Dover Corporation
Second Quarter 2006
Conference Call
July 26, 2006
9:00 a.m. Eastern

                    1
Forward Looking Statements
We want to remind everyone that our comments may
contain certain forward-looking statements tha...
Revenues & Earnings Distribution by Segment
                  Six months ended June 30, 2006

       Revenues             ...
Revenues Distribution by End-Market
         Six months ended June 30, 2006




                                          4
Dover’s Q2 2006 Performance
       Continuing Earnings Per Share
                                                  2006 Q2...
Results From Continuing Operations
                      Q2 2006               Q2 2005             % Change
Revenue       ...
Performance Counts
                      Targets         Q2 2006         Q2 2005

Inventory turns*         8              ...
Q2 2006 Revenue Growth
                               Organic Revenue Growth


       35%
       30%
                     ...
Diversified
    ($ in millions)   Q2 2006          Q2 2005         % Change
     Revenue          $208.1           $197.0 ...
Electronics
    ($ in millions)      Q2 2006               Q2 2005              % Change
     Revenue              $222.8 ...
Industries
   ($ in millions)        Q2 2006                Q2 2005              % Change
    Revenue                $215....
Resources
   ($ in millions)     Q2 2006               Q2 2005             % Change
    Revenue             $435.3        ...
Systems
    ($ in millions)   Q2 2006             Q2 2005           % Change
     Revenue           $234.1              $1...
Technologies
   ($ in millions)      Q2 2006             Q2 2005            % Change
    Revenue             $343.4       ...
Second Quarter 2006 Overview
Revenue Growth
  Organic Growth                 16.6%
  Acquisitions                    7.7%
...
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  1. 1. Dover Corporation Second Quarter 2006 Conference Call July 26, 2006 9:00 a.m. Eastern 1
  2. 2. 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 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. 2
  3. 3. Revenues & Earnings Distribution by Segment Six months ended June 30, 2006 Revenues Earnings 3
  4. 4. Revenues Distribution by End-Market Six months ended June 30, 2006 4
  5. 5. Dover’s Q2 2006 Performance Continuing Earnings Per Share 2006 Q2 Highlights 0.80 Revenue $1.7 billion +24% 0.75 0.70 EPS $0.77 +44% 0.65 0.60 Organic Growth 17% 0.55 0.50 Segment Margin 15.9% +200 bps 0.45 0.40 Operating Leverage 24.1% 0.35 0.30 •Record earnings on historical and 0.25 0.20 comparable basis 0.15 •Reflects discontinuance of seven 0.10 0.05 businesses 0.00 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 •Earnings, revenue and orders up 2004 2006 2005 at all 6 segments 5
  6. 6. Results From Continuing Operations Q2 2006 Q2 2005 % Change Revenue $1,655.4 $1,333.3 24% EBT $225.1 $155.4 45% Earnings $158.7 $109.5 45% EPS $0.77 $0.54 44% Bookings $1,661.1 $1,396.8 19% Backlog $1,304.0 $1,015.0 28% Record earnings on historical and comparable basis SFAS 123(R) expense was $4.4 million, net of tax or $0.02 EPS in Q2 2006 ($ in millions except per share figures) 6
  7. 7. Performance Counts Targets Q2 2006 Q2 2005 Inventory turns* 8 6.7 5.5 Earnings growth 10% 45% 23% Operating margin 15% 15.9% 13.9% Working capital as % of revenue* 20% 18.5% 21.2% ROI (Operating) 25% 27.4% 21.3% * Annualized Dover exceeded 4 out of 5 target metrics in the second quarter 7
  8. 8. Q2 2006 Revenue Growth Organic Revenue Growth 35% 30% 32.1% 25% 27.4% 20% 15% 16.6% 15.8% 10% 13.9% 5% 5.9% 2.5% 0% DDI DEL DII DRI DSI DTI DOVER Acq. Growth - 68.3% - 0.9% - 9.5% 7.7% FX Effect -0.2% -1.1% -0.2% 0.6% -0.4% -0.6% -0.1% Total Growth 5.7% 83.0% 2.3% 15.4% 31.7% 36.3% 24.2% 8
  9. 9. Diversified ($ in millions) Q2 2006 Q2 2005 % Change Revenue $208.1 $197.0 6% Earnings $23.0 $23.0 - Operating Margin 11.1% 11.7% Revenue growth driven by strong commercial aerospace and heat exchanger markets. Industrial Equipment: Revenue +5%; Earnings +3% Strong revenue gains in commercial aerospace partially offset by a soft powersports market. Margin decline reflected lower margin on aerospace service revenue. Process Equipment: Revenue +8%; Earnings +3% Strong HVAC, Boiler, and Oil and Gas markets were primary revenue growth factors. Margin impacted by product mix, a soft print market and higher material costs. 9
  10. 10. Electronics ($ in millions) Q2 2006 Q2 2005 % Change Revenue $222.8 $121.7 83% Earnings $29.9 $12.3 144% Operating Margin 13.4% 10.1% Knowles and Colder acquisitions largely drove revenue and earnings growth. Q2 order levels remained healthy with strong orders from military, aerospace, cell phone (MEMS) and telecom markets. Components: Revenue +117%; Earnings +369% Acquisitions and continued strong growth and improved margins in frequency control, ceramic and microwave product businesses drove revenue and income growth. Commercial Equipment: Revenue +13%; Earnings flat Revenue and earnings rebounded in the ATM business from soft Q1. Fluid dispensing business drove revenue growth over the comparable prior year period. Higher ATM business/product development costs offset earnings impact from fluid dispensing. 10
  11. 11. Industries ($ in millions) Q2 2006 Q2 2005 % Change Revenue $215.3 $210.5 +2% Earnings $30.2 $24.4 +24% Operating Margin 14.0% 11.6% Revenue increases were largely due to a strong domestic transportation market along with higher international sales. Productivity gains and reduced SG&A costs drove the strong operating leverage for the quarter. Mobile Equipment Group: Revenue +6%; Earnings +28% Strength in transport products across all market segments served was the primary revenue driver. Despite historically high aluminum prices, earnings improved for the sixth consecutive quarter due to revenue gains and positive leverage. Service Equipment Group: Revenue - 3%; Earnings +15%. Continued weakness in the automotive repair market contributed to the volume shortfall. Earnings growth was driven by lower SG&A expenses, reduced overhead resulting from a facility shutdown in Q1, and cost saving initiatives. 11
  12. 12. Resources ($ in millions) Q2 2006 Q2 2005 % Change Revenue $435.3 $377.1 15% Earnings $80.9 $65.5 23% Operating Margin 18.6% 17.4% Record revenue, backlog, inventory turns, and return on investment reflect ongoing strength in most markets served. Oil & Gas Equipment Group: Revenue +43%; Earnings 65% Global energy prices remain strong and demand continues to grow. Capacity additions in several companies with others under review. Fluid Solutions: Revenue +4%; Earnings -1% Near term softness in retail fueling could not be offset by strength in other markets. Material Handling: Revenue +6%; Earnings +6% Softness in automotive offset by operational improvements and strength in the construction, utility, mobile crane, and petroleum markets. 12
  13. 13. Systems ($ in millions) Q2 2006 Q2 2005 % Change Revenue $234.1 $177.7 32% Earnings $38.3 $26.9 42% Operating Margin 16.4% 15.1% Revenue and earnings were strong at both the Food Equipment and Packaging Equipment Groups. The margin improved on volume leverage in Packaging Equipment. Food Equipment: Revenue + 34%; Earnings +35% Revenue and earnings increases driven by continued strong supermarket equipment sales. Capacity issues and product mix impacted leverage. Bookings up 10% over prior year quarter. Packaging Equipment: Revenue +24%; Earnings +72% Strong leverage on increased sales in can necking and trimming equipment. Bookings down 14% due to timing, but backlog up 29% vs. last year. 13
  14. 14. Technologies ($ in millions) Q2 2006 Q2 2005 % Change Revenue $343.4 $252.0 36% Earnings $60.7 $33.3 82% Operating Margin 17.7% 13.2% The results reflect very strong performance across all company, product and geographic lines. Circuit Assembly & Test: Revenue +56%; Earnings +185% Strong market activity continued with record revenue and earnings. Sequential quarterly revenue up 14% while earnings were up 27%. Backlog remains strong at $99 million. Product Identification: Revenue + 14%; Earnings +47% Strong results reported by all operating companies. Acquisition of O’Neil Product Development Inc. closed in the quarter and contributed to revenue and earnings growth. 14
  15. 15. Second Quarter 2006 Overview Revenue Growth Organic Growth 16.6% Acquisitions 7.7% Currency Translation -0.1% Total 24.2% Free Cash Flow (defined as Cash from operations less Capex) Strong quarter and year-to-date at 8.4% and 6.8% of revenue, respectively. Full year expectations: 8% - 10% of revenue. YTD Capital Expenditures: $86.9 million - up 57% over prior year. Acquisitions One add-on (Technologies) for $90 million, net of cash. Net Debt to Capital Ratio Currently 23.4%, down from YE 2005 of 28.9%. Effective Tax Rate (ETR) Second quarter : 29.5% same as prior year. Full year rate expected to remain in the range of 28 - 30%. 15
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