AMETEK Announces Record Results
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For best results when printing this announcement, please click on the link below: http://pdf.reuters.com/pdfnews/pdfnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20130124:nPnPH47026 BERWYN, Pa., Jan. 24, 2013 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced fourth quarter and full year results that established records for orders, sales, operating income, operating margins, net income and diluted earnings per share. AMETEK's fourth quarter 2012 sales of $841.8 million were up 10% over the same period of 2011. Operating income for the fourth quarter of 2012 was $190.0 million, a 13% increase from $167.4 million recorded in the same period of 2011. Operating margins improved 70 basis points to a record 22.6% in the fourth quarter of 2012. Net income in the fourth quarter of 2012 increased 18% to $119.9 million from $101.9 million in last year's fourth quarter. Diluted earnings per share increased 17% to $0.49 per diluted share from the fourth quarter 2011 level of $0.42 per diluted share. "AMETEK had a solid fourth quarter to complete a very strong 2012. We established records for essentially all key financial metrics in the quarter despite continued sluggish market conditions. Operating margins expanded 70 basis points to a record 22.6%, resulting from our focus on Operational Excellence initiatives. Orders were very strong in the quarter, totaling $956 million, up 28% from last year's fourth quarter with 4% core growth," notes Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. "Cash flow was superb, with both the fourth quarter and the full-year results representing records. Operating cash flow was $192 million for the quarter and $611 million for the year, up 25% and 20%, respectively, compared with the same periods in 2011," continued Mr. Hermance. For the full year, AMETEK achieved record levels of orders, sales, operating income, operating margins, net income and diluted earnings per share. Full year sales were $3.33 billion, up 12% from 2011. Operating income in 2012 was $745.9 million, compared with $635.9 million last year, up 17%. Operating margins for 2012 of 22.4% were a 110 basis point improvement over 2011. Net income for the full year 2012 was up $74.6 million to $459.1 million, a 19% increase from the $384.5 million earned in 2011. Diluted earnings per share were $1.88 for 2012, up 19% from the $1.58 earned in 2011. Electronic Instruments Group (EIG) In the fourth quarter, EIG sales increased 12% to $494.5 million. Operating income in the fourth quarter of 2012 increased 16% to $134.9 million, compared with $116.3 million in the fourth quarter of 2011. Operating margins were a record 27.3%, up 100 basis points from 26.3% in last year's fourth quarter. "EIG had a very solid fourth quarter. Sales grew 12% in the quarter on continued strength in our oil and gas, and aerospace businesses, combined with the contributions from the acquisitions of O'Brien and Micro-Poise. Operating margins benefitted from our Operational Excellence initiatives," notes Mr. Hermance. Electromechanical Group (EMG) For the fourth quarter of 2012, EMG sales increased 8% to $347.2 million. Operating income in the fourth quarter of 2012 of $65.2 million was up 5%, compared with $62.3 million in the same period of 2011. Operating margins for the quarter were 18.8%, compared with 19.4% in last year's fourth quarter. "EMG had a good quarter. Sales increased 8% on core growth in our Precision Motion Control business and the contribution from the acquisition of Dunkermotoren. We experienced softness in several end markets as customers turned increasingly cautious due to macro-economic uncertainties," adds Mr. Hermance. 2013 Outlook "We expect our businesses overall to show solid growth in 2013, with organic growth stronger in the second half of the year. Our higher margin, longer cycle, oil and gas, power, and aerospace businesses should show particular strength. AMETEK's strong portfolio of differentiated businesses, proven operational capabilities, continued investment in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2013," notes Mr. Hermance. "We anticipate 2013 revenue to be up in the high single digits on a percentage basis from 2012, reflecting low to mid single digit core growth and contributions from recent acquisitions including Dunkermotoren and Micro-Poise. Earnings for 2013 are expected to be in the range of $2.07 to $2.12 per diluted share, up 10% to 13% over 2012, reflecting the leveraged impact of core growth, operational excellence initiatives, and the benefit of contributions from recent acquisitions," adds Mr. Hermance. "First quarter 2013 sales are expected to be up approximately 10% from last year's first quarter. We estimate our earnings to be approximately $0.49 to $0.51 per diluted share, an increase of 9% to 13% over last year's first quarter of $0.45 per diluted share," concludes Mr. Hermance. Conference Call AMETEK will webcast its Fourth Quarter 2012 investor conference call on Thursday, January 24, 2013, 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 also be archived at the Investors section of www.ametek.com. Corporate Profile AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with annual sales of $3.3 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. 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; 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 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. (Financial Information Follows) AMETEK, Inc. Consolidated Statement of Income (In thousands, except per share amounts) Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 (Unaudited) (Unaudited) (Unaudited) Net sales $ 841,790 $ 762,751 $3,334,213 $2,989,914 Operating expenses: Cost of sales, excluding depreciation 544,642 489,753 2,154,132 1,955,779 Selling, general and administrative 93,829 92,125 380,532 349,321 Depreciation 13,365 13,493 53,677 48,873 Total operating expenses 651,836 595,371 2,588,341 2,353,973 Operating income 189,954 167,380 745,872 635,941 Other expenses: Interest expense (18,834) (17,984) (75,472) (69,729) Other, net (319) (2,417) (7,925) (9,570) Income before income taxes 170,801 146,979 662,475 556,642 Provision for income taxes 50,903 45,072 203,343 172,178 Net income $ 119,898 $ 101,907 $ 459,132 $ 384,464 Diluted earnings per share $ 0.49 $ 0.42 $ 1.88 $ 1.58 Basic earnings per share $ 0.49 $ 0.42 $ 1.90 $ 1.60 Weighted average common shares outstanding: Diluted shares 245,286 242,274 243,986 243,161 Basic shares 242,559 239,944 241,512 240,383 Dividends per share $ 0.06 $ 0.04 $ 0.22 $ 0.16 AMETEK, Inc. Information by Business Segment (In thousands) Three Months Ended Year Ended December 31, December 31, 2012 2011 2012 2011 (Unaudited) (Unaudited) (Unaudited) Net sales: Electronic Instruments $ 494,547 $ 441,455 $1,872,557 $1,647,195 Electromechanical 347,243 321,296 1,461,656 1,342,719 Consolidated net sales $ 841,790 $ 762,751 $3,334,213 $2,989,914 Income: Segment operating income: Electronic Instruments $ 134,861 $ 116,318 $ 497,116 $ 420,197 Electromechanical 65,244 62,265 292,205 262,710 Total segment operating income 200,105 178,583 789,321 682,907 Corporate administrative and other expenses (10,151) (11,203) (43,449) (46,966) Consolidated operating income $ 189,954 $ 167,380 $ 745,872 $ 635,941 AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands) December 31, December 31, 2012 2011 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 156,227 $ 170,392 Receivables, net 507,850 438,245 Inventories 428,935 380,471 Other current assets 64,962 70,011 Total current assets 1,157,974 1,059,119 Property, plant and equipment, net 380,796 325,329 Goodwill 2,208,180 1,806,237 Other intangibles, investments and other assets 1,437,675 1,128,805 Total assets $ 5,184,625 $ 4,319,490 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt $ 320,654 $ 140,508 Accounts payable and accruals 552,683 488,367 Total current liabilities 873,337 628,875 Long-term debt 1,133,121 1,123,416 Deferred income taxes and other long-term liabilities 641,517 514,394 Stockholders' equity 2,536,650 2,052,805 Total liabilities and stockholders' equity $ 5,184,625 $ 4,319,490 Contact: Kevin Coleman (610) 889-5247 SOURCE AMETEK, Inc.
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