BERWYN,
Pa., Oct. 31, 2023 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the third
quarter ended September 30, 2023.
AMETEK's third quarter 2023 sales were $1.62 billion, a 5% increase over the third
quarter of 2022. Operating income increased 14% to a record
$438.1 million and operating margins
were a record 27.0%, up 220 basis points from the third quarter of
2022. Operating cash flow in the quarter was a record $473 million, up 45% versus the prior year.
On a GAAP basis, third quarter earnings per diluted share were
$1.47. Adjusted earnings in the
quarter were a record $1.64 per
diluted share, up 13% from the third quarter of 2022. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.17 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 delivered excellent results in the third quarter,
highlighted by exceptional operating performance, robust margin
expansion and strong cash flows," stated David A. Zapico, AMETEK Chairman and Chief
Executive Officer. "The strength of the AMETEK Growth Model was
evident in our third quarter results as solid sales growth and
operational excellence initiatives drove record earnings and cash
flow. Given this strong performance and our outlook for the balance
of the year, we are again raising our earnings guidance for the
full year."
Electronic Instruments Group (EIG)
EIG sales in the
third quarter were $1.14 billion, up
8% from the same quarter in 2022. EIG's operating income in the
quarter increased 23% to a record $335.2
million and operating income margins were a record 29.5%, an
increase of 360 basis points compared to the third quarter of
2022.
"EIG achieved exceptional results in the third quarter with
continued strong sales growth and record operating results,"
commented Mr. Zapico. "EIG's sales growth was driven by solid
organic sales growth and the contributions from recent
acquisitions, while their operating performance was outstanding
leading to sizeable margin expansion in the quarter."
Electromechanical Group (EMG)
EMG sales in the third
quarter were $486.7 million, down 2%
from the third quarter of 2022. EMG's third quarter operating
income was $127.5 million while
operating income margins were a very solid 26.2% in the
quarter.
"EMG delivered strong operating performance in the third quarter
as we navigated a dynamic environment driven by the impact of
inventory normalization on short-term customer demand. Growth
remained strong across our aerospace, defense and medical
businesses in the quarter," commented Mr. Zapico.
2023 Outlook
"AMETEK's outstanding performance in the
third quarter highlights our ability to successfully manage through
economic cycles and consistently deliver exceptional results. The
strength and flexibility of the AMETEK Growth Model, combined with
our attractive, diversified market exposures and strong balance
sheet, position us well to drive sustainable growth in the long
term," commented Mr. Zapico.
"For 2023, we continue to expect overall sales to be up
mid-to-high single digits compared to 2022. Adjusted diluted
earnings per share are now expected to be in the range of
$6.31 to $6.33, an increase of approximately 11% over the
comparable basis for 2022. This is an increase from our previous
guidance range of $6.18 to
$6.26 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 $1.61 to
$1.63, up 6% to 7% compared to the
fourth quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter
2023 investor conference call on Tuesday, October 31, 2023,
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 (NYSE: AME) is a leading global
provider of industrial technology solutions serving a diverse set
of attractive niche markets with annual sales over $6.0 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. Founded in 1930, AMETEK has been listed on
the NYSE for over 90 years and is a component of the S&P 500.
For more information, visit www.ametek.com.
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 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 Forms 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,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales
|
$
1,622,837
|
|
$ 1,551,786
|
|
$
4,866,065
|
|
$ 4,524,863
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,020,920
|
|
1,004,596
|
|
3,096,635
|
|
2,941,604
|
Selling, general and
administrative
|
163,782
|
|
162,670
|
|
506,963
|
|
480,657
|
Total operating
expenses
|
1,184,702
|
|
1,167,266
|
|
3,603,598
|
|
3,422,261
|
Operating
income
|
438,135
|
|
384,520
|
|
1,262,467
|
|
1,102,602
|
Interest
expense
|
(18,386)
|
|
(20,245)
|
|
(57,678)
|
|
(60,165)
|
Other (expense) income,
net
|
(6,256)
|
|
3,227
|
|
(15,313)
|
|
7,752
|
Income before income
taxes
|
413,493
|
|
367,502
|
|
1,189,476
|
|
1,050,189
|
Provision for income
taxes
|
73,123
|
|
69,861
|
|
219,152
|
|
197,728
|
Net
income
|
$
340,370
|
|
$
297,641
|
|
$
970,324
|
|
$
852,461
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.47
|
|
$
1.29
|
|
$
4.19
|
|
$
3.68
|
Basic earnings per
share
|
$
1.48
|
|
$
1.30
|
|
$
4.21
|
|
$
3.70
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,751
|
|
230,714
|
|
231,414
|
|
231,675
|
Basic shares
|
230,691
|
|
229,500
|
|
230,431
|
|
230,360
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.25
|
|
$
0.22
|
|
$
0.75
|
|
$
0.66
|
AMETEK,
Inc.
Information by
Business Segment
(In
thousands)
(Unaudited)
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
1,136,130
|
|
$ 1,054,124
|
|
$
3,388,023
|
|
$ 3,070,131
|
Electromechanical
|
486,707
|
|
497,662
|
|
1,478,042
|
|
1,454,732
|
Consolidated net
sales
|
$
1,622,837
|
|
$ 1,551,786
|
|
$
4,866,065
|
|
$ 4,524,863
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
335,171
|
|
$
272,714
|
|
$
951,970
|
|
$
782,603
|
Electromechanical
|
127,534
|
|
136,467
|
|
384,253
|
|
389,047
|
Total segment
operating income
|
462,705
|
|
409,181
|
|
1,336,223
|
|
1,171,650
|
Corporate
administrative expenses
|
(24,570)
|
|
(24,661)
|
|
(73,756)
|
|
(69,048)
|
Consolidated operating
income
|
$
438,135
|
|
$
384,520
|
|
$
1,262,467
|
|
$ 1,102,602
|
AMETEK,
Inc.
Condensed
Consolidated Balance Sheet
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
841,901
|
|
$
345,386
|
Receivables, net
|
936,803
|
|
919,335
|
Inventories, net
|
1,087,584
|
|
1,044,284
|
Other current
assets
|
252,407
|
|
219,053
|
Total current assets
|
3,118,695
|
|
2,528,058
|
|
|
|
|
Property, plant and
equipment, net
|
631,692
|
|
635,641
|
Right of use asset,
net
|
165,450
|
|
170,295
|
Goodwill
|
5,479,025
|
|
5,372,562
|
Other intangibles,
investments and other assets
|
3,698,514
|
|
3,724,564
|
Total assets
|
$
13,093,376
|
|
$
12,431,120
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
304,480
|
|
$
226,079
|
Accounts payable and
accruals
|
1,369,240
|
|
1,338,123
|
Total current liabilities
|
1,673,720
|
|
1,564,202
|
|
|
|
|
Long-term debt,
net
|
1,856,129
|
|
2,158,928
|
Deferred income taxes
and other long-term liabilities
|
1,221,018
|
|
1,231,478
|
Stockholders'
equity
|
8,342,509
|
|
7,476,512
|
Total liabilities and stockholders' equity
|
$
13,093,376
|
|
$
12,431,120
|
AMETEK,
Inc.
Reconciliations of
GAAP to Non-GAAP Financial Measures
(Unaudited)
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
September
30,
|
|
2023
|
|
2022
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.47
|
|
$
1.29
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.21
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.64
|
|
$
1.45
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December 31,
2023
|
|
December 31,
2023
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.44
|
|
$
1.46
|
|
$
5.63
|
|
$
5.65
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.22
|
|
0.89
|
|
0.89
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.21)
|
|
(0.21)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.61
|
|
$
1.63
|
|
$
6.31
|
|
$
6.33
|
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-third-quarter-results-and-raises-2023-guidance-301971917.html
SOURCE AMETEK, Inc.