EX-99.1 2 d548287dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

AMETEK ANNOUNCES RECORD SECOND QUARTER RESULTS

AND RAISES 2018 GUIDANCE

— Reports second quarter sales up 14% over prior year —

— Delivers diluted earnings per share of $0.83, up 28% over prior year —

— Increases 2018 earnings guidance to $3.16 - $3.20 per diluted share —

BERWYN, PA, JULY 31, 2018 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2018.

AMETEK’s second quarter 2018 sales were a record $1.21 billion, up 14% compared to the second quarter of 2017, with organic sales growth of 7%. Second quarter operating income increased 18% over the same quarter last year to a record $270.1 million. Operating income margins in the second quarter were 22.3%, up 70 basis points versus the prior year. Earnings in the quarter were $0.83 per diluted share, up 28% compared to the prior year period.

“AMETEK’s businesses again delivered exceptional results,” said David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Continued strong organic sales growth, contributions from recent acquisitions and outstanding operating performance enabled us to exceed our expectations and deliver robust growth in sales and earnings per share.”

Electronic Instruments Group (EIG)

Second quarter EIG sales were a record $744.5 million, up 13% over the same quarter of 2017. Operating income for the quarter was $193.8 million, an 18% increase over the same period last year, and operating margins expanded 110 basis points to 26.0%.

“EIG delivered record-level sales and exceptional operating performance in the quarter. The double-digit sales increase was driven by broad based organic sales growth and contributions from the recent acquisitions. Operating margins increased sharply on higher sales and continued execution of our operational excellence efforts,” commented Mr. Zapico.

Electromechanical Group (EMG)

Second quarter sales for EMG were also a record at $464.5 million, up 14% compared to the second quarter of 2017. EMG operating income in the quarter was a record $94.3 million, an 11% increase over the prior year, and operating margins were 20.3% in the quarter.

 

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“EMG also delivered excellent results in the second quarter with double-digit sales growth and a record level of operating income. The sales growth was driven by strong organic growth and contributions from the acquisition of FMH Aerospace,” noted Mr. Zapico.

2018 Outlook

“We are very pleased with the company’s performance in the second quarter and through the first half of the year. These results highlight the strength of the AMETEK business model and the success we are having in driving our growth strategies,” commented Mr. Zapico.

“Given these strong second quarter results, we are again raising guidance for 2018. We now expect 2018 earnings per diluted share to be in the range of $3.16 to $3.20, up 21% to 23% over 2017’s adjusted diluted earnings per share. This is an increase from our previous guidance range of $3.06 to $3.12 per diluted share. We continue to expect overall sales for the year to be up low-double digits on a percentage basis, with organic sales up mid-single digits,” he added.

“Overall sales in the third quarter of 2018 are expected to be up high-single digits on a percentage basis versus the prior year period. Third quarter earnings are expected to be in the range of $0.76 to $0.78 per diluted share, up 15% to 18% over the same quarter in 2017,” concluded Mr. Zapico.

Conference Call

AMETEK will webcast its second quarter 2018 investor conference call on Tuesday, July 31, 2018, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

Corporate Profile

AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of more than $4.8 billion. AMETEK’s Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, 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 500 Index.

 

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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 AMETEK’s 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.

Contact:

AMETEK, Inc.

Kevin Coleman

Vice President, Investor Relations

1100 Cassatt Road

Berwyn, Pennsylvania 19312

kevin.coleman@ametek.com

Phone: 610.889.5247

(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,  
     2018     2017 (1)     2018     2017 (1)  

Net sales

    $ 1,208,935     $ 1,064,604     $ 2,381,582     $ 2,072,286  
  

 

 

    

 

 

    

 

 

    

 

 

  

Cost of sales

      791,248       702,191       1,568,048       1,369,593  

Selling, general and administrative

      147,601       132,864       285,280       255,697  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      938,849       835,055       1,853,328       1,625,290  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income

      270,086       229,549       528,254       446,996  

Interest expense

      (20,784 )      (24,552 )      (42,470 )      (49,068 ) 

Other expense, net

      (1,081 )      (1,642 )      (1,739 )      (3,151 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income before income taxes

      248,221       203,355       484,045       394,777  

Provision for income taxes

      54,361       52,874       108,845       105,370  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income

    $ 193,860     $ 150,481     $ 375,200     $ 289,407  
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings per share

    $ 0.83     $ 0.65     $ 1.61     $ 1.25  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnings per share

    $ 0.84     $ 0.65     $ 1.62     $ 1.26  
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted average common shares outstanding:

         

Diluted shares

      233,297       231,588       233,131       231,296  
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic shares

      231,252       230,158       231,090       229,853  
  

 

 

    

 

 

    

 

 

    

 

 

  

Dividends per share

    $ 0.14     $ 0.09     $ 0.28     $ 0.18  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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- The three and six months ended June 30, 2017 have been restated to reflect the adoption of new accounting guidance in 2018, which resulted in the presentation of $2.8 million and $5.7 million, respectively, of other net periodic benefit income in Other expense, net rather than in Operating income, with no change in Net income.

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)

 

     Three Months Ended     Six Months Ended  
     June 30,     June 30,  
     2018     2017     2018     2017  

Net sales:

         

Electronic Instruments

    $ 744,458     $ 657,663     $ 1,460,884     $ 1,277,432  

Electromechanical

      464,477       406,941       920,698       794,854  
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated net sales

    $ 1,208,935     $ 1,064,604     $ 2,381,582     $ 2,072,286  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income:

         

Segment operating income:

         

Electronic Instruments

    $ 193,831     $ 163,755     $ 377,190     $ 319,016  

Electromechanical

      94,250       84,568       185,252       162,911  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total segment operating income

      288,081       248,323       562,442       481,927  

Corporate administrative expenses

      (17,995 )      (18,774 )      (34,188 )      (34,931 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated operating income

    $ 270,086     $ 229,549     $ 528,254     $ 446,996  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

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AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)

 

     June 30,      December 31,  
     2018      2017  
     (Unaudited)         

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $ 557,693      $ 646,300  

Receivables, net

      710,956        668,176  

Inventories, net

      614,390        540,504  

Other current assets

      135,087        79,675  
  

 

 

     

 

 

  

Total current assets

      2,018,126        1,934,655  

Property, plant and equipment, net

      490,126        493,296  

Goodwill

      3,252,002        3,115,619  

Other intangibles, investments and other assets

      2,392,198        2,252,494  
  

 

 

     

 

 

  

Total assets

    $ 8,152,452      $ 7,796,064  
  

 

 

     

 

 

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current liabilities:

      

Short-term borrowings and current portion of long-term debt, net

    $ 307,661      $ 308,123  

Accounts payable and accruals

      874,856        830,540  
  

 

 

     

 

 

  

Total current liabilities

      1,182,517        1,138,663  

Long-term debt, net

      1,838,224        1,866,166  

Deferred income taxes and other long-term liabilities

      793,615        763,602  

Stockholders’ equity

      4,338,096        4,027,633  
  

 

 

     

 

 

  

Total liabilities and stockholders’ equity

    $ 8,152,452      $ 7,796,064  
  

 

 

     

 

 

  

 

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