Dover Reports Fourth Quarter and Full Year 2012 Results; Reaffirms 2013 Guidance

   Dover Reports Fourth Quarter and Full Year 2012 Results; Reaffirms 2013
                                   Guidance

PR Newswire

DOWNERS GROVE, Ill., Jan. 24, 2013

DOWNERS GROVE, Ill., Jan.24, 2013 /PRNewswire-FirstCall/ --

  oReports quarterly revenue of $2.0 billion, an increase of 6% over the
    prior year
  oDelivers quarterly diluted earnings per share from continuing operations
    of $1.16, an increase of 10% over last year
  oAchieves adjusted quarterly diluted earnings per share from continuing
    operations of $1.09, excluding tax benefits of $0.07, up 7% from an
    adjusted prior year
  oReaffirms 2013 full year revenue growth of 7% to 9% and diluted earnings
    per share from continuing operations in the range of $5.05 to $5.35

Dover (NYSE: DOV) announced today that for the fourth quarter ended
December31, 2012, revenue was $2.0 billion, an increase of 6% over the prior
year period. The revenue increase was driven by organic growth of 2% and a 5%
increase from acquisitions, offset in part by a 1% unfavorable impact from
foreign exchange. Earnings from continuing operations were $208.2 million, or
$1.16 diluted earnings per share ("EPS"), compared to $197.3 million, or $1.05
EPS, in the prior year period, representing increases in earnings from
continuing operations and EPS of 6% and 10%, respectively. Excluding the
impact of tax benefits of $0.07 EPS recognized in the current quarter and
$0.03 EPS recognized in the prior year period, adjusted EPS from continuing
operations for the fourth quarter of 2012 was $1.09, reflecting an increase of
7% over an adjusted EPS of $1.02 in the prior year period.

Revenue for the year ended December31, 2012 was $8.1 billion, an increase of
10% over the prior year, reflecting organic growth of 5%, a 6% increase from
acquisitions and a 1% unfavorable impact from foreign exchange. Earnings from
continuing operations for the year ended December31, 2012 were $833.1
million, or $4.53 EPS, compared to $773.2 million, or $4.09 EPS in the prior
year period, representing an increase in earnings from continuing operations
of 8% and an increase in EPS of 11%. Excluding the impact of tax benefits of
$0.09 EPS in the current year and $0.22 EPS in the prior year, adjusted EPS
from continuing operations for the year ended December31, 2012 was $4.44, an
increase of 15% over an adjusted EPS of $3.87 in the prior year.

Commenting on the fourth quarter results, Dover's President and Chief
Executive Officer, Robert A. Livingston, said, "I am pleased with our fourth
quarter results as all our segments recorded organic growth, and the majority
of our end-markets continued to show strength in orders, despite uncertain
economic conditions. Within Communication Technologies, we saw the
continuation of a strong smart phone market and we achieved improved
sequential performance at Sound Solutions. Our Energy segment demonstrated
its resiliency by posting modest organic growth despite a lower North American
rig count. Engineered Systems continued to see a very active refrigeration
and food equipment market, while Printing & Identification's fast moving
consumer goods market continued to expand. We also closed several
acquisitions in the quarter, most notably Anthony, which will strengthen our
refrigeration product offering and expand our markets and channels."

"For the year, we generated nearly $1 billion in free cash flow, supported by
strong cash conversion in the fourth quarter. Our solid cash flow is a key
element in the continued execution of our capital allocation strategy.
Specifically, we made significant internal and acquisition investments in our
five key growth spaces, we returned cash in the form of expanded dividends and
began execution on our $1 billion share repurchase program announced in
November."

"Looking ahead, our full year view of 2013 is unchanged from our December 10,
2012 investor day guidance. We expect full year organic growth of 3% to 5%
complemented by acquisition growth of 4%, resulting in revenue growth of 7% to
9%. The benefits of leverage on volume coupled with a lower share count from
our repurchase program will help us deliver solid earnings growth.
Accordingly, we are reaffirming full year diluted EPS from continuing
operations in the range of $5.05 - $5.35."

Net earnings for the fourth quarter of 2012 were $159.9 million or $0.89 EPS,
including a net loss from discontinued operations of $48.4 million, or $0.27
EPS, compared to net earnings of $278.3 million, or $1.49 EPS, for the same
period of 2011, which included net income from discontinued operations of
$81.0 million, or $0.43 EPS. As previously announced, two non-core businesses
serving the electronic assembly and test markets were reclassified to
discontinued operations during the fourth quarter, with the intent to divest
these businesses in 2013. In connection with the plan to divest, a goodwill
impairment charge of $51.9 million, net of tax, or $0.29 EPS was recognized,
which is reflected within discontinued operations in the fourth quarter and
full year periods. Net earnings for the year ended December31, 2012 were
$811.1 million, or $4.41 EPS, including a net loss from discontinued
operations of $22.0 million, or $0.12 EPS, compared to net earnings of $895.2
million, or $4.74 EPS for the same period of 2011, which included net income
from discontinued operations of $122.1 million or $0.65 EPS.

Dover will host a webcast of its fourth quarter 2012 conference call at 10:00
A.M. Eastern Time (9:00 A.M. Central Time) on Thursday, January24, 2013. The
webcast can be accessed on the Dover website at www.dovercorporation.com. The
conference call will also be made available for replay on the website.
Additional information on Dover's fourth quarter results and its operating
segments can also be found on the Company's website.

About Dover:
Dover is a diversified global manufacturer with annual revenues of over $8
billion. For over 50 years, Dover has been delivering outstanding products
and services that reflect its market leadership and commitment to operational
and technical excellence. The Company's entrepreneurial business model
encourages, promotes and fosters deep customer engagement which has led to
Dover's well-established and valued reputation for providing superior customer
service and industry-leading product innovation. Dover focuses on innovative
equipment and components, specialty systems and support services through its
four major operating segments: Communication Technologies, Energy, Engineered
Systems and Printing & Identification. Headquartered in Downers Grove,
Illinois, Dover employs 35,000 people worldwide.Dover is traded on the New
York Stock Exchange under "DOV."Additional information is available on our
website at www.dovercorporation.com.

Forward-Looking Statement:
This press release contains "forward-looking" statements within the meaning of
the Securities Exchange Act of 1934, as amended, and the Private Securities
Litigation Reform Act of 1995. Such statements relate to, among other things,
operating and strategic plans, income, earnings, cash flows, changes in
operations, operating improvements, industries in which Dover companies
operate and the U.S. and global economies. Statements in this press release
that are not historical may be indicated by words or phrases such as
"anticipates," "expects," "believes," "indicates," "suggests," "will,"
"plans," "supports," "projects," "should," "would," "could," "hope,"
"forecast" and "management is of the opinion," use of future tense and similar
words or phrases. Forward-looking statements are subject to inherent risks and
uncertainties that could cause actual results to differ materially from
current expectations, including, but not limited to, uncertainties in the
credit and capital markets, interest rates, currency exchange rates, the world
economy and sovereign credit, especially in Europe; political events and
possible future terrorist threats that could impact countries where Dover does
business or the worldwide economy; the impact of natural disasters and their
effect on global supply chains and energy markets; increases in the cost of
raw materials; the Company's ability to achieve expected savings from
integration, synergy and other cost-control initiatives; the ability to
identify and successfully consummate value-adding acquisition opportunities;
increased competition and pricing pressures in the markets served by Dover's
operating companies; the ability of Dover's companies to expand into new
geographic markets and to anticipate and meet customer demands for new
products and product enhancements; the impact of loss of a single-source
manufacturing facility; changes in customer demand; a downgrade in Dover's
credit ratings; the relative mix of products and services which impacts
margins and operating efficiencies; short-term capacity constraints; domestic
and foreign governmental and public policy changes including environmental
regulations, tax policies, export subsidy programs, R&E credits and other
similar programs; unforeseen developments in contingencies such as litigation;
protection and validity of patent and other intellectual property rights; and
the cyclical nature of some of Dover's companies. Dover refers you to the
documents that it files from time to time with the Securities and Exchange
Commission, such as its reports on Form 10-K, Form 10-Q and Form 8-K, for a
discussion of these and other risks and uncertainties that could cause its
actual results to differ materially from its current expectations and from the
forward-looking statements contained in this press release. Dover undertakes
no obligation to update any forward-looking statement.

INVESTOR SUPPLEMENT - FOURTH QUARTER AND FULL YEAR 2012

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

                        Three Months Ended
                                                    Years Ended December 31,
                        December 31,
                        2012          2011          2012          2011
Revenue                 $ 2,013,831   $ 1,890,962   $ 8,104,339   $ 7,369,154
Cost of goods and       1,240,087     1,172,629     4,997,274     4,524,351
services
Gross profit            773,744       718,333       3,107,065     2,844,803
Selling and             469,668       434,732       1,841,688     1,720,954
administrative expenses
Operating earnings      304,076       283,601       1,265,377     1,123,849
Interest expense, net   30,996        29,057        121,141       115,525
Other expense (income), 809           (3,265)       6,665         (1,938)
net
Earnings before
provision for income
taxes and               272,271       257,809       1,137,571     1,010,262

discontinued operations
Provision for income    64,047        60,542        304,452       237,076
taxes
Earnings from           208,224       197,267       833,119       773,186
continuing operations
Earnings (loss) from
discontinued            (48,364)      81,022        (22,049)      122,057
operations, net (1)
Net earnings            $ 159,860     $ 278,289     $ 811,070     $ 895,243
Basic earnings per
common share:
Earnings from           $ 1.17        $ 1.07        $ 4.59        $ 4.16
continuing operations
Earnings (loss) from
discontinued
operations,             (0.27)        0.44          (0.12)        0.66

net (1)
Net earnings            0.90          1.51          4.47          4.82
Weighted average shares 177,257       184,686       181,551       185,882
outstanding
Diluted earnings per
common share:
Earnings from           $ 1.16        $ 1.05        $ 4.53        $ 4.09
continuing operations
Earnings (loss) from
discontinued
operations,             (0.27)        0.43          (0.12)        0.65

net (1)
Net earnings            0.89          1.49          4.41          4.74
Weighted average shares 179,365       187,208       183,993       188,887
outstanding
Dividends paid per      $ 0.35        $ 0.315       $ 1.33        $ 1.18
common share

(1) For the three months and year ended December 31, 2012, the loss from
discontinued operations, net reflects a goodwill impairment charge of
approximately $64 million ($52 million, net of tax) recognized in connection
with the reclassification of Everett Charles Technologies and DEK to
discontinued operations.

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

               2012                                                              2011
               Q1           Q2           Q3           Q4           FY 2012       Q1           Q2           Q3           Q4           FY 2011
REVENUE
Communication  $ 357,575    $ 361,689    $ 396,470    $ 400,851    $ 1,516,585   $ 269,582    $ 288,843    $ 405,357    $ 396,295    $ 1,360,077
Technologies
Energy         531,570      538,786      562,263      539,985      2,172,604     425,424      454,327      510,608      510,390      1,900,749
Engineered
Systems
Fluid          180,364      211,974      218,324      206,500      817,162       163,196      178,031      173,804      162,590      677,621
Solutions
Refrigeration
&              642,213      674,501      674,116      613,012      2,603,842     560,453      645,573      649,768      568,844      2,424,638

Industrial
Eliminations   (453)        (352)        (319)        (336)        (1,460)       (382)        (424)        (431)        (287)        (1,524)
               822,124      886,123      892,121      819,176      3,419,544     723,267      823,180      823,141      731,147      3,100,735
Printing &     243,570      251,875      246,945      254,141      996,531       240,775      253,226      260,546      253,689      1,008,236
Identification
Intra-segment  (225)        (184)        (194)        (322)        (925)         —            18           (102)        (559)        (643)
eliminations
Total
consolidated   $ 1,954,614  $ 2,038,289  $ 2,097,605  $ 2,013,831  $ 8,104,339   $ 1,659,048  $ 1,819,594  $ 1,999,550  $ 1,890,962  $ 7,369,154
revenue
NET EARNINGS
Segment
Earnings:
Communication
               $ 46,556     $ 50,322     $ 63,706     $ 58,376     $ 218,960     $ 47,325     $ 54,527     $ 53,433     $ 71,097     $ 226,382
Technologies
Energy         132,115      133,936      139,038      133,561      538,650       93,051       110,447      125,268      121,871      450,637
Engineered
               122,092      133,808      144,245      101,807      501,952       98,235       128,570      125,529      92,852       445,186
Systems
Printing &     26,089       28,918       39,502       40,650       135,159       31,985       35,294       40,843       33,439       141,561
Identification
Total Segments 326,852      346,984      386,491      334,394      1,394,721     270,596      328,838      345,073      319,259      1,263,766
Corporate
expense /      36,546       36,335       32,001       31,127       136,009       36,112       35,391       34,083       32,393       137,979
other
Net interest   30,031       29,715       30,399       30,996       121,141       28,319       28,093       30,056       29,057       115,525
expense
Earnings from
continuing
operations     260,275      280,934      324,091      272,271      1,137,571     206,165      265,354      280,934      257,809      1,010,262
before
provision for
income taxes
Provision for  73,866       75,778       90,761       64,047       304,452       51,020       52,095       73,419       60,542       237,076
income taxes
Earnings from
continuing     186,409      205,156      233,330      208,224      833,119       155,145      213,259      207,515      197,267      773,186
operations
Earnings
(loss) from
discontinued   9,654        8,945        7,716        (48,364)     (22,049)      39,760       36,510       (35,235)     81,022       122,057
operations,
net
Net earnings   $ 196,063    $ 214,101    $ 241,046    $ 159,860    $ 811,070     $ 194,905    $ 249,769    $ 172,280    $          $ 895,243
                                                                                                                        278,289
SEGMENT OPERATING MARGIN
Communication
               13.0%        13.9%        16.1%        14.6%        14.4%         17.6%        18.9%        13.2%        17.9%        16.6%
Technologies
Energy         24.9%        24.9%        24.7%        24.7%        24.8%         21.9%        24.3%        24.5%        23.9%        23.7%
Engineered
               14.9%        15.1%        16.2%        12.4%        14.7%         13.6%        15.6%        15.2%        12.7%        14.4%
Systems
Printing &
               10.7%        11.5%        16.0%        16.0%        13.6%         13.3%        13.9%        15.7%        13.2%        14.0%
Identification
Total Segment  16.7%        17.0%        18.4%        16.6%        17.2%         16.3%        18.1%        17.3%        16.9%        17.1%
DEPRECIATION AND AMORTIZATION EXPENSE
Communication  $ 31,513     $ 32,828     $ 32,997     $ 35,281     $ 132,619     $ 18,685     $ 18,533     $ 34,360     $ 30,261     $ 101,839
Technologies
Energy         21,184       23,533       24,639       25,721       95,077        18,573       18,765       19,399       21,082       77,819
Engineered     19,582       23,913       23,060       27,066       93,621        18,415       18,816       18,332       19,213       74,776
Systems
Printing &     8,331        8,496        8,777        7,998        33,602        8,163        8,476        8,364        8,479        33,482
Identification
Corporate      700          765          842          359          2,666         586          626          636          713          2,561
               $ 81,310     $ 89,535     $ 90,315     $ 96,425     $ 357,585     $ 64,422     $ 65,216     $ 81,091     $ 79,748     $ 290,477

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



               2012                                                               2011
               Q1           Q2           Q3           Q4           FY 2012        Q1          Q2          Q3          Q4          FY 2011
BOOKINGS
Communication                                                                     $       $       $       $       $    
Technologies   $ 356,386    $ 383,135    $ 412,092    $ 352,629    $ 1,504,242     274,611    309,734                       
                                                                                                          410,616     349,579    1,344,540
Energy         585,775      530,352      526,824      550,091        2,193,042    495,125     472,543     498,212     519,525     1,985,405
Engineered
Systems
Fluid
               184,711      204,139      197,767      209,872      796,489        173,626     175,539     174,772     158,895     682,832
Solutions
Refrigeration
               711,911      666,223      600,065      606,931      2,585,130      660,449     623,929     602,488     625,840     2,512,706
& Industrial
Eliminations   (408)        (376)        (258)        (399)        (1,441)        (733)       (884)       179         (1,378)     (2,816)
               896,214      869,986      797,574      816,404      3,380,178      833,342     798,584     777,439     783,357     3,192,722
Printing &     249,773      251,733      244,611      252,937      999,054        247,812     254,226     262,685     253,632     1,018,355
Identification
Intra-segment  (609)        (222)        (760)        (1,017)      (2,608)        (2,736)     (3,370)     (2,453)     (3,153)     (11,712)
eliminations
Total                                                                             $        $        $       $       $    
consolidated   $ 2,087,539  $ 2,034,984  $ 1,980,341  $ 1,971,044  $ 8,073,908    1,848,154  1,831,717  1,946,499             7,529,310
bookings                                                                                                              1,902,940
BACKLOG
Communication                                                                     $       $       $       $    
Technologies   $ 435,912    $ 457,624    $ 473,007    $ 424,144                    410,843    431,558               
                                                                                                          483,512     437,320
Energy         296,360      282,364      248,233      256,093                     240,198     255,889     243,401     246,351
Engineered
Systems
Fluid
               191,327      172,300      156,191      160,890                     57,357      54,945      55,230      54,194
Solutions
Refrigeration
               598,910      586,824      515,285      516,559                     544,995     523,011     469,876     528,118
& Industrial
Eliminations   (132)        (155)        (94)         (157)                       (339)       (526)       (94)        (177)
               790,105      758,969      671,382      677,292                     602,013     577,430     525,012     582,135
Printing &     102,117      98,216       98,356       97,857                      100,231     101,426     97,405      94,557
Identification
Intra-segment  (986)        (647)        (324)        $ (590)                     (704)       (1,177)     (890)       (193)
eliminations
Total                                                                             $        $       $       $   
consolidated   $ 1,623,508  $ 1,596,526  $ 1,490,654  $ 1,454,796                 1,352,581  1,365,126  1,348,440   1,360,170
backlog



DOVER CORPORATION
QUARTERLY EARNINGS PER SHARE
(unaudited)(in thousands, except per share data*)

             2012                                                    2011
             Q1         Q2         Q3         Q4         FY 2012     Q1         Q2         Q3         Q4         FY 2011
Basic earnings (loss) per common
share:
Continuing   $ 1.01     $ 1.12     $ 1.28     $ 1.17     $ 4.59      $ 0.83     $ 1.14     $ 1.12     $ 1.07     $ 4.16
operations
Discontinued 0.05       0.05       0.04       (0.27)     (0.12)      0.21       0.20       (0.19)     0.44       0.66
operations
Net earnings 1.07       1.17       1.33       0.90       4.47        1.04       1.34       0.93       1.51       4.82
Diluted earnings (loss) per common
share:
Continuing   $ 1.00     $ 1.10     $ 1.27     $ 1.16     $ 4.53      $ 0.82     $ 1.12     $ 1.10     $ 1.05     $ 4.09
operations
Discontinued 0.05       0.05       0.04       (0.27)     (0.12)      0.21       0.19       (0.19)     0.43       0.65
operations
Net earnings 1.05       1.15       1.31       0.89       4.41        1.03       1.32       0.91       1.49       4.74
Adjusted diluted earnings per common share (calculated below):
Continuing   $ 1.01     $ 1.10     $ 1.25     $ 1.09     $ 4.44      $ 0.78     $ 0.99     $ 1.08     $ 1.02     $ 3.87
operations
Net earnings (loss) and average shares used in calculated earnings (loss) per share amounts are as follows:
Net earnings
(loss):
Continuing   $ 186,409  $ 205,156  $ 233,330  $ 208,224  $ 833,119   $ 155,145  $ 213,259  $ 207,515  $ 197,267  $ 773,186
operations
Discontinued 9,654      8,945      7,716      (48,364)   (22,049)    39,760     36,510     (35,235)   81,022     122,057
operations
Net earnings 196,063    214,101    241,046    159,860    811,070     194,905    249,769    172,280    278,289    895,243
Average shares outstanding:
Basic        183,737    183,494    181,763    177,257    181,551     186,659    186,443    185,770    184,686    185,882
Diluted      186,706    185,780    183,932    179,365    183,993     190,090    189,705    188,436    187,208    188,887

Note:
Earnings from continuing operations are adjusted by discrete and other tax items to derive adjusted earnings from
continuing operations and adjusted diluted earnings per common share as follows:
           2012                                                    2011
           Q1         Q2         Q3         Q4         FY 2012     Q1         Q2         Q3         Q4         FY 2011
Adjusted earnings from continuing
operations:
Earnings
from       $ 186,409  $ 205,156  $ 233,330  $ 208,224  $ 833,119   $ 155,145  $ 213,259  $ 207,515  $ 197,267  $ 773,186
continuing
operations
Gains
(losses)
from       (1,610)    (372)      4,513      13,606     16,137      8,016      24,983     2,777      4,967      40,743
discrete
and other
tax items
Adjusted
earnings
from       $ 188,019  $ 205,528  $ 228,817  $ 194,618  $ 816,982   $ 147,129  $ 188,276  $ 204,738  $ 192,300  $ 732,443
continuing
operations
Adjusted diluted earnings per common share:
Earnings
from       $ 1.00     $ 1.10     $ 1.27     $ 1.16     $ 4.53      $ 0.82     $ 1.12     $ 1.10     $ 1.05     $ 4.09
continuing
operations
Gains
(losses)
from       (0.01)     —          0.02       0.07       0.09        0.04       0.13       0.02       0.03       0.22
discrete
and other
tax items
Adjusted
earnings
from       $ 1.01     $ 1.10     $ 1.25     $ 1.09     $ 4.44      $ 0.78     $ 0.99     $ 1.08     $ 1.02     $ 3.87
continuing
operations
* Per share data may not add due to
rounding.



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

                                          December31, 2012  December31, 2011
Assets:
Cash and cash equivalents                 $   800,076        $   1,206,755
Receivables, net of allowances            1,225,898          1,118,848
Inventories, net                          872,841            733,807
Deferred tax and other current assets     129,029            188,768
Property, plant and equipment, net        1,167,052          970,703
Goodwill                                  4,094,650          3,506,975
Intangible assets, net                    1,645,420          1,184,505
Other assets                              111,432            103,331
Assets of discontinued operations         397,545            486,860
Total assets                              $   10,443,943     $   9,500,552
Liabilities and Stockholders' Equity:
Notes payable and current maturities of   $   610,766        $   1,022
long-term debt
Payables and accrued expenses             1,375,862          1,148,500
Deferred taxes and other noncurrent
liabilities                               1,139,777          958,341


Long-term debt                            2,189,350          2,186,230
Liabilities of discontinued operations    208,958            275,904
Stockholders' equity                      4,919,230          4,930,555
Total liabilities and stockholders'       $   10,443,943     $   9,500,552
equity



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

                                                    Years Ended December 31,
                                                    2012          2011
Operating activities:
Net earnings                                        $  811,070    $ 895,243
Loss (gain) from discontinued operations, net       22,049        (122,057)
Depreciation and amortization                       357,585       290,477
Stock-based compensation                            30,884        25,130
Contributions to employee benefit plans             (48,576)      (63,567)
Net change in assets and liabilities                88,148        (76,362)
Net cash provided by operating activities of
continuing                                          1,261,160     948,864

operations
Investing activities:
Additions to property, plant and equipment          (297,012)     (262,676)
Acquisitions, including adjustment for prior year
acquisition
                                                    (1,035,433)   (1,382,217)
purchase price (net of cash and cash equivalents
acquired)
Proceeds from sale of short-term investments        —             124,410
Proceeds from the sale of businesses                —             516,901
Other                                               (13,443)      (8,848)
Net cash used in investing activities of continuing
                                                    (1,345,888)   (1,012,430)
operations
Financing activities:
Net increase in debt and notes payable              603,918       371,315
Purchase of common stock                            (748,955)     (242,488)
Proceeds from exercise of stock options and SARs,
including                                           43,054        39,826

tax benefits
Dividends to stockholders                           (240,959)     (219,154)
Net cash used in financing activities of continuing
                                                    (342,942)     (50,501)
operations
Net cash provided by discontinued operations
                                                    4,879         117,311

Effect of exchange rate changes on cash
                                                    16,112        16,150

Net (decrease) increase in cash and cash
equivalents                                         (406,679)     19,394


Cash and cash equivalents at beginning of period
                                                    1,206,755     1,187,361

Cash and cash equivalents at end of period
                                                    $  800,076    $ 1,206,755




DOVER CORPORATION
QUARTERLY FREE CASH FLOW
(unaudited)(in thousands)



           2012                                                      2011
           Q1         Q2         Q3         Q4         FY 2012       Q1         Q2         Q3         Q4         FY 2011
Cash flow
from       $ 161,327  $ 243,363  $ 285,811  $ 570,659  $ 1,261,160   $ 100,153  $ 195,250  $ 323,355  $ 330,106  $ 948,864
operating
activities
Less:
Additions
to         (68,249)   (72,758)   (67,842)   (88,163)   (297,012)     (49,528)   (71,106)   (63,741)   (78,301)   (262,676)
property,
plant and
equipment
Free cash  $ 93,078   $ 170,605  $ 217,969  $ 482,496  $ 964,148     $ 50,625   $ 124,144  $ 259,614  $ 251,805  $ 686,188
flow
Free cash
flow as a
percentage
of         49.9%      83.2%      93.4%      231.7%     115.7%        32.6%      58.2%      125.1%     127.6%     88.7%
earnings
from
continuing
operations
Free cash
flow as a  4.8%       8.4%       10.4%      24.0%      11.9%         3.1%       6.8%       13.0%      13.3%      9.3%
percentage
of revenue



ADDITIONAL INFORMATION

FOURTH QUARTER AND FULL YEAR  2012



Acquisitions
During the fourth quarter of 2012, the Company completed four acquisitions,
three in the Engineered Systems segment and one in the Energy segment. The
fourth quarter acquisitions were largely funded with commercial paper
borrowings. For the full year 2012, Dover made a total of seven acquisitions
for consideration totaling $1.2 billion. This included the Engineered Systems'
acquisitions of Maag Pump Systems in the first quarter and Anthony
International in the fourth quarter.

Discontinued Operations
The Company did not dispose of any businesses in 2012. However, in the fourth
quarter, the Company announced its intent to divest Everett Charles
Technologies and DEK, two non-core businesses serving the electronic assembly
and test markets. The results of operations and cash flows of these businesses
have been reclassified to discontinued operations and the assets and
liabilities of these businesses have been segregated within assets and
liabilities of discontinued operations for all periods presented herein. In
the fourth quarter of 2012, the Company recognized a goodwill impairment
charge of $63.8 million ($51.9 million, net of tax) in connection with the
intended divestiture. As a result, for the fourth quarter and full year
periods of 2012, the Company generated net after-tax losses from discontinued
operations of $0.27 diluted earnings per share ("EPS") and $0.12 EPS,
respectively, reflecting the earnings from discontinued operations, offset by
the fourth quarter goodwill impairment charge.

Tax Rate
The effective tax rate on continuing operations was 23.5% for the fourth
quarters of 2012 and 2011. On a full year basis, the effective tax rates on
continuing operations for 2012 and 2011 were 26.8% and 23.5%, respectively.
The 2012 and 2011 rates were favorably impacted by discrete and other items,
as shown in the reconciliation for quarterly earnings per share included
herein. After adjusting for discrete and other items, the fourth quarter
effective tax rates were 28.5% and 25.4% for 2012 for 2011, respectively, and
the full year rates were 28.2% and 27.5% for 2012 and 2011, respectively. The
higher rates for the quarter and full year of 2012 reflect the impact of a
higher proportion of U.S. earnings, partly offset by lower effective tax rates
in foreign jurisdictions.

Revenue Growth Factors

                     2012
                     Q1       Q2       Q3       Q4       Full Year
Organic              12.6  %  6.1   %  2.3   %  2.1   %  5.5    %
Acquisitions         5.9   %  7.8   %  4.8   %  4.8   %  5.8    %
Currency translation (0.7) %  (1.9) %  (2.2) %  (0.4) %  (1.3)  %
                     17.8  %  12.0  %  4.9   %  6.5   %  10.0   %

Free Cash Flow
The following table is a reconciliation of free cash flow (a non-GAAP measure)
from cash flow provided by operating activities:

                          Three Months Ended
                                                    Years Ended December 31,
                          December 31,
                          2012         2011         2012           2011
Free Cash Flow (dollars
in thousands)
Cash flow provided by     $ 570,659    $ 330,106    $ 1,261,160    $ 948,864
operating activities
Less: Capital             (88,163)     (78,301)     (297,012)      (262,676)
expenditures
Free cash flow            $ 482,496    $ 251,805    $ 964,148      $ 686,188
Free cash flow as a       24.0      %  13.3      %  11.9        %  9.3       %
percentage of revenue
Free cash flow as a
percentage of earnings                              115.7       %  88.7      %
from continuing
operations



The full year increase in 2012 free cash flow reflects higher earnings from
continuing operations before depreciation and amortization and a $129 million
positive change in working capital year-over-year, offset in part by higher
capital expenditures in 2012 necessary to fund expansion in the Company's
high-growth businesses.

Share Repurchases
During the year ended December 31, 2012, the Company purchased approximately
12.3 million shares of its common stock in the open market at an average price
of $60.36 per share. The repurchases through November 1 were made pursuant to
the Company's standing five-year authorization, which was renewed in May of
2012. At December 31, 2012, approximately 3.9 million shares remain
authorized for repurchase under the current authorization, which expires in
May of 2017. Repurchases subsequent to November 1 were made pursuant to an
additional share repurchase program approved in November 2012, which
authorized $1 billion for share repurchases over the next 12 to 18 months. At
December 31, 2012, approximately $750 million remains available for
repurchases under this program.

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



Net Debt to Net Capitalization Ratio (in  December 31, 2012  December 31, 2011
thousands)
Current maturities of long-term debt      $   3,266          $   1,022
Commercial paper                          607,500            —
Long-term debt                            2,189,350          2,186,230
Total debt                                2,800,116          2,187,252
Less: Cash and cash equivalents           (800,076)          (1,206,755)
Net debt                                  2,000,040          980,497
Add: Stockholders' equity                 4,919,230          4,930,555
Net capitalization                        $   6,919,270      $   5,911,052
Net debt to net capitalization            28.9           %   16.6           %



Non-GAAP Information:
These Investor Supplement tables contain non-GAAP measures of adjusted
earnings from continuing operations used in calculating adjusted diluted
earnings per common share, as management believes this information is useful
to investors to better understand the company's ongoing profitability and
facilitates easier comparisons of the company's profitability to prior and
future periods and to its peers. The company has also disclosed herein a
number of non-GAAP measures related to free cash flow and the ratio of net
debt to net capitalization. Management believes these metrics are important
measures of the company's operating performance and liquidity. Free cash flow
information provides both management and investors a measurement of cash
generated from operations that is available to fund acquisitions, pay
dividends, repay debt and repurchase common stock, while the net debt to net
capitalization ratio is helpful in evaluating the company's capital structure
and the amount of leverage employed.

SOURCE Dover

Website: http://www.dovercorporation.com
Contact: Paul Goldberg, Vice President - Investor Relations, +1-212-922-1640
 
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