AMETEK Announces Record Results

BERWYN, Pa., Jan. 24, 2013 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced fourth quarter and full year results that established records for orders, sales, operating income, operating margins, net income and diluted earnings per share.   

AMETEK's fourth quarter 2012 sales of $841.8 million were up 10% over the same period of 2011. Operating income for the fourth quarter of 2012 was $190.0 million, a 13% increase from $167.4 million recorded in the same period of 2011. Operating margins improved 70 basis points to a record 22.6% in the fourth quarter of 2012.  Net income in the fourth quarter of 2012 increased 18% to $119.9 million from $101.9 million in last year's fourth quarter.  Diluted earnings per share increased 17% to $0.49 per diluted share from the fourth quarter 2011 level of $0.42 per diluted share.  

"AMETEK had a solid fourth quarter to complete a very strong 2012.  We established records for essentially all key financial metrics in the quarter despite continued sluggish market conditions.  Operating margins expanded 70 basis points to a record 22.6%, resulting from our focus on Operational Excellence initiatives. Orders were very strong in the quarter, totaling $956 million, up 28% from last year's fourth quarter with 4% core growth," notes Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. 

"Cash flow was superb, with both the fourth quarter and the full-year results representing records.  Operating cash flow was $192 million for the quarter and $611 million for the year, up 25% and 20%, respectively, compared with the same periods in 2011," continued Mr. Hermance. 

For the full year, AMETEK achieved record levels of orders, sales, operating income, operating margins, net income and diluted earnings per share. Full year sales were $3.33 billion, up 12% from 2011. Operating income in 2012 was $745.9 million, compared with $635.9 million last year, up 17%. Operating margins for 2012 of 22.4% were a 110 basis point improvement over 2011. Net income for the full year 2012 was up $74.6 million to $459.1 million, a 19% increase from the $384.5 million earned in 2011. Diluted earnings per share were $1.88 for 2012, up 19% from the $1.58 earned in 2011. 

Electronic Instruments Group (EIG)

In the fourth quarter, EIG sales increased 12% to $494.5 million. Operating income in the fourth quarter of 2012 increased 16% to $134.9 million, compared with $116.3 million in the fourth quarter of 2011. Operating margins were a record 27.3%, up 100 basis points from 26.3% in last year's fourth quarter.

"EIG had a very solid fourth quarter.  Sales grew 12% in the quarter on continued strength in our oil and gas, and aerospace businesses, combined with the contributions from the acquisitions of O'Brien and Micro-Poise. Operating margins benefitted from our Operational Excellence initiatives," notes Mr. Hermance.

Electromechanical Group (EMG)

For the fourth quarter of 2012, EMG sales increased 8% to $347.2 million.  Operating income in the fourth quarter of 2012 of $65.2 million was up 5%, compared with $62.3 million in the same period of 2011. Operating margins for the quarter were 18.8%, compared with 19.4% in last year's fourth quarter. 

"EMG had a good quarter. Sales increased 8% on core growth in our Precision Motion Control business and the contribution from the acquisition of Dunkermotoren.  We experienced softness in several end markets as customers turned increasingly cautious due to macro-economic uncertainties," adds Mr. Hermance.

2013 Outlook

"We expect our businesses overall to show solid growth in 2013, with organic growth stronger in the second half of the year.  Our higher margin, longer cycle, oil and gas, power, and aerospace businesses should show particular strength.  AMETEK's strong portfolio of differentiated businesses, proven operational capabilities, continued investment in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2013," notes Mr. Hermance.

"We anticipate 2013 revenue to be up in the high single digits on a percentage basis from 2012, reflecting low to mid single digit core growth and contributions from recent acquisitions including Dunkermotoren and Micro-Poise.  Earnings for 2013 are expected to be in the range of $2.07 to $2.12 per diluted share, up 10% to 13% over 2012, reflecting the leveraged impact of core growth, operational excellence initiatives, and the benefit of contributions from recent acquisitions," adds Mr. Hermance.

"First quarter 2013 sales are expected to be up approximately 10% from last year's first quarter.  We estimate our earnings to be approximately $0.49 to $0.51 per diluted share, an increase of 9% to 13% over last year's first quarter of $0.45 per diluted share," concludes Mr. Hermance.  

Conference Call

AMETEK will webcast its Fourth Quarter 2012 investor conference call on Thursday, January 24, 2013, beginning at 8:30 AM ET. The live audio webcast will be available at the Investors section of www.ametek.com and at www.streetevents.com.  The call will also be archived at the Investors section of www.ametek.com.

Corporate Profile

AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with annual sales of $3.3 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)



 Three Months Ended 


 Year Ended 


 December 31, 


 December 31, 


2012


2011


2012


2011


 (Unaudited) 


 (Unaudited) 


 (Unaudited) 



Net sales

$   841,790


$   762,751


$3,334,213


$2,989,914

Operating expenses:








     Cost of sales, excluding depreciation

544,642


489,753


2,154,132


1,955,779

     Selling, general and administrative

93,829


92,125


380,532


349,321

     Depreciation

13,365


13,493


53,677


48,873

          Total operating expenses 

651,836


595,371


2,588,341


2,353,973









Operating income 

189,954


167,380


745,872


635,941

Other expenses:








     Interest expense

(18,834)


(17,984)


(75,472)


(69,729)

     Other, net

(319)


(2,417)


(7,925)


(9,570)

Income before income taxes

170,801


146,979


662,475


556,642

Provision for income taxes

50,903


45,072


203,343


172,178









Net income

$   119,898


$   101,907


$   459,132


$   384,464









Diluted earnings per share

$         0.49


$         0.42


$         1.88


$         1.58

Basic earnings per share

$         0.49


$         0.42


$         1.90


$         1.60









Weighted average common shares outstanding:








     Diluted shares

245,286


242,274


243,986


243,161

     Basic shares

242,559


239,944


241,512


240,383









Dividends per share

$         0.06


$         0.04


$         0.22


$         0.16

















AMETEK, Inc.

Information by Business Segment

(In thousands)



 Three Months Ended 


 Year Ended 


 December 31, 


 December 31, 


2012


2011


2012


2011


 (Unaudited) 


 (Unaudited) 


 (Unaudited) 



Net sales:








     Electronic Instruments

$   494,547


$   441,455


$1,872,557


$1,647,195

     Electromechanical

347,243


321,296


1,461,656


1,342,719

          Consolidated net sales

$   841,790


$   762,751


$3,334,213


$2,989,914









Income:








Segment operating income:








     Electronic Instruments

$   134,861


$   116,318


$   497,116


$   420,197

     Electromechanical

65,244


62,265


292,205


262,710

          Total segment operating income

200,105


178,583


789,321


682,907

     Corporate administrative and other expenses

(10,151)


(11,203)


(43,449)


(46,966)

          Consolidated operating income

$   189,954


$   167,380


$   745,872


$   635,941

















AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 December 31, 


 December 31, 


2012


2011


 (Unaudited) 



ASSETS




Current assets:




     Cash and cash equivalents

$     156,227


$     170,392

     Receivables, net

507,850


438,245

     Inventories

428,935


380,471

     Other current assets

64,962


70,011

          Total current assets

1,157,974


1,059,119





Property, plant and equipment, net

380,796


325,329

Goodwill

2,208,180


1,806,237

Other intangibles, investments and other assets

1,437,675


1,128,805

          Total assets

$  5,184,625


$  4,319,490





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




     Short-term borrowings and current portion of long-term debt

$     320,654


$     140,508

     Accounts payable and accruals

552,683


488,367

          Total current liabilities

873,337


628,875





Long-term debt

1,133,121


1,123,416

Deferred income taxes and other long-term liabilities

641,517


514,394

Stockholders' equity

2,536,650


2,052,805

          Total liabilities and stockholders' equity

$  5,184,625


$  4,319,490





Contact: Kevin Coleman (610) 889-5247

SOURCE AMETEK, Inc.



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