AMETEK Announces Second Quarter 2015 Results

-- Delivers Record Earnings per Share --

-- Reaffirms 2015 Earnings Guidance --

Aug 04, 2015, 07:00 ET from AMETEK, Inc.

BERWYN, Pa., Aug. 4, 2015 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2015. 

AMETEK's second quarter 2015 sales of $1.0 billion were up 1% over last year's second quarter.  Operating income increased 4% to a record $240.3 million and operating margins were up 50 basis points to 23.9%.  Diluted earnings per share increased 5% to a record $0.64 per diluted share from the second quarter 2014.  

"AMETEK had another strong quarter.  We delivered record levels of operating income and earnings per share as a result of the continued strong execution of our Four Growth Strategies.  Despite continued softness in the global economy, our businesses performed well, allowing us to meet the high end of our second quarter earnings expectations and to reaffirm our full year earnings guidance," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

"Cash flow was also very strong, with operating cash flow of $163 million for the quarter, a 5% increase over the same period of 2014.  We continue to use our cash flow to support our acquisition strategy, having closed on two recent acquisitions," continued Mr. Hermance. 

Electronic Instruments Group (EIG)

In the second quarter of 2015, EIG sales increased 4% to $596.5 million.  Operating income increased 8% to $164.0 million and operating margins were up 110 basis points to 27.5%.

"EIG had a very good quarter with excellent operating performance.  Sales were up due to strength in our Aerospace business, combined with the contributions from the acquisitions of Zygo and Amptek in our Process business.  Operating performance was superb, with operating margins up 110 basis points in the quarter," said Mr. Hermance.

Electromechanical Group (EMG)

For the second quarter of 2015, EMG sales decreased 2% to $407.3 million.  Operating income was down 3% to $89.3 million and operating margins were 21.9% for the quarter.

"EMG also had a good second quarter in this difficult global market environment.  The lower sales were driven largely by currency headwinds, partially offset by sales from the acquisition of Global Tubes.  Operating margins were very strong benefitting from our focus on Operational Excellence initiatives," adds Mr. Hermance.

2015 Outlook

"AMETEK performed well in the second quarter due to our strong portfolio of businesses, proven operational capabilities, and a successful focus on strategic acquisitions.  While we remain cautious around the pace of global economic activity, we are confident in our ability to successfully execute on our growth strategies and to deliver strong earnings growth," notes Mr. Hermance.

"We anticipate 2015 sales to be up low single digits with organic sales roughly flat versus 2014.  We continue to expect earnings for 2015, excluding first quarter realignment costs, to be in the range of $2.58 to $2.63 per diluted share, up 7% to 9% over 2014 adjusted earnings per share," adds Mr. Hermance.

"Third quarter 2015 sales are expected to be approximately flat compared to last year's third quarter.  We estimate our earnings in the third quarter to be approximately $0.64 to $0.65 per diluted share, an increase of 3% to 5% over last year's adjusted earnings per share," concludes Mr. Hermance.  

Conference Call

AMETEK will webcast its Second Quarter 2015 investor conference call on Tuesday, August 4, 2015, 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 $4.0 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, 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 500 Index.  

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 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

Net sales

$1,003,726

$   990,718

$1,987,785

$1,966,010

Operating expenses:

     Cost of sales, excluding depreciation

633,925

630,645

1,269,890

1,255,815

     Selling, general and administrative

112,702

113,316

223,586

225,941

     Depreciation

16,780

15,029

33,038

30,895

          Total operating expenses 

763,407

758,990

1,526,514

1,512,651

Operating income 

240,319

231,728

461,271

453,359

Other expenses:

     Interest expense

(22,678)

(18,981)

(45,364)

(37,819)

     Other, net

(2,493)

(4,326)

(3,973)

(8,203)

Income before income taxes

215,148

208,421

411,934

407,337

Provision for income taxes

59,635

58,358

114,314

116,688

Net income

$   155,513

$   150,063

$   297,620

$   290,649

Diluted earnings per share

$        0.64

$        0.61

$        1.22

$        1.18

Basic earnings per share

$        0.64

$        0.61

$        1.23

$        1.19

Weighted average common shares outstanding:

     Diluted shares

243,621

247,403

243,209

247,316

     Basic shares

241,498

245,201

241,222

245,056

Dividends per share

$        0.09

$        0.09

$        0.18

$        0.15

 

 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)

 Three Months Ended 

 Six Months Ended 

 June 30, 

 June 30, 

2015

2014

2015

2014

Net sales:

     Electronic Instruments

$   596,464

$   573,289

$1,190,262

$1,145,683

     Electromechanical

407,262

417,429

797,523

820,327

          Consolidated net sales

$1,003,726

$   990,718

$1,987,785

$1,966,010

Income:

Segment operating income:

     Electronic Instruments

$   163,993

$   151,499

$   315,210

$   301,818

     Electromechanical

89,294

92,133

171,258

176,013

          Total segment operating income

253,287

243,632

486,468

477,831

     Corporate administrative and other expenses

(12,968)

(11,904)

(25,197)

(24,472)

          Consolidated operating income

$   240,319

$   231,728

$   461,271

$   453,359

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)

 June 30, 

 December 31, 

2015

2014

 (Unaudited) 

ASSETS

Current assets:

     Cash and cash equivalents

$     326,588

$     377,615

     Receivables, net

619,080

585,462

     Inventories, net

541,919

495,896

     Other current assets

111,755

119,631

          Total current assets

1,599,342

1,578,604

Property, plant and equipment, net

484,932

448,446

Goodwill

2,668,625

2,614,030

Other intangibles, investments and other assets

1,804,912

1,779,883

          Total assets

$  6,557,811

$  6,420,963

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

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

$     183,903

$     286,201

     Accounts payable and accruals

646,228

649,943

          Total current liabilities

830,131

936,144

Long-term debt

1,481,906

1,427,825

Deferred income taxes and other long-term liabilities

792,440

817,433

Stockholders' equity

3,453,334

3,239,561

          Total liabilities and stockholders' equity

$  6,557,811

$  6,420,963

Contact: Kevin Coleman +1 610-889-5250

 

SOURCE AMETEK, Inc.



RELATED LINKS

http://www.ametek.com