BERWYN, Pa., May 2, 2017 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the three
month period ended March 31,
2017.
AMETEK reported first quarter 2017 sales of $1.01 billion, a 7% increase compared to the
first quarter of 2016. Operating income increased 6% to
$220.3 million versus the prior year
and operating margins were 21.9% in the quarter. Diluted
earnings per share increased 5% to $0.60 from the first quarter of
2016.
"AMETEK achieved excellent results in the first quarter.
Sales were up solidly on strong organic growth and the
contributions from recently completed acquisitions," said
David A. Zapico, AMETEK Chief
Executive Officer. "We were pleased with the return to
organic growth earlier in the year than anticipated. This
growth, combined with outstanding operating performance across our
businesses, enabled us to exceed our first quarter earnings
expectations and raise our full year 2017 guidance."
Electronic Instruments Group (EIG)
In the first
quarter of 2017, EIG sales were $619.8
million a 9% increase compared to the first quarter of
2016. EIG operating income was $156.7
million and operating margins were 25.3% in the
quarter.
"EIG had a very good quarter with excellent sales and order
growth. Sales were up 9% on strong core growth and the
contribution from the acquisitions of Brookfield, ESP/SurgeX, Nu
Instruments, HS Foils and Rauland-Borg. The higher sales
combined with the benefits from our Operational Excellence
initiatives drove solid performance with operating income up 10%
and operating margins up 40 basis points versus the prior year,"
commented Mr. Zapico.
Electromechanical Group (EMG)
In the first quarter of
2017, EMG sales were $387.9 million,
up 3% compared to the first quarter of 2016. EMG operating
income was $79.4 million and
operating margins were 20.5% in the quarter.
"EMG also had a very good quarter. Sales were up nicely
driven by solid core growth across both our Differentiated and
Floorcare businesses and the contribution from the acquisition of
Laserage," noted Mr. Zapico.
2017 Outlook
"I am very pleased with our results
to start the year. Our first quarter performance has
positioned AMETEK for solid earnings growth in 2017. We
believe the investments we are making in our businesses along with
our continued execution of our Four Growth Strategies positions us
well for long-term growth," commented Mr. Zapico.
"We expect 2017 sales will increase mid-single digits, with
organic sales up low-single digits. We are increasing our
2017 earnings guidance range to $2.40 to
$2.48 per diluted share, up 4% to 8% over 2016 adjusted
diluted earnings per share. This is an increase from our
previous guidance range of $2.34 to
$2.46 per diluted share," he added.
"We expect second quarter 2017 sales to increase mid-single
digits on a percentage basis compared to the same period last year.
We estimate our earnings to be approximately $0.60 to $0.62 per diluted share, up 2% to 5%
over last year's second quarter," concluded Mr. Zapico.
Guidance provided for the second quarter and for full year 2017
does not include the anticipated closure of the MOCON
acquisition.
Conference Call
AMETEK will webcast its first quarter
2017 investor conference call on Tuesday,
May 2, 2017, beginning at 8:30 AM
ET. The live audio webcast will be available and later
archived in 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 approximately $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 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,
|
|
2017
|
|
2016
|
Net
sales
|
$1,007,682
|
|
$
944,398
|
Operating
expenses:
|
|
|
|
Cost of sales
|
664,935
|
|
623,681
|
Selling, general and
administrative
|
122,449
|
|
112,194
|
Total operating expenses
|
787,384
|
|
735,875
|
|
|
|
|
Operating
income
|
220,298
|
|
208,523
|
Other
expenses:
|
|
|
|
Interest expense
|
(24,516)
|
|
(23,401)
|
Other, net
|
(4,360)
|
|
(2,080)
|
Income before income
taxes
|
191,422
|
|
183,042
|
Provision for income
taxes
|
52,496
|
|
48,872
|
|
|
|
|
Net
income
|
$
138,926
|
|
$
134,170
|
|
|
|
|
Diluted earnings
per share
|
$
0.60
|
|
$
0.57
|
Basic earnings per
share
|
$
0.61
|
|
$
0.57
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Diluted shares
|
231,004
|
|
236,216
|
Basic shares
|
229,548
|
|
234,983
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$
0.09
|
|
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
Electronic
Instruments
|
$
619,769
|
|
$
568,956
|
Electromechanical
|
387,913
|
|
375,442
|
Consolidated net sales
|
$1,007,682
|
|
$
944,398
|
|
|
|
|
Income:
|
|
|
|
Segment operating
income:
|
|
|
|
Electronic
Instruments
|
$
156,721
|
|
$
141,832
|
Electromechanical
|
79,350
|
|
79,426
|
Total segment operating income
|
236,071
|
|
221,258
|
Corporate administrative and
other expenses
|
(15,773)
|
|
(12,735)
|
Consolidated operating income
|
$
220,298
|
|
$
208,523
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
570,233
|
|
$
717,259
|
Receivables, net
|
603,900
|
|
592,326
|
Inventories, net
|
529,927
|
|
492,104
|
Other current
assets
|
83,383
|
|
126,501
|
Total current assets
|
1,787,443
|
|
1,928,190
|
|
|
|
|
Property, plant and
equipment, net
|
482,908
|
|
473,230
|
Goodwill
|
2,975,039
|
|
2,818,950
|
Other intangibles,
investments and other assets
|
2,053,420
|
|
1,880,304
|
Total assets
|
$
7,298,810
|
|
$
7,100,674
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
337,951
|
|
$
278,921
|
Accounts payable and
accruals
|
678,847
|
|
645,520
|
Total current liabilities
|
1,016,798
|
|
924,441
|
|
|
|
|
Long-term debt,
net
|
2,076,577
|
|
2,062,644
|
Deferred income taxes
and other long-term liabilities
|
801,200
|
|
857,076
|
Stockholders'
equity
|
3,404,235
|
|
3,256,513
|
Total liabilities and stockholders' equity
|
$
7,298,810
|
|
$
7,100,674
|
|
|
|
|
Contact: Kevin Coleman
610-889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-strong-first-quarter-2017-results-300449082.html
SOURCE AMETEK, Inc.