BERWYN, Pa., May 1, 2019 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the first
quarter ended March 31, 2019.
AMETEK's first quarter 2019 sales were a record $1.29 billion, up 10% compared to the first
quarter of 2018, with organic sales growth of 5%. Operating income
increased 10% over the prior-year period to a record $283.3 million, and operating income margins were
22.0%.
On a GAAP basis, first quarter earnings per diluted share were
$0.89. Adjusted earnings, which adds
back non-cash, after-tax, acquisition-related intangible
amortization, were $1.00 per diluted
share, an increase of 15% over the prior year's comparable period.
A reconciliation of reported GAAP earnings to adjusted earnings is
included in the financial tables accompanying this release and on
the AMETEK website.
"AMETEK started 2019 with outstanding performance," said
David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "Continued solid organic growth, strong
contributions from recent acquisitions and excellent operating
performance enabled us to exceed our expectations and deliver
robust sales and earnings growth with excellent core margin
expansion. Given the quarter's strong results, we have raised our
guidance for 2019."
Electronic Instruments Group (EIG)
EIG sales in the
quarter were $806.9 million, up 13%
over the first quarter of 2018. EIG's operating income increased
11% over the same period to $203.1
million, and operating income margins were 25.2%.
"EIG delivered outstanding results in the quarter," noted
Mr. Zapico. "Solid organic sales growth and contributions from
the recent acquisitions of Soundcom, Motec, Forza, Telular and
Spectro Scientific led to an impressive 13% increase in sales. EIG
continues to capitalize on our Operational Excellence initiatives,
which led to excellent operating performance in the quarter."
Electromechanical Group (EMG)
EMG sales in the first
quarter were a record $480.8 million,
up 5% over the same period in 2018. Operating income in the
quarter for EMG was a record $98.8
million, up 9% over last year's first quarter, and operating
income margins were 20.6%, up 70 basis points over the prior
year.
"EMG also delivered tremendous operating performance in the
quarter with excellent organic sales growth," commented Mr. Zapico.
"Operating margins increased nicely on higher sales and continued
execution of our Operational Excellence initiatives."
2019 Outlook
"I am very pleased with AMETEK's results
in the first quarter. Our businesses are performing at a very high
level. We remain well positioned to drive continued strong
growth given our record backlog, our leadership position across
attractive niche market segments and the strength of the AMETEK
Growth Model," noted Mr. Zapico.
"For 2019, we continue to expect overall sales to be up high
single digits on a percentage basis compared to 2018, driven by
contributions from recent acquisitions, and 3% to 5% organic sales
growth. Adjusted earnings are now expected to be in the range of
$3.98 to $4.08 per diluted share, an increase of 9% to 11%
over the prior year's comparable basis. This is an increase
from our previous adjusted guidance range of $3.95 to $4.05 per
diluted share," he added.
"Overall sales in the second quarter are expected to be up high
single digits on a percentage basis compared to the same quarter of
2018. Adjusted earnings are expected to be in the range of
$1.00 to $1.02 per diluted share, up 9% to 11% on a
comparable basis over last year's second quarter," concluded Mr.
Zapico.
Conference Call
AMETEK will webcast its first quarter
2019 investor conference call on Wednesday, May 1, 2019,
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 $5.0 billion. The AMETEK Growth Model integrates
the Four Growth Strategies - Operational Excellence, New Product
Development, Global and Market Expansion, and Strategic
Acquisitions - with a disciplined focus on cash generation and
capital deployment. 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.
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
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
Net
sales
|
$
1,287,691
|
|
$
1,172,647
|
|
|
|
|
Cost of
sales
|
851,307
|
|
776,800
|
Selling, general and
administrative
|
153,125
|
|
137,679
|
Total operating
expenses
|
1,004,432
|
|
914,479
|
|
|
|
|
Operating
income
|
283,259
|
|
258,168
|
|
|
|
|
Interest
expense
|
(22,653)
|
|
(21,686)
|
Other income
(expense), net
|
(3,668)
|
|
(658)
|
|
|
|
|
Income before income
taxes
|
256,938
|
|
235,824
|
|
|
|
|
Provision for income
taxes
|
52,670
|
|
54,484
|
|
|
|
|
Net
income
|
$
204,268
|
|
$
181,340
|
|
|
|
|
Diluted earnings
per share
|
$
0.89
|
|
$
0.78
|
Basic earnings per
share
|
$
0.90
|
|
$
0.79
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
Diluted shares
|
228,686
|
|
232,965
|
Basic shares
|
226,861
|
|
230,928
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.14
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
Electronic
Instruments
|
$
806,911
|
|
$
716,426
|
Electromechanical
|
480,780
|
|
456,221
|
Consolidated net sales
|
$
1,287,691
|
|
$
1,172,647
|
|
|
|
|
Operating
income:
|
|
|
|
Segment operating
income:
|
|
|
|
Electronic
Instruments
|
$
203,084
|
|
$
183,359
|
Electromechanical
|
98,813
|
|
91,002
|
Total segment operating income
|
301,897
|
|
274,361
|
Corporate administrative
expenses
|
(18,638)
|
|
(16,193)
|
Consolidated operating income
|
$
283,259
|
|
$
258,168
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
368,065
|
|
$
353,975
|
Receivables, net
|
763,156
|
|
732,839
|
Inventories, net
|
640,580
|
|
624,744
|
Other current
assets
|
152,843
|
|
124,586
|
Total current assets
|
1,924,644
|
|
1,836,144
|
|
|
|
|
Property, plant and
equipment, net
|
542,679
|
|
554,130
|
Right of use asset,
net
|
182,182
|
|
-
|
Goodwill
|
3,610,277
|
|
3,612,033
|
Other intangibles,
investments and other assets
|
2,631,701
|
|
2,659,981
|
Total assets
|
$
8,891,483
|
|
$
8,662,288
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
104,157
|
|
$
358,876
|
Accounts payable and
accruals
|
903,071
|
|
899,828
|
Total current liabilities
|
1,007,228
|
|
1,258,704
|
|
|
|
|
Long-term debt,
net
|
2,368,197
|
|
2,273,837
|
Deferred income taxes
and other long-term liabilities
|
1,059,437
|
|
887,825
|
Stockholders'
equity
|
4,456,621
|
|
4,241,922
|
Total liabilities and stockholders' equity
|
$
8,891,483
|
|
$
8,662,288
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
|
|
Diluted
Earnings
|
|
Forecasted
Diluted Earnings
|
|
Per
Share
|
|
Per
Share
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
Three Months
Ended
|
|
June 30,
|
|
December
31,
|
|
March 31,
|
|
March 31,
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
2019
|
|
2018
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
0.89
|
|
$
0.78
|
|
$
0.89
|
|
$
0.91
|
|
$
3.55
|
|
$
3.65
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax amortization of
acquisition-
related intangible assets
|
0.14
|
|
0.12
|
|
0.14
|
|
0.14
|
|
0.57
|
|
0.57
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit on
amortization
of acquisition-related intangible
assets
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
|
(0.03)
|
|
(0.14)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted
earnings per share
(Non-GAAP)
|
$
1.00
|
|
$
0.87
|
|
$
1.00
|
|
$
1.02
|
|
$
3.98
|
|
$
4.08
|
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements
presented on a U.S. generally accepted accounting principles
("GAAP") basis with certain non‑GAAP financial information to
provide investors with greater insight, increased transparency and
allow for a more comprehensive understanding of the information
used by management in its financial and operational
decision-making. Reconciliation of non‑GAAP measures to their
most directly comparable GAAP measures are included in the
accompanying financial tables. These non‑GAAP financial measures
should be considered in addition to, and not as a replacement for,
or superior to, the comparable GAAP measure, and may not be
comparable to similarly titled measures reported by other
companies.
The Company believes that these measures provide useful
information to investors by reflecting additional ways of viewing
AMETEK's operations that, when reconciled to the comparable GAAP
measure, helps our investors to better understand the long-term
profitability trends of our business, and facilitates easier
comparisons of our profitability to prior and future periods and to
our peers.
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content:http://www.prnewswire.com/news-releases/ametek-announces-first-quarter-results-and-raises-2019-guidance-300841319.html
SOURCE AMETEK, Inc.