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8-K - LIVE FILING - AMETEK INC/htm_48702.htm

Exhibit 99.1

CORPORATE OFFICE
1100 Cassatt Road, Berwyn, PA 19312

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

AMETEK ANNOUNCES RECORD THIRD QUARTER 2013 RESULTS

Berwyn, PA, October 29, 2013 – 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.

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AMETEK ANNOUNCES RECORD THIRD QUARTER 2013 RESULTS
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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.

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AMETEK ANNOUNCES RECORD THIRD QUARTER 2013 RESULTS
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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.

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(Financial Information Follows)

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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, excluding depreciation
    572,125       541,454               1,713,797       1,609,490  
Selling, general and administrative
    98,969       96,021               291,489       286,703  
Depreciation
    14,226       13,734               41,848       40,312  
 
                                       
Total operating expenses
    685,320       651,209               2,047,134       1,936,505  
 
                                       
 
                                       
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 taxes
    180,152       165,688               538,332       491,674  
Provision for income taxes
    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 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
  $ 0.06     $ 0.06             $ 0.18     $ 0.16  
 
                                       

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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 sales
  $ 890,006     $ 839,373             $ 2,651,668     $ 2,492,423  
 
                                       
 
                                       
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 operating income
    216,414       198,903               639,129       589,216  
Corporate administrative and other expenses
    (11,728 )     (10,739 )             (34,595 )     (33,298 )
 
                                       
Consolidated operating income
  $ 204,686     $ 188,164             $ 604,534     $ 555,918  
 
                                       

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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 assets
    1,468,605               1,433,591  
 
                       
Total assets
  $ 5,461,222             $ 5,190,056  
 
                       
 
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                       
Current liabilities:
                       
Short-term borrowings and current portion of long-term debt
  $ 164,926             $ 320,654  
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 liabilities
    659,609               641,815  
Stockholders’ equity
    2,934,228               2,535,151  
 
                       
Total liabilities and stockholders’ equity
  $ 5,461,222             $ 5,190,056  
 
                       

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