UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | November 1, 2016 |
AMETEK, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Delaware | 1-12981 | 14-1682544 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
1100 Cassatt Road, Berwyn, Pennsylvania | 19312 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | 610-647-2121 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 1, 2016, AMETEK, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2016. A copy of such press release is furnished as Exhibit 99.1 to this Current Report.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
99.1 Copy of press release issued by AMETEK, Inc. on November 1, 2016 (furnished but not filed pursuant to Item 2.02).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMETEK, Inc. | ||||
November 2, 2016 | By: |
/s/ Thomas M. Montgomery
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Name: Thomas M. Montgomery | ||||
Title: Senior Vice President - Comptroller |
Exhibit Index
Exhibit No. | Description | |
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99.1
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Copy of press release issued by AMETEK, Inc. on November 1, 2016. |
Exhibit 99.1
Contact: Kevin Coleman +1 610-889-5247
AMETEK Announces Third Quarter 2016 Results
BERWYN, PA, NOVEMBER 1, 2016 AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2016.
AMETEK reported third quarter 2016 sales of $945.0 million, down 5% from last years third quarter. Operating income was $201.1 million and operating margins were 21.3% in the quarter. Diluted earnings per share of $0.56 were down 14% from last years third quarter.
I am pleased with our teams performance having delivered results that met our expectations in a challenging macro environment, said David A. Zapico, AMETEK Chief Executive Officer. Although prior year comparisons were impacted by weakness in oil and gas and metals markets, we are encouraged to see these markets begin to stabilize.
Electronic Instruments Group (EIG)
In the third quarter of 2016, EIG sales were $579.3 million, down 3% from last years third quarter. Operating income was $142.7 million and operating margins were 24.6% in the quarter.
Sales in EIG benefited from the recent acquisitions of Brookfield, ESP/SurgeX, Nu Instruments and HS Foils. This growth was offset in large part by weakness across our oil and gas businesses. We are continuing to see solid growth across our Ultra Precision Technologies business, added Mr. Zapico.
Electromechanical Group (EMG)
For the third quarter of 2016, EMG sales decreased 9% to $365.7 million. Operating income was $71.4 million and operating margins were 19.5% in the quarter.
Sales continue to be impacted by weakness across our Engineered Materials, Interconnects and Packaging businesses, noted Mr. Zapico.
(Continued)
AMETEK ANNOUNCES THIRD QUARTER 2016 RESULTS
Page 2
2016 Outlook
We continue to expect 2016 sales to be down low-single digits with organic sales down mid-single digits on a percentage basis versus 2015. We have tightened our earnings guidance range for 2016 to $2.29 to $2.31 per diluted share, leaving the mid-point of our previous guidance unchanged, adds Mr. Zapico.
Fourth quarter 2016 sales are expected to be down low-single digits on a percentage basis compared to last years fourth quarter. We estimate our earnings in the fourth quarter to be approximately $0.57 to $0.59 per diluted share, notes Mr. Zapico.
I am confident in our teams ability to manage through these market headwinds and am very excited about the long-term opportunity for AMETEK. We remain focused on investing in our businesses for the long-term, deploying our strong cash flow on strategic acquisitions, and driving commercial and operational synergies across our businesses, concludes Mr. Zapico.
Conference Call
The Company will webcast its third quarter 2016 investor conference call on Tuesday, November 1, 2016 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.
(Continued)
AMETEK ANNOUNCES THIRD QUARTER 2016 RESULTS
Page 3
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices
with annual sales of approximately $4.0 billion. AMETEKs Corporate Growth Plan is based on Four
Key Strategies: Operational Excellence, Strategic Acquisitions, 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 500 Index.
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 AMETEKs ability to consummate and
successfully integrate future acquisitions; risks associated with international sales and
operations; AMETEKs 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.
# # #
AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Net sales |
$ | 945,030 | $ | 998,527 | $ | 2,867,134 | $ | 2,986,312 | ||||||||||||
Operating expenses: |
||||||||||||||||||||
Cost of sales, excluding depreciation |
612,702 | 631,790 | 1,839,642 | 1,901,680 | ||||||||||||||||
Selling, general and administrative |
113,170 | 112,116 | 344,323 | 335,702 | ||||||||||||||||
Depreciation |
18,042 | 17,006 | 54,494 | 50,044 | ||||||||||||||||
Total operating expenses |
743,914 | 760,912 | 2,238,459 | 2,287,426 | ||||||||||||||||
Operating income |
201,116 | 237,615 | 628,675 | 698,886 | ||||||||||||||||
Other expenses: |
||||||||||||||||||||
Interest expense |
(23,609 | ) | (23,684 | ) | (70,716 | ) | (69,048 | ) | ||||||||||||
Other, net |
(3,259 | ) | (2,325 | ) | (10,108 | ) | (6,298 | ) | ||||||||||||
Income before income taxes |
174,248 | 211,606 | 547,851 | 623,540 | ||||||||||||||||
Provision for income taxes |
43,561 | 55,208 | 144,801 | 169,522 | ||||||||||||||||
Net income |
$ | 130,687 | $ | 156,398 | $ | 403,050 | $ | 454,018 | ||||||||||||
Diluted earnings per share |
$ | 0.56 | $ | 0.65 | $ | 1.72 | $ | 1.87 | ||||||||||||
Basic earnings per share |
$ | 0.56 | $ | 0.65 | $ | 1.73 | $ | 1.89 | ||||||||||||
Weighted average common shares outstanding: |
||||||||||||||||||||
Diluted shares |
232,721 | 241,238 | 234,576 | 242,552 | ||||||||||||||||
Basic shares |
231,894 | 239,959 | 233,387 | 240,801 | ||||||||||||||||
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, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Net sales: |
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Electronic Instruments |
$ | 579,298 | $ | 598,515 | $ | 1,744,246 | $ | 1,788,777 | ||||||||||||
Electromechanical |
365,732 | 400,012 | 1,122,888 | 1,197,535 | ||||||||||||||||
Consolidated net sales |
$ | 945,030 | $ | 998,527 | $ | 2,867,134 | $ | 2,986,312 | ||||||||||||
Income: |
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Segment operating income: |
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Electronic Instruments |
$ | 142,695 | $ | 162,530 | $ | 436,642 | $ | 477,740 | ||||||||||||
Electromechanical |
71,439 | 86,671 | 231,181 | 257,929 | ||||||||||||||||
Total segment operating income |
214,134 | 249,201 | 667,823 | 735,669 | ||||||||||||||||
Corporate administrative and
other expenses |
(13,018 | ) | (11,586 | ) | (39,148 | ) | (36,783 | ) | ||||||||||||
Consolidated operating income |
$ | 201,116 | $ | 237,615 | $ | 628,675 | $ | 698,886 | ||||||||||||
AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
September 30, | December 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 445,469 | $ | 381,005 | ||||
Receivables, net |
595,143 | 603,295 | ||||||
Inventories, net |
537,227 | 514,451 | ||||||
Other current assets |
119,051 | 120,076 | ||||||
Total current assets |
1,696,890 | 1,618,827 | ||||||
Property, plant and equipment, net |
478,647 | 484,548 | ||||||
Goodwill |
2,846,106 | 2,706,633 | ||||||
Other intangibles, investments and other assets |
1,955,419 | 1,850,442 | ||||||
Total assets |
$ | 6,977,062 | $ | 6,660,450 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
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Current liabilities: |
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Short-term borrowings and current portion of long-term debt, net |
$ | 613,684 | $ | 384,924 | ||||
Accounts payable and accruals |
603,054 | 639,097 | ||||||
Total current liabilities |
1,216,738 | 1,024,021 | ||||||
Long-term debt, net |
1,540,742 | 1,553,116 | ||||||
Deferred income taxes and other long-term liabilities |
846,383 | 828,687 | ||||||
Stockholders equity |
3,373,199 | 3,254,626 | ||||||
Total liabilities and stockholders equity |
$ | 6,977,062 | $ | 6,660,450 | ||||