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): | July 27, 2010 |
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 July 27, 2010, AMETEK, Inc. issued a press release announcing its financial results for the second quarter and six month period ended June 30, 2010. A copy of such press release is furnished as Exhibit 99.1 to this Current Report.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibit
99.1 Copy of press release issued by AMETEK, Inc. on July 27, 2010 (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. | ||||
July 27, 2010 | By: |
/s/ 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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99.1
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Copy of press release issued by AMETEK, Inc. on July 27, 2010. |
Exhibit 99.1
CORPORATE OFFICE
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801
Contact: William J. Burke (610) 889-5249
AMETEK ANNOUNCES SECOND QUARTER RESULTS
Paoli, PA, July 27, 2010 AMETEK, Inc. (NYSE: AME) today announced second quarter results that reflected significant increases in orders, sales, and earnings.
AMETEKs second quarter 2010 sales of $591.9 million were up 13% over the $524.9 million reported in the second quarter of 2009. Operating income for the second quarter of 2010 was $115.6 million, a 24% increase from $93.2 million recorded in the same period of 2009. Operating margins improved 170 basis points to 19.5% in the second quarter of 2010. Net income in the second quarter of 2010 increased 30% to $67.4 million, or $0.63 per diluted share, from the second quarter 2009 level of $51.8 million, or $0.48 per diluted share.
AMETEK achieved excellent results in the second quarter, noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. Orders in the quarter were up 33% with broad-based strength evident in most of our markets. This order strength translated into strong top-line performance and, coupled with a lower cost structure, drove earnings significantly above our expectations.
For the first half of 2010, AMETEK sales increased 7% to $1.15 billion from $1.08 billion in the same period of 2009. Operating income increased 9% to $218.0 million, from $199.4 million earned in the first half of last year. Net income for the first half of 2010 was $125.3 million, up 13% from $110.9 million in the same period of 2009. Diluted earnings per share were $1.17 for the first half of 2010, up 14% from $1.03 per diluted share in the first half of 2009.
Electronic Instruments Group (EIG)
For the 2010 second quarter, EIG sales increased 8% to $309.9 million. Operating income was $73.7
million, compared with $59.8 million in the second quarter of 2009, an increase of 23%. Operating
margins for the quarter increased 290 basis points to 23.8% as compared to 20.9% in the second
quarter of 2009.
EIG had an excellent quarter. Revenue was up nicely, driven by strength in the Power and Process businesses. This higher revenue, coupled with a streamlined cost structure enabled us to expand operating margins significantly, said Mr. Hermance.
Electromechanical Group (EMG)
For the second quarter of 2010, EMG sales were $282.0 million, an 18% increase over the same period
of 2009. Operating income of $52.3 million was up 26% from the $41.5 million recorded in the same
period of 2009. Operating margins for the quarter were up 110 basis points to 18.5%, as compared
to 17.4% in the second quarter of 2009.
MORE
AMETEK ANNOUNCES SECOND QUARTER RESULTS
Page 2
EMG also had a very good quarter. Sales were up on strong core growth in both our differentiated and cost driven businesses as well as the contributions from the Ameron and Technical Services for Electronics acquisitions. Operating margins improved by 110 basis points, driven by higher revenue and our lowered cost structure, commented Mr. Hermance.
2010 Outlook
Our markets overall continue to show good growth as evidenced by our strong order input this year.
While we remain watchful for any effects to our business from a slowing global economy, we are not
experiencing any impact at this point. We continue to believe that AMETEKs strong portfolio of
businesses, proven operational capabilities, lower cost structure, and a successful focus on
strategic acquisitions will enable us to perform well in 2010, noted Mr. Hermance.
We now anticipate 2010 revenue to be up low double digits on a percentage basis from 2009, reflecting a stronger core growth environment and the impact of recent acquisitions. Earnings for 2010 are expected to be in the range of $2.43 to $2.47 per diluted share, up 27% to 29% over 2009, reflecting the leveraged impact of core growth, our streamlined cost structure and the bottom-line benefit of acquisitions, including the recently acquired Haydon Enterprises business. This guidance is in-line with our announcement last week and up significantly from our April guidance of $2.20 to $2.28 per diluted share, added Mr. Hermance.
Third quarter 2010 sales are expected to be up high teens on a percentage basis from last years third quarter. We estimate our earnings to be approximately $0.63 to $0.65 per diluted share, up 58% to 63% over the third quarter of 2009, noted Mr. Hermance.
Conference Call
AMETEK, Inc. will webcast its Second Quarter 2010 investor conference call on Tuesday, July 27,
2010 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 be archived at
www.ametek.com.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices
with 2009 sales of $2.1 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 and the Russell 1000 Indices.
MORE
AMETEK ANNOUNCES SECOND 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; 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.
# # #
(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, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales |
$ | 591,941 | $ | 524,929 | $ | 1,148,603 | $ | 1,077,795 | ||||||||
Operating expenses: |
||||||||||||||||
Cost of sales, excluding depreciation |
395,499 | 361,578 | 771,223 | 732,221 | ||||||||||||
Selling, general and administrative |
69,849 | 61,017 | 137,392 | 125,547 | ||||||||||||
Depreciation |
10,998 | 9,154 | 21,947 | 20,645 | ||||||||||||
Total operating expenses |
476,346 | 431,749 | 930,562 | 878,413 | ||||||||||||
Operating income |
115,595 | 93,180 | 218,041 | 199,382 | ||||||||||||
Other expenses: |
||||||||||||||||
Interest expense |
(16,730 | ) | (17,141 | ) | (33,484 | ) | (34,696 | ) | ||||||||
Other, net |
(1,621 | ) | (1,001 | ) | (2,136 | ) | (1,024 | ) | ||||||||
Income before income taxes |
97,244 | 75,038 | 182,421 | 163,662 | ||||||||||||
Provision for income taxes |
29,853 | 23,225 | 57,085 | 52,794 | ||||||||||||
Net income |
$ | 67,391 | $ | 51,813 | $ | 125,336 | $ | 110,868 | ||||||||
Diluted earnings per share |
$ | 0.63 | $ | 0.48 | $ | 1.17 | $ | 1.03 | ||||||||
Basic earnings per share |
$ | 0.64 | $ | 0.49 | $ | 1.18 | $ | 1.04 | ||||||||
Weighted average common shares
outstanding: |
||||||||||||||||
Diluted shares |
106,669 | 107,955 | 107,119 | 107,638 | ||||||||||||
Basic shares |
105,667 | 106,708 | 106,143 | 106,564 | ||||||||||||
Dividends per share |
$ | 0.06 | $ | 0.06 | $ | 0.12 | $ | 0.12 | ||||||||
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AMETEK, Inc.
Information by Business Segment
(In thousands)
(Unaudited)
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net sales: |
||||||||||||||||
Electronic Instruments |
$ | 309,895 | $ | 286,260 | $ | 608,559 | $ | 588,726 | ||||||||
Electromechanical |
282,046 | 238,669 | 540,044 | 489,069 | ||||||||||||
Consolidated net sales |
$ | 591,941 | $ | 524,929 | $ | 1,148,603 | $ | 1,077,795 | ||||||||
Income: |
||||||||||||||||
Segment operating income: |
||||||||||||||||
Electronic Instruments |
$ | 73,720 | $ | 59,804 | $ | 142,786 | $ | 128,913 | ||||||||
Electromechanical |
52,262 | 41,513 | 95,626 | 87,683 | ||||||||||||
Total segment operating income |
125,982 | 101,317 | 238,412 | 216,596 | ||||||||||||
Corporate administrative and
other expenses |
(10,387 | ) | (8,137 | ) | (20,371 | ) | (17,214 | ) | ||||||||
Consolidated operating income |
$ | 115,595 | $ | 93,180 | $ | 218,041 | $ | 199,382 | ||||||||
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AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)
June 30, | December 31, | |||||||
2010 | 2009 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash, cash equivalents and marketable securities |
$ | 235,385 | $ | 251,350 | ||||
Receivables, net |
367,127 | 331,383 | ||||||
Inventories |
315,747 | 311,542 | ||||||
Other current assets |
66,686 | 75,155 | ||||||
Total current assets |
984,945 | 969,430 | ||||||
Property, plant and equipment, net |
290,437 | 310,053 | ||||||
Goodwill |
1,296,586 | 1,277,291 | ||||||
Other intangibles, investments and other assets |
695,080 | 689,258 | ||||||
Total assets |
$ | 3,267,048 | $ | 3,246,032 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Short-term borrowings and current portion of long-term debt |
$ | 76,795 | $ | 85,801 | ||||
Accounts payable and accruals |
385,597 | 338,481 | ||||||
Total current liabilities |
462,392 | 424,282 | ||||||
Long-term debt |
937,292 | 955,880 | ||||||
Deferred income taxes and other long-term liabilities |
313,988 | 298,846 | ||||||
Stockholders equity |
1,553,376 | 1,567,024 | ||||||
Total liabilities and stockholders equity |
$ | 3,267,048 | $ | 3,246,032 | ||||
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