BERWYN, Pa., Oct. 27, 2015 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month
period ended September 30,
2015.
AMETEK reported third quarter 2015 sales of $1.0 billion, down 3% from last year's third
quarter. Operating income increased 3% to $237.6 million, operating margins were up 130
basis points to 23.8%, and diluted earnings per share increased 5%
to a record $0.65 per diluted share
from the third quarter 2014 adjusted results.
"I am very pleased with AMETEK's solid performance in the third
quarter. Although the global economic environment remains
challenging, we continue to deliver strong improvements in our
operating margins and diluted earnings per share through the
execution of our Four Growth Strategies," noted Frank S. Hermance, AMETEK Chairman and Chief
Executive Officer.
Third quarter 2014 results exclude $13.7
million, or $0.05 per diluted
share, in Zygo integration costs. A comparison of third
quarter 2015 results to last year's reported GAAP and adjusted
results is included with the financial tables accompanying the
release. All further references to 2014 results are on an
adjusted basis.
Electronic Instruments Group (EIG)
In the third quarter of 2015, EIG sales were $598.5 million, down 5% versus $631.6 million in the previous year's comparable
quarter. Operating income was $162.5
million in the quarter, up slightly over last year's third
quarter, and operating margins were 27.2%, up 160 basis points over
the prior year.
"EIG had a good third quarter in this difficult growth
environment. The lower sales were driven largely by currency
headwinds. Despite the lower sales, operating margins were
very strong, increasing 160 basis points driven by our Operational
Excellence initiatives," added Mr. Hermance.
Electromechanical Group (EMG)
For the third quarter of 2015, EMG sales were $400.0 million, essentially flat with the third
quarter 2014. Operating income increased 6% to $86.7 million and operating margins were 21.7%,
up 120 basis points from 20.5% in last year's third
quarter.
"EMG also had a good quarter. Strong core growth in our
Aerospace businesses and the contribution from the Global Tubes
acquisition were offset by foreign currency headwinds and weakness
within our Engineered Materials, Interconnects and Packaging
business. Operating margins were very strong as a result of
our Operational Excellence initiatives," notes Mr. Hermance.
2015 Outlook
"As a result of the increasingly sluggish global macro
environment, we now expect 2015 sales to be down low single digits
on a percentage basis versus 2014. Earnings for the year,
excluding the first quarter realignment costs, are anticipated to
be approximately $2.55 per diluted
share, up 5% from last year's adjusted diluted earnings per share,"
notes Mr. Hermance.
"Fourth quarter sales are estimated to be down low single digits
on a percentage basis from last year's fourth quarter. We
expect our diluted earnings per share to be approximately
$0.63 in the fourth quarter," adds
Mr. Hermance.
"We remain confident in our ability to continue to deliver
strong earnings due to our excellent portfolio of business, proven
operational capabilities, on-going growth investments and a
successful focus on strategic acquisitions," concluded Mr.
Hermance.
Conference Call
The Company will webcast its Third Quarter 2015 investor
conference call on Tuesday, October 27,
2015, 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 annual sales
of $4.0 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net
sales
|
$ 998,527
|
|
$1,031,811
|
|
$2,986,312
|
|
$2,997,821
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
631,790
|
|
677,739
|
|
1,901,680
|
|
1,933,554
|
Selling, general and
administrative
|
112,116
|
|
119,205
|
|
335,702
|
|
345,146
|
Depreciation
|
17,006
|
|
16,724
|
|
50,044
|
|
47,619
|
Total operating expenses
|
760,912
|
|
813,668
|
|
2,287,426
|
|
2,326,319
|
|
|
|
|
|
|
|
|
Operating
income
|
237,615
|
|
218,143
|
|
698,886
|
|
671,502
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(23,684)
|
|
(19,543)
|
|
(69,048)
|
|
(57,362)
|
Other, net
|
(2,325)
|
|
(8,639)
|
|
(6,298)
|
|
(16,842)
|
Income before income
taxes
|
211,606
|
|
189,961
|
|
623,540
|
|
597,298
|
Provision for income
taxes
|
55,208
|
|
48,150
|
|
169,522
|
|
164,838
|
|
|
|
|
|
|
|
|
Net
income
|
$ 156,398
|
|
$ 141,811
|
|
$ 454,018
|
|
$ 432,460
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.65
|
|
$ 0.57
|
|
$
1.87
|
|
$ 1.75
|
Basic earnings per
share
|
$
0.65
|
|
$ 0.58
|
|
$
1.89
|
|
$ 1.76
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
241,238
|
|
247,643
|
|
242,552
|
|
247,425
|
Basic shares
|
239,959
|
|
245,439
|
|
240,801
|
|
245,184
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.09
|
|
$
0.27
|
|
$ 0.24
|
|
AMETEK,
Inc.
|
|
Information by
Business Segment
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 598,515
|
|
$ 631,569
|
|
$1,788,777
|
|
$1,777,252
|
Electromechanical
|
400,012
|
|
400,242
|
|
1,197,535
|
|
1,220,569
|
Consolidated net sales
|
$ 998,527
|
|
$1,031,811
|
|
$2,986,312
|
|
$2,997,821
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 162,530
|
|
$ 148,313
|
|
$ 477,740
|
|
$ 450,131
|
Electromechanical
|
86,671
|
|
82,001
|
|
257,929
|
|
258,014
|
Total segment operating income
|
249,201
|
|
230,314
|
|
735,669
|
|
708,145
|
Corporate administrative and
other expenses
|
(11,586)
|
|
(12,171)
|
|
(36,783)
|
|
(36,643)
|
Consolidated operating income
|
$ 237,615
|
|
$ 218,143
|
|
$ 698,886
|
|
$ 671,502
|
|
AMETEK,
Inc.
|
|
Condensed
Consolidated Balance Sheet
|
|
(In
thousands)
|
|
|
|
September
30,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 328,034
|
|
$ 377,615
|
Receivables, net
|
610,019
|
|
585,462
|
Inventories, net
|
541,994
|
|
495,896
|
Other current
assets
|
110,693
|
|
119,631
|
Total current assets
|
1,590,740
|
|
1,578,604
|
|
|
|
|
Property, plant and
equipment, net
|
483,029
|
|
448,446
|
Goodwill
|
2,722,871
|
|
2,614,030
|
Other intangibles,
investments and other assets
|
1,847,384
|
|
1,779,883
|
Total assets
|
$ 6,644,024
|
|
$ 6,420,963
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 295,259
|
|
$ 286,201
|
Accounts payable and
accruals
|
630,218
|
|
649,943
|
Total current liabilities
|
925,477
|
|
936,144
|
|
|
|
|
Long-term
debt
|
1,621,812
|
|
1,427,825
|
Deferred income taxes
and other long-term liabilities
|
781,466
|
|
817,433
|
Stockholders'
equity
|
3,315,269
|
|
3,239,561
|
Total liabilities and stockholders' equity
|
$ 6,644,024
|
|
$ 6,420,963
|
|
|
|
AMETEK,
Inc.
|
|
|
|
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
|
|
|
|
(In thousands,
except per share amounts)
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$ 162,530
|
|
$ 148,313
|
|
$ 477,740
|
|
$ 450,131
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
9,251
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
13,655
|
|
-
|
|
13,655
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
$ 162,530
|
|
$ 161,968
|
|
$ 486,991
|
|
$ 463,786
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$ 86,671
|
|
$ 82,001
|
|
$ 257,929
|
|
$ 258,014
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
6,534
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
$ 86,671
|
|
$ 82,001
|
|
$ 264,463
|
|
$ 258,014
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$ 237,615
|
|
$ 218,143
|
|
$ 698,886
|
|
$ 671,502
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
15,894
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
13,655
|
|
-
|
|
13,655
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$ 237,615
|
|
$ 231,798
|
|
$ 714,780
|
|
$ 685,157
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$ 156,398
|
|
$ 141,811
|
|
$ 454,018
|
|
$ 432,460
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
10,808
|
(1)
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
10,717
|
(2)
|
-
|
|
10,717
|
(2)
|
Adjusted Net income
(Non-GAAP)
|
|
$ 156,398
|
|
$ 152,528
|
|
$ 464,826
|
|
$ 443,177
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
adjustments at 32.0% tax rate.
|
|
|
|
|
|
|
|
|
|
(2) Represents
adjustments at 21.5% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.65
|
|
$ 0.57
|
|
$
1.87
|
|
$ 1.75
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
0.05
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
0.05
|
|
-
|
|
0.04
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.65
|
|
$ 0.62
|
|
$
1.92
|
|
$ 1.79
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
27.2%
|
|
23.5%
|
|
26.7%
|
|
25.3%
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
0.5
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
2.1
|
|
-
|
|
0.8
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
27.2%
|
|
25.6%
|
|
27.2%
|
|
26.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
21.7%
|
|
20.5%
|
|
21.5%
|
|
21.1%
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
0.6
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
-
|
|
-
|
|
-
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
21.7%
|
|
20.5%
|
|
22.1%
|
|
21.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
23.8%
|
|
21.1%
|
|
23.4%
|
|
22.4%
|
|
|
Realignment
costs
|
|
-
|
|
-
|
|
0.5
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
1.4
|
|
-
|
|
0.5%
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
23.8%
|
|
22.5%
|
|
23.9%
|
|
22.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP
Financial Information
The Company supplements its consolidated financial statements
presented on a U.S. generally accepted accounting principles
("GAAP") basis with certain non‑GAAP financial information to
provide investors with greater insight, increased transparency and
allow for a more comprehensive understanding of the information
used by management in its financial and operational
decision-making. Reconciliation of non‑GAAP measures to their
most directly comparable GAAP measures are included in the
accompanying financial tables. These non‑GAAP financial measures
should be considered in addition to, and not as a replacement for,
or superior to, the comparable GAAP measure, and may not be
comparable to similarly titled measures reported by other
companies.
The Company believes that these measures provide useful information
to investors by reflecting additional ways of viewing AMETEK's
operations that, when reconciled to the comparable GAAP measure,
helps our investors to better understand the long-term
profitability trends of our business, and facilitates easier
comparisons of our profitability to prior and future periods and to
our peers. The items described above have been excluded from
this measure because items of this nature and/or size occur with
inconsistent frequency, occur for reasons that may be unrelated to
AMETEK's commercial performance during the period and/or we believe
are not indicative of AMETEK's ongoing operating costs or gains in
a given period, which we believe may obscure underlying business
trends and make comparisons of long-term performance
difficult.
|
Contact: Kevin Coleman +1
610-889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-third-quarter-2015-results-300166396.html
SOURCE AMETEK, Inc.