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):   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)
     
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 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).






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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.
          
July 27, 2010   By:   /s/ Robert R. Mandos, Jr.
       
        Name: Robert R. Mandos, Jr.
        Title: Senior Vice President and Comptroller


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Exhibit Index


     
Exhibit No.   Description

 
99.1
  Copy of press release issued by AMETEK, Inc. on July 27, 2010.
EX-99.1

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.

AMETEK’s 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.

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AMETEK ANNOUNCES SECOND QUARTER RESULTS
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“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 AMETEK’s 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 year’s 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. 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 and the Russell 1000 Indices.

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AMETEK ANNOUNCES SECOND 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; AMETEK’s 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 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.

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(Financial Information Follows)

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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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