AMETEK, Inc. (Form: 8-K)  

 


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):   October 18, 2007

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.)
      
37 North Valley Road, Paoli, Pennsylvania   19301
_________________________________
(Address of principal executive offices)
  ___________
(Zip Code)
     
Registrant’s 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))


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Item 2.02 Results of Operations and Financial Condition.

On October 18, 2007, AMETEK, Inc. issued a press release announcing its financial results for the third quarter and nine month period ended September 30, 2007. A copy of such press release is furnished as Exhibit 99(a) to this Current Report.





Item 9.01 Financial Statements and Exhibits.

(c) Exhibit

99(a) Copy of press release issued by AMETEK, Inc. on October 18, 2007 (furnished but not filed pursuant to Item 2.02).






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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.
          
October 19, 2007   By:   Robert R. Mandos, Jr.
       
        Name: Robert R. Mandos, Jr.
        Title: Senior Vice President and Comptroller


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Exhibit Index


     
Exhibit No.   Description

 
99.(a)
  Copy of press release issued by AMETEK, Inc. on October 18, 2007 (furnished but not filed pursuant to Item 2.02).
EX-99.(a)

EXHIBIT 99 (a)

AMETEK
CORPORATE OFFICE
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801

Contact: William J. Burke (610) 889-5249

AMETEK ACHIEVES RECORD THIRD QUARTER RESULTS
—Sales Increase 14%, Net Income Increases 21%—
— Raising Estimates—

Paoli, PA, October 18, 2007 – AMETEK, Inc. (NYSE: AME) today announced record third quarter results and raised its earnings estimate for the full year 2007.

AMETEK’s third quarter 2007 sales of $528.8 million were up 14% over the same period of 2006. Operating income for the third quarter of 2007 was $96.0 million, a 20% increase from the $79.8 million recorded in the same period of 2006. Net income in the third quarter of 2007 increased 21% to $57.2 million, or $.53 per diluted share, from the third quarter 2006 level of $47.4 million, or $.45 per diluted share.

“AMETEK had another outstanding quarter,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. “Strong internal growth, combined with the contributions from acquired businesses enabled us to grow the top-line by 14%. Operating income margin was up 100 basis points and diluted earnings per share were up 18% driven by the top-line growth and our operational excellence improvements,” he commented.

For the first nine months of 2007, AMETEK sales increased 16% to $1.55 billion from $1.34 billion in the same period of 2006. Operating income totaled $282.5 million, a 23% increase from $229.7 million earned in the first nine months of last year. Net income for the first nine months of 2007 was $166.2 million, up 24% from $134.1 million in the same period of 2006. Diluted earnings per share were $1.55 for the first nine months of 2007, up 23% from $1.26 per diluted share in the first nine months of 2006.

Electronic Instruments Group (EIG)
For the 2007 third quarter, EIG sales increased 14% to $299.0 million. Operating income was $62.9 million, compared with $52.0 million in the third quarter of 2006, an increase of 21%. Operating margins for the quarter improved to 21.0%, from 19.8% in the third quarter of 2006.

“EIG had an excellent third quarter. Sales were up on strong core growth driven by our process and analytical, power and aerospace businesses together with the contribution from the Precitech, Advanced Industries, B&S Aircraft Parts and Cameca acquisitions. Operating margins expanded 120 basis points to 21.0%, driven by strong margin performance in our long-cycle aerospace and power businesses,” said Mr. Hermance.

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AMETEK ACHIEVES RECORD THIRD QUARTER RESULTS
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Electromechanical Group (EMG)
For the third quarter of 2007, EMG sales were $229.8 million, a 14% increase over the same period of 2006. Operating income of $43.0 million was up 19% from the $36.2 million recorded in the same period of 2006. Operating margins for the quarter were 18.7%, up from 17.9% in the third quarter of 2006.

“EMG also had a great third quarter. Sales were up on solid core growth in both our differentiated and cost driven businesses and the contributions from the acquisitions of Southern Aeroparts, Seacon Phoenix and Hamilton Precision Metals. Operating margins expanded 80 basis points as a result of the increased volume and our operational excellence initiatives,” commented Mr. Hermance.

2007 Outlook
“Given current market conditions and our strong third quarter results, we are raising our earnings estimate for the year from $2.01 to $2.05 previously, to approximately $2.06 to $2.08 per diluted share, an increase of 20% to 22% over the 2006 level of $1.71 per diluted share. Revenue is estimated to increase in the mid teens on a percentage basis over 2006,” commented Mr. Hermance.

“Our fourth quarter 2007 sales are expected to be up in the mid teens on a percentage basis from last year’s fourth quarter. We expect fourth quarter earnings to be approximately $.51 to $.53 per diluted share, an increase of 13% to 18% over last year’s fourth quarter level of $.45 per diluted share,” concluded Mr. Hermance.

Conference Call
AMETEK, Inc. will Web cast its Third Quarter 2007 investor conference call on Thursday, October 18, 2007, beginning at 8:30 AM ET. The live audio Web cast will be available at www.ametek.com/investors and at www.streetevents.com. The call will also be archived at www.ametek.com/investors.

Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of more than $2 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 MidCap 400 Index and the Russell 1000 Index.

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AMETEK ACHIEVES RECORD THIRD QUARTER RESULTS
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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 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 (Unaudited)
(In thousands, except per share amounts)

                                 
    Three months ended   Nine months ended
    September 30,   September 30,
    2007   2006   2007   2006
 
                               
Net sales
  $ 528,849     $ 464,164     $ 1,553,600     $ 1,338,616  
 
                               
Expenses:
                               
Cost of sales, excluding depreciation
    356,682       318,275       1,050,263       919,351  
Selling, general and administrative
    65,687       56,197       190,594       160,324  
Depreciation
    10,476       9,862       30,205       29,211  
 
                               
Total expenses
    432,845       384,334       1,271,062       1,108,886  
 
                               
 
                               
Operating income
    96,004       79,830       282,538       229,730  
Other (expenses) income:
                               
Interest expense
    (12,182 )     (11,162 )     (34,089 )     (31,551 )
Other, net
    (425 )     17       (2,528 )     (1,309 )
 
                               
Income before income taxes
    83,397       68,685       245,921       196,870  
Provision for income taxes
    26,153       21,314       79,764       62,773  
 
                               
Net income
  $ 57,244     $ 47,371     $ 166,157     $ 134,097  
 
                               
 
                               
Diluted earnings per share
  $ 0.53     $ 0.45     $ 1.55     $ 1.26  
 
                               
 
                               
Basic earnings per share
  $ 0.54     $ 0.45     $ 1.57     $ 1.28  
 
                               
 
                               
Average common shares outstanding:
                               
Diluted shares
    107,764       106,332       107,359       106,622  
 
                               
Basic shares
    106,136       104,667       105,642       104,878  
 
                               
 
                               
Dividends per share
  $ 0.06     $ 0.04     $ 0.18     $ 0.12  
 
                               

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AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(In thousands)

                                 
    Three months ended   Nine months ended
    September 30,   September 30,
    2007   2006   2007   2006
Net sales
                               
 
                               
Electronic Instruments
  $ 299,006     $ 262,250     $ 863,652     $ 742,720  
Electromechanical
    229,843       201,914       689,948       595,896  
 
                               
Total Consolidated
  $ 528,849     $ 464,164     $ 1,553,600     $ 1,338,616  
 
                               
 
                               
Operating income
                               
 
                               
Electronic Instruments
  $ 62,870     $ 52,000     $ 187,228     $ 150,111  
Electromechanical
    43,045       36,239       124,762       104,943  
 
                               
Total segments
    105,915       88,239       311,990       255,054  
Corporate and other
    (9,911 )     (8,409 )     (29,452 )     (25,324 )
 
                               
Total Consolidated
  $ 96,004     $ 79,830     $ 282,538     $ 229,730  
 
                               

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AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)

                 
    September 30,   December 31,
    2007   2006
 
  (Unaudited)        
ASSETS
               
 
               
 
               
Current assets:
               
Cash, cash equivalents
               
and marketable securities
  $ 83,442     $ 58,220  
Receivables, net
    377,166       328,762  
Inventories
    313,267       236,783  
Other current assets
    64,857       60,298  
 
               
Total current assets
    838,732       684,063  
 
               
Property, plant and equipment, net
    285,437       258,008  
Goodwill
    992,473       881,433  
Other intangibles, investments and other assets
    397,508       307,372  
 
               
Total assets
  $ 2,514,150     $ 2,130,876  
 
               
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
 
               
Current liabilities:
               
Short-term borrowings and current
               
portion of long-term debt
  $ 233,111     $ 163,608  
Accounts payable and accruals
    375,046       317,292  
 
               
Total current liabilities
    608,157       480,900  
 
               
Long-term debt
    547,219       518,267  
Deferred income taxes and
               
other long-term liabilities
    204,869       165,037  
Stockholders’ equity
    1,153,905       966,672  
 
               
Total liabilities and stockholders’ equity
  $ 2,514,150     $ 2,130,876  
 
               

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