Dover (DOV) 8-K Dover Reports Record Fourth Quarter and Full Year 2007 Results

EXHIBIT 99.2

INVESTOR SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2007

Share Repurchase Program

In the fourth quarter of 2007, the Company purchased 4.8 million of its outstanding shares for $222 million under two previously announced programs that collectively authorized the purchase of approximately 20 million shares of Dover common stock. During 2007, the Company purchased a total of 12.4 million shares under the programs for $591 million. In 2008 (through January 29th), the Company purchased an additional one million shares at a cost of $40 million, leaving the balance of the Board's authorization at about $420 million.

Acquisitions and Divestitures

During the fourth quarter of 2007, the Company completed two add-on acquisitions: Camco, formerly Industrial Motion Controls LLC (De-Sta-Co) in the Industrial Products segment and Windrock Inc. (Gas Equipment Group) in the Fluid Management segment, for a total purchase price of $97.1 million. During 2007, Dover made a total of seven add-on acquisitions, totaling $273.6 million, net of cash acquired.

During the fourth quarter of 2007, the Company completed the sale of a previously discontinued business and recorded other adjustments resulting in an after-tax gain of $0.3 million. For 2007, the Company finalized the sales of a total of six businesses resulting in an after-tax loss of $17.1 million. At year end 2007, two businesses remain held for sale.

Growth Factors

	2007
Revenue Growth	Q1			Q2			Q3			Q4			YTD
Organic		4.0	%		-0.8	%		3.3	%		2.8	%		2.3	%
Acquisitions		12.8	%		12.0	%		9.7	%		5.0	%		9.7	%
Currency translation		1.9	%		1.8	%		1.9	%		3.0	%		2.2	%
		18.7	%		13.0	%		14.9	%		10.8	%		14.2	%
Organic Growth less Electronic Technologies segment		7.3	%		3.1	%		5.8	%		4.6	%		5.2	%

Cash Flow

The following table is a reconciliation of free cash flow (a non-GAAP measure) with cash flows from operating activities.

	Three Months Ended December 31,						Years Ended December 31,
Free Cash Flow(in thousands)	2007			2006			2007			2006
Cash flow provided by operating activities	$	364,349		$	289,187		$	901,941		$	866,082
Less: Capital expenditures		43,565			57,218			174,252			190,732
Free cash flow	$	320,784		$	231,969		$	727,689		$	675,350
Free cash flow as a percentage of revenue		17.2	%		13.8	%		10.1	%		10.7	%
Free cash flow as a percentage of earnings from continuing operations								111.4	%		114.0	%

1

The full year increase in free cash flow reflects higher earnings from continuing operations before depreciation and amortization and lower capital expenditures, partially offset by higher tax payments in 2007. In addition, Adjusted Working Capital (a non-GAAP measure calculated as accounts receivable, plus inventory, less accounts payable) increased from the prior year end by $29.1 million, or 2% to $1,363.0 million which reflected an increase in receivables of $57.4 million, a decrease in inventory of $13.0 million and an increase in accounts payable of $15.3 million. Excluding acquisitions and the effects of foreign exchange translation, working capital would have decreased by $50.1 million, or 4%. Average Annual Adjusted Working Capital as a percentage of revenue (a non-GAAP measure calculated as the five-quarter average balance of accounts receivable, plus inventory, less accounts payable divided by the trailing twelve months of revenue) increased to 19.2% at December 31, 2007 from 19.0% at December 31, 2006.

Capitalization

The following table provides a summary reconciliation of total debt and net debt to total capitalization to the most directly comparable GAAP measures:

	At December 31,			At December 31,
Net Debt to Total Capitalization Ratio(in thousands)	2007			2006
Current maturities of long-term debt	$	33,175		$	32,267
Commercial paper and other short-term debt		605,474			258,282
Long-term debt		1,452,003			1,480,491
Total debt		2,090,652			1,771,040
Less: Cash and cash equivalents		602,412			374,845
Net debt		1,488,240			1,396,195
Add: Stockholders’ equity		3,946,173			3,811,022
Total capitalization	$	5,434,413		$	5,207,217
Net debt to total capitalization		27.4	%		26.8	%

Net debt at December 31, 2007 increased $92 million as a result of increased commercial paper borrowings used primarily to fund the Company’s share repurchase programs during 2007. The percentage increase in net debt to total capital, after $591 million of share repurchases, reflects strong operational free cash flow and net proceeds from dispositions of $91 million.

Tax Rate

The Company’s effective tax rates for the fourth quarter of 2007 and 2006 was 24.1% and 22.9%, respectively. Both periods were favorably impacted by the mix of foreign earnings in low-taxed overseas jurisdictions. The higher rate in the 2007 period was caused by an increase in unrecognized tax benefits as required under FIN 48, while the 2006 period was favorably impacted by the effect of the full year retroactive extension of the U.S. Federal research tax credit.

The 2007 tax rate for continuing operations was 26.4%, reflecting the same factors that affected the fourth quarter 2007 rate. The 2006 tax rate for continuing operations of 26.8% also reflected the same factors that impacted the fourth quarter rate, as well as a lower relative United States federal tax exclusion for foreign sales in 2006.

DOVER CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited) (in thousands, except per share data)

	Three Months Ended December 31					Twelve Months Ended December 31
	2007		2006			2007		2006
Revenue	$	1,860,021	$	1,679,173		$	7,226,089	$	6,329,279
Cost of goods and services		1,187,964		1,082,630			4,604,422		4,020,702
Gross profit		672,057		596,543			2,621,667		2,308,577
Selling and administrative expenses		425,301		375,159			1,640,977		1,410,654
Operating earnings		246,756		221,384			980,690		897,923
Interest expense, net		22,395		19,068			89,008		76,984
Other expense, net		1,797		1,795			4,078		11,446
Total interest/other expense, net		24,192		20,863			93,086		88,430
Earnings before provision for income taxes and discontinued operations		222,564		200,521			887,604		809,493
Provision for income taxes		53,688		45,958			234,331		217,038
Earnings from continuing operations		168,876		154,563			653,273		592,455
Earnings (loss) from discontinued operations, net		16,488		(36,043	)		7,807		(30,673	)
Net earnings	$	185,364	$	118,520		$	661,080	$	561,782
Basic earnings (loss) per common share:
Earnings from continuing operations	$	0.86	$	0.76		$	3.24	$	2.91
Earnings (loss) from discontinued operations		0.08		(0.18	)		0.04		(0.15	)
Net earnings		0.95		0.58			3.28		2.76
Weighted average shares outstanding		195,932		204,182			201,330		203,773
Diluted earnings (loss) per common share:
Earnings from continuing operations	$	0.86	$	0.75		$	3.22		2.88
Earnings (loss) from discontinued operations		0.08		(0.18	)		0.04		(0.15	)
Net earnings		0.94		0.58			3.26		2.73
Weighted average shares outstanding		197,286		205,978			202,918		205,497
Dividends paid per common share	$	0.200	$	0.185		$	0.770	$	0.710

The following table is a reconciliation of the share amounts used in computing earnings per share:

	Three Months Ended December 31				Twelve Months Ended December 31
	2007		2006		2007		2006
Weighted average shares outstanding — Basic		195,932		204,182		201,330		203,773
Dilutive effect of assumed exercise of employee stock options		1,354		1,796		1,588		1,724
Weighted average shares outstanding — Diluted		197,286		205,978		202,918		205,497
Anti-dilutive shares excluded from diluted EPS computation		1,635		—		3,241		1,716

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited) (in thousands)

	2006															2007
	Q1			Q2			Q3			Q4			FY 2006			Q1			Q2			Q3			Q4			FY 2007
REVENUE
Industrial Products
Material Handling	$	155,581		$	157,101		$	175,408		$	218,409		$	706,499		$	243,344		$	251,679		$	233,106		$	230,983		$	959,112
Mobile Equipment		296,492			305,684			307,310			311,232			1,220,718			307,758			315,394			315,920			323,912			1,262,984
Eliminations		(187	)		(263	)		(259	)		(219	)		(928	)		(219	)		(220	)		(203	)		(335	)		(977	)
		451,886			462,522			482,459			529,422			1,926,289			550,883			566,853			548,823			554,560			2,221,119
Engineered Systems														—															—
Product Identification		114,731			137,040			143,482			173,048			568,301			206,625			224,353			227,617			253,985			912,580
Engineered Products		239,045			303,325			286,792			276,700			1,105,862			285,108			311,178			333,254			305,169			1,234,709
		353,776			440,365			430,274			449,748			1,674,163			491,733			535,531			560,871			559,154			2,147,289
Fluid Management														—															—
Energy		158,495			164,768			178,054			182,861			684,178			189,367			188,690			197,759			199,208			775,024
Fluid Solutions		157,455			161,434			159,478			167,032			645,399			169,669			174,579			176,756			186,109			707,113
Eliminations		66			(17	)		(20	)		(3	)		26			(40	)		(24	)		(12	)		(53	)		(129	)
		316,016			326,185			337,512			349,890			1,329,603			358,996			363,245			374,503			385,264			1,482,008
Electronic Technologies		330,019			370,236			358,137			353,172			1,411,564			321,173			340,717			363,002			365,211			1,390,103
Intra-segment eliminations		(2,850	)		(3,296	)		(3,135	)		(3,059	)		(12,340	)		(3,437	)		(3,455	)		(3,370	)		(4,168	)		(14,430	)
Total consolidated revenue	$	1,448,847		$	1,596,012		$	1,605,247		$	1,679,173		$	6,329,279		$	1,719,348		$	1,802,891		$	1,843,829		$	1,860,021		$	7,226,089
NET EARNINGS
Segment Earnings:
Industrial Products	$	62,985		$	65,177		$	61,858		$	61,208		$	251,228		$	70,148		$	85,077		$	75,893		$	65,933		$	297,051
Engineered Systems		49,995			73,789			62,905			55,041			241,730			50,944			77,318			79,451			74,104			281,817
Fluid Management		67,072			66,732			67,297			66,276			267,377			73,842			73,283			79,184			78,267			304,576
Electronic Technologies		47,742			60,872			52,658			53,675			214,947			36,949			45,354			50,801			47,233			180,337
Total Segments		227,794			266,570			244,718			236,200			975,282			231,883			281,032			285,329			265,537			1,063,781
Corporate expense / other		(22,563	)		(27,824	)		(21,807	)		(16,611	)		(88,805	)		(22,393	)		(23,106	)		(21,092	)		(20,578	)		(87,169	)
Net interest expense		(21,484	)		(19,248	)		(17,184	)		(19,068	)		(76,984	)		(21,838	)		(22,449	)		(22,326	)		(22,395	)		(89,008	)
Earnings from continuing operations before provision for income taxes		183,747			219,498			205,727			200,521			809,493			187,652			235,477			241,911			222,564			887,604
Provision for income taxes		55,616			65,025			50,439			45,958			217,038			53,161			63,510			63,972			53,688			234,331
Earnings from continuing operations		128,131			154,473			155,288			154,563			592,455			134,491			171,967			177,939			168,876			653,273
Earnings (loss) from discontinued operations, net		75,695			(82,562	)		12,237			(36,043	)		(30,673	)		(5,560	)		227			(3,348	)		16,488			7,807
Net earnings	$	203,826		$	71,911		$	167,525		$	118,520		$	561,782		$	128,931		$	172,194		$	174,591		$	185,364		$	661,080
SEGMENT OPERATING MARGIN
Industrial Products		13.9	%		14.1	%		12.8	%		11.6	%		13.0	%		12.7	%		15.0	%		13.8	%		11.9	%		13.4	%
Engineered Systems		14.1	%		16.8	%		14.6	%		12.2	%		14.4	%		10.4	%		14.4	%		14.2	%		13.3	%		13.1	%
Fluid Management		21.2	%		20.5	%		19.9	%		18.9	%		20.1	%		20.6	%		20.2	%		21.1	%		20.3	%		20.6	%
Electronic            Technologies		14.5	%		16.4	%		14.7	%		15.2	%		15.2	%		11.5	%		13.3	%		14.0	%		12.9	%		13.0	%
Total Segment		15.7	%		16.7	%		15.2	%		14.1	%		15.4	%		13.5	%		15.6	%		15.5	%		14.3	%		14.7	%

DOVER CORPORATION
QUARTERLY SEGMENT INFORMATION
(unaudited) (in thousands)

	2006															2007
																												Q4
	Q1			Q2			Q3			Q4			FY 2006			Q1			Q2			Q3			Q4			FY 2007
BOOKINGS
Industrial Products
Material Handling	$	176,965		$	156,684		$	170,758		$	208,163		$	712,570		$	259,039		$	246,416		$	228,085		$	227,507		$	961,047
Mobile Equipment		302,838			311,496			325,345			311,417			1,251,096			374,845			353,122			298,016			338,357			1,364,340
Eliminations		(404	)		(426	)		(1,589	)		(380	)		(2,799	)		(438	)		(445	)		(324	)		(349	)		(1,556	)
	$	479,399		$	467,754		$	494,514		$	519,200		$	1,960,867		$	633,446		$	599,093		$	525,777		$	565,515		$	2,323,831
Engineered Systems
Product Identification	$	122,201		$	130,013		$	145,929		$	163,953		$	562,096		$	215,596		$	219,111		$	231,166		$	253,343		$	919,216
Engineered Products		295,712			305,753			290,647			275,653			1,167,765			322,940			344,559			294,235			247,718			1,209,452
	$	417,913		$	435,766		$	436,576		$	439,606		$	1,729,861		$	538,536		$	563,670		$	525,401		$	501,061		$	2,128,668
Fluid Management
Energy	$	170,191		$	166,628		$	186,444		$	170,664		$	693,927		$	200,010		$	187,502		$	194,733			202,820		$	785,065
Fluid Solutions		160,388			167,631			158,783			167,130			653,932			171,944			180,964			177,021			186,715			716,644
Eliminations		(20	)		(11	)		(20	)		(32	)		(83	)		(15	)		(16	)		(12	)		(67	)		(110	)
	$	330,559		$	334,248		$	345,207		$	337,762		$	1,347,776		$	371,939		$	368,450		$	371,742		$	389,468		$	1,501,599
Electronic Technologies	$	382,817		$	364,096		$	340,645		$	322,485		$	1,410,043		$	311,840		$	354,858		$	381,804		$	330,049		$	1,378,551
Intra-segment eliminations		(3,243	)		(3,655	)		(2,030	)		(3,488	)		(12,416	)		(3,041	)		(4,308	)		(4,474	)		(2,837	)		(14,660	)
Total consolidated bookings	$	1,607,445		$	1,598,209		$	1,614,912		$	1,615,565		$	6,436,131		$	1,852,720		$	1,881,763		$	1,800,250		$	1,783,256		$	7,317,989
BACKLOG
Industrial Products
Material Handling	$	130,621		$	130,402		$	156,112		$	146,614					$	161,991		$	157,945		$	153,245		$	149,628
Mobile Equipment		369,013			385,745			417,467			429,191						501,591			541,683			529,423			543,776
Eliminations		(5	)		(4	)		(147	)		(165	)					(207	)		(236	)		(275	)		(195	)
	$	499,629		$	516,143		$	573,432		$	575,640					$	663,375		$	699,392		$	682,393		$	693,209
Engineered Systems
Product Identification	$	42,912		$	43,733		$	48,042		$	57,706					$	66,875		$	62,216		$	68,682		$	68,938
Engineered Products		250,996			252,512			256,306			256,200						286,313			327,088			287,901			230,796
	$	293,908		$	296,245		$	304,348		$	313,906					$	353,188		$	389,304		$	356,583		$	299,734
Fluid Management
Energy	$	67,711		$	68,139		$	88,161		$	75,449					$	88,392		$	89,044		$	87,105		$	88,245
Fluid Solutions		56,154			62,481			61,794			63,565						65,683			72,028			73,007			73,713
Eliminations		(9	)		(3	)		(3	)		(33	)					(8	)		—			—			(14	)
	$	123,856		$	130,617		$	149,952		$	138,981					$	154,067		$	161,072		$	160,112		$	161,944
Electronic Technologies	$	243,480		$	242,205		$	227,528		$	200,048					$	229,010		$	243,996		$	266,474		$	232,704
Intra-segment eliminations		(1,716	)		(2,071	)		(1,197	)		(1,632	)					(1,193	)		(2,110	)		(3,223	)		(1,913	)
Total consolidated backlog	$	1,159,157		$	1,183,139		$	1,254,063		$	1,226,943					$	1,398,447		$	1,491,654		$	1,462,339		$	1,385,678
ACQUISITION RELATED DEPRECIATION AND AMORTIZATION EXPENSE *
Industrial Products	$	3,718		$	3,542		$	6,888		$	11,065		$	25,213		$	6,460		$	6,417		$	6,933		$	6,899		$	26,709
Engineered Systems		1,801			3,431			4,000			5,404			14,636			12,094			5,954			6,257			6,948			31,253
Fluid Management		4,487			3,936			3,761			3,999			16,183			3,800			3,812			3,796			4,161			15,569
Electronic Technologies		8,135			8,709			7,976			8,094			32,914			8,756			10,319			9,957			9,264			38,296
	$	18,141		$	19,618		$	22,625		$	28,562		$	88,946		$	31,110		$	26,502		$	26,943		$	27,272		$	111,827

*Represents the pre-tax impact on earnings from the depreciation and amortization of acquisition accounting write-ups to reflect the fair value of inventory, property, plant and equipment, and intangible assets.

	2006													2007
	Q1		Q2			Q3		Q4			FY 2006			Q1			Q2		Q3			Q4		FY 2007
Basic earnings (loss) per common share:
Continuing operations	$	0.63	$	0.76		$	0.76	$	0.76		$	2.91		$	0.66		$	0.84	$	0.89		$	0.86	$	3.24
Discontinued operations		0.37		(0.40	)		0.06		(0.18	)		(0.15	)		(0.03	)		0.00		(0.02	)		0.08		0.04
Net earnings		1.00		0.35			0.82		0.58			2.76			0.63			0.84		0.87			0.95		3.28
Diluted earnings (loss) per common share:
Continuing operations	$	0.63	$	0.75		$	0.76	$	0.75		$	2.88		$	0.65		$	0.83	$	0.88		$	0.86	$	3.22
Discontinued operations		0.37		(0.40	)		0.06		(0.18	)		(0.15	)		(0.03	)		0.00		(0.02	)		0.08		0.04
Net earnings		0.99		0.35			0.82		0.58			2.73			0.63			0.84		0.86			0.94		3.26

DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET AND STATEMENT OF CASH FLOWS
(unaudited) (in thousands)

BALANCE SHEET

	At December 31, 2007		At December 31, 2006
Assets:
Cash and cash equivalents	$	602,412	$	374,845
Receivables, net of allowances		1,097,697		1,040,286
Inventories, net		681,600		694,631
Deferred tax and other current assets		158,790		130,349
Property , plant and equipment, net		885,145		815,188
Goodwill		3,293,986		3,143,034
Intangible assets, net		1,070,574		1,065,382
Other assets		169,185		122,842
Assets of discontinued operations		106,642		240,101
	$	8,066,031	$	7,626,658
Liabilities and Stockholders’ Equity
Notes payable and current maturities of long-term debt	$	638,649	$	290,549
Payables and accrued expenses		1,024,405		977,884
Taxes payable and other deferrals		933,308		918,563
Long-term debt		1,452,003		1,480,491
Liabilities of discontinued operations		71,493		148,149
Stockholders’ equity		3,946,173		3,811,022
	$	8,066,031	$	7,626,658

CASH FLOWS

	Twelve Months Ended December 31,
	2007			2006
Operating activities:
Net earnings	$	661,080		$	561,782
Loss (earnings) from discontinued operations, net of tax		(7,807	)		30,672
Depreciation and amortization		245,028			195,633
Stock-based compensation		25,706			25,982
Contributions to defined benefit plans		(8,700	)		(3,004	)
Net change in assets and liabilities		(13,366	)		55,017
Net cash provided by operating activities		901,941			866,082
Investing activities:
Proceeds from the sale of property and equipment		24,485			19,007
Additions to property, plant and equipment		(174,252	)		(190,732	)
Proceeds from sale of discontinued businesses		90,966			445,905
Acquisitions (net of cash and cash equivalents acquired)		(273,610	)		(1,116,780	)
Net cash used in investing activities		(332,411	)		(842,600	)
Financing activities:
Increase in debt, net		317,609			228,107
Purchase of treasury stock		(596,009	)		(48,329	)
Proceeds from exercise of stock options, including tax benefits		87,117			93,311
Dividends to stockholders		(154,390	)		(144,799	)
Net cash provided by (used in) financing activities		(345,673	)		128,290
Effect of exchange rate changes on cash		34,356			19,816
Net cash provided by (used in) discontinued operations		(30,646	)		16,314
Net increase in cash and cash equivalents		227,567			187,902
Cash and cash equivalents at beginning of period		374,845			186,943
Cash and cash equivalents at end of period	$	602,412		$	374,845