BERWYN, Pa., Aug. 2, 2017 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the three
month period ended June 30, 2017.
AMETEK reported second quarter 2017 sales of $1.06 billion, a 9% increase compared to the
second quarter of 2016. Operating income increased 6% to
$232.4 million versus the prior year
and operating margins were 21.8% in the quarter. Diluted earnings
per share increased 10% to $0.65 from
the second quarter of 2016. Orders were up 20% in the
quarter.
"AMETEK's financial results in the second quarter were
outstanding," said David A. Zapico,
AMETEK Chairman and Chief Executive Officer. "Strong sales growth
combined with superb operating performance drove double digit
earnings growth and excellent cash flow generation. Given
these results and our positive outlook for the balance of the year,
we are again increasing our full year 2017 guidance."
Electronic Instruments Group (EIG)
For the second quarter of 2017, EIG sales were $657.7 million, up 10% from the second quarter of
2016. EIG operating income was $165.2
million and operating margins were 25.1% in the
quarter.
"EIG had a great quarter with excellent sales and operating
performance. Sales were up nicely on solid organic growth and
the contributions from the acquisitions of Nu Instruments, HS Foils
and Rauland," commented Mr. Zapico. "We continue to see broad based
sales growth across our EIG businesses and our encouraged by the
strong orders performance in the first half of the year."
Electromechanical Group (EMG)
In the second quarter of 2017, EMG sales were $406.9 million, up 7% compared to the second
quarter of 2016. EMG operating income was $85.6 million and operating margins were a very
strong 21.0% in the quarter.
"EMG also had a great quarter with outstanding sales and orders
growth. Sales were up driven by solid organic growth across
all businesses and the contribution from the acquisition of
Laserage," noted Mr. Zapico.
2017
Outlook
"We are very encouraged by the excellent first half
results. Sales and order growth has been strong and broad
based. We are executing very well and generating strong cash
flow, which we will continue to invest back into our businesses and
on strategic acquisitions. While our performance reflects, in
part, improving macro-economic conditions, it also highlights the
underlying quality of our businesses and the strength of our Growth
Strategies," commented Mr. Zapico.
"As a result of the second quarter performance, we are
increasing our sales and earnings guidance for the full year.
We now anticipate 2017 sales to increase high-single digits on a
percentage basis, with organic sales up low to mid-single digits.
We are increasing our 2017 earnings guidance range to $2.46 to $2.52 per diluted share, up 7% to 10%
over 2016 adjusted diluted earnings per share. This is an increase
from our previous range of $2.40 to
$2.48 per diluted share," he added.
"For the third quarter, we anticipate sales will increase
approximately 10% compared to the same period last year. We expect
our earnings to be approximately $0.60 to
$0.62 per diluted share, up 7% to 11% versus the third
quarter of 2016," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter 2017 investor conference
call on Wednesday, August 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales
|
$1,064,604
|
|
$977,706
|
|
$2,072,286
|
|
$1,922,104
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
699,739
|
|
639,711
|
|
1,364,674
|
|
1,263,392
|
Selling, general and
administrative
|
132,480
|
|
118,959
|
|
254,929
|
|
231,153
|
Total operating expenses
|
832,219
|
|
758,670
|
|
1,619,603
|
|
1,494,545
|
|
|
|
|
|
|
|
|
Operating
income
|
232,385
|
|
219,036
|
|
452,683
|
|
427,559
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(24,552)
|
|
(23,706)
|
|
(49,068)
|
|
(47,107)
|
Other, net
|
(4,478)
|
|
(4,769)
|
|
(8,838)
|
|
(6,849)
|
Income before income
taxes
|
203,355
|
|
190,561
|
|
394,777
|
|
373,603
|
Provision for income
taxes
|
52,874
|
|
52,368
|
|
105,370
|
|
101,240
|
|
|
|
|
|
|
|
|
Net
income
|
$150,481
|
|
$138,193
|
|
$289,407
|
|
$272,363
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$0.65
|
|
$0.59
|
|
$1.25
|
|
$1.16
|
Basic earnings per
share
|
$0.65
|
|
$0.59
|
|
$1.26
|
|
$1.16
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,588
|
|
234,790
|
|
231,296
|
|
235,503
|
Basic shares
|
230,158
|
|
233,285
|
|
229,853
|
|
234,134
|
|
|
|
|
|
|
|
|
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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$657,663
|
|
$595,992
|
|
$1,277,432
|
|
$1,164,948
|
Electromechanical
|
406,941
|
|
381,714
|
|
794,854
|
|
757,156
|
Consolidated net sales
|
$1,064,604
|
|
$977,706
|
|
$2,072,286
|
|
$1,922,104
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$165,216
|
|
$152,115
|
|
$321,937
|
|
$293,947
|
Electromechanical
|
85,559
|
|
80,316
|
|
164,909
|
|
159,742
|
Total segment operating income
|
250,775
|
|
232,431
|
|
486,846
|
|
453,689
|
Corporate administrative and
other expenses
|
(18,390)
|
|
(13,395)
|
|
(34,163)
|
|
(26,130)
|
Consolidated operating income
|
$232,385
|
|
$219,036
|
|
$452,683
|
|
$427,559
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$516,483
|
|
$717,259
|
Receivables, net
|
642,263
|
|
592,326
|
Inventories, net
|
541,213
|
|
492,104
|
Other current
assets
|
89,314
|
|
126,501
|
Total current assets
|
1,789,273
|
|
1,928,190
|
|
|
|
|
Property, plant and
equipment, net
|
492,507
|
|
473,230
|
Goodwill
|
3,117,129
|
|
2,818,950
|
Other intangibles,
investments and other assets
|
2,136,104
|
|
1,880,304
|
Total assets
|
$7,535,013
|
|
$7,100,674
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$272,550
|
|
$278,921
|
Accounts payable and
accruals
|
722,596
|
|
645,520
|
Total current liabilities
|
995,146
|
|
924,441
|
|
|
|
|
Long-term debt,
net
|
2,128,838
|
|
2,062,644
|
Deferred income taxes
and other long-term liabilities
|
818,833
|
|
857,076
|
Stockholders'
equity
|
3,592,196
|
|
3,256,513
|
Total liabilities and stockholders' equity
|
$7,535,013
|
|
$7,100,674
|
Contact: Kevin Coleman
610-889-5247
View original
content:http://www.prnewswire.com/news-releases/ametek-announces-strong-second-quarter-2017-results-300497877.html
SOURCE AMETEK, Inc.