Dover (DOV) 8-K Dover Reports Fourth Quarter and Full Year 2009 Results

EXHIBIT 99.2

INVESTOR SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2009

Acquisitions

During the fourth quarter of 2009, the Company completed four add-on acquisitions. Inpro/Seal was acquired in the Fluid Management segment and Engineered Systems companies acquired Ala Cart, Inc., Barker Company and Extech Instruments. During 2009, Dover made a total of six add-on acquisitions. Consideration for these acquisitions amounted to $228.4 million, net of cash acquired. The full year diluted earnings per share impact of these 2009 acquisitions was $0.02. There was no impact on dilutive earnings per share for the fourth quarter.

Dispositions

For the year ended December 31, 2009, the Company recorded adjustments to the carrying value of discontinued operations resulting in a net after-tax loss of approximately $12.0 million. At year end 2009, one business remains held for sale in discontinued operations.

Growth Factors

	2009
Revenue Growth	Q1			Q2			Q3			Q4			FY 2009
Organic		-22.6	%		-28.7	%		-24.4	%		-19.3	%		-23.9	%
Net acquisitions (A)		0.0	%		1.0	%		2.7	%		4.4	%		1.9	%
Currency translation		-3.5	%		-3.2	%		-2.0	%		2.2	%		-1.7	%
		-26.1	%		-30.9	%		-23.7	%		-12.7	%		-23.7	%

(A) Acquisition growth before the disposition of a line of business was 0.6%, 1.6%, 3.3%, 4.4% and 1.9% in each period, respectively.

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						Twelve Months Ended December 31
Free Cash Flow(in thousands)	2009			2008			2009			2008
Cash flow provided by operating activities	$	247,947		$	270,353		$	802,060		$	1,010,416
Less: Capital expenditures		36,759			42,476			120,009			175,795
Free cash flow	$	211,188		$	227,877		$	682,051		$	834,621
Free cash flow as a percentage of revenue		14.0	%		13.2	%		11.8	%		11.0	%
Free cash flow as a percentage of earnings from continuing operations								183.4	%		120.1	%

The full year decrease in free cash flow reflects lower earnings from continuing operations before depreciation and amortization and lower tax payments in 2009. In addition, Adjusted Working Capital (a non-GAAP measure calculated as accounts receivable, plus inventory, less accounts payable) decreased from the prior year end by $183.3 million, or 14.4% to $1,092.6 million which reflected a decrease in receivables of $134.4 million, a decrease in inventory of $65.3 million and a decrease in accounts payable of $16.4 million. Excluding acquisitions, dispositions and the effects of foreign exchange translation, Adjusted Working Capital would have decreased by $246.6 million, or 19.3%. “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 19.9% at December 31, 2009 from 18.3% at December 31, 2008. Inventory turns were 6.2 at December 31, 2009 compared to 7.1 at December 31, 2008.

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)	2009			2008
Current maturities of long-term debt	$	35,624		$	32,194
Commercial paper and other short-term debt		—			192,750
Long-term debt		1,825,260			1,860,729
Total debt		1,860,884			2,085,673
Less: Cash, cash equivalents and short-term investments		938,174			826,869
Net debt		922,710			1,258,804
Add: Stockholders’ equity		4,083,608			3,792,866
Total capitalization	$	5,006,318		$	5,051,670
Net debt to total capitalization		18.4	%		24.9	%

Net debt at December 31, 2009 decreased $336.1 million primarily due to lower commercial paper borrowings. The decrease in net debt reflects strong free cash flow and cash from operations which funded the Company’s investment in capital expenditures and acquisitions.

Tax Rate

The effective tax rate for continuing operations for the fourth quarter of 2009 was 27.2%, compared to the prior year rate of 21.4%. The prior year fourth quarter rate was favorably impacted by the benefits recognized for tax positions that were effectively settled. On a full year basis, the effective tax rates for continuing operations for 2009 and 2008 were 24.4% and 26.6%, respectively. The full year 2009 rate reflects the favorable impact of benefits recognized for tax positions that were effectively settled, and the favorable impact of a higher percentage of non-U.S. earnings in low tax rate jurisdictions.

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

	Three Months Ended December 31						Twelve Months Ended December 31
	2009			2008			2009			2008
Revenue	$	1,506,661		$	1,726,648		$	5,775,689		$	7,568,888
Cost of goods and services		941,227			1,120,148			3,676,535			4,838,881
Gross profit		565,434			606,500			2,099,154			2,730,007
Selling and administrative expenses		400,635			375,378			1,511,111			1,700,677
Operating earnings		164,799			231,122			588,043			1,029,330
Interest expense, net		26,838			19,293			100,375			96,037
Other expense (income), net		(2,825	)		(3,798	)		(3,950	)		(12,726	)
Total interest/other expense, net		24,013			15,495			96,425			83,311
Earnings before provision for income taxes and discontinued operations		140,786			215,627			491,618			946,019
Provision for income taxes		38,346			46,045			119,724			251,261
Earnings from continuing operations		102,440			169,582			371,894			694,758
Loss from discontinued operations, net		(3,394	)		(48,855	)		(15,456	)		(103,927	)
Net earnings	$	99,046		$	120,727		$	356,438		$	590,831
Basic earnings (loss) per common share:
Earnings from continuing operations	$	0.55		$	0.91		$	2.00		$	3.69
Loss from discontinued operations, net		(0.02	)		(0.26	)		(0.08	)		(0.55	)
Net earnings		0.53			0.65			1.91			3.13
Weighted average shares outstanding		186,310			185,965			186,136			188,481
Diluted earnings (loss) per common share:
Earnings from continuing operations	$	0.55		$	0.91		$	1.99		$	3.67
Loss from discontinued operations, net		(0.02	)		(0.26	)		(0.08	)		(0.55	)
Net earnings		0.53			0.65			1.91			3.12
Weighted average shares outstanding		187,212			186,207			186,736			189,269
Dividends paid per common share	$	0.26		$	0.25		$	1.02		$	0.90

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

	2008															2009
	Q1			Q2			Q3			Q4			FY 2008			Q1			Q2			Q3			Q4			FY 2009
REVENUE
Industrial Products
Material Handling	$	287,208		$	306,988		$	286,568		$	256,105		$	1,136,869		$	186,651		$	153,574		$	154,238		$	165,890		$	660,353
Mobile Equipment		329,723			342,228			343,261			308,210			1,323,422			248,293			229,521			242,011			242,352			962,177
Eliminations		(157	)		(210	)		(218	)		(201	)		(786	)		(152	)		(147	)		(209	)		(230	)		(738	)
		616,774			649,006			629,611			564,114			2,459,505			434,792			382,948			396,040			408,012			1,621,792
Engineered Systems
Product Identification		231,526			249,250			234,868			208,825			924,469			177,357			193,019			211,952			219,948			802,276
Engineered Products		267,696			289,479			289,778			238,928			1,085,881			223,426			274,398			308,741			253,095			1,059,660
		499,222			538,729			524,646			447,753			2,010,350			400,783			467,417			520,693			473,043			1,861,936
Fluid Management
Energy		213,003			236,461			249,656			236,294			935,414			176,334			138,415			144,664			164,798			624,211
Fluid Solutions		188,328			210,207			202,054			178,223			778,812			154,488			156,897			164,604			170,860			646,849
Eliminations		(32	)		(38	)		(28	)		(82	)		(180	)		(51	)		(42	)		(21	)		(36	)		(150	)
		401,299			446,630			451,682			414,435			1,714,046			330,771			295,270			309,247			335,622			1,270,910
Electronic Technologies		351,757			379,958			362,446			301,970			1,396,131			214,035			245,953			275,266			291,700			1,026,954
Intra-segment eliminations		(3,566	)		(3,345	)		(2,609	)		(1,624	)		(11,144	)		(1,295	)		(1,257	)		(1,635	)		(1,716	)		(5,903	)
Total consolidated revenue	$	1,865,486		$	2,010,978		$	1,965,776		$	1,726,648		$	7,568,888		$	1,379,086		$	1,390,331		$	1,499,611		$	1,506,661		$	5,775,689
NET EARNINGS
Segment Earnings:
Industrial Products	$	78,838		$	87,925		$	74,690		$	58,287		$	299,740		$	34,544		$	25,421		$	38,119		$	41,673		$	139,757
Engineered Systems		62,996			80,045			82,032			53,480			278,553			43,306			57,462			78,194			48,306			227,268
Fluid Management		85,139			97,878			102,232			100,068			385,317			75,441			55,573			60,677			67,578			259,269
Electronic Technologies		36,234			51,029			53,826			52,552			193,641			(12,110	)		17,993			38,160			39,651			83,694
Total Segments		263,207			316,877			312,780			264,387			1,157,251			141,181			156,449			215,150			197,208			709,988
Corporate expense / other		(29,969	)		(24,975	)		(30,785	)		(29,467	)		(115,196	)		(24,691	)		(29,614	)		(34,106	)		(29,584	)		(117,995	)
Net interest expense		(23,431	)		(27,388	)		(25,924	)		(19,293	)		(96,036	)		(22,398	)		(24,840	)		(26,299	)		(26,838	)		(100,375	)
Earnings from continuing operations before provision for income taxes		209,807			264,514			256,071			215,627			946,019			94,092			101,995			154,745			140,786			491,618
Provision for income taxes		61,876			77,604			65,736			46,045			251,261			32,996			1,121			47,261			38,346			119,724
Earnings from continuing operations		147,931			186,910			190,335			169,582			694,758			61,096			100,874			107,484			102,440			371,894
Earnings (loss) from discontinued operations, net		(753	)		(51,634	)		(2,685	)		(48,855	)		(103,927	)		(7,668	)		(3,794	)		(600	)		(3,394	)		(15,456	)
Net earnings	$	147,178		$	135,276		$	187,650		$	120,727		$	590,831		$	53,428		$	97,080		$	106,884		$	99,046		$	356,438
SEGMENT OPERATING MARGIN
Industrial Products		12.8	%		13.5	%		11.9	%		10.3	%		12.2	%		7.9	%		6.6	%		9.6	%		10.2	%		8.6	%
Engineered Systems		12.6	%		14.9	%		15.6	%		11.9	%		13.9	%		10.8	%		12.3	%		15.0	%		10.2	%		12.2	%
Fluid Management		21.2	%		21.9	%		22.6	%		24.1	%		22.5	%		22.8	%		18.8	%		19.6	%		20.1	%		20.4	%
Electronic Technologies		10.3	%		13.4	%		14.9	%		17.4	%		13.9	%		-5.7	%		7.3	%		13.9	%		13.6	%		8.1	%
Total Segment		14.1	%		15.8	%		15.9	%		15.3	%		15.3	%		10.2	%		11.3	%		14.3	%		13.1	%		12.3	%

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

	2008															2009
	Q1			Q2			Q3			Q4			FY 2008			Q1			Q2			Q3			Q4			FY 2009
BOOKINGS
Industrial Products
Material Handling	$	296,278		$	313,199		$	292,436		$	207,115		$	1,109,028		$	118,344		$	126,224		$	162,759		$	180,349		$	587,676
Mobile Equipment		360,324			318,059			295,240			204,257			1,177,880			210,558			245,937			191,539			253,130			901,164
Eliminations		(296	)		(385	)		(193	)		(260	)		(1,134	)		(23	)		(202	)		(337	)		(424	)		(986	)
		656,306			630,873			587,483			411,112			2,285,774			328,879			371,959			353,961			433,055			1,487,854
Engineered Systems
Product Identification		239,547			250,538			233,196			197,431			920,712			175,680			205,736			212,642			223,301			817,359
Engineered Products		284,257			279,673			260,227			219,716			1,043,873			236,354			259,868			258,634			263,211			1,018,067
		523,804			530,211			493,423			417,147			1,964,585			412,034			465,604			471,276			486,512			1,835,426
Fluid Management
Energy		233,662			252,535			268,390			209,930			964,517			142,721			132,855			157,763			176,706			610,045
Fluid Solutions		197,289			217,466			195,253			161,351			771,359			150,375			159,483			165,601			169,639			645,098
Eliminations		(24	)		(32	)		(31	)		(91	)		(178	)		(43	)		(39	)		(41	)		(17	)		(140	)
		430,927			469,969			463,612			371,190			1,735,698			293,053			292,299			323,323			346,328			1,255,003
Electronic Technologies		360,337			384,790			363,535			233,720			1,342,382			223,707			243,274			283,035			305,266			1,055,282
Intra-segment eliminations		(2,992	)		(3,490	)		(1,755	)		(1,182	)		(9,419	)		(1,290	)		(1,436	)		(1,790	)		(1,600	)		(6,116	)
Total consolidated bookings	$	1,968,382		$	2,012,353		$	1,906,298		$	1,431,987		$	7,319,020		$	1,256,383		$	1,371,700		$	1,429,805		$	1,569,561		$	5,627,449
BACKLOG
Industrial Products
Material Handling	$	228,082		$	235,284		$	240,009		$	188,591					$	120,066		$	93,247		$	102,146		$	116,658
Mobile Equipment		575,070			549,430			498,908			387,329						349,358			368,315			318,496			329,774
Eliminations		(171	)		(186	)		(161	)		(220	)					(48	)		(143	)		(170	)		(371	)
		802,981			784,528			738,756			575,700						469,376			461,419			420,472			446,061
Engineered Systems
Product Identification		79,956			82,196			76,247			61,195						57,801			66,288			72,523			74,700
Engineered Products		244,981			235,513			205,127			183,821						196,394			245,165			199,888			218,520
		324,937			317,709			281,374			245,016						254,195			311,453			272,411			293,220
Fluid Management
Energy		106,540			119,033			133,713			95,532						58,771			54,734			66,043			77,173
Fluid Solutions		85,130			91,870			82,998			64,471						60,781			63,788			65,081			60,540
Eliminations		(6	)		—			(3	)		(12	)					(5	)		(1	)		(21	)		(2	)
		191,664			210,903			216,708			159,991						119,547			118,521			131,103			137,711
Electronic Technologies		246,711			251,403			248,725			175,317						186,850			185,512			194,414			206,893
Intra-segment eliminations		(2,038	)		(1,424	)		(540	)		(61	)					(42	)		(242	)		(426	)		(337	)
Total consolidated backlog	$	1,564,255		$	1,563,119		$	1,485,023		$	1,155,963					$	1,029,926		$	1,076,663		$	1,017,974		$	1,083,548
ACQUISITION RELATED DEPRECIATION AND AMORTIZATION EXPENSE *
Industrial Products	$	9,215		$	8,070		$	7,805		$	7,193		$	32,283		$	8,387		$	7,709		$	7,770		$	8,182		$	32,048
Engineered Systems		6,109			6,116			6,103			6,066			24,394			6,070			6,437			6,580			7,579			26,666
Fluid Management		3,914			5,607			5,422			4,607			19,550			4,828			4,592			4,432			4,537			18,389
Electronic Technologies		8,902			9,416			9,304			8,859			36,481			8,286			8,217			8,268			8,432		��	33,203
	$	28,140		$	29,209		$	28,634		$	26,725		$	112,708		$	27,571		$	26,955		$	27,050		$	28,730		$	110,306

* 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.

DOVER CORPORATION
QUARTERLY INFORMATION
(unaudited) (in thousands, except per share amounts)

Free Cash Flow

	2008															2009
	Q1			Q2			Q3			Q4			FY 2008			Q1			Q2			Q3			Q4			FY 2009
Cash From Operations	$	153,904		$	232,074		$	354,085		$	270,353		$	1,010,416		$	114,866		$	192,436		$	246,811		$	247,947		$	802,060
CAPEX		(42,535	)		(42,580	)		(48,204	)		(42,476	)		(175,795	)		(31,475	)		(26,976	)		(24,799	)		(36,759	)		(120,009	)
Free Cash Flow	$	111,369		$	189,494		$	305,881		$	227,877		$	834,621		$	83,391		$	165,460		$	222,012		$	211,188		$	682,051
Free Cash Flow to Earnings From Continuing Operations		75.3	%		101.4	%		160.7	%		134.4	%		120.1	%		136.5	%		164.0	%		206.6	%		206.2	%		183.4	%

QUARTERLY EARNINGS PER SHARE

	2008															2009
	Q1			Q2			Q3			Q4			FY 2008			Q1			Q2			Q3			Q4			FY 2009
Basic earnings (loss) per common share:
Continuing operations	$	0.77		$	0.99		$	1.02		$	0.91		$	3.69		$	0.33		$	0.54		$	0.58		$	0.55		$	2.00
Discontinued operations		(0.00	)		(0.27	)		(0.01	)		(0.26	)		(0.55	)		(0.04	)		(0.02	)		(0.00	)		(0.02	)	$	(0.08	)
Net earnings		0.76			0.72			1.01			0.65			3.13			0.29			0.52			0.57			0.53		$	1.91
Diluted earnings (loss) per common share:
Continuing operations	$	0.77		$	0.98		$	1.01		$	0.91		$	3.67		$	0.33		$	0.54		$	0.58		$	0.55		$	1.99
Discontinued operations		(0.00	)		(0.27	)		(0.01	)		(0.26	)		(0.55	)		(0.04	)		(0.02	)		(0.00	)		(0.02	)	$	(0.08	)
Net earnings		0.76			0.71			1.00			0.65			3.12			0.29			0.52			0.57			0.53		$	1.91

DOVER CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(unaudited) (in thousands)

BALANCE SHEET

	At December 31, 2009		At December 31, 2008
Assets:
Cash and cash equivalents	$	714,365	$	547,409
Short-term investments		223,809		279,460
Receivables, net of allowances		878,754		1,013,174
Inventories, net		570,858		636,121
Deferred tax and other current assets		134,921		153,955
Property, plant and equipment, net		828,922		872,134
Goodwill		3,350,217		3,255,566
Intangible assets, net		950,748		952,409
Other assets		113,108		103,904
Assets of discontinued operations		41,874		69,106
	$	7,807,576	$	7,883,238
Liabilities and Stockholders’ Equity
Notes payable and current maturities of long-term debt	$	35,624	$	224,944
Payables and accrued expenses		894,558		993,565
Taxes payable and other deferrals		904,475		932,011
Long-term debt		1,825,260		1,860,729
Liabilities of discontinued operations		64,051		79,123
Stockholders’ equity		4,083,608		3,792,866
	$	7,807,576	$	7,883,238

DOVER CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited)

CASH FLOWS

	Twelve Months Ended December 31,
	2009			2008
Operating activities:
Net earnings	$	356,438		$	590,831
Loss from discontinued operations, net of tax		15,457			103,927
Depreciation and amortization		258,223			261,154
Stock-based compensation		17,912			25,246
Contributions to employee benefit plans		(78,954	)		(55,361	)
Net change in assets and liabilities		232,984			84,619
Net cash provided by operating activities of continuing operations		802,060			1,010,416
Investing activities:
Purchase of short-term investments		(348,439	)		(279,460	)
Proceeds from sale of short-term investments		406,033			—
Proceeds from the sale of property and equipment		22,973			13,248
Additions to property, plant and equipment		(120,009	)		(175,795	)
Proceeds from sale of businesses		3,571			92,774
Acquisitions (net of cash and cash equivalents acquired)		(221,994	)		(103,761	)
Net cash used in investing activities of continuing operations		(257,865	)		(452,994	)
Financing activities:
Decrease in debt, net		(226,657	)		(4,993	)
Purchase of treasury stock		—			(466,737	)
Proceeds from exercise of stock options, including tax benefits		26,578			79,897
Dividends to stockholders		(189,874	)		(169,071	)
Net cash used in financing activities of continuing operations		(389,953	)		(560,904	)
Effect of exchange rate changes on cash		19,569			(45,817	)
Net cash used in discontinued operations		(6,855	)		(9,397	)
Net increase (decrease) in cash and cash equivalents		166,956			(58,696	)
Cash and cash equivalents at beginning of period		547,409			606,105
Cash and cash equivalents at end of period	$	714,365		$	547,409