BERWYN, Pa., Nov. 2,
2017 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced
its financial results for the three month period ended September 30, 2017.
AMETEK's third quarter 2017 sales were a record $1.08 billion, an increase of 15% compared to the
third quarter of 2016. Operating income increased 16% to
$232.8 million versus the prior
year and operating margins were 21.5%, up 20 basis points compared
to the same period last year. Diluted earnings per share were a
record $0.66, an 18% increase
compared to the third quarter of 2016. Orders were up 16% in the
quarter.
"AMETEK's businesses delivered another exceptional quarter with
record-level performance," said David A.
Zapico, AMETEK Chairman and Chief Executive Officer. "Strong
organic sales growth and contributions from recent acquisitions
allowed us to achieve double-digit sales and earnings growth,
exceeding our expectations for the quarter. As a result, we are
again increasing our full year 2017 guidance."
"In addition to the excellent sales and earnings performance,
AMETEK continues to generate strong cash flow reflecting the
strength of our business model, with third quarter operating cash
flow of $239 million, up 41% over the
same period of 2016," added Mr. Zapico.
Electronic Instruments Group (EIG)
For the third quarter of 2017, EIG sales were a record
$671.6 million, an increase of 16%
from the third quarter of 2016. EIG operating income was
$164.4 million, up 15% over the prior
year, and operating margins were 24.5% in the quarter.
"EIG delivered outstanding performance in the third quarter, driven by strong, broad
based organic sales growth and contributions from the recent
acquisitions of Rauland and MOCON," commented Mr. Zapico. "Solid
orders growth and improving trends in key markets continue to drive
our positive expectations for the future."
Electromechanical Group (EMG)
In the third quarter of 2017, EMG sales were $413.2 million, up 13% compared to the third
quarter of 2016. EMG operating income increased 18% to $84.1 million and operating margins were strong
at 20.3%, up 80 basis points from last year's third quarter.
"EMG performed exceptionally well in the third quarter.
Excellent organic sales growth
and contributions from the recent acquisition of Laserage
drove strong sales growth. Operating income margins
increased sharply on higher sales and continued focus on
Operational Excellence initiatives," noted Mr. Zapico.
2017
Outlook
"We are very pleased with our results through the first nine
months of the year. Our businesses continue to operate at a very
high level through the execution of our Growth Strategies. Given
our strong performance in the third quarter and our positive
outlook for the fourth quarter, we are again increasing guidance
for 2017," commented Mr. Zapico.
"We now expect 2017 sales to increase approximately low-double
digits on a percentage basis compared to 2016, with organic sales
up mid-single digits. We are increasing our 2017 earnings guidance
range to $2.57 to $2.58 per diluted
share, up 12% over 2016 adjusted diluted earnings per share. This
is an increase from our previous range of $2.46 to $2.52 per diluted share," he added.
"Fourth quarter 2017 sales are expected to be up low-double
digits on a percentage basis compared to the same period last year.
We estimate fourth quarter earnings to be approximately
$0.66 to $0.67 per diluted share, up
14% to 16% compared to the fourth quarter 2016 adjusted diluted
earnings per share," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter 2017 investor conference
call on Thursday, November 2, 2017,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
Corporate Profile
AMETEK is a leading global manufacturer of electronic
instruments and electromechanical devices with annual sales of
approximately $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 AMETEK's ability to consummate and
successfully integrate future acquisitions; risks associated with
international sales and operations; AMETEK's 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:
AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania
19312
kevin.coleman@ametek.com
Phone: 610.889.5247
(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,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales
|
$1,084,799
|
|
$
945,030
|
|
$3,157,085
|
|
$2,867,134
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales
|
719,718
|
|
630,744
|
|
2,084,392
|
|
1,894,136
|
Selling, general and
administrative
|
132,250
|
|
113,170
|
|
387,179
|
|
344,323
|
Total operating expenses
|
851,968
|
|
743,914
|
|
2,471,571
|
|
2,238,459
|
|
|
|
|
|
|
|
|
Operating
income
|
232,831
|
|
201,116
|
|
685,514
|
|
628,675
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(24,709)
|
|
(23,609)
|
|
(73,777)
|
|
(70,716)
|
Other, net
|
(3,695)
|
|
(3,259)
|
|
(12,533)
|
|
(10,108)
|
Income before income
taxes
|
204,427
|
|
174,248
|
|
599,204
|
|
547,851
|
Provision for income
taxes
|
50,896
|
|
43,561
|
|
156,266
|
|
144,801
|
|
|
|
|
|
|
|
|
Net
income
|
$
153,531
|
|
$
130,687
|
|
$
442,938
|
|
$
403,050
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.66
|
|
$
0.56
|
|
$
1.91
|
|
$
1.72
|
Basic earnings per
share
|
$
0.67
|
|
$
0.56
|
|
$
1.93
|
|
$
1.73
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
232,253
|
|
232,721
|
|
231,615
|
|
234,576
|
Basic shares
|
230,439
|
|
231,894
|
|
230,049
|
|
233,387
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$
0.09
|
|
$
0.27
|
|
$
0.27
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
|
Information by
Business Segment
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
671,606
|
|
$
579,298
|
|
$1,949,038
|
|
$1,744,246
|
Electromechanical
|
413,193
|
|
365,732
|
|
1,208,047
|
|
1,122,888
|
Consolidated net sales
|
$1,084,799
|
|
$
945,030
|
|
$3,157,085
|
|
$2,867,134
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
164,448
|
|
$
142,695
|
|
$
486,385
|
|
$
436,642
|
Electromechanical
|
84,059
|
|
71,439
|
|
248,968
|
|
231,181
|
Total segment operating income
|
248,507
|
|
214,134
|
|
735,353
|
|
667,823
|
Corporate administrative and
other expenses
|
(15,676)
|
|
(13,018)
|
|
(49,839)
|
|
(39,148)
|
Consolidated operating income
|
$
232,831
|
|
$
201,116
|
|
$
685,514
|
|
$
628,675
|
|
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
September
30,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
736,415
|
|
$
717,259
|
Receivables, net
|
640,815
|
|
592,326
|
Inventories, net
|
546,876
|
|
492,104
|
Other current
assets
|
100,377
|
|
126,501
|
Total current assets
|
2,024,483
|
|
1,928,190
|
|
|
|
|
Property, plant and
equipment, net
|
494,973
|
|
473,230
|
Goodwill
|
3,138,742
|
|
2,818,950
|
Other intangibles,
investments and other assets
|
2,125,103
|
|
1,880,304
|
Total assets
|
$
7,783,301
|
|
$
7,100,674
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
509,567
|
|
$
278,921
|
Accounts payable and
accruals
|
760,774
|
|
645,520
|
Total current liabilities
|
1,270,341
|
|
924,441
|
|
|
|
|
Long-term debt,
net
|
1,920,879
|
|
2,062,644
|
Deferred income taxes
and other long-term liabilities
|
825,926
|
|
857,076
|
Stockholders'
equity
|
3,766,155
|
|
3,256,513
|
Total liabilities and stockholders' equity
|
$
7,783,301
|
|
$
7,100,674
|
|
|
|
|
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SOURCE AMETEK, Inc.