AMETEK Announces Record Third Quarter 2013 Results PR Newswire 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 third quarter. "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 third quarter. "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. 2013 Outlook "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. Conference Call 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 of www.ametek.com. Corporate Profile 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. 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 Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Net sales $ 890,006 $ 839,373 $2,651,668 $2,492,423 Operating expenses: Cost of sales, 572,125 541,454 1,713,797 1,609,490 excluding depreciation Selling, general 98,969 96,021 291,489 286,703 and administrative Depreciation 14,226 13,734 41,848 40,312 Total 685,320 651,209 2,047,134 1,936,505 operating expenses Operating income 204,686 188,164 604,534 555,918 Other expenses: 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 taxes Provision for income 52,288 50,291 157,001 152,440 taxes 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 shares outstanding: 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 0.06 0.06 AMETEK, Inc. Information by Business Segment (In thousands) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 2013 2012 2013 2012 Net sales: 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 sales Income: 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 operating income Corporate administrative and other (11,728) (10,739) (34,595) (33,298) expenses Consolidated $ 204,686 $ 188,164 $ 604,534 $ 555,918 operating income AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands) September 30, December 31, 2013 2012 (Unaudited) ASSETS Current assets: 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 assets Total assets $ 5,461,222 $ 5,190,056 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: 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 liabilities Stockholders' equity 2,934,228 2,535,151 Total liabilities and stockholders' $ 5,461,222 $ 5,190,056 equity SOURCE AMETEK, Inc. Website: http://www.ametek.com Contact: Kevin C. Coleman, (610) 889-5247
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AMETEK Announces Record Third Quarter 2013 Results
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