AMETEK Announces Record Third Quarter Results
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The third quarter 2014 results include one-time tax events benefitting the tax line, largely offset by a related negative impact in other expense.
On a GAAP basis, operating income was
In the third quarter of 2014, EIG sales increased 26% to
"EIG had an excellent third quarter. The strong sales growth was driven by broad based strength across our Aerospace, Process and Power & Industrial businesses. The contributions from the eight recent acquisitions completed in this Group were also a key driver in our overall growth," said Mr. Hermance.
On a GAAP basis, EIG operating income was
In the third quarter of 2014, EMG sales increased 3% to
"EMG also had a solid quarter with strong operating performance. Sales were up on strength in our Precision Motion Control and Engineered, Materials, Interconnects and Packaging businesses. Operating margins were up nicely driven by the higher sales and our Operational Excellence initiatives," commented Mr. Hermance.
2014 Outlook
"We are very pleased with the performance of our businesses. While the global economy remains sluggish, we are confident in our ability to continue to deliver strong sales and earnings growth due to our excellent portfolio of businesses, proven operational capabilities, increased investments in organic growth initiatives, and a successful focus on strategic acquisitions," commented Mr. Hermance.
"We continue to anticipate 2014 revenue to be up low double digits on a percentage basis from 2013 reflecting solid core growth and the contributions from recent acquisitions. Earnings for 2014, excluding Zygo integration costs, are expected to be in the range of
"Fourth quarter sales are expected to be up high single digits on a percentage basis over last year's fourth quarter. We estimate our earnings to be approximately
Conference Call
The Company will webcast its Third Quarter 2014 investor conference call on
Corporate Profile
Forward-looking Information
Statements in this news release relating to future events, such as
AMETEK, Inc. |
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Consolidated Statement of Income |
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(In thousands, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2014 |
2013 |
2014 |
2013 |
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Net sales |
$1,031,811 |
$ 890,006 |
$2,997,821 |
$2,651,668 |
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Operating expenses: |
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Cost of sales, excluding depreciation |
677,739 |
572,125 |
1,933,554 |
1,713,797 |
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Selling, general and administrative |
119,205 |
98,969 |
345,146 |
291,489 |
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Depreciation |
16,724 |
14,226 |
47,619 |
41,848 |
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Total operating expenses |
813,668 |
685,320 |
2,326,319 |
2,047,134 |
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Operating income |
218,143 |
204,686 |
671,502 |
604,534 |
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Other expenses: |
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Interest expense |
(19,543) |
(18,243) |
(57,362) |
(54,720) |
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Other, net |
(8,639) |
(6,291) |
(16,842) |
(11,482) |
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Income before income taxes |
189,961 |
180,152 |
597,298 |
538,332 |
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Provision for income taxes |
48,150 |
52,288 |
164,838 |
157,001 |
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Net income |
$ 141,811 |
$ 127,864 |
$ 432,460 |
$ 381,331 |
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Diluted earnings per share |
$ 0.57 |
$ 0.52 |
$ 1.75 |
$ 1.55 |
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Basic earnings per share |
$ 0.58 |
$ 0.52 |
$ 1.76 |
$ 1.56 |
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Weighted average common shares outstanding: |
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Diluted shares |
247,643 |
245,930 |
247,425 |
245,815 |
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Basic shares |
245,439 |
244,049 |
245,184 |
243,667 |
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Dividends per share |
$ 0.09 |
$ 0.06 |
$ 0.24 |
$ 0.18 |
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AMETEK, Inc. |
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Information by Business Segment |
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(In thousands) |
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(Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2014 |
2013 |
2014 |
2013 |
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Net sales: |
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Electronic Instruments |
$ 631,569 |
$ 499,847 |
$1,777,252 |
$1,467,687 |
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Electromechanical |
400,242 |
390,159 |
1,220,569 |
1,183,981 |
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Consolidated net sales |
$1,031,811 |
$ 890,006 |
$2,997,821 |
$2,651,668 |
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Income: |
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Segment operating income: |
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Electronic Instruments |
$ 148,313 |
$ 138,934 |
$ 450,131 |
$ 400,255 |
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Electromechanical |
82,001 |
77,480 |
258,014 |
238,874 |
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Total segment operating income |
230,314 |
216,414 |
708,145 |
639,129 |
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Corporate administrative and other expenses |
(12,171) |
(11,728) |
(36,643) |
(34,595) |
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Consolidated operating income |
$ 218,143 |
$ 204,686 |
$ 671,502 |
$ 604,534 |
AMETEK, Inc. |
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Condensed Consolidated Balance Sheet |
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(In thousands) |
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September 30, |
December 31, |
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2014 |
2013 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ 369,613 |
$ 295,203 |
|
Receivables, net |
593,452 |
536,701 |
|
Inventories |
526,674 |
452,848 |
|
Other current assets |
100,391 |
84,377 |
|
Total current assets |
1,590,130 |
1,369,129 |
|
Property, plant and equipment, net |
451,551 |
402,790 |
|
Goodwill |
2,633,188 |
2,408,363 |
|
Other intangibles, investments and other assets |
1,896,192 |
1,697,620 |
|
Total assets |
$ 6,571,061 |
$ 5,877,902 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Short-term borrowings and current portion of long-term debt |
$ 163,202 |
$ 273,315 |
|
Accounts payable and accruals |
668,507 |
601,230 |
|
Total current liabilities |
831,709 |
874,545 |
|
Long-term debt |
1,473,482 |
1,141,750 |
|
Deferred income taxes and other long-term liabilities |
798,063 |
725,486 |
|
Stockholders' equity |
3,467,807 |
3,136,121 |
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Total liabilities and stockholders' equity |
$ 6,571,061 |
$ 5,877,902 |
AMETEK, Inc. |
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Reconciliations of GAAP to Non-GAAP Financial Measures |
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(In millions, except per share amounts) |
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(Unaudited) |
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Three Months Ended |
Nine Months Ended |
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September 30, |
September 30, |
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2014 |
2013 |
2014 |
2013 |
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EIG Segment operating income (GAAP) |
$ 148.3 |
$ 138.9 |
$ 450.1 |
$ 400.3 |
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Zygo integration costs |
$ 13.7 |
$ - |
$ 13.7 |
$ - |
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Adjusted EIG Segment operating income (Non-GAAP) |
$ 162.0 |
$ 138.9 |
$ 463.8 |
$ 400.3 |
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Operating income (GAAP) |
$ 218.1 |
$ 204.7 |
$ 671.5 |
$ 604.5 |
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Zygo integration costs |
$ 13.7 |
$ - |
$ 13.7 |
$ - |
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Adjusted Operating income (Non-GAAP) |
$ 231.8 |
$ 204.7 |
$ 685.2 |
$ 604.5 |
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Net income (GAAP) |
$ 141.8 |
$ 127.9 |
$ 432.5 |
$ 381.3 |
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Zygo integration costs |
$ 10.7 |
(1) |
$ - |
$ 10.7 |
(1) |
$ - |
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Adjusted Net income (Non-GAAP) |
$ 152.5 |
$ 127.9 |
$ 443.2 |
$ 381.3 |
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(1) Represents adjustments at 21.5% tax rate. |
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Diluted earnings per share (GAAP) |
$ 0.57 |
$ 0.52 |
$ 1.75 |
$ 1.55 |
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Zygo integration costs |
$ 0.05 |
$ - |
$ 0.04 |
$ - |
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Adjusted Diluted earning per share (Non-GAAP) |
$ 0.62 |
$ 0.52 |
$ 1.79 |
$ 1.55 |
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Use of Non-GAAP Financial Information |
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The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles ("GAAP") basis with certain non‑GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non‑GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non‑GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. |
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The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK's operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers. The items described above have been excluded from this measure because items of this nature and/or size occur with inconsistent frequency, occur for reasons that may be unrelated to AMETEK's commercial performance during the period and/or we believe are not indicative of AMETEK's ongoing operating costs or gains in a given period, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult. |
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