AMETEK Announces Record Results

BERWYN, Pa., April 25, 2013 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced first quarter results that established records for sales, operating income, net income and diluted earnings per share.

AMETEK's first quarter 2013 sales of $882.9 million were up 7% over the same period of 2012.  Operating income was $197.2 million in the first quarter of 2013, an 8% increase from $182.8 million recorded in the same period of 2012. Net income in the first quarter of 2013 increased 14% to $125.1 million, from $110.2 million in last year's first quarter.  Diluted earnings per share increased 13% to $0.51 per diluted share, from the first quarter 2012 level of $0.45 per diluted share. 

The first quarter 2013 results include approximately $0.01 per diluted share in realignment costs and approximately $0.01 per diluted share in costs related to the performance-based accelerated vesting of restricted stock.  Performance-based vesting occurred as a result of the stock price doubling in less than three years since the issue of the grant, reflecting the significant value created for AMETEK shareholders.   

"AMETEK achieved solid results in the first quarter with sales, operating income, net income and diluted earnings per share at record levels.  While end market demand remains tepid, our team executed extremely well on Operational Excellence initiatives, which led to strong results in the quarter," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. 

"Cash flow was strong, with operating cash flow totaling $157 million for the quarter, an increase of 11% over the same period in 2012," continued Mr. Hermance.

Electronic Instruments Group (EIG)

For the 2013 first quarter, EIG sales increased 3% to $484.5 million.  Operating income in the quarter increased 7% to $131.7 million, compared with $123.0 million in the first quarter of 2012.  Operating margins were 27.2% in the first quarter, up 100 basis points from 26.2% in last year's first quarter. 

"EIG had a solid first quarter with excellent operating performance.  Sales were up due to strength in our Aerospace and oil and gas businesses, combined with the contribution from the Micro-Poise acquisition.  Operating margins expanded nicely driven by the higher revenue and our Operational Excellence initiatives," said Mr. Hermance.

Electromechanical Group (EMG)

For the first quarter of 2013, EMG sales increased 11% to $398.4 million.  Operating income in the first quarter of 2013 of $78.0 million was up 10%, compared with $70.9 million in the same period of 2012.  Operating margins were 19.6% in the first quarter, compared with 19.8% in last year's first quarter. 

"EMG also had a solid first quarter with strong core growth in our third party Aerospace MRO business and the contribution from the Dunkermotoren acquisition driving the top line increase," commented Mr. Hermance.

2013 Outlook

"We expect sluggish end market conditions to continue.  We have taken additional cost actions to ensure we are properly positioned for the remainder of 2013.  Organic growth in the second half of the year is expected to be stronger than the first half.  Our strong portfolio of businesses, proven operational capabilities, and a successful focus on strategic acquisitions should enable us to perform well in 2013," noted Mr. Hermance.

"We anticipate 2013 revenue to be up high single digits on a percentage basis from 2012, reflecting low to mid-single digit core growth and contributions from recent acquisitions.  Earnings for 2013 are expected to be in the range of $2.08 to $2.12 per diluted share, up 11% to 13% over 2012, reflecting the leveraged impact of core growth, operational initiatives and the contributions from recently acquired businesses," added Mr. Hermance.

"Second quarter sales are expected to be up mid to high single digits over last year's second quarter.  We estimate our earnings to be approximately $0.51 to $0.52 per diluted share, an increase of 9% to 11% over last year's second quarter of $0.47 per diluted share," concluded Mr. Hermance.

Conference Call

The Company will webcast its First Quarter 2013 investor conference call on Thursday, April 25, 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 annualized sales of $3.5 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.

 

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)



 Three Months Ended 


 March 31, 


2013


2012

Net sales

$   882,853


$   827,152

Operating expenses:




     Cost of sales, excluding depreciation

574,074


536,283

     Selling, general and administrative

97,608


95,036

     Depreciation

13,936


13,057

          Total operating expenses 

685,618


644,376





Operating income 

197,235


182,776

Other expenses:




     Interest expense

(18,323)


(18,837)

     Other, net

(2,524)


(2,240)

Income before income taxes

176,388


161,699

Provision for income taxes

51,242


51,549





Net income

$   125,146


$   110,150





Diluted earnings per share

$         0.51


$         0.45

Basic earnings per share

$         0.51


$         0.46





Weighted average common shares outstanding:




     Diluted shares

245,411


243,307

     Basic shares

243,285


240,186





Dividends per share

$         0.06


$         0.04





 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



 Three Months Ended 


 March 31, 


2013


2012

Net sales:




     Electronic Instruments

$   484,501


$   468,808

     Electromechanical

398,352


358,344

          Consolidated net sales

$   882,853


$   827,152





Income:




Segment operating income:




     Electronic Instruments

$   131,746


$   123,025

     Electromechanical

77,999


70,877

          Total segment operating income

209,745


193,902

     Corporate administrative and other expenses

(12,510)


(11,126)

          Consolidated operating income

$   197,235


$   182,776





 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 March 31, 


 December 31, 


2013


2012


 (Unaudited) 



ASSETS




Current assets:




     Cash and cash equivalents

$     177,335


$     157,984

     Receivables, net

529,182


507,850

     Inventories

434,044


428,935

     Other current assets

73,603


69,974

          Total current assets

1,214,164


1,164,743





Property, plant and equipment, net

375,660


383,483

Goodwill

2,177,533


2,208,239

Other intangibles, investments and other assets

1,407,118


1,433,591

          Total assets

$  5,174,475


$  5,190,056





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




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

$     208,092


$     320,654

     Accounts payable and accruals

591,045


559,315

          Total current liabilities

799,137


879,969





Long-term debt

1,115,603


1,133,121

Deferred income taxes and other long-term liabilities

637,624


641,815

Stockholders' equity

2,622,111


2,535,151

          Total liabilities and stockholders' equity

$  5,174,475


$  5,190,056





 

Contact: Kevin C. Coleman (610) 889-5247

 

SOURCE AMETEK, Inc.



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