BERWYN,
Pa., July 30, 2019 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the second
quarter ended June 30, 2019.
AMETEK's second quarter 2019 sales were a record $1.29 billion, up 7% over the second quarter of
2018, with organic sales growth of 3%. Operating income increased
9% to a record $295.4 million and
operating margins were 22.9% in the quarter, up 60 basis points
over the prior-year period.
On a GAAP basis, second quarter earnings per diluted share were
$0.94. Adjusted earnings, which adds
back non-cash, after-tax, acquisition-related intangible
amortization, were $1.05 per diluted
share, a 14% increase 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.
"I am very pleased with our strong performance in the second
quarter," said David A. Zapico,
AMETEK Chairman and Chief Executive Officer. "Continued solid
organic sales growth, combined with contributions from recent
acquisitions and excellent operating performance helped drive 14%
earnings growth in the quarter. Given the strength of these results
and our outlook for the remainder of 2019, we are again raising our
earnings guidance for the full year."
Electronic Instruments Group (EIG)
EIG sales in the
second quarter were $820.2 million,
up 10% over the second quarter of 2018. Operating income for the
quarter increased 10% to $212.9
million, and operating income margins were 26.0%.
"EIG had an outstanding quarter with strong sales growth and
excellent operating performance," noted Mr. Zapico. "Sales
growth was driven by solid organic sales growth and contributions
from the recent acquisitions of Motec, Forza, Telular and Spectro
Scientific. The higher sales combined with our operational
excellence initiatives delivered impressive core margin expansion
in the quarter."
Electromechanical Group (EMG)
Sales for EMG in the
second quarter were $469.2 million,
up 1% over the same quarter in 2018. EMG operating income for
the quarter was a record $101.1
million, an increase of 7% over last year's second quarter.
Operating income margins were 21.5%, up 120 basis points over the
prior year period.
"EMG also delivered an outstanding second quarter with solid
organic sales growth and exceptional operating performance,"
commented Mr. Zapico. "Operating margins increased sharply as our
EMG businesses continue to deliver on our Operational Excellence
initiatives."
2019 Outlook
"AMETEK's performance through the first
half of the year has firmly positioned us for strong sales and
earnings growth in 2019. Our success speaks to the strength of the
AMETEK Growth Model and our leading positions in attractive, niche
market segments," noted Mr. Zapico.
"For all of 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. We now expect adjusted earnings per diluted share to
be in the range of $4.04 to
$4.10, an increase of 10% to 12% over
the prior year's comparable basis. This is an increase from our
previous adjusted guidance range of $3.98 to $4.08 per
diluted share," he added.
"Overall sales in the third quarter are expected to be up high
single digits on a percentage basis compared to the third quarter
of 2018. Adjusted earnings per diluted share are expected to be in
the range of $1.00 to $1.02, an increase of 10% to 12% on a comparable
basis over last year's third quarter," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter
2019 investor conference call on Tuesday, July 30, 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
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales
|
$1,289,412
|
|
$1,208,935
|
|
$2,577,103
|
|
$2,381,582
|
|
|
|
|
|
|
|
|
Cost of
sales
|
838,153
|
|
791,248
|
|
1,689,460
|
|
1,568,048
|
Selling, general and
administrative
|
155,849
|
|
147,601
|
|
308,974
|
|
285,280
|
Total operating
expenses
|
994,002
|
|
938,849
|
|
1,998,434
|
|
1,853,328
|
|
|
|
|
|
|
|
|
Operating
income
|
295,410
|
|
270,086
|
|
578,669
|
|
528,254
|
|
|
|
|
|
|
|
|
Interest
expense
|
(21,475)
|
|
(20,784)
|
|
(44,128)
|
|
(42,470)
|
Other expense,
net
|
(3,336)
|
|
(1,081)
|
|
(7,004)
|
|
(1,739)
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
270,599
|
|
248,221
|
|
527,537
|
|
484,045
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
55,096
|
|
54,361
|
|
107,766
|
|
108,845
|
|
|
|
|
|
|
|
|
Net
income
|
$
215,503
|
|
$
193,860
|
|
$
419,771
|
|
$
375,200
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.94
|
|
$
0.83
|
|
$
1.83
|
|
$
1.61
|
Basic earnings per
share
|
$
0.95
|
|
$
0.84
|
|
$
1.85
|
|
$
1.62
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
229,328
|
|
233,297
|
|
229,007
|
|
233,131
|
Basic shares
|
227,577
|
|
231,252
|
|
227,219
|
|
231,090
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.14
|
|
$
0.14
|
|
$
0.28
|
|
$
0.28
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
820,247
|
|
$
744,458
|
|
$1,627,158
|
|
$1,460,884
|
Electromechanical
|
469,165
|
|
464,477
|
|
949,945
|
|
920,698
|
Consolidated net sales
|
$1,289,412
|
|
$1,208,935
|
|
$2,577,103
|
|
$2,381,582
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
212,913
|
|
$
193,831
|
|
$
415,997
|
|
$
377,190
|
Electromechanical
|
101,065
|
|
94,250
|
|
199,878
|
|
185,252
|
Total segment operating income
|
313,978
|
|
288,081
|
|
615,875
|
|
562,442
|
Corporate administrative
expenses
|
(18,568)
|
|
(17,995)
|
|
(37,206)
|
|
(34,188)
|
Consolidated operating income
|
$
295,410
|
|
$
270,086
|
|
$
578,669
|
|
$
528,254
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
June
30,
|
|
December
31,
|
|
2019
|
|
2018
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
567,912
|
|
$
353,975
|
Receivables, net
|
757,522
|
|
732,839
|
Inventories, net
|
634,138
|
|
624,744
|
Other current
assets
|
167,581
|
|
124,586
|
Total current assets
|
2,127,153
|
|
1,836,144
|
|
|
|
|
Property, plant and
equipment, net
|
538,256
|
|
554,130
|
Right of use asset,
net
|
182,902
|
|
-
|
Goodwill
|
3,613,182
|
|
3,612,033
|
Other intangibles,
investments and other assets
|
2,608,109
|
|
2,659,981
|
Total assets
|
$
9,069,602
|
|
$
8,662,288
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
98,356
|
|
$
358,876
|
Accounts payable and
accruals
|
880,202
|
|
899,828
|
Total current liabilities
|
978,558
|
|
1,258,704
|
|
|
|
|
Long-term debt,
net
|
2,368,690
|
|
2,273,837
|
Deferred income taxes
and other long-term liabilities
|
1,055,573
|
|
887,825
|
Stockholders'
equity
|
4,666,781
|
|
4,241,922
|
Total liabilities and stockholders' equity
|
$
9,069,602
|
|
$
8,662,288
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted
Earnings
Per Share
|
|
Forecasted
Diluted Earnings
Per Share
|
|
|
|
|
Three Months
Ended
|
|
Year Ended
|
|
|
Three Months
Ended
|
|
September
30,
|
|
December
31,
|
|
|
June 30,
|
|
June 30,
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2019
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.94
|
|
$
0.83
|
|
|
$
0.89
|
|
$
0.91
|
|
$
3.61
|
|
$
3.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
$
1.05
|
|
$
0.92
|
|
|
$
1.00
|
|
$
1.02
|
|
$
4.04
|
|
$
4.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
View original
content:http://www.prnewswire.com/news-releases/ametek-announces-second-quarter-results-and-raises-2019-guidance-300892774.html
SOURCE AMETEK, Inc.