BERWYN, Pa., July 31, 2018 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month
period ended June 30, 2018.
AMETEK's second quarter 2018 sales were a record $1.21 billion, up 14% compared to the second
quarter of 2017, with organic sales growth of 7%. Second quarter
operating income increased 18% over the same quarter last year to a
record $270.1 million.
Operating income margins in the second quarter were 22.3%, up 70
basis points versus the prior year. Earnings in the quarter were
$0.83 per diluted share, up 28%
compared to the prior year period.
"AMETEK's businesses again delivered exceptional results," said
David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "Continued strong organic sales growth,
contributions from recent acquisitions and outstanding operating
performance enabled us to exceed our expectations and deliver
robust growth in sales and earnings per share."
Electronic Instruments Group (EIG)
Second quarter EIG
sales were a record $744.5 million,
up 13% over the same quarter of 2017. Operating income for the
quarter was $193.8 million, an 18%
increase over the same period last year, and operating margins
expanded 110 basis points to 26.0%.
"EIG delivered record-level sales and exceptional operating
performance in the quarter. The double-digit sales increase was
driven by broad based organic sales growth and contributions from
the recent acquisitions. Operating margins increased sharply on
higher sales and continued execution of our operational excellence
efforts," commented Mr. Zapico.
Electromechanical Group (EMG)
Second quarter sales
for EMG were also a record at $464.5
million, up 14% compared to the second quarter of 2017. EMG
operating income in the quarter was a record $94.3 million, an 11% increase over the prior
year, and operating margins were 20.3% in the quarter.
"EMG also delivered excellent results in the second quarter with
double-digit sales growth and a record level of operating
income. The sales growth was driven by strong organic growth
and contributions from the acquisition of FMH Aerospace," noted Mr.
Zapico.
2018 Outlook
"We are very pleased with the
company's performance in the second quarter and through the first
half of the year. These results highlight the strength of the
AMETEK business model and the success we are having in driving our
growth strategies," commented Mr. Zapico.
"Given these strong second quarter results, we are again raising
guidance for 2018. We now expect 2018 earnings per diluted share to
be in the range of $3.16 to
$3.20, up 21% to 23% over 2017's
adjusted diluted earnings per share. This is an increase from our
previous guidance range of $3.06 to
$3.12 per diluted share. We continue
to expect overall sales for the year to be up low-double digits on
a percentage basis, with organic sales up mid-single digits," he
added.
"Overall sales in the third quarter of 2018 are expected to be
up high-single digits on a percentage basis versus the prior year
period. Third quarter earnings are expected to be in the range of
$0.76 to $0.78 per diluted share, up 15% to 18% over the
same quarter in 2017," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second
quarter 2018 investor conference call on Tuesday,
July 31, 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 $4.8 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2017
(1)
|
|
2018
|
|
2017
(1)
|
Net
sales
|
$1,208,935
|
|
$1,064,604
|
|
$2,381,582
|
|
$2,072,286
|
|
|
|
|
|
|
|
|
Cost of
sales
|
791,248
|
|
702,191
|
|
1,568,048
|
|
1,369,593
|
Selling, general and
administrative
|
147,601
|
|
132,864
|
|
285,280
|
|
255,697
|
Total operating
expenses
|
938,849
|
|
835,055
|
|
1,853,328
|
|
1,625,290
|
|
|
|
|
|
|
|
|
Operating
income
|
270,086
|
|
229,549
|
|
528,254
|
|
446,996
|
|
|
|
|
|
|
|
|
Interest
expense
|
(20,784)
|
|
(24,552)
|
|
(42,470)
|
|
(49,068)
|
Other expense,
net
|
(1,081)
|
|
(1,642)
|
|
(1,739)
|
|
(3,151)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
248,221
|
|
203,355
|
|
484,045
|
|
394,777
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
54,361
|
|
52,874
|
|
108,845
|
|
105,370
|
|
|
|
|
|
|
|
|
Net
income
|
$
193,860
|
|
$
150,481
|
|
$
375,200
|
|
$
289,407
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.83
|
|
$
0.65
|
|
$
1.61
|
|
$
1.25
|
Basic earnings per
share
|
$
0.84
|
|
$
0.65
|
|
$
1.62
|
|
$
1.26
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
233,297
|
|
231,588
|
|
233,131
|
|
231,296
|
Basic shares
|
231,252
|
|
230,158
|
|
231,090
|
|
229,853
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.09
|
|
$
0.28
|
|
$
0.18
|
|
|
|
|
|
|
|
|
(1) - The three and
six months ended June 30, 2017 have been restated to reflect the
adoption of new accounting guidance in 2018, which resulted in the
presentation of $2.8 million and $5.7 million, respectively, of
other net periodic benefit income in Other 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
744,458
|
|
$
657,663
|
|
$1,460,884
|
|
$1,277,432
|
Electromechanical
|
464,477
|
|
406,941
|
|
920,698
|
|
794,854
|
Consolidated net sales
|
$1,208,935
|
|
$1,064,604
|
|
$2,381,582
|
|
$2,072,286
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
193,831
|
|
$
163,755
|
|
$
377,190
|
|
$
319,016
|
Electromechanical
|
94,250
|
|
84,568
|
|
185,252
|
|
162,911
|
Total segment operating income
|
288,081
|
|
248,323
|
|
562,442
|
|
481,927
|
Corporate administrative
expenses
|
(17,995)
|
|
(18,774)
|
|
(34,188)
|
|
(34,931)
|
Consolidated operating income
|
$
270,086
|
|
$
229,549
|
|
$
528,254
|
|
$
446,996
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
557,693
|
|
$
646,300
|
Receivables, net
|
710,956
|
|
668,176
|
Inventories, net
|
614,390
|
|
540,504
|
Other current
assets
|
135,087
|
|
79,675
|
Total current assets
|
2,018,126
|
|
1,934,655
|
|
|
|
|
Property, plant and
equipment, net
|
490,126
|
|
493,296
|
Goodwill
|
3,252,002
|
|
3,115,619
|
Other intangibles,
investments and other assets
|
2,392,198
|
|
2,252,494
|
Total assets
|
$
8,152,452
|
|
$
7,796,064
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
307,661
|
|
$
308,123
|
Accounts payable and
accruals
|
874,856
|
|
830,540
|
Total current liabilities
|
1,182,517
|
|
1,138,663
|
|
|
|
|
Long-term debt,
net
|
1,838,224
|
|
1,866,166
|
Deferred income taxes
and other long-term liabilities
|
793,615
|
|
763,602
|
Stockholders'
equity
|
4,338,096
|
|
4,027,633
|
Total liabilities and stockholders' equity
|
$
8,152,452
|
|
$
7,796,064
|
|
|
|
|
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SOURCE AMETEK, Inc.