BERWYN,
Pa., May 2, 2018 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month
period ended March 31, 2018.
AMETEK's first quarter 2018 sales were a record $1.17 billion, up 16% compared to the first
quarter of 2017, with organic sales growth of 8%. Orders were a
record $1.34 billion, up 20% over the
prior year. Operating income in the quarter increased 19% to a
record $258.2 million and operating
margins of 22.0% were up 40 basis points over the prior year. First
quarter diluted earnings per share of $0.78 were up 30% versus the same quarter in
2017.
"AMETEK delivered outstanding results to start the year," said David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "Excellent organic sales growth, contributions
from recently completed acquisitions and exceptional operating
performance allowed AMETEK to deliver 30% earnings growth in the
quarter. Record backlog, continued strong order momentum and
positive market trends provides us with an optimistic outlook for
the remainder of the year, prompting us to raise our full year
guidance for 2018."
Electronic Instruments Group (EIG)
In the
first quarter of 2018, EIG sales were $716.4
million, up 16% over the same quarter of 2017. EIG operating
income for the quarter was $183.4
million, an increase of 18% over the same period last year,
and operating margins expanded 50 basis points to 25.6%.
"EIG delivered excellent results in the quarter, with the robust
sales growth driven by strong organic sales growth and
contributions from the recent acquisitions of Rauland, MOCON and
Arizona Instrument," commented Mr. Zapico. "The higher sales
combined with our operational excellence initiatives drove
outstanding operating margin expansion in the quarter."
Electromechanical Group (EMG)
EMG sales
in the first quarter were a record $456.2
million, an 18% increase compared to the first quarter last
year. EMG operating income in the quarter was $91.0 million, an increase of 16% over the prior
year. Operating margins were a very strong 19.9% in the
quarter.
"EMG also had an excellent start to the year with outstanding
sales growth and strong operating performance. Sales increased
sharply on low-double digit organic sales growth and contributions
from the acquisition of FMH Aerospace. EMG also delivered solid
operating performance in the quarter through the execution of our
operational excellence efforts," noted Mr. Zapico.
2018
Outlook
"The
first quarter's results were excellent and firmly position AMETEK
for strong sales and earnings growth in 2018. Our businesses
continue to deliver exceptional performance, generating excellent
sales growth, margin expansion and cash flows through the execution
of our Four Growth Strategies. We remain focused on strategically
investing in our businesses to accelerate growth both organically
and through value enhancing strategic acquisitions," commented Mr.
Zapico.
"We now expect overall sales in 2018 to increase low-double
digits on a percentage basis, with organic sales up mid-single
digits. We are increasing our 2018 earnings guidance range to
$3.06 to $3.12 per diluted share, up 17% to 20% over
2017's adjusted diluted earnings per share. This is an increase
from our initial guidance range of $2.95 to $3.05 per
diluted share," he added.
"Overall sales in the second quarter of 2018 are expected to be
up approximately 10% compared to the same quarter in 2017. We
expect second quarter earnings per diluted share to be in the range
of $0.76 to $0.78, up 17% to 20% over the same quarter last
year," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its first
quarter 2018 investor conference call on Wednesday, May 2, 2018, 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 annualized sales of more than $4.7 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.
Contact:
AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania
19312
kevin.coleman@ametek.com
Phone: 610.889.5247
(Financial Information Follows)
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
(1)
|
Net
sales
|
$
1,172,647
|
|
$
1,007,682
|
|
|
|
|
Cost of
sales
|
776,800
|
|
667,402
|
Selling, general and
administrative
|
137,679
|
|
122,833
|
Total operating
expenses
|
914,479
|
|
790,235
|
|
|
|
|
Operating
income
|
258,168
|
|
217,447
|
|
|
|
|
Interest
expense
|
(21,686)
|
|
(24,516)
|
Other income
(expense), net
|
(658)
|
|
(1,509)
|
|
|
|
|
Income before income
taxes
|
235,824
|
|
191,422
|
|
|
|
|
Provision for income
taxes
|
54,484
|
|
52,496
|
|
|
|
|
Net
income
|
$
181,340
|
|
$
138,926
|
|
|
|
|
Diluted earnings
per share
|
$
0.78
|
|
$
0.60
|
Basic earnings per
share
|
$
0.79
|
|
$
0.61
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Diluted shares
|
232,965
|
|
231,004
|
Basic shares
|
230,928
|
|
229,548
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.09
|
|
|
(1) - The first
quarter of 2017 has been restated to reflect the adoption of new
accounting guidance in 2018, which resulted in the presentation of
$2.9 million of other net periodic benefit income in Other income
(expense), net rather than in Operating income, with no change in
Net income.
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2018
|
|
2017
|
Net
sales:
|
|
|
|
Electronic
Instruments
|
$
716,426
|
|
$
619,769
|
Electromechanical
|
456,221
|
|
387,913
|
Consolidated net sales
|
$
1,172,647
|
|
$
1,007,682
|
|
|
|
|
Operating
income:
|
|
|
|
Segment operating
income:
|
|
|
|
Electronic
Instruments
|
$
183,359
|
|
$
155,261
|
Electromechanical
|
91,002
|
|
78,343
|
Total segment operating income
|
274,361
|
|
233,604
|
Corporate administrative
expenses
|
(16,193)
|
|
(16,157)
|
Consolidated operating income
|
$
258,168
|
|
$
217,447
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
556,776
|
|
$
646,300
|
Receivables, net
|
684,617
|
|
668,176
|
Inventories, net
|
596,312
|
|
540,504
|
Other current
assets
|
122,500
|
|
79,675
|
Total current assets
|
1,960,205
|
|
1,934,655
|
|
|
|
|
Property, plant and
equipment, net
|
492,350
|
|
493,296
|
Goodwill
|
3,238,599
|
|
3,115,619
|
Other intangibles,
investments and other assets
|
2,367,207
|
|
2,252,494
|
Total assets
|
$
8,058,361
|
|
$
7,796,064
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
308,069
|
|
$
308,123
|
Accounts payable and
accruals
|
851,854
|
|
830,540
|
Total current liabilities
|
1,159,923
|
|
1,138,663
|
|
|
|
|
Long-term debt,
net
|
1,897,633
|
|
1,866,166
|
Deferred income taxes
and other long-term liabilities
|
796,408
|
|
763,602
|
Stockholders'
equity
|
4,204,397
|
|
4,027,633
|
Total liabilities and stockholders' equity
|
$
8,058,361
|
|
$
7,796,064
|
|
|
|
|
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SOURCE AMETEK, Inc.