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8-K - LIVE FILING - AMETEK INC/ | htm_48262.htm |
Exhibit 99.1
CORPORATE OFFICE
1100 Cassatt Road, Berwyn, PA 19312
Contact: Kevin C. Coleman (610) 889-5247
AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS
Berwyn, PA, August 7, 2013 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.
AMETEKs 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 years 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.
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AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS
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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 years
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 AMETEKs 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 years 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 years third quarter of $0.47 per diluted share, concluded Mr. Hermance.
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AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS
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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. AMETEKs Corporate Growth Plan is based on Four Key
Strategies: Operational Excellence, Strategic Acquisitions & Alliances, Global & Market Expansion
and New Products. AMETEKs 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 AMETEKs 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 AMETEKs 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, | |||||||||||||||||||
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 | ||||||||||||
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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 | ||||||||||||
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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 | ||||||||
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