News Release Details

AMETEK Announces Record Second Quarter Results and Raises 2018 Guidance

July 31, 2018 at 6:56 AM EDT
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-- Reports second quarter sales up 14% over prior year --
-- Delivers diluted earnings per share of $0.83, up 28% over prior year --
-- Increases 2018 earnings guidance to $3.16 - $3.20 per diluted share --

BERWYN, Pa., July 31, 2018 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2018.  

AMETEK's second quarter 2018 sales were a record $1.21 billion, up 14% compared to the second quarter of 2017, with organic sales growth of 7%. Second quarter operating income increased 18% over the same quarter last year to a record $270.1 million.  Operating income margins in the second quarter were 22.3%, up 70 basis points versus the prior year. Earnings in the quarter were $0.83 per diluted share, up 28% compared to the prior year period.

"AMETEK's businesses again delivered exceptional results," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Continued strong organic sales growth, contributions from recent acquisitions and outstanding operating performance enabled us to exceed our expectations and deliver robust growth in sales and earnings per share."  

Electronic Instruments Group (EIG)
Second quarter EIG sales were a record $744.5 million, up 13% over the same quarter of 2017. Operating income for the quarter was $193.8 million, an 18% increase over the same period last year, and operating margins expanded 110 basis points to 26.0%.

"EIG delivered record-level sales and exceptional operating performance in the quarter. The double-digit sales increase was driven by broad based organic sales growth and contributions from the recent acquisitions. Operating margins increased sharply on higher sales and continued execution of our operational excellence efforts," commented Mr. Zapico.

Electromechanical Group (EMG)
Second quarter sales for EMG were also a record at $464.5 million, up 14% compared to the second quarter of 2017. EMG operating income in the quarter was a record $94.3 million, an 11% increase over the prior year, and operating margins were 20.3% in the quarter.

"EMG also delivered excellent results in the second quarter with double-digit sales growth and a record level of operating income.  The sales growth was driven by strong organic growth and contributions from the acquisition of FMH Aerospace," noted Mr. Zapico.

2018 Outlook  
"We are very pleased with the company's performance in the second quarter and through the first half of the year. These results highlight the strength of the AMETEK business model and the success we are having in driving our growth strategies," commented Mr. Zapico.

"Given these strong second quarter results, we are again raising guidance for 2018. We now expect 2018 earnings per diluted share to be in the range of $3.16 to $3.20, up 21% to 23% over 2017's adjusted diluted earnings per share. This is an increase from our previous guidance range of $3.06 to $3.12 per diluted share. We continue to expect overall sales for the year to be up low-double digits on a percentage basis, with organic sales up mid-single digits," he added.

"Overall sales in the third quarter of 2018 are expected to be up high-single digits on a percentage basis versus the prior year period. Third quarter earnings are expected to be in the range of $0.76 to $0.78 per diluted share, up 15% to 18% over the same quarter in 2017," concluded Mr. Zapico.

Conference Call
AMETEK will webcast its second quarter 2018 investor conference call on Tuesday, July 31, 2018, 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 annualized sales of more than $4.8 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


 Six Months Ended


 June 30,


 June 30,


2018

2017 (1)

2018

2017 (1)

Net sales

$1,208,935

$1,064,604

$2,381,582

$2,072,286








Cost of sales

791,248

702,191

1,568,048

1,369,593

Selling, general and administrative

147,601

132,864

285,280

255,697

     Total operating expenses

938,849

835,055

1,853,328

1,625,290








Operating income

270,086

229,549

528,254

446,996








Interest expense

(20,784)

(24,552)

(42,470)

(49,068)

Other expense, net

(1,081)

(1,642)

(1,739)

(3,151)








Income before income taxes

248,221

203,355

484,045

394,777








Provision for income taxes

54,361

52,874

108,845

105,370








Net income

$   193,860

$   150,481

$   375,200

$   289,407








Diluted earnings per share

$        0.83

$        0.65

$        1.61

$        1.25

Basic earnings per share

$        0.84

$        0.65

$        1.62

$        1.26








Weighted average common shares outstanding:






     Diluted shares

233,297

231,588

233,131

231,296

     Basic shares

231,252

230,158

231,090

229,853








Dividends per share

$        0.14

$        0.09

$        0.28

$        0.18








 

(1) - The three and six months ended June 30, 2017 have been restated to reflect the adoption of new accounting guidance in 2018, which resulted in the presentation of $2.8 million and $5.7 million, respectively, of other net periodic benefit income in Other expense, net rather than in Operating income, with no change in Net income.

 

 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)


 Three Months Ended


 Six Months Ended


 June 30,


 June 30,


2018

2017

2018

2017

Net sales:






     Electronic Instruments

$   744,458

$   657,663

$1,460,884

$1,277,432

     Electromechanical

464,477

406,941

920,698

794,854

          Consolidated net sales

$1,208,935

$1,064,604

$2,381,582

$2,072,286








Operating income:






Segment operating income:






     Electronic Instruments

$   193,831

$   163,755

$   377,190

$   319,016

     Electromechanical

94,250

84,568

185,252

162,911

          Total segment operating income

288,081

248,323

562,442

481,927

     Corporate administrative expenses

(17,995)

(18,774)

(34,188)

(34,931)

          Consolidated operating income

$   270,086

$   229,549

$   528,254

$   446,996

 

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)


 June 30,


 December 31,


2018

2017

 (Unaudited)



ASSETS


Current assets:


     Cash and cash equivalents

$     557,693

$     646,300

     Receivables, net

710,956

668,176

     Inventories, net

614,390

540,504

     Other current assets

135,087

79,675

          Total current assets

2,018,126

1,934,655




Property, plant and equipment, net

490,126

493,296

Goodwill

3,252,002

3,115,619

Other intangibles, investments and other assets

2,392,198

2,252,494

          Total assets

$  8,152,452

$  7,796,064




LIABILITIES AND STOCKHOLDERS' EQUITY


Current liabilities:


     Short-term borrowings and current portion of long-term debt, net

$     307,661

$     308,123

     Accounts payable and accruals

874,856

830,540

          Total current liabilities

1,182,517

1,138,663




Long-term debt, net

1,838,224

1,866,166

Deferred income taxes and other long-term liabilities

793,615

763,602

Stockholders' equity

4,338,096

4,027,633

          Total liabilities and stockholders' equity

$  8,152,452

$  7,796,064




 

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SOURCE AMETEK, Inc.