BERWYN,
Pa., Nov. 1, 2022 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the third
quarter ended September 30, 2022.
AMETEK's third quarter 2022 sales were a record $1.55 billion, an 8% increase over the third
quarter of 2021, with organic sales growth of 11%. Operating income
increased 14% to a record $384.5
million and operating margins were 24.8%, up 140 basis
points from third quarter 2021 margins.
On a GAAP basis, third quarter earnings per diluted share were
$1.29. Adjusted earnings in the
quarter were a record $1.45 per
diluted share, up 15% from the third quarter of 2021. 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 for the third quarter were excellent,"
commented David A. Zapico, AMETEK
Chairman and Chief Executive Officer. "Continued strong sales and
orders growth combined with outstanding execution drove robust
margin expansion and record earnings which exceeded our estimates.
Our highly differentiated businesses and flexible operating
structure enabled us to manage through an increasingly dynamic
macro environment and deliver record results. Given this
performance, we are again raising our sales and earnings guidance
for the full year."
Electronic Instruments Group (EIG)
EIG sales in the third quarter were $1.05
billion, up 7% from the third quarter of 2021. EIG's
operating income in the quarter increased 11% to $272.7 million and operating income margins were
25.9%, an increase of 90 basis points versus the third quarter of
2021.
"EIG performed exceptionally well in the quarter with strong and
broad-based sales growth and excellent operating results," noted
Mr. Zapico. "We continue to see solid demand in our key end
markets, in particular across our Process businesses."
Electromechanical Group (EMG)
Third quarter EMG sales were a record $497.7 million, up 8% from the same quarter in
2021. EMG's third quarter operating income was a record
$136.5 million, up 19% versus the
prior year, while operating income margins were a record 27.4% in
the quarter, up 240 basis points versus the prior year.
"Our EMG businesses delivered exceptional performance in the
third quarter. Continued strong sales growth and tremendous
operating execution drove robust margin expansion and record level
operating margins," noted Mr. Zapico.
2022 Outlook
"Our businesses continue to perform extraordinarily well in a
difficult environment. AMETEK's flexible and disciplined growth
model allows us to navigate external challenges, deliver
exceptional results and ensure we are positioned for long term
success. Our differentiated businesses, diversified market
exposures, proven operating capabilities and strong cash flows
provide us the ability to drive long-term, sustainable growth,"
continued Mr. Zapico.
"For 2022, we now expect overall sales to be up approximately
10% compared to 2021. Adjusted diluted earnings per share are
expected to be in the range of $5.61
to $5.63, an increase of 16% over the
comparable basis for 2021. This is an increase from our previous
guidance range of $5.46 to
$5.54 per diluted share," he
added.
"We expect overall sales in the fourth quarter to be up
mid-single digits on a percentage basis versus the prior year.
Fourth quarter adjusted earnings per diluted share are anticipated
to be in the range of $1.45 to
$1.47, up 6% to 7% compared to the
fourth quarter of 2021," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter 2022 investor conference
call on Tuesday, November 1, 2022, 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 2021 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:
Kevin
Coleman
Vice President, Investor Relations and Treasurer
kevin.coleman@ametek.com
Phone: 610.889.5247
|
AMETEK,
Inc.
|
Consolidated
Statement of Income
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
sales
|
$
1,551,786
|
|
$ 1,440,681
|
|
$
4,524,863
|
|
$ 4,042,769
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,004,596
|
|
949,402
|
|
2,941,604
|
|
2,651,506
|
Selling, general and
administrative
|
162,670
|
|
153,716
|
|
480,657
|
|
443,744
|
Total operating
expenses
|
1,167,266
|
|
1,103,118
|
|
3,422,261
|
|
3,095,250
|
Operating
income
|
384,520
|
|
337,563
|
|
1,102,602
|
|
947,519
|
Interest
expense
|
(20,245)
|
|
(20,476)
|
|
(60,165)
|
|
(59,865)
|
Other income (expense),
net
|
3,227
|
|
2,581
|
|
7,752
|
|
(3,775)
|
Income before income
taxes
|
367,502
|
|
319,668
|
|
1,050,189
|
|
883,879
|
Provision for income
taxes
|
69,861
|
|
62,208
|
|
197,728
|
|
175,507
|
Net
income
|
$
297,641
|
|
$
257,460
|
|
$
852,461
|
|
$
708,372
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.29
|
|
$
1.10
|
|
$
3.68
|
|
$
3.04
|
Basic earnings per
share
|
$
1.30
|
|
$
1.11
|
|
$
3.70
|
|
$
3.07
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
230,714
|
|
233,000
|
|
231,675
|
|
232,712
|
Basic shares
|
229,500
|
|
231,171
|
|
230,360
|
|
230,811
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.22
|
|
$
0.20
|
|
$
0.66
|
|
$
0.60
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
1,054,124
|
|
$
981,815
|
|
$
3,070,131
|
|
$ 2,706,673
|
Electromechanical
|
497,662
|
|
458,866
|
|
1,454,732
|
|
1,336,096
|
Consolidated net
sales
|
$
1,551,786
|
|
$ 1,440,681
|
|
$
4,524,863
|
|
$ 4,042,769
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
272,714
|
|
$
245,118
|
|
$
782,603
|
|
$
678,652
|
Electromechanical
|
136,467
|
|
114,571
|
|
389,047
|
|
332,038
|
Total segment
operating income
|
409,181
|
|
359,689
|
|
1,171,650
|
|
1,010,690
|
Corporate
administrative expenses
|
(24,661)
|
|
(22,126)
|
|
(69,048)
|
|
(63,171)
|
Consolidated operating
income
|
$
384,520
|
|
$
337,563
|
|
$
1,102,602
|
|
$
947,519
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2022
|
|
2021
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
309,944
|
|
$
346,772
|
Receivables, net
|
876,460
|
|
829,213
|
Inventories, net
|
1,025,130
|
|
769,175
|
Other current
assets
|
221,034
|
|
183,605
|
Total current assets
|
2,432,568
|
|
2,128,765
|
|
|
|
|
Property, plant and
equipment, net
|
594,926
|
|
617,138
|
Right of use asset,
net
|
161,217
|
|
169,924
|
Goodwill
|
5,190,196
|
|
5,238,726
|
Other intangibles,
investments and other assets
|
3,660,025
|
|
3,743,634
|
Total assets
|
$
12,038,932
|
|
$
11,898,187
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
272,027
|
|
$
315,093
|
Accounts payable and
accruals
|
1,319,356
|
|
1,248,221
|
Total current liabilities
|
1,591,383
|
|
1,563,314
|
|
|
|
|
Long-term debt,
net
|
2,085,364
|
|
2,229,148
|
Deferred income taxes
and other long-term liabilities
|
1,229,513
|
|
1,233,841
|
Stockholders'
equity
|
7,132,672
|
|
6,871,884
|
Total liabilities and stockholders' equity
|
$
12,038,932
|
|
$
11,898,187
|
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(Unaudited)
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
September
30,
|
|
2022
|
|
2021
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.29
|
|
$
1.10
|
Pretax amortization of
acquisition-related intangible assets
|
0.21
|
|
0.21
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.45
|
|
$
1.26
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2022
|
|
December 31,
2022
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.29
|
|
$
1.31
|
|
$
4.97
|
|
$
4.99
|
Pretax amortization of
acquisition-related intangible assets
|
0.21
|
|
0.21
|
|
0.84
|
|
0.84
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.20)
|
|
(0.20)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.45
|
|
$
1.47
|
|
$
5.61
|
|
$
5.63
|
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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SOURCE AMETEK, Inc.