AMETEK Reports Record Second Quarter 2013 Results

BERWYN, Pa., Aug. 7, 2013 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced second quarter results that established records for operating income, operating margins, net income and diluted earnings per share.  In addition, backlog at June 30, 2013 exceeded $1.1 billion and was an all-time high.  

AMETEK's second quarter 2013 sales of $878.8 million were up 6% over the same period of 2012. Operating income for the second quarter of 2013 was $202.6 million, a 10% increase from the $185.0 million recorded in the same period of 2012.  Operating margins improved 70 basis points to 23.1% in the second quarter of 2013.  Net income increased 13% to $128.3 million, or $0.52 per diluted share, from the second quarter 2012 level of $113.7 million, or $0.47 per diluted share.  

"We are very pleased with our results this quarter given the continued soft economic environment.  We delivered record operating performance as a result of the strength in our long-cycle businesses combined with our Operational Excellence initiatives," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

For the six months ended June 30, 2013, AMETEK sales increased 7% to $1.76 billion from $1.65 billion in the same period of 2012.  Operating income increased 9% to $399.8 million, from $367.8 million earned in the first six months of 2012.  Net income for the first six months was $253.5 million, up 13% from $223.8 million in the same period of 2012.  Diluted earnings per share were $1.03 for the first six months of 2013, up 12% from $0.92 per diluted share in the first six months of 2012. 

Electronic Instruments Group (EIG)
For the second quarter of 2013, EIG sales increased 7% to $483.3 million.  Operating income was $129.6 million, compared with $117.7 million in the second quarter of 2012, a 10% increase.  Operating margins for the quarter were 26.8%, up 80 basis points from 26.0% in last year's second quarter.

"EIG had an excellent second quarter.  Sales were up due to strength in our oil and gas and aerospace businesses, combined with contributions from the recently acquired Micro-Poise business.  Operating margins expanded 80 basis points to 26.8%, benefitting from the core sales growth and Operational Excellence initiatives," said Mr. Hermance.

Electromechanical Group (EMG)
For the second quarter of 2013, EMG sales increased 6% to $395.5 million.  Operating income in the second quarter was up 6% to a record $83.4 million, compared with $78.8 million in the same period of 2012.  Operating margins were 21.1% in the second quarter of 2013, in line with last year's second quarter.  

"EMG also had a solid second quarter.  Sales were up on strong growth in our Floorcare and Specialty Motors business, along with the contributions from the Dunkermotoren acquisition.  Additionally, operating margins were very strong at 21.1%," commented  Mr. Hermance.

2013 Outlook
"We expect sluggish market conditions to continue for the balance of 2013.  Full year 2013 revenue is expected to be up mid-single digits on a percentage basis from 2012," noted Mr. Hermance. 

"We expect earnings for 2013 to be at the low end of our previous guidance range of $2.08 to $2.12 per diluted share, reflecting the weak economic environment.  We continue to believe that AMETEK's strong portfolio of businesses, operational excellence initiatives and successful focus on increasing shareholder value through strategic acquisitions will enable us to perform well in 2013 and beyond," added Mr. Hermance.

"Third quarter sales are expected to be up mid-single digits on a percentage basis over last year's third 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 third quarter of $0.47 per diluted share," concluded Mr. Hermance.

Conference Call
The Company will webcast its Second Quarter 2013 investor conference call on Wednesday, August 7, 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.

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

(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,


2013


2012


2013


2012

Net sales

$ 878,809


$ 825,898


$1,761,662


$1,653,050

Operating expenses:









Cost of sales, excluding depreciation

567,598


531,753


1,141,672


1,068,036


Selling, general and administrative

94,912


95,646


192,520


190,682


Depreciation

13,686


13,521


27,622


26,578



Total operating expenses

676,196


640,920


1,361,814


1,285,296









Operating income

202,613


184,978


399,848


367,754

Other expenses:









Interest expense

(18,154)


(18,843)


(36,477)


(37,680)


Other, net

(2,667)


(1,848)


(5,191)


(4,088)

Income before income taxes

181,792


164,287


358,180


325,986

Provision for income taxes

53,471


50,600


104,713


102,149









Net income

$ 128,321


$ 113,687


$ 253,467


$ 223,837









Diluted earnings per share

$ 0.52


$ 0.47


$ 1.03


$ 0.92

Basic earnings per share

$ 0.53


$ 0.47


$ 1.04


$ 0.93









Weighted average common shares outstanding:









Diluted shares

246,104


243,121


245,757


243,214


Basic shares

243,666


241,168


243,475


240,677









Dividends per share

$ 0.06


$ 0.06


$ 0.12


$ 0.10









 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



Three Months Ended


Six Months Ended


June 30,


June 30,


2013


2012


2013


2012

Net sales:









Electronic Instruments

$ 483,339


$ 452,128


$ 967,840


$ 920,936


Electromechanical

395,470


373,770


793,822


732,114



Consolidated net sales

$ 878,809


$ 825,898


$1,761,662


$1,653,050









Income:








Segment operating income:









Electronic Instruments

$ 129,575


$ 117,651


$ 261,321


$ 240,676


Electromechanical

83,395


78,760


161,394


149,637



Total segment operating income

212,970


196,411


422,715


390,313


Corporate administrative and other expenses

(10,357)


(11,433)


(22,867)


(22,559)



Consolidated operating income

$ 202,613


$ 184,978


$ 399,848


$ 367,754









 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



June 30,


December 31,


2013


2012


(Unaudited)



ASSETS




Current assets:





Cash and cash equivalents

$ 207,614


$ 157,984


Receivables, net

521,547


507,850


Inventories

438,912


428,935


Other current assets

75,728


69,974



Total current assets

1,243,801


1,164,743





Property, plant and equipment, net

372,715


383,483

Goodwill

2,181,997


2,208,239

Other intangibles, investments and other assets

1,394,021


1,433,591



Total assets

$ 5,192,534


$ 5,190,056





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





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

$ 125,658


$ 320,654


Accounts payable and accruals

553,798


559,315



Total current liabilities

679,456


879,969





Long-term debt

1,118,086


1,133,121

Deferred income taxes and other long-term liabilities

637,849


641,815

Stockholders' equity

2,757,143


2,535,151



Total liabilities and stockholders' equity

$ 5,192,534


$ 5,190,056

 

 

SOURCE AMETEK, Inc.



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