EX-99.(A) 2 w05163exv99wxay.htm PRESS RELEASE exv99wxay
 

EXHIBIT 99(a)

(AMETEK NEWS LOGO)

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

AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS

Paoli, PA, January 26, 2005 – AMETEK Inc. (NYSE: AME) today announced fourth quarter and full-year results that established records for sales, operating income, net income and diluted earnings per share. The Company also introduced 2005 earnings guidance of $1.85 to $1.95 per diluted share, a 13% to 20% increase over 2004.

Fourth Quarter Results

AMETEK’s fourth quarter 2004 sales of $326.3 million were up 17% over the same period of 2003. Operating income for the fourth quarter of 2004 was $54.8 million, a 31% increase from the $41.9 million recorded in the same period of 2003. Net income in the fourth quarter of 2004 increased 29% to $31.4 million, or $.45 per diluted share, from fourth quarter 2003 levels of $24.4 million, or $.36 per diluted share. Sales, operating income, net income, and diluted earnings per share were quarterly records.

Full-Year Results

AMETEK achieved 2004 sales of $1.23 billion, up 13% from year 2003 results. Operating income of $196.2 million was up 25% from $156.8 million for 2003. Net income grew to $112.7 million, up 28% from the $87.8 million earned in 2003, and diluted earnings per share of $1.63 were up 25% from $1.30 per share in 2003. Sales, operating income, net income, and diluted earnings per share were full-year records.

“AMETEK had a tremendous 2004,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. “Solid internal growth in each of our segments and contributions from acquired businesses enabled us to post a double-digit sales increase. Our record earnings performance benefited from an improved mix of businesses and our focused operational excellence initiatives.”

Electronic Instrument Groups (EIG)

For the 2004 fourth quarter, EIG sales increased 21% to $184.3 million. Operating income for the fourth quarter was $40.2 million, compared with $28.2 million in the fourth quarter of 2003, an increase of 42%. Operating margins for the quarter improved to 21.8% from 18.6% in the fourth quarter of 2003.

Included in EIG’s fourth quarter results were pre-tax gains totaling $3.5 million from the final settlement of insurance claims related to a flood at one of its manufacturing facilities and a gain on the sale of another facility. These gains increased operating margins 190 basis points.

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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
PAGE 2.

“EIG sales were up in the quarter on internal growth across the group, including strong growth in our long cycle aerospace and power businesses and the contribution from the Taylor Hobson acquisition. EIG margins were up sharply as we captured the leverage in our business model,” added Mr. Hermance.

For the year, EIG sales of $667.4 million were up 19% from 2003 sales of $561.9 million. Operating income was $126.4 million for 2004, up 33% versus $95.0 million earned in 2003. Operating margins were 18.9% in 2004, up from 16.9% in 2003.

Electromechanical Group (EMG)

For the fourth quarter of 2004, EMG’s sales were $141.9 million, an 11% increase over the same period of 2003. Operating income of $21.9 million was up 15% from the $19.0 million recorded in the same period of 2003. Operating margins for the quarter were 15.4%, compared with 14.9% in the fourth quarter of 2003.

Included in the quarter’s results were higher than normal expenses of $2.5 million, primarily associated with the movement of production to low-cost manufacturing locales. These expenses reduced operating margins by 180 basis points.

“EMG fourth quarter sales were up on good internal growth in both our differentiated businesses and our cost-driven motor businesses and the contribution from Hughes-Treitler. Operating margins were up nicely, driven by operational improvements across the group and the contribution of the Hughes-Treitler acquisition,” noted Mr. Hermance.

For the year, EMG’s sales increased 7% to $564.9 million, compared with $529.7 million in 2003. Operating income was $94.3 million for 2004, up 12% from the $84.2 million earned in 2003. Operating margins increased to 16.7% in 2004, compared with 15.9% in 2003.

2005 Outlook

“For 2005 we expect revenues to be up approximately 10% on solid internal growth in each of our two groups and the full-year benefits from our Taylor Hobson and Hughes-Treitler acquisitions,” commented Mr. Hermance. “Earnings are estimated to be approximately $1.85 to $1.95 per diluted share, an increase of 13% to 20% over 2004, driven by the top-line growth and our continued focus on operational excellence, including the movement of additional manufacturing to low cost locales.”

“Our first quarter 2005 sales are expected to be up low double-digits from last year’s first quarter. We estimate our earnings to be approximately $0.43 to $0.45 per diluted share, an increase of 19% to 25% over last year’s first quarter,” concluded Mr. Hermance.

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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
PAGE 3.

Conference Call

AMETEK, Inc. will Web cast its Fourth Quarter 2004 investor conference call on Wednesday, January 26, 2005, 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 electric motors with annual sales of more than $1.2 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.

Forward-looking Information

Statements in this news release that are not historical are considered “forward-looking statements” and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in AMETEK’s Securities and Exchange Commission filings.

# # #

(Financial Information Follows)

 


 

AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME

(In thousands, except per share amounts)

                                 
    Three months ended     Twelve months ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
Net sales
  $ 326,271     $ 279,440     $ 1,232,318     $ 1,091,622  
 
                       
Expenses:
                               
Cost of sales, excluding depreciation
    223,348       199,043       863,827       785,441  
Selling, general and administrative
    37,540       29,489       135,494       115,186  
Depreciation
    10,579       9,043       36,763       34,234  
 
                       
Total expenses
    271,467       237,575       1,036,084       934,861  
 
                       
 
                               
Operating income
    54,804       41,865       196,234       156,761  
Other income (expenses):
                               
Interest expense
    (7,667 )     (6,591 )     (28,343 )     (26,017 )
Other, net
    (1,416 )     282       (2,112 )     (657 )
 
                       
Income before income taxes
    45,721       35,556       165,779       130,087  
Provision for income taxes
    14,361       11,193       53,068       42,272  
 
                       
 
                               
Net Income
  $ 31,360     $ 24,363     $ 112,711     $ 87,815  
 
                       
 
                               
Diluted earnings per share (a)
  $ 0.45     $ 0.36     $ 1.63     $ 1.30  
 
                       
 
                               
Basic earnings per share (a)
  $ 0.46     $ 0.36     $ 1.66     $ 1.32  
 
                       
 
                               
Average common shares outstanding (a):
                               
Diluted shares
    69,899       68,315       69,254       67,620  
 
                       
Basic shares
    68,356       66,958       67,832       66,294  
 
                       
 
                               
Dividends per share (a)
  $ 0.06     $ 0.03     $ 0.24     $ 0.12  
 
                       


(a) Amounts for 2003 have been restated to reflect a two-for-one stock split effective February 27, 2004.

 


 

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

                                 
    Three months ended     Twelve months ended  
    December 31,     December 31,  
    2004     2003     2004     2003  
             Net sales
                               
 
                               
Electronic Instruments
  $ 184,324     $ 151,937     $ 667,418     $ 561,879  
 
                               
Electromechanical
    141,947       127,503       564,900       529,743  
 
                       
 
                               
Total Consolidated
  $ 326,271     $ 279,440     $ 1,232,318     $ 1,091,622  
 
                       
 
                               
Operating income
                               
 
                               
Electronic Instruments
  $ 40,157     $ 28,223     $ 126,372     $ 94,976  
 
                               
Electromechanical
    21,872       19,020       94,250       84,151  
 
                       
 
                               
Total segments
    62,029       47,243       220,622       179,127  
 
                               
Corporate and other
    (7,225 )     (5,378 )     (24,388 )     (22,366 )
 
                       
 
                               
Total Consolidated
  $ 54,804     $ 41,865     $ 196,234     $ 156,761  
 
                       

 


 

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

                 
    December 31,     December 31,  
    2004     2003  
ASSETS
               
 
               
Current assets:
               
Cash, cash equivalents and marketable securities
  $ 47,359     $ 22,886  
Receivables, net
    217,329       189,010  
Inventories
    168,523       143,359  
Other current assets
    30,756       26,811  
 
           
Total current assets
    463,967       382,066  
 
Property, plant and equipment, net
    207,302       213,622  
Goodwill, net
    591,456       506,964  
Other intangibles, investments and other assets
    159,039       112,195  
 
           
Total assets
  $ 1,421,764     $ 1,214,847  
 
           
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
 
               
Current liabilities:
               
Short-term borrowings and current portion of long-term debt
  $ 48,327     $ 106,774  
Accounts payable and accruals
    218,065       182,457  
 
           
Total current liabilities
    266,392       289,231  
 
               
Long-term debt
    400,177       317,674  
Deferred income taxes and other long-term liabilities
    95,613       78,812  
Stockholders’ equity
    659,582       529,130  
 
           
Total liabilities and stockholders’ equity
  $ 1,421,764     $ 1,214,847