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2014.04.17 8-K


 
 
 
 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________ 

FORM 8-K
________________________________
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): 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



2014.04.17 8-K Exhibit 99.1


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
%





a20140417exhibit992
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