BERWYN, Pa., April 16, 2020 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) provides an update on business and operations in light
of the ongoing COVID-19 pandemic.
"The COVID-19 global pandemic has created unprecedented
challenges," said David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "During these highly uncertain times, we are
prioritizing the safety and well-being of our employees while also
ensuring our essential businesses continue to provide critical
solutions to assist in the fight against COVID-19."
AMETEK's solutions are being used by top research
laboratories to assist in the development of vaccines and
anti-bodies, by hospitals to improve patient care and the safety of
health care providers, by medical equipment providers in
coronavirus diagnostic testing equipment, and by manufacturers of
ventilators. AMETEK is providing continual support to its customers
in these and many other essential industries while adhering to
safety guidelines from local governments and health
organizations.
"Despite strength from select end markets, broader demand
weakened in the quarter as the spread of the virus led to supply
and demand disruptions. While overall sales in the first quarter
will be down approximately 6.5%, we expect adjusted diluted
earnings per share to be within our original guidance range on
higher margins. The expected adjusted earnings for the quarter
exclude an approximate $140 million
pre-tax gain from the sale of Reading Alloys and an approximate
$45 million pre-tax restructuring
charge to realign our cost structure," said Mr. Zapico.
"We are pleased with the operating performance our businesses
delivered in the first quarter, however, given the ongoing
uncertainty presented by this pandemic, we are withdrawing our
full-year 2020 financial guidance," Mr. Zapico continued. "We
will provide an update on business conditions when we announce our
first quarter results."
AMETEK's balance sheet provides significant financial
flexibility to operate in the current economic environment. At the
end of the first quarter, AMETEK had approximately $1.8 billion in liquidity, with $1.25 billion in cash, including proceeds from
the recent divestiture of Reading Alloys. AMETEK's net debt to
EBITDA at quarter end was approximately 1.4x. AMETEK maintains an
investment-grade credit rating and has no material debt maturities
until 2023.
"The strength of the AMETEK Growth Model, our proven operating
acumen, and highly talented and committed employees will guide us
through this extraordinary economic environment. Our balance sheet
remains strong and we are positioned to continue supporting our
customers across a diverse set of end markets," concluded
Mr. Zapico.
First Quarter 2020 Earnings Call and Webcast
Information
AMETEK will release its financial results
for the first quarter on Tuesday, May 5,
2020, before the market opens, and will hold a conference
call to discuss those results and the current impact from the
COVID-19 pandemic on the same day at 8:30
a.m. ET. The live audio webcast can be accessed by clicking
on the Events & Presentations link in the "Investors" section
of www.ametek.com. A replay of the call will also be archived on
the website and will be available until the next quarterly earnings
call.
About AMETEK
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with 2019 sales of approximately $5.0 billion. The AMETEK Growth Model integrates
the Four Growth Strategies - Operational Excellence, New Product
Development, Global and Market Expansion, and Strategic
Acquisitions - with a disciplined focus on cash generation and
capital deployment. AMETEK's objective is double-digit percentage
growth in earnings per share over the business cycle and a superior
return on total capital. The common stock of AMETEK is a component
of the S&P 500.
Forward-looking Information
Statements in this news
release relating to future events, such as AMETEK's expected
business and financial performance are "forward-looking
statements." Forward-looking statements are subject to various
factors and uncertainties that may cause actual results to differ
significantly from expectations. These factors and uncertainties
include risks related to COVID-19 and its potential impact on
AMETEK's operations, supply chain, and demand across key end
markets; AMETEK's ability to consummate and successfully integrate
future acquisitions; risks with international sales and operations,
including supply chain disruptions; AMETEK's ability to
successfully develop new products, open new facilities or transfer
product lines; the price and availability of raw materials;
compliance with government regulations, including environmental
regulations; changes in the competitive environment or the effects
of competition in our markets; the ability to maintain adequate
liquidity and financing sources; and general economic conditions
affecting the industries we serve. A detailed discussion of these
and other factors that may affect our future results is contained
in AMETEK's filings with the U.S. Securities and Exchange
Commission, including its most recent reports on Form 10-K, 10-Q
and 8-K. AMETEK disclaims any intention or obligation to update or
revise any forward-looking statements.
Contact:
AMETEK, Inc.
Kevin Coleman, Vice President,
Investor Relations
kevin.coleman@ametek.com
Phone: 610.889.5247
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SOURCE AMETEK, Inc.