BERWYN, Pa., Nov. 2, 2021 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the third quarter
ended September 30, 2021.
AMETEK's third quarter 2021 sales were a record $1.44 billion, a 28% increase over the third
quarter of 2020, with organic sales growth of 17%. Operating income
increased 25% to a record $337.6
million and operating margins were 23.4% with strong core
operating margin expansion.
On a GAAP basis, third quarter earnings per diluted share were
$1.10. Adjusted earnings were a
record $1.26 per diluted share, up
25% versus the prior year's adjusted results. Adjusted earnings
adds back non-cash, after-tax, acquisition-related intangible
amortization of $0.16 per diluted
share. A reconciliation of reported GAAP results to adjusted
results is included in the financial tables accompanying this
release and on the AMETEK website.
"AMETEK's results in the quarter were outstanding," commented
David A. Zapico, AMETEK Chairman and
Chief Executive Officer. "Our businesses delivered record results
which exceeded our expectations despite a challenging operating
environment. Order growth remains strong and broad-based resulting
in a record $2.6 billion backlog.
Given this performance, we are again raising our sales and earnings
guidance for the full year."
Electronic Instruments Group (EIG)
Third quarter EIG
sales were a record $981.8 million,
up 31% compared to last year's third quarter. EIG's operating
income in the quarter was up 20% to a record $245.1 million, and operating margins were
25.0%.
"EIG performed extremely well in the quarter delivering record
sales and operating income driven by strong organic sales growth
and the contribution from recent acquisitions," noted Mr. Zapico.
"Sales growth remains robust across our businesses reflecting
continued strengthening in our end markets."
Electromechanical Group (EMG)
EMG sales in the third
quarter were $458.9 million, an
increase of 21% over the third quarter of 2020. Operating income
for EMG increased 36% over the prior-year period to a record
$114.6 million, and operating margins
were up 270 basis points to a record 25.0%.
"EMG had an impressive quarter with strong sales growth and
outstanding operating performance," commented Mr. Zapico. "Our EMG
businesses delivered exceptional results with broad-based sales
growth, operating income up 36% over the prior year, and record
level operating margins."
2021 Outlook
"Our businesses continue to perform
exceedingly well in a challenging environment. Our success reflects
the hard work and commitment of all AMETEK colleagues worldwide as
well as the power of the AMETEK Growth Model. Our differentiated
businesses, diversified market exposures and proven operating model
provide us the ability to drive long-term, sustainable growth,"
continued Mr. Zapico.
"Following our third quarter results, we are increasing our
guidance for the year. For 2021, we now expect overall sales to be
up in the low 20% range with organic sales up low double digits on
a percentage basis versus 2020. Adjusted earnings per diluted share
are expected to be in the range of $4.76 to $4.78 an
increase of 21% over the prior year comparable basis. This is an
increase from our previous adjusted earnings guidance range of
$4.62 to $4.68 per diluted share," he added.
"We expect overall sales in the fourth quarter to be up in the
low 20% range compared to the fourth quarter of 2020. Adjusted
earnings per diluted share are anticipated to be in the range of
$1.28 to $1.30, up 19% to 20% over the same period in
2020," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter
2021 investor conference call on Tuesday, November 2, 2021,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
About AMETEK
AMETEK is a leading global
manufacturer of electronic instruments and electromechanical
devices with annualized sales of $5.5
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 risks related to COVID-19 and its potential impact on
AMETEK's operations, supply chain, and demand across key end
markets; AMETEK's ability to consummate and successfully integrate
future acquisitions; risks with international sales and operations,
including supply chain disruptions; 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales
|
$1,440,681
|
|
$1,126,942
|
|
$4,042,769
|
|
$3,341,082
|
|
|
|
|
|
|
|
|
Cost of
sales
|
949,402
|
|
732,705
|
|
2,651,506
|
|
2,226,547
|
Selling, general and
administrative
|
153,716
|
|
123,496
|
|
443,744
|
|
384,764
|
Total operating
expenses
|
1,103,118
|
|
856,201
|
|
3,095,250
|
|
2,611,311
|
|
|
|
|
|
|
|
|
Operating
income
|
337,563
|
|
270,741
|
|
947,519
|
|
729,771
|
|
|
|
|
|
|
|
|
Interest
expense
|
(20,476)
|
|
(21,187)
|
|
(59,865)
|
|
(66,597)
|
Other income
(expense), net
|
2,581
|
|
(1,479)
|
|
(3,775)
|
|
142,428
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
319,668
|
|
248,075
|
|
883,879
|
|
805,602
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
62,208
|
|
43,494
|
|
175,507
|
|
154,188
|
|
|
|
|
|
|
|
|
Net
income
|
$257,460
|
|
$204,581
|
|
$708,372
|
|
$651,414
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$1.10
|
|
$0.88
|
|
$3.04
|
|
$2.82
|
Basic earnings per
share
|
$1.11
|
|
$0.89
|
|
$3.07
|
|
$2.84
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
233,000
|
|
231,460
|
|
232,712
|
|
230,904
|
Basic shares
|
231,171
|
|
229,576
|
|
230,811
|
|
229,254
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$0.20
|
|
$0.18
|
|
$0.60
|
|
$0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$981,815
|
|
$748,372
|
|
$2,706,673
|
|
$2,170,479
|
Electromechanical
|
458,866
|
|
378,570
|
|
1,336,096
|
|
1,170,603
|
Consolidated net sales
|
$1,440,681
|
|
$1,126,942
|
|
$4,042,769
|
|
$3,341,082
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$245,118
|
|
$203,749
|
|
$678,652
|
|
$534,613
|
Electromechanical
|
114,571
|
|
84,303
|
|
332,038
|
|
245,154
|
Total segment operating income
|
359,689
|
|
288,052
|
|
1,010,690
|
|
779,767
|
Corporate administrative
expenses
|
(22,126)
|
|
(17,311)
|
|
(63,171)
|
|
(49,996)
|
Consolidated operating income
|
$337,563
|
|
$270,741
|
|
$947,519
|
|
$729,771
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2021
|
|
2020
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$358,676
|
|
$1,212,822
|
Receivables, net
|
768,386
|
|
597,472
|
Inventories, net
|
738,688
|
|
559,171
|
Other current
assets
|
196,065
|
|
153,005
|
Total current assets
|
2,061,815
|
|
2,522,470
|
|
|
|
|
Property, plant and
equipment, net
|
597,488
|
|
526,530
|
Right of use asset,
net
|
169,075
|
|
167,233
|
Goodwill
|
5,180,999
|
|
4,224,906
|
Other intangibles,
investments and other assets
|
3,670,318
|
|
2,916,344
|
Total assets
|
$11,679,695
|
|
$10,357,483
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$415,667
|
|
$132,284
|
Accounts payable and
accruals
|
1,218,159
|
|
943,631
|
Total current liabilities
|
1,633,826
|
|
1,075,915
|
|
|
|
|
Long-term debt,
net
|
2,238,920
|
|
2,281,441
|
Deferred income taxes
and other long-term liabilities
|
1,248,553
|
|
1,050,781
|
Stockholders'
equity
|
6,558,396
|
|
5,949,346
|
Total liabilities and stockholders' equity
|
$11,679,695
|
|
$10,357,483
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED DILUTED
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
Diluted Earnings
Per Share
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2021
|
|
2020
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$1.10
|
|
$0.88
|
|
|
|
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.21
|
|
0.17
|
|
|
|
|
|
Income tax benefit on
amortization of
acquisition-related intangible assets
|
(0.05)
|
|
(0.04)
|
|
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$1.26
|
|
$1.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forecasted
Diluted Earnings Per Share
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December 31,
2021
|
|
December 31,
2021
|
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$1.12
|
|
$1.14
|
|
$4.16
|
|
$4.18
|
|
Pretax amortization
of acquisition-related
intangible assets
|
0.21
|
|
0.21
|
|
0.79
|
|
0.79
|
|
Income tax benefit on
amortization of
acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.19)
|
|
(0.19)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$1.28
|
|
$1.30
|
|
$4.76
|
|
$4.78
|
|
|
|
|
|
|
|
|
|
|
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:https://www.prnewswire.com/news-releases/ametek-announces-record-third-quarter-results-and-raises-2021-guidance-301413439.html
SOURCE AMETEK, Inc.