AMETEK Announces Record Third Quarter 2013 Results
BERWYN, Pa., Oct. 29, 2013
BERWYN, Pa., Oct. 29, 2013 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today
announced strong third quarter results that established records for sales and
operating income. In addition, backlog at September 30, 2013 of $1.2 billion
was an all-time high.
AMETEK's third quarter 2013 sales of $890.0 million were up 6% over the same
period of 2012. Operating income was $204.7 million in the quarter, a 9%
increase from the $188.2 million recorded in the same period of 2012.
Operating margins improved 60 basis points to 23.0% in the third quarter of
2013. Net income increased 11% to $127.9 million, from $115.4 million in last
year's third quarter. Diluted earnings per share increased 11% to $0.52 per
diluted share, from the third quarter 2012 level of $0.47 per diluted share.
"AMETEK achieved excellent results in the third quarter. Despite continued
soft economic conditions, we were able to deliver record levels of sales and
operating income on the strength of our long-cycle businesses and operational
excellence initiatives. In addition, orders were very strong in the quarter,
totaling $937 million, up 17% from last year's third quarter with 7% core
growth," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
In the third quarter, we recognized a gain on the sale of a facility. The
gain was offset by increased investment in organic growth initiatives and
higher than normal acquisition related costs in the quarter.
For the nine months ended September 30, 2013, AMETEK sales increased 6% to
$2.65 billion, compared with $2.49 billion during the same period of 2012.
Operating income increased 9% to $604.5 million, from $555.9 million earned in
the first nine months of 2012. Net income for the first nine months was
$381.3 million, up 12% from $339.2 million in the same period of 2012.
Diluted earnings per share were $1.55 for the first nine months of 2013, up
12% from $1.39 per diluted share in the first nine months of 2012.
Electronic Instruments Group (EIG)
In the third quarter, EIG sales increased 9% to $499.8 million. Operating
income in the third quarter of 2013 increased 14% to $138.9 million, compared
with $121.6 million in the third quarter of 2012. Operating margins were
27.8% in the third quarter, up 120 basis points from 26.6% in last year's
"EIG had a very strong third quarter. Sales grew 9% on continued strength in
our oil and gas and aerospace businesses, combined with contributions from our
acquisitions of Micro-Poise and Controls Southeast," said Mr. Hermance.
Electromechanical Group (EMG)
For the third quarter of 2013, EMG sales increased 2% to $390.2 million.
Third quarter operating income was $77.5 million, up slightly from the same
period of 2012. Operating margins were 19.9%, versus 20.2% in last year's
"EMG also had a solid third quarter. Sales were up on strong growth in our
Precision Motion Control business and in our Floorcare and Specialty Motors
business. Additionally, organic orders were very strong in the quarter, up 9%
over the prior year's quarter," commented Mr. Hermance.
"We are very pleased with the performance of our business in the third quarter
and are especially encouraged by the strength in orders. While we remain
cautious around the pace of global economic activity, we continue to believe
our strong portfolio of businesses, increased organic growth investments,
operational excellence initiatives, and a continued focus on increasing
shareholder value through strategic acquisitions will enable us to perform
well through the remainder of 2013 and beyond," added Mr.Hermance.
"We anticipate full year 2013 revenues to be up mid-single digits on a
percentage basis from 2012. We expect earnings for 2013 to be approximately
$2.09 per diluted share, up 11% from last year," added Mr. Hermance.
"Fourth quarter sales are expected to be up high single digits on a percentage
basis over last year's fourth quarter, with organic sales up mid-single digits
on a percentage basis. We estimate our earnings to be approximately $0.54 per
diluted share, an increase of 10% over last year's fourth quarter of $0.49 per
diluted share," he concluded.
AMETEK will webcast its Third Quarter 2013 investor conference call on
Tuesday, October 29, 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 also will be archived at the Investors section
AMETEK is a leading global manufacturer of electronic instruments and
electro-mechanical devices with annualized sales of $3.6 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 500 index.
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)
Consolidated Statement of Income
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
Net sales $ 890,006 $ 839,373 $2,651,668 $2,492,423
Cost of sales, 572,125 541,454 1,713,797 1,609,490
Selling, general 98,969 96,021 291,489 286,703
Depreciation 14,226 13,734 41,848 40,312
Total 685,320 651,209 2,047,134 1,936,505
Operating income 204,686 188,164 604,534 555,918
Interest expense (18,243) (18,958) (54,720) (56,638)
Other, net (6,291) (3,518) (11,482) (7,606)
Income before income 180,152 165,688 538,332 491,674
Provision for income 52,288 50,291 157,001 152,440
Net income $ 127,864 $ 115,397 $ 381,331 $ 339,234
Diluted earnings per $ $ $ $
share 0.52 0.47 1.55 1.39
Basic earnings per $ $ $ $
share 0.52 0.48 1.56 1.41
Weighted average common
Diluted shares 245,930 244,229 245,815 243,552
Basic shares 244,049 242,138 243,667 241,164
Dividends per share $ $ $ 0.18 $ 0.16
Information by Business Segment
Three Months Ended Nine Months Ended
September 30, September 30,
2013 2012 2013 2012
Electronic Instruments $ 499,847 $ 457,074 $1,467,687 $1,378,010
Electromechanical 390,159 382,299 1,183,981 1,114,413
Consolidated net $ 890,006 $ 839,373 $2,651,668 $2,492,423
Segment operating income:
Electronic Instruments $ 138,934 $ 121,579 $ 400,255 $ 362,255
Electromechanical 77,480 77,324 238,874 226,961
Total segment 216,414 198,903 639,129 589,216
administrative and other (11,728) (10,739) (34,595) (33,298)
Consolidated $ 204,686 $ 188,164 $ 604,534 $ 555,918
Condensed Consolidated Balance Sheet
September 30, December 31,
Cash and cash equivalents $ 254,878 $ 157,984
Receivables, net 532,092 507,850
Inventories 449,133 428,935
Other current assets 72,454 69,974
Total current assets 1,308,557 1,164,743
Property, plant and equipment, net 383,594 383,483
Goodwill 2,300,466 2,208,239
Other intangibles, investments and other 1,468,605 1,433,591
Total assets $ 5,461,222 $ 5,190,056
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term borrowings and current portion $ 164,926 $ 320,654
of long-term debt
Accounts payable and accruals 567,295 559,315
Total current liabilities 732,221 879,969
Long-term debt 1,135,164 1,133,121
Deferred income taxes and other long-term 659,609 641,815
Stockholders' equity 2,934,228 2,535,151
Total liabilities and stockholders' $ 5,461,222 $ 5,190,056
SOURCE AMETEK, Inc.
Contact: Kevin C. Coleman, (610) 889-5247
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