BERWYN, Pa., Aug. 5, 2014 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced second quarter results that established
records for orders, sales, operating income, operating margins, net
income and diluted earnings per share. In addition, backlog
at June 30, 2014 of $1.25 billion was an all-time
high.
AMETEK's second quarter 2014 sales of $990.7 million were up 13% over the same period
of 2013. Operating income for the second quarter of 2014 was
$231.7 million, a 14% increase from
the $202.6 million recorded in the
same period of 2013. Operating margins improved 30 basis
points to 23.4%. Net income increased 17% to $150.1 million, from $128.3 million in last year's second
quarter. Diluted earnings per share increased 17% to
$0.61 per diluted share from the
second quarter 2013 level of $0.52
per diluted share.
"AMETEK achieved excellent results in the second quarter,
delivering record operating performance. Strong organic
growth, Operational Excellence initiatives, and contributions from
acquired businesses allowed us to exceed our second quarter
earnings expectations and raise our 2014 earnings guidance.
In addition, we closed the acquisition of Zygo in the
quarter," noted Frank S. Hermance,
AMETEK Chairman and Chief Executive Officer.
"Cash flow was also very strong, with operating cash flow
totaling $155.1 million for the
quarter, an increase of 21% over the same period of 2013,"
continued Mr. Hermance.
For the six months ended June 30,
2014, AMETEK sales increased 12% to $1.97 billion from $1.76
billion in the same period of 2013. Operating income
increased 13% to $453.4 million, from
$399.8 million earned in the first
six months of 2013. Net income for the first six months of
2014 was $290.6 million, up 15% from
$253.5 million in the same period of
2013. Diluted earnings per share were $1.18 for the first six months of 2014, up 15%
from $1.03 per diluted share in the
first six months of 2013.
Electronic Instruments Group (EIG)
For the second quarter of 2014, EIG sales increased 19% to
$573.3 million. Operating
income was $151.5 million in the
quarter, compared with $129.6 million
in the second quarter of 2013, a 17% increase. Operating
margins for the quarter were very strong at
26.4%.
"EIG had an excellent second quarter. Strong core growth
in our Aerospace, Process, and Power & Industrial businesses
combined with the contributions from recent acquisitions drove the
strong overall sales growth," said Mr. Hermance.
Electromechanical Group (EMG)
In the second quarter of 2014, EMG sales increased 6% to
$417.4 million. Operating
income in the second quarter was up 10% to $92.1 million, compared with $83.4 million in the same period of 2013.
Operating margins were a record 22.1% in the second quarter of
2014, up 100 basis points from last year's second
quarter.
"EMG also had a great second quarter with strong sales growth
and excellent operating performance. Operating margins were
up nicely driven by the higher sales and our Operational Excellence
initiatives," commented Mr. Hermance.
2014 Outlook
"We are very pleased with our strong performance in the second
quarter. We are increasing our earnings guidance for the full
year to reflect these strong results, the benefit of the Zygo
acquisition and our expectations for the balance of the year,"
notes Mr. Hermance.
"We now anticipate 2014 revenue to be up low double digits on a
percentage basis from 2013 reflecting solid core growth and the
contributions from recent acquisitions. Earnings for 2014 are
now expected to be in the range of $2.37 to
$2.42 per diluted share, up 13% to 15% over 2013, excluding
one-time Zygo integration costs. This earnings guidance is an
increase from our previous guidance of $2.32
to $2.37 per diluted share that was provided in our first
quarter earnings release," added Mr. Hermance.
"Third quarter sales are expected to be up mid-teens on a
percentage basis over last year's third quarter. We estimate
our earnings to be approximately $0.59 to
$0.61 per diluted share, excluding the one-time Zygo
integration costs. This earnings guidance represents an
increase of 13% to 17% over last year's third quarter of
$0.52 per diluted share," concluded
Mr. Hermance.
Conference Call
The Company will webcast its Second Quarter 2014 investor
conference call on Tuesday, August 5,
2014, beginning at 8:30 AM ET.
The live audio webcast will be available at the Investors section
of www.ametek.com and at www.streetevents.com. The call will also
be archived at the Investors section of www.ametek.com.
Corporate Profile
AMETEK is a leading global manufacturer of electronic
instruments and electro-mechanical devices with 2013 sales of
$3.6 billion. AMETEK's
Corporate Growth Plan is based on Four Key Strategies: Operational
Excellence, Strategic Acquisitions, Global & Market Expansion
and New Products. 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 Index.
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 our ability to consummate and
successfully integrate future acquisitions; risks associated with
international sales and operations; our 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.
(Financial Information Follows)
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
sales
|
$ 990,718
|
|
$ 878,809
|
|
$1,966,010
|
|
$1,761,662
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
630,645
|
|
567,598
|
|
1,255,815
|
|
1,141,672
|
Selling, general and
administrative
|
113,316
|
|
94,912
|
|
225,941
|
|
192,520
|
Depreciation
|
15,029
|
|
13,686
|
|
30,895
|
|
27,622
|
Total operating expenses
|
758,990
|
|
676,196
|
|
1,512,651
|
|
1,361,814
|
|
|
|
|
|
|
|
|
Operating
income
|
231,728
|
|
202,613
|
|
453,359
|
|
399,848
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(18,981)
|
|
(18,154)
|
|
(37,819)
|
|
(36,477)
|
Other, net
|
(4,326)
|
|
(2,667)
|
|
(8,203)
|
|
(5,191)
|
Income before income
taxes
|
208,421
|
|
181,792
|
|
407,337
|
|
358,180
|
Provision for income
taxes
|
58,358
|
|
53,471
|
|
116,688
|
|
104,713
|
|
|
|
|
|
|
|
|
Net
income
|
$ 150,063
|
|
$ 128,321
|
|
$ 290,649
|
|
$ 253,467
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.61
|
|
$ 0.52
|
|
$
1.18
|
|
$ 1.03
|
Basic earnings per
share
|
$
0.61
|
|
$ 0.53
|
|
$
1.19
|
|
$ 1.04
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
247,403
|
|
246,104
|
|
247,316
|
|
245,757
|
Basic shares
|
245,201
|
|
243,666
|
|
245,056
|
|
243,475
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.06
|
|
$
0.15
|
|
$ 0.12
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 573,289
|
|
$ 483,339
|
|
$1,145,683
|
|
$ 967,840
|
Electromechanical
|
417,429
|
|
395,470
|
|
820,327
|
|
793,822
|
Consolidated net sales
|
$ 990,718
|
|
$ 878,809
|
|
$1,966,010
|
|
$1,761,662
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 151,499
|
|
$ 129,575
|
|
$ 301,818
|
|
$ 261,321
|
Electromechanical
|
92,133
|
|
83,395
|
|
176,013
|
|
161,394
|
Total segment operating income
|
243,632
|
|
212,970
|
|
477,831
|
|
422,715
|
Corporate administrative and
other expenses
|
(11,904)
|
|
(10,357)
|
|
(24,472)
|
|
(22,867)
|
Consolidated operating income
|
$ 231,728
|
|
$ 202,613
|
|
$ 453,359
|
|
$ 399,848
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2014
|
|
2013
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 282,771
|
|
$ 295,203
|
Receivables, net
|
594,151
|
|
536,701
|
Inventories
|
538,287
|
|
452,848
|
Other current
assets
|
115,461
|
|
84,377
|
Total current assets
|
1,530,670
|
|
1,369,129
|
|
|
|
|
Property, plant and
equipment, net
|
459,187
|
|
402,790
|
Goodwill
|
2,610,381
|
|
2,408,363
|
Other intangibles,
investments and other assets
|
1,884,765
|
|
1,697,620
|
Total assets
|
$ 6,485,003
|
|
$ 5,877,902
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 454,418
|
|
$ 273,315
|
Accounts payable and
accruals
|
667,407
|
|
601,230
|
Total current liabilities
|
1,121,825
|
|
874,545
|
|
|
|
|
Long-term
debt
|
1,148,248
|
|
1,141,750
|
Deferred income taxes
and other long-term liabilities
|
793,012
|
|
725,486
|
Stockholders'
equity
|
3,421,918
|
|
3,136,121
|
Total liabilities and stockholders' equity
|
$ 6,485,003
|
|
$ 5,877,902
|
Contact: Kevin C. Coleman (610)
889-5247
SOURCE AMETEK, Inc.