BERWYN, Pa., April 28, 2016 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the three
month period ended March 31,
2016.
AMETEK's first quarter 2016 sales of $944.4 million were down 4% over the same period
of 2015. Operating income was down 12% to $208.5 million and diluted earnings per share of
$0.57 were down 10% from the first
quarter 2015 adjusted results. Operating margins were 22.1% in
the quarter.
"As expected, demand remained weak in the quarter," said
Chairman and Chief Executive Officer Frank
S. Hermance. "Ongoing softness in oil and gas, metals
and global industrial markets continues to drive meaningful
headwinds. Despite these challenges, we were able to deliver
solid first quarter earnings in-line with our
expectations."
First quarter 2015 results exclude realignment costs of
$15.9 million, or approximately
$0.04 per diluted share. A comparison
of first quarter 2016 results to last year's reported GAAP and
adjusted results is included with the financial tables accompanying
the release. All further references to 2015 results are on an
adjusted basis.
Electronic Instruments Group (EIG)
For the first
quarter of 2016, EIG sales decreased 4% to $569.0 million. Operating income was
$141.8 million, down 12% versus the
first quarter 2015, and operating margins were 24.9% in the
quarter.
"Overall sales in our Power & Industrial businesses were up
approximately 10% driven by the contributions from the acquisitions
of Brookfield Engineering Laboratories and ESP/SurgeX during the
quarter. However, this strong growth was more than offset by lower
sales in our Process business driven by weakness in our oil and gas
businesses," adds Mr. Hermance.
Electromechanical Group (EMG)
In the first quarter,
EMG sales decreased 4% to $375.4
million. Operating income in the quarter was
$79.4 million, down 10% from last
year's first quarter, and operating margins were 21.2% in the
quarter.
"The lower sales versus last year were largely driven by the
impacts from commodity price deflation across our Engineered
Materials, Interconnects and Packaging businesses. We expect these
end market conditions to sequentially improve during 2016 with a
stronger second half than first half," notes Mr. Hermance.
2016 Outlook
"We have an excellent portfolio of
differentiated businesses. We are confident in our ability to
successfully execute on our growth strategies in order to
capitalize on the tremendous opportunity we have to grow and expand
these businesses. However, we are faced with the reality of a
number of challenging end markets, which will continue to impact us
in 2016," notes Mr. Hermance.
"We expect 2016 sales to be roughly flat versus last year with
earnings expected to be in the range of $2.42 to $2.52 per diluted share, down 1% to 5%
versus 2015 adjusted results," adds Mr. Hermance.
"Second quarter 2016 sales are expected to be down low single
digits compared to last year's second quarter. We estimate our
earnings in the second quarter to be approximately $0.58 to $0.59 per diluted share, down 8% to 9%
over last year's second quarter," concludes Mr.
Hermance.
Conference Call
The Company will webcast its First
Quarter 2016 investor conference call on Thursday, April 28,
2016 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 electromechanical
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
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
Net
sales
|
|
$ 944,398
|
|
$ 984,059
|
Operating
expenses:
|
|
|
|
|
Cost of sales, excluding
depreciation
|
|
605,356
|
|
635,965
|
Selling, general and
administrative
|
|
112,194
|
|
110,884
|
Depreciation
|
|
18,325
|
|
16,258
|
Total operating expenses
|
|
735,875
|
|
763,107
|
|
|
|
|
|
Operating
income
|
|
208,523
|
|
220,952
|
Other
expenses:
|
|
|
|
|
Interest expense
|
|
(23,401)
|
|
(22,686)
|
Other, net
|
|
(2,080)
|
|
(1,480)
|
Income before income
taxes
|
|
183,042
|
|
196,786
|
Provision for income
taxes
|
|
48,872
|
|
54,679
|
|
|
|
|
|
Net
income
|
|
$ 134,170
|
|
$ 142,107
|
|
|
|
|
|
Diluted earnings
per share
|
|
$
0.57
|
|
$ 0.59
|
Basic earnings per
share
|
|
$
0.57
|
|
$ 0.59
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
Diluted shares
|
|
236,216
|
|
242,797
|
Basic shares
|
|
234,983
|
|
240,947
|
|
|
|
|
|
Dividends per
share
|
|
$
0.09
|
|
$ 0.09
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
2016
|
|
2015
|
Net
sales:
|
|
|
|
|
Electronic
Instruments
|
|
$ 568,956
|
|
$ 593,798
|
Electromechanical
|
|
375,442
|
|
390,261
|
Consolidated net sales
|
|
$ 944,398
|
|
$ 984,059
|
|
|
|
|
|
Income:
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
Electronic
Instruments
|
|
$ 141,832
|
|
$ 151,217
|
Electromechanical
|
|
79,426
|
|
81,964
|
Total segment operating income
|
|
221,258
|
|
233,181
|
Corporate administrative and
other expenses
|
|
(12,735)
|
|
(12,229)
|
Consolidated operating income
|
|
$ 208,523
|
|
$ 220,952
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 386,940
|
|
$ 381,005
|
Receivables, net
|
606,888
|
|
603,295
|
Inventories, net
|
548,777
|
|
514,451
|
Other current
assets
|
119,985
|
|
120,076
|
Total current assets
|
1,662,590
|
|
1,618,827
|
|
|
|
|
Property, plant and
equipment, net
|
488,331
|
|
484,548
|
Goodwill
|
2,857,999
|
|
2,706,633
|
Other intangibles,
investments and other assets
|
1,985,782
|
|
1,850,442
|
Total assets
|
$ 6,994,702
|
|
$ 6,660,450
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$ 665,686
|
|
$ 384,924
|
Accounts payable and
accruals
|
624,868
|
|
639,097
|
Total current liabilities
|
1,290,554
|
|
1,024,021
|
|
|
|
|
Long-term debt,
net
|
1,552,674
|
|
1,553,116
|
Deferred income taxes
and other long-term liabilities
|
854,788
|
|
828,687
|
Stockholders'
equity
|
3,296,686
|
|
3,254,626
|
Total liabilities and stockholders' equity
|
$ 6,994,702
|
|
$ 6,660,450
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
March
31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$ 141,832
|
|
$ 151,217
|
|
Realignment
costs
|
|
-
|
|
9,251
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
|
$ 141,832
|
|
$ 160,468
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$ 79,426
|
|
$ 81,964
|
|
Realignment
costs
|
|
-
|
|
6,534
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
|
$ 79,426
|
|
$ 88,498
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$ 208,523
|
|
$ 220,952
|
|
Realignment
costs
|
|
-
|
|
15,894
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$ 208,523
|
|
$ 236,846
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$ 134,170
|
|
$ 142,107
|
|
Realignment
costs
|
|
-
|
|
10,808
|
(1)
|
Adjusted Net income
(Non-GAAP)
|
|
$ 134,170
|
|
$ 152,915
|
|
|
|
|
|
|
|
(1) Represents
adjustments at 32.0% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.57
|
|
$ 0.59
|
|
Realignment costs
|
|
-
|
|
0.04
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.57
|
|
$ 0.63
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
24.9%
|
|
25.5%
|
|
Realignment
costs
|
|
-
|
|
1.5
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
|
24.9%
|
|
27.0%
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
21.2%
|
|
21.0%
|
|
Realignment
costs
|
|
-
|
|
1.7
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
|
21.2%
|
|
22.7%
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
22.1%
|
|
22.5%
|
|
Realignment
costs
|
|
-
|
|
1.6
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
22.1%
|
|
24.1%
|
|
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 and increased transparency,
and to 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-first-quarter-2016-results-300258950.html
SOURCE AMETEK, Inc.