dover Q1%202005%20Conference%20Call%20Slides%20FINAL

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dover Q1%202005%20Conference%20Call%20Slides%20FINAL

  1. 1. FIRST QUARTER 2005 CONFERENCE CALL 9:00 AM Eastern April 20, 2005
  2. 2. RESULTS FROM CONTINUING OPERATIONS ($ in millions, except per share figures) Q 1 2005 Q 1 2004 % Change Sales $1,449.0 $1,242.4 17% EBT $134.4 $117.7 14% Net Earnings $100.3 $83.8 20% DEPS $.49 $.41 20% Bookings $1,591.9 $1,427.8 11% Backlog $1,197.0 $1,003.2 19% – Sequential monthly improvements during the quarter – Four industrial segments improved operating margins to 13.7 2
  3. 3. DIVERSIFIED First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $222.9 $184.9 21% Earnings $24.3 $22.3 9% Operating Margin 11% 12% • Strong revenue growth; earnings impacted by an acquisition • Industrial Equipment : sales +30%; earnings +5% – Construction, commercial aerospace and military markets strong. – The Avborne acquisition reduced margins due to initial acquisition and integration costs. • Process Equipment : sales +10%; earnings +14% – Record color control product sales and earnings – Heat exchanger market impacted by raw material price increases and lower volumes in Europe. 3
  4. 4. ELECTRONICS First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $135.6 $110.4 23% Earnings $10.3 $11.1 - 7.0% Operating Margin 7.6% 10.1% • Acquisition drives revenue growth but impacts earnings and margins • Components: sales +28%; earnings –13% – Sales growth from the CFC and Voltronics acquisitions – Earnings burdened by $2.4 million of special restructuring/severance charges • Commercial Equipment: sales +11%; earnings - flat – Strong ATM sales offset weaker liquid dispensing revenue – Earnings reflect increased spending on business development, product development and growth initiatives. 4
  5. 5. INDUSTRIES First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $219.7 $195.6 +12% Earnings $25.2 $21.1 +20% Operating Margin 11.5% 10.8% • Revenues rose for the eighth consecutive quarter driven by pricing, market strength across a number of businesses, and strong military sales. • Earnings improvement was driven by the increased volume along with productivity gains. • Mobile Equipment Group: sales + 15%; earnings +33% – Strength in the transportation markets and commercial construction markets driven by volume, product mix, and productivity gains. • Service Equipment Group: sales + 9%; earnings + 2% – Pricing moves taken in 2004 and early 2005 have mitigated the majority of steel cost increases. 5
  6. 6. RESOURCES First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $371.7 $290.8 27.8% Earnings $63.8 $47.2 35.2% Operating Margin 17.2% 16.2% • Results improved significantly led by the Oil and Gas Group, but all groups contribute • Oil and Gas Group: sales + 57%; earnings +85%. – Driven by worldwide demand for oil and natural gas, and the acquisition of US Synthetic in last year’s third quarter. • Fluid Solutions Group: sales +22%; earnings + 28%. – Results reflect Wilden’s acquisition of Almatec late in 2004, a strong rail and truck market, an improving chemical market place, and strong commodity prices. • Material Handling Group: sales +17%; earnings + 3%. – Market conditions generally good except for automotive pricing pressure. – Construction equipment, mobile cranes, aerial lift, powersports, and oil production equipment markets were especially strong. 6
  7. 7. SYSTEMS First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $165.6 $147.6 12% Earnings $21.2 $15.6 36% Operating Margin 12.6% 10.6% • Strong performance, particularly margin improvement • Food Equipment Group: sales + 14%; earnings + 29% – Margins improved as a result of positive leverage on the incremental sales due to pricing improvements, productivity programs and a favorable mix. – Supermarket equipment sales - up 19% due to continued strong capital programs of major customers. • Packaging Equipment : sales + 9%; earnings + 32%. – Large can necking and trimming equipment projects shipped in the first quarter resulting in positive leverage. 7
  8. 8. TECHNOLOGIES First Quarter First Quarter ($ in millions) 2005 2004 % Change Sales $336.0 $315.2 7% Earnings $20.9 $26.6 -21% Operating Margin 6.2% 8.4% • CAT Group challenges offset PIP group gains • Circuit Assembly & Test (CAT) Group: sales -7%; earnings – 61% – Decline in earnings for the first quarter of 2005 as compared to same period in 2004 are principally attributable to the companies serving the back-end semiconductor market. – Semiconductor equipment industry trends potentially indicate bottom of cycle with slight improvement in bookings for the first quarter of 2005. • Product Identification and Printing (PIP) Group: sales + 43%; earnings + 47% – Datamax acquisition contributed to strong results; European market weakness and announcement of new product releases affected results. – Europe was a very positive region for printing products. The strongest first quarter in five years. 8
  9. 9. FIRST QUARTER OVERVIEW •Sales Growth* Current Quarter •Organic Growth 7% •Acquisitions 8% •Currency Translation 2% •Total 17% •Free Cash Flow* – Operating activities: down $85 million – net tax funding and increased incentive pay – Capital expenditures: + $7 million over prior year – Full year level: still anticipated to be 6 – 8% of sales •Acquisitions – Four add-on acquisitions during the quarter for $100.7 million •Net Debt to Capital Ratio – First Quarter 2005: 21.5% – First Quarter 2004: 19.1% •Effective Tax Rate – First quarter 2005 vs. 2004: 25.4% and 28.8%; reductions reflects favorable tax ruling – Full year 2005 rate: projected at 28--30% before discrete items and possible repatriation impact *Refer to the Company’s press release for a definition of these terms and a reconciliation to the GAAP amounts, from 9 which they are derived.
  10. 10. Subsidiary & Group Breakdown Diversified Industrial Equipment Crenlo, Sargent, Performance Motorsports Process Equipment CRL, Graphics Microsystems, Hydratight Sweeney SWEP,Tranter PHE, Waukesha Bearings Electronics Commercial Equipment Hydro Systems, Triton Dielectric, Novacap, K&L Microwave, Dow Key Components Kurz-Kasch, Vectron Industries Mobile Equipment Heil Environmental, Heil Trailer, Marathon Somero Service Equipment Chief, Koolant Koolers, PDQ, Rotary Lift Resources Fluid Solutions Blackmer , OPW Fluid Transfer Group, OPW Fueling Components, RPA Technologies, Wilden Material Handling De-Sta-Co Industries, Texas Hydraulics, Tulsa Winch Warn Oil & Gas Equipment C. Lee Cook, Energy Products Group Systems Food Equipment DI Foodservice, Hill Phoenix Packaging Equipment Belvac, SWF, Tipper Tie Technologies Circuit Assembly & Test Alphasem, DEK, Everett Charles, Hover-Davis, OK International, Universal, Vitronics Imaje, Mark Andy Product Identification & Printing 10

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