Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DOVER Corp | form8k-102111.htm |
| EX-99.1 - EXHIBIT 99.1 - DOVER Corp | form8k-102111ex991.htm |
| EX-99.2 - EXHIBIT 99.2 - DOVER Corp | form8k-102111ex992.htm |
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.