PAOLI, Pa., Oct. 27 /PRNewswire-FirstCall/ -- AMETEK, Inc.
(NYSE:AME) today announced third quarter results. AMETEK's third
quarter 2009 sales of $497.1 million were down 23% over the same
period of 2008. Operating income for the third quarter of 2009 was
$77.5 million, compared with $120.1 million recorded in the same
period of 2008. Net income in the third quarter of 2009 was $43.0
million, or $0.40 per diluted share, compared to $70.9 million, or
$0.66 per diluted share in the third quarter of 2008. The 2009
results include approximately $0.02 per diluted share in
restructuring costs. Excluding these restructuring costs, third
quarter earnings were $0.42 per diluted share. "In the face of
difficult market conditions, we delivered good financial results,"
noted Frank S. Hermance, AMETEK Chairman and Chief Executive
Officer. "We believe our overall business has stabilized, our
restructuring initiatives are on track and we continue to focus on
our key strategic priorities to drive value for our shareholders."
Operating cash flow was very strong, totaling $72 million for the
third quarter of 2009, up 15% from the third quarter of 2008. For
the first nine months of 2009, AMETEK sales decreased 17% to $1.57
billion from $1.91 billion in the same period of 2008. Operating
income totaled $276.9 million, a 21% decrease from $350.4 million
earned in the first nine months of last year. Net income for the
first nine months of 2009 was $153.9 million, down 24% from $203.1
million in the same period of 2008. Diluted earnings per share were
$1.43 for the first nine months of 2009, down 24% from $1.89 per
diluted share in the first nine months of 2008. Operating cash flow
was $256 million, up 25% from the first nine months of 2008.
Electronic Instruments Group (EIG) For the 2009 third quarter, EIG
sales decreased 24% to $271.8 million. Operating income was $47.9
million, compared with $80.2 million in the third quarter of 2008.
Operating margins for the quarter were 17.6% as compared to 22.4%
in the third quarter of 2008. "EIG revenue was down, as we saw
weakness in the Aerospace aftermarket, Process and Industrial
businesses. Operating margins reflect the impact of lower revenues
and costs associated with our restructuring actions," said Mr.
Hermance. Electromechanical Group (EMG) For the third quarter of
2009, EMG sales were $225.2 million, a 22% decrease from the same
period of 2008. Operating income of $38.2 million was down 24% from
the $50.4 million recorded in the same period of 2008. Operating
margins for the quarter were 17.0%, down from 17.4% in the third
quarter of 2008. "EMG had a solid quarter, given the continued
impact of the economic downturn on their markets. We experienced
weakness in both the cost driven and differentiated businesses.
Operating margins were down slightly as very effective cost
reduction and operational excellence initiatives were able to
offset the impact of the lower sales volume," commented Mr.
Hermance. 2009 Outlook "2009 continues to be a very challenging
year though we believe our overall business has stabilized. For the
full year, we expect revenue to decline approximately high-teens on
a percentage basis," commented Mr. Hermance. "We have narrowed our
earnings guidance to be in the range of $1.87 to $1.92 per diluted
share. Excluding the restructuring costs of $0.02 per diluted share
in the third quarter, our guidance is $1.89 to $1.94 per diluted
share." "Fourth quarter 2009 sales are expected to be down in the
high teens on a percentage basis from last year's fourth quarter.
We estimate our earnings to be approximately $0.44 to $0.49 per
diluted share, a sizable improvement over the third quarter of this
year," noted Mr. Hermance. Mr. Hermance continued, "AMETEK
continues to successfully navigate difficult market conditions. We
remain focused on executing our restructuring initiatives,
generating strong cash flow and delivering solid financial results.
Together with our investments in new products, global expansion and
strategic acquisitions, we will continue to create value for our
shareholders." Conference Call AMETEK, Inc. will Web cast its Third
Quarter 2009 investor conference call on Tuesday, October 27, 2009
beginning at 8:30 AM ET. The live audio Web cast will be available
at the Investors section of http://www.ametek.com/ and at
http://www.streetevents.com/. The call will be archived at
http://www.ametek.com/. Corporate Profile AMETEK is a leading
global manufacturer of electronic instruments and electromechanical
devices with annual sales of approximately $2.1 billion. AMETEK's
Corporate Growth Plan is based on Four Key Strategies: Operational
Excellence, Strategic Acquisitions & Alliances, Global &
Market Expansion and New Products. 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 MidCap 400 and the
Russell 1000 Indices. 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 our ability to consummate and successfully integrate future
acquisitions; risks associated with international sales and
operations; our 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.
(Financial Information Follows) AMETEK, Inc. Consolidated Statement
of Income (In thousands, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30,
------------- ------------- 2009 2008 2009 2008 ---- ---- ---- ----
Net sales $497,060 $647,423 $1,574,855 $1,907,391 -------- --------
---------- ---------- Operating expenses: Cost of sales, excluding
depreciation (a) 344,658 437,476 1,076,879 1,285,676 Selling,
general and administrative (a) 63,858 78,216 189,405 237,236
Depreciation 11,069 11,666 31,714 34,070 ------ ------ ------
------ Total operating expenses (a) 419,585 527,358 1,297,998
1,556,982 ------- ------- --------- --------- Operating income (a)
77,475 120,065 276,857 350,409 Other expenses: Interest expense
(17,380) (15,534) (52,076) (45,996) Other, net (702) (1,540)
(1,726) (3,166) ---- ------ ------ ------ Income before income
taxes (a) 59,393 102,991 223,055 301,247 Provision for income taxes
(a) 16,375 32,067 69,169 98,124 ------ ------ ------ ------ Net
income (a) $43,018 $70,924 $153,886 $203,123 ======= =======
======== ======== Diluted earnings per share (a) $0.40 $0.66 $1.43
$1.89 ===== ===== ===== ===== Basic earnings per share (a) $0.40
$0.67 $1.44 $1.91 ===== ===== ===== ===== Weighted average common
shares outstanding: Diluted shares 107,748 107,577 107,675 107,619
======= ======= ======= ======= Basic shares 106,862 106,341
106,663 106,078 ======= ======= ======= ======= Dividends per share
$0.06 $0.06 $0.18 $0.18 ===== ===== ===== ===== (a) The nine month
period ended September 30, 2008 includes a second quarter
after-tax, non-cash charge of $7.3 million, or $0.07 per diluted
share, related to the accelerated amortization of deferred
compensation expense due to the vesting of restricted stock.
AMETEK, Inc. Information by Business Segment (In thousands)
(Unaudited) Three Months Ended Nine Months Ended September 30,
September 30, ------------- ------------- 2009 2008 2009 2008 ----
---- ---- ---- Net sales: Electronic Instruments $271,843 $357,589
$860,569 $1,041,014 Electromechanical 225,217 289,834 714,286
866,377 ------- ------- ------- ------- Consolidated net sales
$497,060 $647,423 $1,574,855 $1,907,391 ======== ========
========== ========== Income: Segment operating income: Electronic
Instruments $47,877 $80,249 $176,790 $237,546 Electromechanical
38,217 50,372 125,900 150,526 ------ ------ ------- ------- Total
segment operating income 86,094 130,621 302,690 388,072 Corporate
administrative and other expenses (8,619) (10,556) (25,833)
(37,663) ------ ------- ------- ------- Consolidated operating
income $77,475 $120,065 $276,857 $350,409 ======= ======== ========
======== AMETEK, Inc. Condensed Consolidated Balance Sheet (In
thousands) September 30, December 31, 2009 2008 ---- ----
(Unaudited) ASSETS Current assets: Cash, cash equivalents and
marketable securities $207,127 $91,210 Receivables, net 349,184
406,012 Inventories 312,536 349,509 Other current assets 91,741
107,855 ------ ------- Total current assets 960,588 954,586
Property, plant and equipment, net 308,331 307,908 Goodwill
1,280,581 1,240,052 Other intangibles, investments and other assets
619,515 552,996 ------- ------- Total assets $3,169,015 $3,055,542
========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Short-term borrowings and current portion of long-term
debt $85,426 $18,438 Accounts payable and accruals 363,610 429,075
------- ------- Total current liabilities 449,036 447,513 Long-term
debt 974,287 1,093,243 Deferred income taxes and other long-term
liabilities 261,555 227,014 Stockholders' equity 1,484,137
1,287,772 --------- --------- Total liabilities and stockholders'
equity $3,169,015 $3,055,542 ========== ========== Contact: William
J. Burke (610) 889-5249 DATASOURCE: AMETEK, Inc. CONTACT: William
J. Burke of AMETEK, Inc., +1-610-889-5249 Web Site:
http://www.ametek.com/
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