Dover Corporation · NYSE:DOV
Dover — Q1 2007 Earnings Presentation
15 slides from Dover's earnings presentation, Apr 25, 2007
Slide 1: Dover Corporation First Quarter 2007 Conference Call Presentation
Dover Corporation First Quarter 2007 Conference Call Presentation April 25, 2007 8:00 a.m. Eastern
Slide 2: Forward Looking Statements
Forward Looking Statements We want to remind everyone that our comments may contain certain 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 10K for a list of factors that could c
Slide 3: Dover's 2007 Performance
Dover’s 2007 Performance Continuing Earnings Per Share Q1 2007 Q/Q 0.80 Revenue $1.8B +18% 0.75 0.70 EPS $0.67 +5% 0.65 0.60 Segment Margins 13.0% -210 bps 0.55 $2.94 0.50 Organic Growth 3.8% 0.45 0.40 Acquisition Growth 12.0% $2.19 0.35 Free Cash Flow $16.7M -82% 0.30 $1.77 0.25 0.20 • Record 1st q
Slide 4: Q1 2007 Results
SS th Q1 2007 Results 2007 {In billlone} BOOKINGS Up 14% in billions} wLL 1) CORPORATION BACKLOG Up 17% 2006 2007 1st Qtr In blillene}
Slide 5: Profitability Metrics
SS th Profitability Metrics GROSS MARGINS Down 50 bps 2007 OPERATING EARNINGS (cont ops} Up 6% : $131.3 2 $138.8 {in millions} wLL 1) CORPORATION 86 &Aasa % of Revenue Up 140 bps 2007 SEGMENT OPERATING MARGING Down 210 bps 2007
Slide 6: PerformanceCOUNTS
PerformanceCOUNTS Target Q1 2007 Q1 2006 Inventory Turns 8 6.5 6.1 Earnings Growth 10% 6% 43% Operating Margins 15% 13.0% 15.1% WC as a % of Revenue 20% 19.0% 19.9% ROI (Operating) 25% 27.1% 23.2% Dover exceeded 2 out 5 metrics in Q1 2007. 6
Slide 7: Other Metrics
SS th Other Metrics OPERATING CASH FLOW FREE CASH FLOW Down 53% : Down 82% 2006 {in millions} Ast Qtr 2007 1st Qtr 2007 EFFECTIVE TAX RATE NET INTEREST EXPENSE ; Down 180 bps Up 2% {in millions} wLL 1) CORPORATION
Slide 8: Revenue Growth – Q1 2007
ts Revenue Growth — Q1 2007 35% 30% 25% 20% 15% 10% 5% 0% 5% -10% “15% 6% 3% 13% DDI DEL Dil DRI | | i} | Organic Acquisition | FX | DTI DOVER
Slide 9: Dover Resources
Dover Resources ($ in millions) Q1 2007 Q1 2006 % Change Revenue $552.0 $425.2 30% Earnings $93.8 $82.8 13% Op. Margin 17.0% 19.5% Bookings $577.5 $454.7 27% Oil and Gas Equipment Group: Continued strong growth market with 20% YOY operating leverage. Capacity expansions primarily completed to supp
Slide 10: Dover Industries
Dover Industries ($ in millions) Q1 2007 Q1 2006 % Change Revenue $230.5 $218.7 5% Earnings $30.8 $27.3 13% Op. Margin 13.4% 12.5% Bookings $296.5 $219.4 35% Mobile Equipment Group: Revenue increased due to strong oil field demand, increased military sales and higher refuse product shipments. Earn
Slide 11: Dover Technologies
Dover Technologies ($ in millions) Q1 2007 Q1 2006 % Change Revenue $358.5 $294.9 22% Earnings $29.9 $47.7 -37% Op. Margin 8.3% 16.2% Bookings $361.8 $339.1 7% Automation & Measurement (A&M): Volume pullback in first quarter semi-conductor sector versus much stronger 2006 comparable period. PCB se
Slide 12: Dover Diversified
Dover Diversified ($ in millions) Q1 2007 Q1 2006 % Change Revenue $215.0 $193.7 11% Earnings $27.0 $22.6 19% Op. Margin 12.5% 11.7% Bookings $219.4 $208.2 5% Process Equipment: Strong HAVC, Boiler, and Oil and Gas markets drove revenue growth. 23% operating leverage from pricing initiatives and p
Slide 13: Dover Systems
Dover Systems ($ in millions) Q1 2007 Q1 2006 % Change Revenue $205.6 $181.3 13% Earnings $26.6 $27.0 -1% Op. Margin 12.9% 14.9% Bookings $235.1 $231.0 2% Food Equipment: Margins down due to raw material cost increases and product mix which are being addressed with pricing initiatives. New “sustai
Slide 14: Dover Electronics
Dover Electronics ($ in millions) Q1 2007 Q1 2006 % Change Revenue $222.4 $199.5 11% Earnings $23.8 $20.8 15% Op. Margin 10.7% 10.4% Bookings $219.0 223.6 -2% Components: 10% organic growth and 27% operating leverage led by micro acoustic products (hearing aid and MEMS) and military communication
Slide 15: First Quarter Overview
First Quarter Overview Net Debt to Capital Ratio First quarter 2007 vs. 2006: 28.1% and 26.8%, respectively. Free Cash Flow Incrementally higher compensation & benefit payments, tax payments and capital expenditures negatively impacted FCF in the quarter. Expect full year free cash flow to be