BERWYN, Pa., Aug. 4, 2016 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month
period ended June 30, 2016.
AMETEK reported second quarter 2016 sales of $977.7 million, down 3% from last year's second
quarter. Operating income was $219.0
million and operating margins were 22.4% in the
quarter. Diluted earnings per share declined 8% from last
year's second quarter to $0.59 per
diluted share.
"Our second quarter results were in-line with our expectations
despite further market weakness," notes David A. Zapico, AMETEK Chief Executive
Officer. "Our business teams continue to do a solid job
managing through these challenging and uncertain market
conditions."
"Cash flow was strong, with operating cash flow of $189 million for the quarter, a 16% increase over
the same period of 2015. We continue to use our cash flow to
support our acquisition strategy, having closed two acquisitions
subsequent to the end of the quarter," says Mr. Zapico.
Electronic Instruments Group (EIG)
For the second quarter of 2016, EIG sales were $596.0 million, essentially flat with last year's
second quarter. Operating income was $152.1 million and operating margins were a
strong 25.5%.
"Our Power & Industrial businesses had a good quarter,
bolstered by contributions from the acquisitions of ESP/SurgeX and
Brookfield Engineering Laboratories. This growth was more
than offset by softness in our Process businesses largely as a
result of the weak market conditions in oil and gas," comments Mr.
Zapico.
Electromechanical Group (EMG)
In the second quarter, EMG sales decreased 6% to $381.7 million. Operating income was
$80.3 million and operating margins
were 21.0% in the quarter.
"EMG results were impacted by weakness within our Engineered
Materials, Interconnects and Packaging businesses," adds Mr.
Zapico.
2016
Outlook
"The economic environment remains difficult to predict as
customers remain cautious and capital projects are delayed.
We believe that our business has stabilized and the second half of
the year will be similar to the first half," notes
Mr. Zapico.
"We now expect 2016 sales to be down low-single digits with
organic sales down mid-single digits on a percentage basis versus
2015, with earnings for 2016 in the range of $2.28 to $2.32 per diluted share," adds Mr.
Zapico.
"Third quarter 2016 sales are expected to be down mid-single
digits on a percentage basis compared to last year's third
quarter. We estimate our earnings in the third quarter to be
approximately $0.54 to $0.55 per
diluted share," notes Mr. Zapico.
"Despite these short-term market headwinds, I am very confident
in our future growth opportunities given the high level of
differentiation in our businesses, our strong operational
capabilities, and our proven ability to deploy capital on strategic
acquisitions. Most importantly, I am confident in our team's
ability to manage through these challenging times and execute on
the long-term growth strategies that will continue to make AMETEK
successful," concludes Mr. Zapico.
Conference Call
The Company will webcast its Second Quarter 2016 investor
conference call on Thursday, August 4,
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 AMETEK's ability to consummate and
successfully integrate future acquisitions; risks associated with
international sales and operations; 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 AMETEK's 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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales
|
$
977,706
|
|
$1,003,726
|
|
$1,922,104
|
|
$1,987,785
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
621,584
|
|
633,925
|
|
1,226,940
|
|
1,269,890
|
Selling, general and
administrative
|
118,959
|
|
112,702
|
|
231,153
|
|
223,586
|
Depreciation
|
18,127
|
|
16,780
|
|
36,452
|
|
33,038
|
Total operating expenses
|
758,670
|
|
763,407
|
|
1,494,545
|
|
1,526,514
|
|
|
|
|
|
|
|
|
Operating
income
|
219,036
|
|
240,319
|
|
427,559
|
|
461,271
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(23,706)
|
|
(22,678)
|
|
(47,107)
|
|
(45,364)
|
Other, net
|
(4,769)
|
|
(2,493)
|
|
(6,849)
|
|
(3,973)
|
Income before income
taxes
|
190,561
|
|
215,148
|
|
373,603
|
|
411,934
|
Provision for income
taxes
|
52,368
|
|
59,635
|
|
101,240
|
|
114,314
|
|
|
|
|
|
|
|
|
Net
income
|
$
138,193
|
|
$
155,513
|
|
$
272,363
|
|
$
297,620
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.59
|
|
$
0.64
|
|
$
1.16
|
|
$
1.22
|
Basic earnings per
share
|
$
0.59
|
|
$
0.64
|
|
$
1.16
|
|
$
1.23
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
234,790
|
|
243,621
|
|
235,503
|
|
243,209
|
Basic shares
|
233,285
|
|
241,498
|
|
234,134
|
|
241,222
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$
0.09
|
|
$
0.18
|
|
$
0.18
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
595,992
|
|
$
596,464
|
|
$1,164,948
|
|
$1,190,262
|
Electromechanical
|
381,714
|
|
407,262
|
|
757,156
|
|
797,523
|
Consolidated net sales
|
$
977,706
|
|
$1,003,726
|
|
$1,922,104
|
|
$1,987,785
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
152,115
|
|
$
163,993
|
|
$
293,947
|
|
$
315,210
|
Electromechanical
|
80,316
|
|
89,294
|
|
159,742
|
|
171,258
|
Total segment operating income
|
232,431
|
|
253,287
|
|
453,689
|
|
486,468
|
Corporate administrative and
other expenses
|
(13,395)
|
|
(12,968)
|
|
(26,130)
|
|
(25,197)
|
Consolidated operating income
|
$
219,036
|
|
$
240,319
|
|
$
427,559
|
|
$
461,271
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2016
|
|
2015
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
456,195
|
|
$
381,005
|
Receivables, net
|
596,589
|
|
603,295
|
Inventories, net
|
536,971
|
|
514,451
|
Other current
assets
|
117,867
|
|
120,076
|
Total current assets
|
1,707,622
|
|
1,618,827
|
|
|
|
|
Property, plant and
equipment, net
|
475,471
|
|
484,548
|
Goodwill
|
2,827,460
|
|
2,706,633
|
Other intangibles,
investments and other assets
|
1,945,227
|
|
1,850,442
|
Total assets
|
$
6,955,780
|
|
$
6,660,450
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
599,329
|
|
$
384,924
|
Accounts payable and
accruals
|
608,133
|
|
639,097
|
Total current liabilities
|
1,207,462
|
|
1,024,021
|
|
|
|
|
Long-term debt,
net
|
1,542,823
|
|
1,553,116
|
Deferred income taxes
and other long-term liabilities
|
848,918
|
|
828,687
|
Stockholders'
equity
|
3,356,577
|
|
3,254,626
|
Total liabilities and stockholders' equity
|
$
6,955,780
|
|
$
6,660,450
|
Contact: Kevin Coleman +1
610-889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-second-quarter-2016-results-300308843.html
SOURCE AMETEK, Inc.