BERWYN, Pa., Nov. 1, 2018 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the third
quarter ended September 30, 2018.
AMETEK's third quarter 2018 sales were $1.19 billion, up 10% compared to the third
quarter of 2017, with organic sales growth of 7%. Operating income
in the quarter increased 15% to $265.3
million and operating income margins were 22.2%, up 100
basis points versus the prior-year period. Earnings in the quarter
were $0.82 per diluted share, up 24%
compared to the third quarter of 2017.
"I am very pleased with our results for the quarter. Organic
sales growth was above our expectations and remains broad based
across our businesses and geographies," said David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "We expanded margins significantly and delivered
strong earnings growth in the quarter, reflecting the strength of
our operating model, while increasing our earnings guidance for the
full year."
"We also continue to successfully deploy our strong cash flows
on acquisitions, announcing today that we deployed $565 million on two highly strategic
acquisitions. We remain very well positioned to continue our
acquisition strategy with today's announcement of an extended and
upsized revolving credit facility providing us with added
flexibility," continued Mr. Zapico.
Electronic Instruments Group (EIG)
In the third
quarter of 2018, sales for EIG were $742.0
million, an increase of 10% compared to the same quarter of
2017. Operating income for the quarter was $190.3 million, up 17% over the same period last
year, and operating margins expanded 130 basis points to
25.6%.
"EIG performed extremely well in the quarter, delivering strong
sales growth and exceptional operating performance with robust
operating margin expansion. The sales growth was driven by 7%
organic growth and the contributions from the acquisitions of
Motec, Soundcom and Arizona Instrument," commented Mr. Zapico.
Electromechanical Group (EMG)
EMG's sales in the
third quarter were $450.9 million, up
9% over the same quarter last year. EMG operating income in the
quarter was $92.7 million, up 11%
compared to the third quarter of 2017, and operating margins
expanded 50 basis points to 20.6%.
"EMG also had a great quarter with strong sales and operating
performance. Sales were up nicely on 7% organic sales growth and
the contribution from the acquisition of FMH Aerospace," noted Mr.
Zapico.
2018
Outlook
"Our
businesses have performed exceedingly well through the first three
quarters of the year, firmly positioning the company to report
record results in 2018. Our success this year demonstrates the
strength of AMETEK's business model," commented Mr. Zapico.
"Following these outstanding results, we are again raising
guidance for 2018. We now expect earnings per diluted share for the
year to be in the range of $3.25 to
$3.27, up 25% over 2017's adjusted
diluted earnings per share. This is an increase from our previous
guidance range of $3.16 to
$3.20 per diluted share. We expect
overall sales for the year to be up low double digits on a
percentage basis, with organic sales now up mid to high single
digits," he added.
"Overall sales in the fourth quarter of 2018 are expected to be
up approximately 10% versus the prior-year period, with organic
sales up mid-single digits. Fourth quarter earnings are expected to
be in the range of $0.82 to
$0.84 per diluted share, up 17% to
20% over the prior year's adjusted earnings."
Conference Call
AMETEK will webcast its third quarter
2018 investor conference call on Thursday,
November 1, 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 approximately $4.8 billion. AMETEK's growth model 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
(1)
|
|
2018
|
|
2017
(1)
|
Net
sales
|
$1,192,962
|
|
$1,084,799
|
|
$3,574,544
|
|
$3,157,085
|
|
|
|
|
|
|
|
|
Cost of
sales
|
782,994
|
|
722,127
|
|
2,351,042
|
|
2,091,720
|
Selling, general and
administrative
|
144,702
|
|
132,634
|
|
429,982
|
|
388,331
|
Total operating
expenses
|
927,696
|
|
854,761
|
|
2,781,024
|
|
2,480,051
|
|
|
|
|
|
|
|
|
Operating
income
|
265,266
|
|
230,038
|
|
793,520
|
|
677,034
|
|
|
|
|
|
|
|
|
Interest
expense
|
(19,391)
|
|
(24,709)
|
|
(61,861)
|
|
(73,777)
|
Other expense,
net
|
(945)
|
|
(902)
|
|
(2,684)
|
|
(4,053)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
244,930
|
|
204,427
|
|
728,975
|
|
599,204
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
53,717
|
|
50,896
|
|
162,562
|
|
156,266
|
|
|
|
|
|
|
|
|
Net
income
|
$
191,213
|
|
$
153,531
|
|
$
566,413
|
|
$
442,938
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.82
|
|
$
0.66
|
|
$
2.43
|
|
$
1.91
|
Basic earnings per
share
|
$
0.83
|
|
$
0.67
|
|
$
2.45
|
|
$
1.93
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
233,250
|
|
232,253
|
|
233,171
|
|
231,615
|
Basic shares
|
231,502
|
|
230,439
|
|
231,227
|
|
230,049
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.09
|
|
$
0.42
|
|
$
0.27
|
|
(1) - The three and
nine months ended September 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 $8.5 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
742,041
|
|
$
671,606
|
|
$2,202,925
|
|
$1,949,038
|
Electromechanical
|
450,921
|
|
413,193
|
|
1,371,619
|
|
1,208,047
|
Consolidated net sales
|
$1,192,962
|
|
$1,084,799
|
|
$3,574,544
|
|
$3,157,085
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
190,313
|
|
$
162,988
|
|
$
567,503
|
|
$
482,004
|
Electromechanical
|
92,667
|
|
83,110
|
|
277,919
|
|
246,021
|
Total segment operating income
|
282,980
|
|
246,098
|
|
845,422
|
|
728,025
|
Corporate administrative
expenses
|
(17,714)
|
|
(16,060)
|
|
(51,902)
|
|
(50,991)
|
Consolidated operating income
|
$
265,266
|
|
$
230,038
|
|
$
793,520
|
|
$
677,034
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2018
|
|
2017
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
518,721
|
|
$
646,300
|
Receivables, net
|
714,929
|
|
668,176
|
Inventories, net
|
620,149
|
|
540,504
|
Other current
assets
|
144,816
|
|
79,675
|
Total current assets
|
1,998,615
|
|
1,934,655
|
|
|
|
|
Property, plant and
equipment, net
|
487,425
|
|
493,296
|
Goodwill
|
3,263,663
|
|
3,115,619
|
Other intangibles,
investments and other assets
|
2,358,340
|
|
2,252,494
|
Total assets
|
$
8,108,043
|
|
$
7,796,064
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
68,722
|
|
$
308,123
|
Accounts payable and
accruals
|
901,179
|
|
830,540
|
Total current liabilities
|
969,901
|
|
1,138,663
|
|
|
|
|
Long-term debt,
net
|
1,832,547
|
|
1,866,166
|
Deferred income taxes
and other long-term liabilities
|
793,686
|
|
763,602
|
Stockholders'
equity
|
4,511,909
|
|
4,027,633
|
Total liabilities and stockholders' equity
|
$
8,108,043
|
|
$
7,796,064
|
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SOURCE AMETEK, Inc.