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) |
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 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).
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.
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Name: Robert R. Mandos, Jr. | ||||
Title: Senior Vice President and Comptroller |
Exhibit Index
Exhibit No. | Description | |
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99.(a)
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Copy of press release issued by AMETEK, Inc. on October 18, 2007 (furnished but not filed pursuant to Item 2.02). |
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.
AMETEKs 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.
MORE
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 years fourth quarter. We expect fourth quarter earnings to be approximately $.51 to $.53 per diluted share, an increase of 13% to 18% over last years 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. AMETEKs Corporate Growth Plan is based on Four Key
Strategies: Operational Excellence, Strategic Acquisitions & Alliances, 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 MidCap 400 Index and the Russell 1000 Index.
MORE
AMETEK ACHIEVES RECORD THIRD QUARTER RESULTS
Page 3
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 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 AMETEKs 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.
# # #
(Financial Information Follows)
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: |
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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: |
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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 |
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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 |
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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 |
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Current assets: |
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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 |
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Current liabilities: |
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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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