
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Total Segments
|
298,203 | 367,609 | 371,535 | 1,037,347 | 239,363 | 298,972 | 317,634 | 855,969 | 300,989 | 1,156,958 | ||||||||||||||||||||||||||||||
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Corporate expense / other
|
36,100 | 35,378 | 34,086 | 105,564 | 33,325 | 32,443 | 34,553 | 100,321 | 35,393 | 135,714 | ||||||||||||||||||||||||||||||
|
Net interest expense
|
28,286 | 28,134 | 30,048 | 86,468 | 27,169 | 26,942 | 26,335 | 80,446 | 25,895 | 106,341 | ||||||||||||||||||||||||||||||
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Earnings from continuing operations before provision for income taxes
|
233,817 | 304,097 | 307,401 | 845,315 | 178,869 | 239,587 | 256,746 | 675,202 | 239,701 | 914,903 | ||||||||||||||||||||||||||||||
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Provision for income taxes
|
55,707 | 60,788 | 78,824 | 195,319 | 55,310 | 70,042 | 37,437 | 162,789 | 50,907 | 213,696 | ||||||||||||||||||||||||||||||
|
Earnings from continuing operations
|
178,110 | 243,309 | 228,577 | 649,996 | 123,559 | 169,545 | 219,309 | 512,413 | 188,794 | 701,207 | ||||||||||||||||||||||||||||||
|
Earnings (loss) from discontinued operations, net
|
16,795 | 6,460 | (56,297 | ) | (33,042 | ) | (15,432 | ) | 325 | 4,450 | (10,657 | ) | 9,554 | (1,103 | ) | |||||||||||||||||||||||||
|
Net earnings
|
$ | 194,905 | $ | 249,769 | $ | 172,280 | $ | 616,954 | $ | 108,127 | $ | 169,870 | $ | 223,759 | $ | 501,756 | $ | 198,348 | $ | 700,104 | ||||||||||||||||||||
|
SEGMENT OPERATING MARGIN
|
||||||||||||||||||||||||||||||||||||||||
|
Industrial Products
|
13.5 | % | 14.1 | % | 14.0 | % | 13.9 | % | 14.6 | % | 15.4 | % | 14.2 | % | 14.7 | % | 12.5 | % | 14.1 | % | ||||||||||||||||||||
|
Engineered Systems
|
12.0 | % | 14.6 | % | 15.3 | % | 14.1 | % | 11.3 | % | 14.7 | % | 14.7 | % | 13.7 | % | 13.0 | % | 13.5 | % | ||||||||||||||||||||
|
Fluid Management
|
22.3 | % | 24.6 | % | 24.7 | % | 23.9 | % | 22.8 | % | 23.8 | % | 24.5 | % | 23.7 | % | 23.6 | % | 23.7 | % | ||||||||||||||||||||
|
Electronic Technologies
|
16.0 | % | 18.6 | % | 12.2 | % | 15.4 | % | 15.4 | % | 17.2 | % | 18.3 | % | 17.1 | % | 18.8 | % | 17.6 | % | ||||||||||||||||||||
|
Total Segment
|
16.0 | % | 17.9 | % | 16.9 | % | 16.9 | % | 15.8 | % | 17.5 | % | 17.6 | % | 17.0 | % | 16.8 | % | 17.0 | % | ||||||||||||||||||||
THIRD QUARTER 2011
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited) (in thousands)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 |
Q3 YTD
|
Q1 | Q2 | Q3 |
Q3 YTD
|
Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
BOOKINGS
|
||||||||||||||||||||||||||||||||||||||||
|
Industrial Products
|
||||||||||||||||||||||||||||||||||||||||
|
Material Handling
|
$ | 185,225 | $ | 177,141 | $ | 171,046 | $ | 533,412 | $ | 130,166 | $ | 131,926 | $ | 138,970 | $ | 401,062 | $ | 155,106 | $ | 556,168 | ||||||||||||||||||||
|
Mobile Equipment
|
337,273 | 336,212 | 274,203 | 947,688 | 231,128 | 288,887 | 233,731 | 753,746 | 279,368 | 1,033,114 | ||||||||||||||||||||||||||||||
|
Eliminations
|
(824 | ) | (1,006 | ) | 1,767 | (63 | ) | (491 | ) | (483 | ) | (675 | ) | (1,649 | ) | (1,161 | ) | (2,810 | ) | |||||||||||||||||||||
| 521,674 | 512,347 | 447,016 | 1,481,037 | 360,803 | 420,330 | 372,026 | 1,153,159 | 433,313 | 1,586,472 | |||||||||||||||||||||||||||||||
|
Engineered Systems
|
||||||||||||||||||||||||||||||||||||||||
|
Product Identification
|
232,934 | 239,234 | 248,557 | 720,725 | 220,410 | 223,203 | 218,213 | 661,826 | 241,048 | 902,874 | ||||||||||||||||||||||||||||||
|
Engineered Products
|
399,757 | 400,604 | 368,914 | 1,169,275 | 368,134 | 379,048 | 329,119 | 1,076,301 | 332,142 | 1,408,443 | ||||||||||||||||||||||||||||||
| 632,691 | 639,838 | 617,471 | 1,890,000 | 588,544 | 602,251 | 547,332 | 1,738,127 | 573,190 | 2,311,317 | |||||||||||||||||||||||||||||||
|
Fluid Management
|
||||||||||||||||||||||||||||||||||||||||
|
Energy
|
354,774 | 335,748 | 359,006 | 1,049,528 | 208,669 | 226,301 | 213,247 | 648,217 | 247,143 | 895,360 | ||||||||||||||||||||||||||||||
|
Fluid Solutions
|
217,787 | 218,868 | 222,639 | 659,294 | 179,037 | 192,035 | 195,865 | 566,937 | 191,065 | 758,002 | ||||||||||||||||||||||||||||||
|
Eliminations
|
(309 | ) | 51 | (32 | ) | (290 | ) | (85 | ) | (51 | ) | (144 | ) | (280 | ) | (895 | ) | (1,175 | ) | |||||||||||||||||||||
| 572,252 | 554,667 | 581,613 | 1,708,532 | 387,621 | 418,285 | 408,968 | 1,214,874 | 437,313 | 1,652,187 | |||||||||||||||||||||||||||||||
|
Electronic Technologies
|
420,261 | 393,860 | 478,976 | 1,293,097 | 358,477 | 394,441 | 402,332 | 1,155,250 | 389,704 | 1,544,954 | ||||||||||||||||||||||||||||||
|
Intra-segment eliminations
|
(2,617 | ) | (3,316 | ) | (2,668 | ) | (8,601 | ) | (1,615 | ) | (2,244 | ) | (2,278 | ) | (6,137 | ) | (2,644 | ) | (8,781 | ) | ||||||||||||||||||||
|
Total consolidated bookings
|
$ | 2,144,261 | $ | 2,097,396 | $ | 2,122,408 | $ | 6,364,065 | $ | 1,693,830 | $ | 1,833,063 | $ | 1,728,380 | $ | 5,255,273 | $ | 1,830,876 | $ | 7,086,149 | ||||||||||||||||||||
|
BACKLOG
|
||||||||||||||||||||||||||||||||||||||||
|
Industrial Products
|
||||||||||||||||||||||||||||||||||||||||
|
Material Handling
|
$ | 134,761 | $ | 137,530 | $ | 125,781 | $ | 91,964 | $ | 90,644 | $ | 94,186 | $ | 107,787 | ||||||||||||||||||||||||||
|
Mobile Equipment
|
439,693 | 485,276 | 480,544 | 319,801 | 359,727 | 344,160 | 368,140 | |||||||||||||||||||||||||||||||||
|
Eliminations
|
(875 | ) | (926 | ) | (1 | ) | (439 | ) | (391 | ) | (344 | ) | (960 | ) | ||||||||||||||||||||||||||
| 573,579 | 621,880 | 606,324 | 411,326 | 449,980 | 438,002 | 474,967 | ||||||||||||||||||||||||||||||||||
|
Engineered Systems
|
||||||||||||||||||||||||||||||||||||||||
|
Product Identification
|
96,090 | 97,236 | 94,141 | 78,976 | 80,550 | 80,986 | 86,315 | |||||||||||||||||||||||||||||||||
|
Engineered Products
|
352,067 | 346,335 | 287,973 | 314,465 | 334,971 | 267,545 | 288,969 | |||||||||||||||||||||||||||||||||
| 448,157 | 443,571 | 382,114 | 393,441 | 415,521 | 348,531 | 375,284 | ||||||||||||||||||||||||||||||||||
|
Fluid Management
|
||||||||||||||||||||||||||||||||||||||||
|
Energy
|
163,475 | 177,129 | 170,293 | 76,844 | 84,800 | 84,659 | 94,113 | |||||||||||||||||||||||||||||||||
|
Fluid Solutions
|
77,553 | 81,436 | 84,584 | 63,535 | 65,639 | 69,130 | 65,525 | |||||||||||||||||||||||||||||||||
|
Eliminations
|
(180 | ) | - | (1 | ) | (55 | ) | (1 | ) | (17 | ) | (33 | ) | |||||||||||||||||||||||||||
| 240,848 | 258,565 | 254,876 | 140,324 | 150,438 | 153,772 | 159,605 | ||||||||||||||||||||||||||||||||||
|
Electronic Technologies
|
392,823 | 374,139 | 406,647 | 271,340 | 318,450 | 357,800 | 342,578 | |||||||||||||||||||||||||||||||||
|
Intra-segment eliminations
|
(711 | ) | (1,243 | ) | (924 | ) | (361 | ) | (569 | ) | (490 | ) | (747 | ) | ||||||||||||||||||||||||||
|
Total consolidated backlog
|
$ | 1,654,696 | $ | 1,696,912 | $ | 1,649,037 | $ | 1,216,070 | $ | 1,333,820 | $ | 1,297,615 | $ | 1,351,687 | ||||||||||||||||||||||||||
|
DEPRECIATION AND AMORTIZATION EXPENSE
|
||||||||||||||||||||||||||||||||||||||||
|
Industrial Products
|
$ | 10,919 | $ | 11,092 | $ | 10,866 | $ | 32,877 | $ | 11,266 | $ | 11,122 | $ | 10,799 | $ | 33,187 | $ | 11,116 | $ | 44,303 | ||||||||||||||||||||
|
Engineered Systems
|
15,826 | 16,350 | 16,146 | 48,322 | 15,750 | 15,273 | 15,626 | 46,649 | 15,699 | 62,348 | ||||||||||||||||||||||||||||||
|
Fluid Management
|
21,597 | 21,775 | 22,241 | 65,613 | 14,763 | 15,523 | 15,109 | 45,395 | 15,868 | 61,263 | ||||||||||||||||||||||||||||||
|
Electronic Technologies
|
19,279 | 19,178 | 34,937 | 73,394 | 17,688 | 17,823 | 18,811 | 54,322 | 19,974 | 74,296 | ||||||||||||||||||||||||||||||
|
Corporate
|
584 | 626 | 636 | 1,846 | 369 | 336 | 658 | 1,363 | 674 | 2,037 | ||||||||||||||||||||||||||||||
| $ | 68,205 | $ | 69,021 | $ | 84,826 | $ | 222,052 | $ | 59,836 | $ | 60,077 | $ | 61,003 | $ | 180,916 | $ | 63,331 | $ | 244,247 | |||||||||||||||||||||
THIRD QUARTER 2011
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 |
Q3 YTD
|
Q1 | Q2 | Q3 |
Q3 YTD
|
Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
Basic earnings (loss) per common share:
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 0.95 | $ | 1.31 | $ | 1.23 | $ | 3.49 | $ | 0.66 | $ | 0.91 | $ | 1.17 | $ | 2.74 | $ | 1.01 | $ | 3.75 | ||||||||||||||||||||
|
Discontinued operations
|
0.09 | 0.03 | (0.30 | ) | (0.18 | ) | (0.08 | ) | - | 0.02 | (0.06 | ) | 0.05 | (0.01 | ) | |||||||||||||||||||||||||
|
Net earnings
|
1.04 | 1.34 | 0.93 | 3.31 | 0.58 | 0.91 | 1.20 | 2.68 | 1.06 | 3.75 | ||||||||||||||||||||||||||||||
|
Diluted earnings (loss) per common share:
|
||||||||||||||||||||||||||||||||||||||||
|
Continuing operations
|
$ | 0.94 | $ | 1.28 | $ | 1.21 | $ | 3.43 | $ | 0.66 | $ | 0.90 | $ | 1.16 | $ | 2.71 | $ | 0.99 | $ | 3.71 | ||||||||||||||||||||
|
Discontinued operations
|
0.09 | 0.03 | (0.30 | ) | (0.17 | ) | (0.08 | ) | - | 0.02 | (0.06 | ) | 0.05 | (0.01 | ) | |||||||||||||||||||||||||
|
Net earnings
|
1.03 | 1.32 | 0.91 | 3.26 | 0.58 | 0.90 | 1.19 | 2.66 | 1.04 | 3.70 | ||||||||||||||||||||||||||||||
NOTE:
|
Diluted earnings per share in the first, second, and third quarters of 2011 and third and fourth quarters of 2010 were favorably impacted by discrete tax events. The third quarter of 2010 was additionally impacted by the favorable resolution of a tax position in a foreign jurisdiction. As a result, the Company's effective tax rates in the first, second, and third quarters of 2011 and the third and fourth quarters of 2010 were 23.8%, 20.0%, 25.6%, 14.6%, and 21.2%, respectively, which were lower than the Company's previously estimated tax rates of 27% to 29% for each of the respective periods. These lower effective tax rates contributed incremental diluted earnings per share of $0.04, $0.12, and $0.01 in the first, second, and third quarters of 2011 and $0.20 and $0.07 in the third and fourth quarters of 2010, respectively.
|
DOVER CORPORATION - INVESTOR SUPPLEMENT
THIRD QUARTER 2011
DOVER CORPORATION
QUARTERLY FREE CASH FLOW INFORMATION
(unaudited) (in thousands)
|
2011
|
2010
|
|||||||||||||||||||||||||||||||||||||||
| Q1 | Q2 | Q3 |
Q3 YTD
|
Q1 | Q2 | Q3 |
Q3 YTD
|
Q4 |
FY 2010
|
|||||||||||||||||||||||||||||||
|
Cash from operations
|
$ | 123,645 | $ | 207,320 | $ | 382,325 | $ | 713,290 | $ | 80,539 | $ | 219,644 | $ | 178,587 | $ | 478,770 | $ | 421,412 | $ | 900,182 | ||||||||||||||||||||
|
CAPEX
|
(51,712 | ) | (72,986 | ) | (66,001 | ) | $ | (190,699 | ) | (38,790 | ) | (46,411 | ) | (40,040 | ) | (125,241 | ) | (51,727 | ) | (176,968 | ) | |||||||||||||||||||
|
Free cash flow
|
$ | 71,933 | $ | 134,334 | $ | 316,324 | $ | 522,591 | $ | 41,749 | $ | 173,233 | $ | 138,547 | $ | 353,529 | $ | 369,685 | $ | 723,214 | ||||||||||||||||||||
|
Free cash flow as a percentage of earnings from continuing operations
|
40.4 | % | 55.2 | % | 138.4 | % | 80.4 | % | 33.8 | % | 102.2 | % | 63.2 | % | 69.0 | % | 195.8 | % | 103.1 | % | ||||||||||||||||||||
|
Free cash flow as a percentage of revenue
|
3.9 | % | 6.5 | % | 14.4 | % | 8.5 | % | 2.8 | % | 10.2 | % | 7.7 | % | 7.0 | % | 20.6 | % | 10.6 | % | ||||||||||||||||||||
Exhibit 99.3
Dover Corporation
Third Quarter 2011
Conference Call
Third Quarter 2011
Conference Call
October 21, 2011
10:30 am ET
2
Forward Looking Statements
We want to remind everyone that our comments
may contain forward-looking statements that are
inherently subject to uncertainties. We caution
everyone to be guided in their analysis of Dover
Corporation by referring to our Form 10-K for a list
of factors that could cause our results to differ from
those anticipated in any such forward-looking
statements.
may contain forward-looking statements that are
inherently subject to uncertainties. We caution
everyone to be guided in their analysis of Dover
Corporation by referring to our Form 10-K for a list
of factors that could cause our results to differ from
those anticipated in any such forward-looking
statements.
We would also direct your attention to our internet
site, www.dovercorporation.com, where
considerably more information can be found.
site, www.dovercorporation.com, where
considerably more information can be found.
|
Revenue
|
$ 2.2B
|
↑ 22%
|
$ 6.1B
|
↑ 22%
|
|
EPS (cont.)
|
$1.21
|
↑ 4%
|
$3.43
|
↑ 27%
|
|
Bookings
|
$2.1B
|
↑ 23%
|
$6.4B
|
↑ 21%
|
|
Seg. Margins
|
16.9%
|
↓ 70 bps
|
16.9%
|
↓ 10 bps
|
|
Organic Rev.
|
|
↑ 10%
|
|
↑ 14%
|
|
Acq. Growth
|
|
↑ 9%
|
|
↑ 6%
|
|
FCF (a)
|
$316M
|
↑ 128%
|
$523M
|
↑ 48%
|
3
Dover’s Q3 2011 Performance
Continuing Earnings Per Share
FY $3.71
• Results are driven by strong energy-related and
handset markets, and strong execution in Product
ID and Refrigeration Equipment
handset markets, and strong execution in Product
ID and Refrigeration Equipment
•Strong organic revenue growth at Fluid
Management and Industrial Products; up 23% and
16% respectively
Management and Industrial Products; up 23% and
16% respectively
•Segment operating margin of 16.9% included
significant one-time costs associated with Sound
Solutions acquisition
significant one-time costs associated with Sound
Solutions acquisition
• Bookings trends remained solid across a majority
of businesses resulting in a seasonally normal
of businesses resulting in a seasonally normal
book-to-bill of 0.96
Q3
Q3/Q3
2010
2011
* Includes discrete tax benefits of $0.20 EPS in Q3
2010, $0.07 in Q4 2010, $0.04 in Q1 2011, $0.12 in Q2
2011 and $0.01 in Q3 2011
2010, $0.07 in Q4 2010, $0.04 in Q1 2011, $0.12 in Q2
2011 and $0.01 in Q3 2011
YTD $3.43
YTD
YTD/YTD
Adjusted continuing earnings per share
Discrete tax benefits
(a) See Form 10-Q for free cash flow reconciliation
4
Revenue
|
Q3 2011
|
Industrial
Products |
Engineered
Systems |
Fluid
Management |
Electronic
Technologies |
Total
Dover
|
|
Organic
|
16%
|
4%
|
23%
|
2%
|
10%
|
|
Net Acquisitions
|
2%
|
-
|
15%
|
24%
|
9%
|
|
Currency
|
1%
|
4%
|
2%
|
3%
|
3%
|
|
Total
|
19%
|
8%
|
40%
|
29%
|
22%
|
|
YTD 2011
|
Industrial
Products |
Engineered
Systems |
Fluid
Management |
Electronic
Technologies |
Total
Dover
|
|
Organic
|
17%
|
9%
|
20%
|
14%
|
14%
|
|
Net Acquisitions
|
1%
|
-
|
14%
|
10%
|
6%
|
|
Currency
|
1%
|
3%
|
2%
|
2%
|
2%
|
|
Total
|
19%
|
12%
|
36%
|
26%
|
22%
|
5
Sequential Results - Q3 11 / Q2 11
Material Handling
Fluid Solutions
Mobile Equipment
Energy
Product Identification
Engineered Products
↓ 1%
↑ 4%
Electronic Technologies
↓ 13%
↓ 3%
↑ 5%
↑ 22%
$ in millions
6
Industrial Products
•Revenue growth was led by
strong downstream energy
activity and solid infrastructure
markets
strong downstream energy
activity and solid infrastructure
markets
•Bookings growth was broad-
based, with all businesses
showing improvement
based, with all businesses
showing improvement
•Margin impacted by product mix
and continued softness in the
refuse vehicle market
and continued softness in the
refuse vehicle market
•Book-to-bill at 0.97
•Backlog grew 38% to $606
million
million
$ in millions
|
|
Q3
2011
|
Q3
2010
|
%
Change
|
|
Revenue
|
$459
|
$386
|
+19%
|
|
Earnings
|
$ 64
|
$ 55
|
+18%
|
|
Margin
|
14.0%
|
14.2%
|
↓ 20 bps
|
|
Bookings
|
$447
|
$372
|
+20%
|
Quarterly Comments
|
|
YTD
2011
|
YTD
2010
|
%
Change
|
|
Revenue
|
$1,348
|
$1,129
|
+19%
|
|
Earnings
|
$ 187
|
$166
|
+13%
|
|
Margin
|
13.9%
|
14.7%
|
↓ 80 bps
|
|
Bookings
|
$1,481
|
$1,153
|
+28%
|
7
Engineered Systems
•Revenue growth was broad-
based with Product ID having the
largest positive impact
based with Product ID having the
largest positive impact
• Strong earnings leverage and
operating margin performance at
Engineered Products
operating margin performance at
Engineered Products
•Improved Product ID performance
reflects positive response to new
product offerings
reflects positive response to new
product offerings
•Bookings up 13%, as all
businesses saw growth
businesses saw growth
•Book-to-bill is 0.92
$ in millions
Quarterly Comments
|
|
Q3
2011
|
Q3
2010
|
%
Change
|
|
Revenue
|
$670
|
$620
|
+ 8%
|
|
Earnings
|
$103
|
$ 91
|
+12%
|
|
Margin
|
15.3%
|
14.7%
|
↑ 60 bps
|
|
Bookings
|
$617
|
$547
|
+13%
|
|
|
YTD
2011
|
YTD
2010
|
%
Change
|
|
Revenue
|
$1,876
|
$1,682
|
+12%
|
|
Earnings
|
$ 264
|
$ 231
|
+14%
|
|
Margin
|
14.1%
|
13.7%
|
↑ 40 bps
|
|
Bookings
|
$1,890
|
$1,738
|
+9%
|
8
Fluid Management
•Revenue and earnings growth
was broad-based, especially at
our businesses serving the oil &
gas markets
was broad-based, especially at
our businesses serving the oil &
gas markets
•Operating margin improvement
driven by volume
driven by volume
•Rig counts grew and oil prices
remained fairly stable providing
strong business climate
remained fairly stable providing
strong business climate
•Bookings growth in all
businesses, especially in Energy
businesses, especially in Energy
•Book-to-bill of 0.99
$ in millions
Quarterly Comments
|
|
Q3
2011
|
Q3
2010
|
%
Change
|
|
Revenue
|
$585
|
$416
|
+40%
|
|
Earnings
|
$144
|
$102
|
+42%
|
|
Margin
|
24.7%
|
24.5%
|
↑ 20 bps
|
|
Bookings
|
$582
|
$409
|
+42%
|
|
|
YTD
2011
|
YTD
2010
|
%
Change
|
|
Revenue
|
$1,628
|
$1,201
|
+36%
|
|
Earnings
|
$ 389
|
$ 285
|
+37%
|
|
Margin
|
23.9%
|
23.7%
|
↑ 20 bps
|
|
Bookings
|
$1,709
|
$1,215
|
+41%
|
9
Electronic Technologies
•Revenue growth was driven by
strong solar deliveries and strong
demand in handset markets; semi-
con markets were weak
strong solar deliveries and strong
demand in handset markets; semi-
con markets were weak
•Operating margin was impacted
by one-time expenses connected
with Sound Solutions acquisition;
margin was 15.3% adjusting for
these charges
by one-time expenses connected
with Sound Solutions acquisition;
margin was 15.3% adjusting for
these charges
•Sound Solutions off to strong start
•Strong bookings at Knowles and
Sound Solutions, partially offset by
weak semi-con and solar orders
Sound Solutions, partially offset by
weak semi-con and solar orders
•Book-to-bill of 0.97
$ in millions
Quarterly Comments
|
|
Q3
2011
|
Q3
2010
|
%
Change
|
|
Revenue
|
$492
|
$381
|
+29%
|
|
Earnings
|
$ 60
|
$ 69
|
- 14%
|
|
Margin
|
12.2%
|
18.3%
|
↓ 610 bps
|
|
Bookings
|
$479
|
$402
|
+19%
|
|
|
YTD
2011
|
YTD
2010
|
%
Change
|
|
Revenue
|
$1,278
|
$1,018
|
+26%
|
|
Earnings
|
$ 197
|
$ 174
|
+13%
|
|
Margin
|
15.4%
|
17.1%
|
↓ 170 bps
|
|
Bookings
|
$1,293
|
$1,155
|
+12%
|
Q3 2011 Overview
|
|
Q3 2011
|
|
Net Interest Expense
|
$30.0 million, up $4 million from last year, due
to higher outstanding long-term debt |
|
Corporate Expense
|
$34.0 million, essentially flat with last year, and
in-line with expectations |
|
Effective Tax Rate (ETR)
|
Q3 rate was 25.6%. Rate reflects $0.01 EPS
benefit on resolution of certain domestic tax matters. Adjusting for this benefit, the normalized rate would have been 26.4% |
10
11
FY 2011 Guidance - Update
• Revenue:
– Core revenue: ≈ 13.0%
– Acquisitions: ≈ 7.0%
– Total revenue: ≈ 20.0%
• Corporate expense: ≈ $135 million (unchanged)
• Interest expense: ≈ $116 million (unchanged)
• Full-Year Tax Rate: ≈ 27%*
• Capital expenditures: ≈ 3% of rev.
• Free cash flow for full year: ≈ 10% - 11% of rev. (unchanged)
* Excludes Q1, Q2 and Q3 discrete tax benefits of $0.17 EPS
• 2010 EPS $3.74
– Less 2010 operating earnings of Paladin / Crenlo: ($0.03)
– Less 2010 tax benefits: ($0.27)
• 2010 Adjusted EPS - Continuing Ops $3.44
– Volume, mix, price (inc. FX): $0.60 - $0.65
– Net benefits of productivity: $0.26 - $0.28
– Acquisitions: $0.07 - $0.08
– Investment / Compensation: ($0.14 - $0.17)
– Corporate expense: -
– Interest: ($0.03)
– Tax (including discrete tax benefits(1) and lower rate): $0.25
• 2011 EPS - Continuing Ops $4.45 - $4.50
12
2011 EPS Guidance Bridge - Cont. Ops
(inc. Sound Solutions: -$0.03 to -$0.04)
(1) $0.04 in Q1 2011, $0.12 in Q2 2011and $0.01 in Q3 2011
13
Guidance Reconciliation
|
|
Low
|
Mid
|
High
|
|
Prior EPS Guidance (7/21/11)
|
$4.50
|
$4.55
|
$4.60
|
|
Adj. for Paladin and Crenlo Sale
|
(0.14)*
|
(0.14)*
|
(0.14)*
|
|
Adjusted Prior EPS Guidance
|
$4.36
|
$4.41
|
$4.46
|
|
Performance
|
|
0.04
|
|
|
Q3 Tax (discrete & lower rate)
|
|
0.02
|
|
|
Revised EPS Guidance
|
$4.45
|
$4.47
|
$4.50
|
* Includes 2011 Paladin/Crenlo earnings of $0.03 in Q1, $0.03 in Q2, $0.04 in Q3 and
previously forecasted $0.04 in Q4.
previously forecasted $0.04 in Q4.