EX-99.2 3 y90923exv99w2.htm EX-99.2 exv99w2
Exhibit 99.2
(DOVER CORPORATION LOGO)
INVESTOR SUPPLEMENT — FIRST QUARTER 2011
DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(unaudited) (in thousands, except per share figures)
                 
    Three Months Ended March 31,  
    2011     2010  
Revenue
  $ 1,959,021     $ 1,583,270  
Cost of goods and services
    1,210,196       971,113  
 
           
Gross profit
    748,825       612,157  
Selling and administrative expenses
    478,519       409,169  
 
           
Operating earnings
    270,306       202,988  
Interest expense, net
    28,286       27,169  
Other expense (income), net
    1,220       (1,241 )
 
           
Earnings before provision for income taxes and discontinued operations
    240,800       177,060  
Provision for income taxes
    57,494       55,575  
 
           
Earnings from continuing operations
    183,306       121,485  
Earnings (loss) from discontinued operations, net
    11,599       (13,358 )
 
           
Net earnings
  $ 194,905     $ 108,127  
 
           
 
               
Basic earnings (loss) per common share:
               
Earnings from continuing operations
  $ 0.98     $ 0.65  
Gain (loss) from discontinued operations, net
    0.06       (0.07 )
Net earnings
    1.04       0.58  
 
               
Weighted average shares outstanding
    186,659       187,093  
 
           
 
               
Diluted earnings (loss) per common share:
               
Earnings from continuing operations
  $ 0.96     $ 0.65  
Gain (loss) from discontinued operations, net
    0.06       (0.07 )
Net earnings
    1.03       0.58  
 
               
Weighted average shares outstanding
    190,090       187,886  
 
           
 
               
Dividends paid per common share
  $ 0.275     $ 0.26  
 
           
The following table is a reconciliation of the share amounts used in computing earnings per share:
                 
    Three Months Ended March 31,  
    2011     2010  
Weighted average shares outstanding — Basic
    186,659       187,093  
Dilutive effect of assumed exercise of employee stock options, SARs and Performance Shares
    3,431       793  
 
           
 
               
Weighted average shares outstanding — Diluted
    190,090       187,886  
 
           
 
               
Anti-dilutive options/SARs excluded from diluted EPS computation
    1,524       2,928  

 


 

DOVER CORPORATION — INVESTOR SUPPLEMENT
FIRST QUARTER 2011
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION

(unaudited) (in thousands)
                                                 
    2010     2011  
    Q1     Q2     Q3     Q4     FY 2010     Q1  
           
REVENUE
                                               
Industrial Products
                                               
Material Handling
  $ 189,052     $ 214,295     $ 220,997     $ 229,987     $ 854,331     $ 252,766  
Mobile Equipment
    240,138       248,523       250,664       255,834       995,159       266,675  
Eliminations
    (392 )     (432 )     (453 )     (402 )     (1,679 )     (679 )
           
 
    428,798       462,386       471,208       485,419       1,847,811       518,762  
           
Engineered Systems
                                               
Product Identification
    212,500       219,551       221,677       236,743       890,471       226,330  
Engineered Products
    271,773       357,570       398,685       311,176       1,339,204       334,315  
           
 
    484,273       577,121       620,362       547,919       2,229,675       560,645  
           
Fluid Management
                                               
Energy
    205,327       216,020       220,001       244,234       885,582       303,540  
Fluid Solutions
    175,504       187,759       196,554       194,833       754,650       205,563  
Eliminations
    (31 )     (105 )     (127 )     (179 )     (442 )     (163 )
           
 
    380,800       403,674       416,428       438,888       1,639,790       508,940  
           
 
                                               
Electronic Technologies
    290,989       345,607       381,386       405,682       1,423,664       373,330  
           
 
                                               
Intra-segment eliminations
    (1,590 )     (2,092 )     (2,243 )     (2,367 )     (8,292 )     (2,656 )
           
 
                                               
Total consolidated revenue
  $ 1,583,270     $ 1,786,696     $ 1,887,141     $ 1,875,541     $ 7,132,648     $ 1,959,021  
           
 
                                               
NET EARNINGS
                                               
Segment Earnings:
                                               
Industrial Products
  $ 51,039     $ 61,635     $ 59,473     $ 54,238     $ 226,385     $ 64,413  
Engineered Systems
    54,843       84,655       91,442       70,966       301,906       67,313  
Fluid Management
    86,767       96,168       101,847       103,638       388,420       113,685  
Electronic Technologies
    44,905       59,582       69,617       76,324       250,428       59,775  
           
Total Segments
    237,554       302,040       322,379       305,166       1,167,139       305,186  
Corporate expense / other
    (33,325 )     (32,443 )     (34,553 )     (35,393 )     (135,714 )     (36,100 )
Net interest expense
    (27,169 )     (26,942 )     (26,335 )     (25,895 )     (106,341 )     (28,286 )
           
Earnings from continuing operations before provision for income taxes
    177,060       242,655       261,491       243,878       925,084       240,800  
Provision for income taxes
    55,575       70,762       38,732       52,107       217,176       57,494  
           
Earnings from continuing operations
    121,485       171,893       222,759       191,771       707,908       183,306  
Earnings (loss) from discontinued operations, net
    (13,358 )     (2,023 )     1,000       6,577       (7,804 )     11,599  
           
Net earnings
  $ 108,127     $ 169,870     $ 223,759     $ 198,348     $ 700,104     $ 194,905  
           
 
                                               
SEGMENT OPERATING MARGIN
                                   
Industrial Products
    11.9 %     13.3 %     12.6 %     11.2 %     12.3 %     12.4 %
Engineered Systems
    11.3 %     14.7 %     14.7 %     13.0 %     13.5 %     12.0 %
Fluid Management
    22.8 %     23.8 %     24.5 %     23.6 %     23.7 %     22.3 %
Electronic Technologies
    15.4 %     17.2 %     18.3 %     18.8 %     17.6 %     16.0 %
 
Total Segment
    15.0 %     16.9 %     17.1 %     16.3 %     16.4 %     15.6 %

 


 

DOVER CORPORATION — INVESTOR SUPPLEMENT
FIRST QUARTER 2011
DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION

(unaudited) (in thousands)
                                                 
    2010     2011  
    Q1     Q2     Q3     Q4     FY 2010     Q1  
           
BOOKINGS
                                               
Industrial Products
                                               
Material Handling
  $ 204,098     $ 223,787     $ 222,961     $ 248,948     $ 899,794     $ 288,714  
Mobile Equipment
    231,128       288,887       233,731       279,368       1,033,114       337,273  
Eliminations
    (407 )     (303 )     (444 )     (976 )     (2,130 )     (499 )
           
 
    434,819       512,371       456,248       527,340       1,930,778       625,488  
           
Engineered Systems
                                               
Product Identification
    220,410       223,203       218,213       241,048       902,874       232,934  
Engineered Products
    368,134       379,048       329,119       332,142       1,408,443       399,757  
           
 
    588,544       602,251       547,332       573,190       2,311,317       632,691  
           
Fluid Management
                                               
Energy
    208,669       226,301       213,247       247,143       895,360       354,774  
Fluid Solutions
    179,037       192,035       195,865       191,065       758,002       217,787  
Eliminations
    (85 )     (51 )     (144 )     (895 )     (1,175 )     (309 )
           
 
    387,621       418,285       408,968       437,313       1,652,187       572,252  
           
 
                                               
Electronic Technologies
    358,477       394,441       402,332       389,704       1,544,954       420,261  
           
 
                                               
Intra-segment eliminations
    (1,616 )     (2,244 )     (2,278 )     (2,644 )     (8,782 )     (2,617 )
           
 
                                               
Total consolidated bookings
  $ 1,767,845     $ 1,925,104     $ 1,812,602     $ 1,924,903     $ 7,430,454     $ 2,248,075  
           
 
                                               
BACKLOG
                                               
Industrial Products
                                               
Material Handling
  $ 131,521     $ 140,452     $ 142,959     $ 165,505             $ 201,925  
Mobile Equipment
    319,801       359,727       344,160       368,140               439,693  
Eliminations
    (386 )     (257 )     (248 )     (822 )             (642 )
                   
 
    450,936       499,922       486,871       532,823               640,976  
                   
Engineered Systems
                                               
Product Identification
    78,976       80,550       80,986       86,315               96,090  
Engineered Products
    314,465       334,971       267,545       288,969               352,067  
                   
 
    393,441       415,521       348,531       375,284               448,157  
                   
Fluid Management
                                               
Energy
    76,844       84,800       84,659       94,113               163,475  
Fluid Solutions
    63,535       65,639       69,130       65,525               77,553  
Eliminations
    (55 )     (1 )     (17 )     (33 )             (180 )
                   
 
    140,324       150,438       153,772       159,605               240,848  
                   
 
                                               
Electronic Technologies
    271,340       318,450       357,800       342,578               392,823  
                   
 
                                               
Intra-segment eliminations
    (362 )     (570 )     (490 )     (748 )             (711 )
                   
 
                                               
Total consolidated backlog
  $ 1,255,679     $ 1,383,761     $ 1,346,484     $ 1,409,542             $ 1,722,093  
                   
 
                                               
DEPRECIATION AND AMORTIZATION EXPENSE
                                   
 
                                               
Industrial Products
  $ 17,370     $ 17,118     $ 16,929     $ 17,045     $ 68,462     $ 16,401  
Engineered Systems
    15,750       15,273       15,626       15,699       62,348       15,826  
Fluid Management
    14,763       15,523       15,109       15,868       61,263       21,597  
Electronic Technologies
    17,688       17,823       18,811       19,974       74,296       19,279  
Corporate
    369       336       658       674       2,037       584  
           
 
  $ 65,940     $ 66,073     $ 67,133     $ 69,260     $ 268,406     $ 73,687  
           

 


 

DOVER CORPORATION — INVESTOR SUPPLEMENT
FIRST QUARTER 2011
DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE

(unaudited)
                                                 
    2010   2011
    Q1   Q2   Q3   Q4   FY 2010   Q1
         
Basic earnings (loss) per common share:
                                               
Continuing operations
  $ 0.65     $ 0.92     $ 1.19     $ 1.03     $ 3.79     $ 0.98  
Discontinued operations
    (0.07 )     (0.01 )     0.01       0.04       (0.04 )     0.06  
Net earnings
    0.58       0.91       1.20       1.06       3.75       1.04  
 
                                               
Diluted earnings (loss) per common share:
                                               
Continuing operations
  $ 0.65     $ 0.91     $ 1.18     $ 1.01     $ 3.74     $ 0.96  
Discontinued operations
    (0.07 )     (0.01 )     0.01       0.03       (0.04 )     0.06  
Net earnings
    0.58       0.90       1.19       1.04       3.70       1.03  
NOTE:
Diluted earnings per share in the first quarter 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 quarter of 2011 and the third and fourth quarters of 2010 were 23.9%, 14.8% and 21.4%, 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 in the first quarter of 2011 and $0.20 and $0.07 in the third and fourth quarters of 2010, respectively.

 


 

DOVER CORPORATION — INVESTOR SUPPLEMENT
FIRST QUARTER 2011
DOVER CORPORATION
QUARTERLY FREE CASH FLOW INFORMATION

(unaudited) (in thousands)
                                                 
    2010   2011  
    Q1     Q2     Q3     Q4     FY 2010     Q1  
           
 
                                               
Cash From Operations
  $ 87,066     $ 231,199     $ 200,847     $ 431,439     $ 950,551     $ 132,609  
CAPEX
    (39,336 )     (46,945 )     (43,556 )     (53,380 )     (183,217 )     (52,650 )
           
Free Cash Flow
  $ 47,730     $ 184,254     $ 157,291     $ 378,059     $ 767,334     $ 79,959  
           
 
                                               
Free Cash Flow to Earnings From Continuing Operations
    39.3 %     107.2 %     70.6 %     197.1 %     108.4 %     43.6 %