Dover Corporation (NYSE:DOV) Q2 2020 Earnings Conference Call - Final Transcript

Jul 22, 2020 • 09:00 am ET

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Dover Corporation (NYSE:DOV) Q2 2020 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from the line of Andy Kaplowitz of Citigroup.

Analyst
Andy Kaplowitz

Good morning, guys. Rich nice quarter.

Executive
Richard J. Tobin

Thanks, Andy.

Analyst
Andy Kaplowitz

You mentioned material sequential improvement in June. Are there any of your shorter cycle businesses that have not improved as fast or faster than expected? And can you give us more color on, if you've seen any sort of slowdown in the rate of improvement in late June and July, particularly in the US?

Executive
Richard J. Tobin

We would have not given out full year EPS guidance without seeing June. That's how I think that we've mentioned that when we ended Q1 that June was very important in terms of what we thought the trajectory was. And so, I mean, I think that we went through the bookings change of June and made a variety different comments about the business about the moving parts of who is improving and who is not. I mean, I don't want to go through all the companies again. We've got a few, like digital printing, like food service that have not improved and we don't expect them to improve. So at the end of the day that's not built into our guidance. But we called out a few of the shorter cycle businesses like aftermarket automotive for example, which has picked up significantly at the end of the quarter. So June was good. I think that we're pleased. It was material to the quarter earnings June. The profit -- the absolute profit in June was double what we made in April, just to put it in contactually. So I think if you go back and you look based on the I think whatever slide it is in here, the Slide 9, that gives you the color -- all the color I can give you in terms of the trajectory of the portfolio and the moving parts.

Analyst
Andy Kaplowitz

Great. And then your commentary on Refrigeration & Food equipment was relatively optimistic. May be talking about the second half of the year, but as you said backlogs continue to improve. Have your customers given you more of an indication that they're right to let you into their stores yet. And then we know your automation project was a start-up in July. So maybe just update us on that? And can give us a little more color on sort of the margin trajectory in the second half of the year?

Executive
Richard J. Tobin

Sure. Let's start with Refrigeration. We are booked into Q4. So it's up to us now to produce the product without have any frictional costs and based on the margin that the business delivered in June, if we can get that for the full quarter, I think, which is our expectation, I think we'll be pleased. In addition to that, part of the large backlog that we have in this segment is geared towards Belvac. So we are on the front foot in terms of capacity expansion in aluminum can making and we're participating on that and we've got some