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8-K - LIVE FILING - AMETEK INC/htm_40526.htm

Exhibit 99.1

CORPORATE OFFICE
1100 Cassatt Road, Berwyn, PA 19312

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

AMETEK ANNOUNCES RECORD RESULTS

Berwyn, PA, January 27, 2011 – AMETEK, Inc. (NYSE: AME) today announced fourth quarter results that established quarterly records for orders, sales, operating income, diluted earnings per share and operating cash flow. In addition, backlog at December 31, 2010 was $829 million – an all-time high.

All per share amounts in this press release reflect the impact of a 3-for-2 stock split paid on December 21, 2010.

AMETEK’s fourth quarter 2010 sales of $678.0 million were up 30% over the same period of 2009. Operating income was $135.5 million in the fourth quarter of 2010, compared with $89.2 million in the same period of 2009. Operating income margin in the quarter of 20.0% was a 300 basis point improvement over the fourth quarter of 2009. Net income in the fourth quarter of 2010 increased 57% to $81.2 million, from $51.9 million in last year’s fourth quarter. Diluted earnings per share on a post-split basis increased 56% to $0.50 per diluted share, from the fourth quarter 2009 level of $0.32 per diluted share.

“AMETEK had a tremendous fourth quarter to complete an outstanding 2010. Orders were up 25% to a record $720.8 million in the quarter with broad based strength evident in most of our markets. Sales were up 30% on the strength of the order input and the contributions from the acquisitions completed this year. Our focus on Operational Excellence, coupled with the higher sales, resulted in record earnings and cash flow for the quarter,” noted 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 $128 million for the quarter and $423 million for the year, up 18% and 16% respectively, compared to the same periods in 2009,” continued Mr. Hermance.

For the full year 2010, AMETEK achieved sales of $2.47 billion, up 18% from 2009. Operating income in 2010 was $482.2 million compared with $366.1 million last year, up 32%. Operating income margin for 2010 of 19.5% was a 210 basis point improvement over 2009. Net income for the full year 2010 was $283.9 million, up 38% from the $205.8 million earned in 2009. Diluted earnings per share on a post-split basis were $1.76 for 2010, up 39% from the $1.27 earned in 2009. Operating income, operating margins, net income and diluted earnings per share were all full-year records for the Company.

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AMETEK ANNOUNCES RECORD RESULTS
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Electronic Instruments Group (EIG)
For the 2010 fourth quarter, EIG sales increased 32% to $377.8 million. Operating income in the fourth quarter of 2010 increased 61% to $90.4 million, compared with $56.1 million in the fourth quarter of 2009. For the fourth quarter of 2010, operating margins were 23.9%, up 430 basis points from 19.6% in last year’s fourth quarter.

“EIG had a tremendous fourth quarter. Excellent core growth resulted from the continuing strength in our Process, Power and Industrial businesses. As expected, our oil and gas businesses showed sizable improvement. The recent Atlas Materials Testing Technology acquisition also contributed to the revenue increase. This higher revenue, coupled with a streamlined cost structure, enabled us to significantly expand operating margins,” said Mr. Hermance.

Electromechanical Group (EMG)
For the 2010 fourth quarter, EMG sales increased 26% to $300.1 million. Operating income in the fourth quarter of 2010 increased 45% to $58.9 million, compared with $40.7 million in the fourth quarter of 2009. For the fourth quarter of 2010, operating margins were 19.6%, up 250 basis points from 17.1% in last year’s fourth quarter.

“EMG also had an excellent fourth quarter. Strong core growth in our differentiated businesses and the contributions from the acquisitions of Haydon Enterprises, Technical Services for Electronics and Ameron drove the top line increase. Operating margins were up nicely on the higher revenues and our lowered cost structure,” commented Mr. Hermance.

2011 Outlook
“We expect our businesses to continue to show solid growth in 2011, with our longer cycle oil and gas, power and aerospace business showing particular strength. Our record backlog, strong portfolio of businesses, proven operational capabilities, and a successful focus on strategic acquisitions should enable us to perform well in 2011,” noted Mr. Hermance.

“We anticipate 2011 revenue to be up low double digits on a percentage basis from 2010. Earnings for 2011 are expected to be in the range of $2.00 to $2.07 per diluted share on a post-split basis, up 14% to 18% over 2010, reflecting the leveraged impact of core growth and our streamlined cost structure,” added Mr. Hermance.

“First quarter 2011 sales are expected to be up high teens on a percentage basis from last year’s first quarter. We estimate our earnings to be approximately $0.46 to $0.48 per diluted share on a post-split basis, an increase of 28% to 33% over last year’s first quarter of $0.36,” concluded Mr. Hermance.

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AMETEK ANNOUNCES RECORD RESULTS
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Conference Call
The Company will Web cast its Fourth Quarter 2010 investor conference call on Thursday, January 27, 2011, beginning at 8:30 AM ET. The live audio Web cast 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 annualized sales of $2.7 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.

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(Financial Information Follows)

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AMETEK, Inc.
Consolidated Statement of Income
(In thousands, except per share amounts)

                                 
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2010   2009   2010   2009
    (Unaudited)   (Unaudited)   (Unaudited)        
Net sales
  $ 677,975     $ 523,500     $ 2,470,952     $ 2,098,355  
 
                               
Operating expenses:
                               
Cost of sales, excluding depreciation
    446,594       359,074       1,646,892       1,435,953  
Selling, general and administrative
    83,221       64,738       296,482       254,143  
Depreciation
    12,636       10,495       45,420       42,209  
 
                               
Total operating expenses
    542,451       434,307       1,988,794       1,732,305  
 
                               
 
                               
Operating income
    135,524       89,193       482,158       366,050  
Other expenses:
                               
Interest expense
    (16,981 )     (16,674 )     (67,522 )     (68,750 )
Other, net
    (3,529 )     (941 )     (8,386 )     (2,667 )
 
                               
Income before income taxes
    115,014       71,578       406,250       294,633  
Provision for income taxes
    33,775       19,694       122,318       88,863  
 
                               
Net income
  $ 81,239     $ 51,884     $ 283,932     $ 205,770  
 
                               
 
                               
Diluted earnings per share (a)
  $ 0.50     $ 0.32     $ 1.76     $ 1.27  
 
                               
 
                               
Basic earnings per share (a)
  $ 0.51     $ 0.32     $ 1.79     $ 1.28  
 
                               
 
                               
Weighted average common shares outstanding (a):
                               
Diluted shares
    161,455       162,564       160,884       161,775  
 
                               
Basic shares
    159,150       160,743       159,056       160,182  
 
                               
 
                               
Dividends per share (a)
  $ 0.06     $ 0.04     $ 0.18     $ 0.16  
 
                               

(a) Share and per share amounts have been adjusted to reflect a three-for-two stock split paid to stockholders on December 21, 2010.

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AMETEK, Inc.
Information by Business Segment
(In thousands)

                                 
    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
    2010   2009   2010   2009
    (Unaudited)   (Unaudited)   (Unaudited)        
Net sales:
                               
Electronic Instruments
  $ 377,839     $ 286,009     $ 1,324,113     $ 1,146,578  
Electromechanical
    300,136       237,491       1,146,839       951,777  
 
                               
Consolidated net sales
  $ 677,975     $ 523,500     $ 2,470,952     $ 2,098,355  
 
                               
 
                               
Income:
                               
Segment operating income:
                               
Electronic Instruments
  $ 90,394     $ 56,085     $ 316,184     $ 232,875  
Electromechanical
    58,922       40,682       210,397       166,582  
 
                               
Total segment operating income
    149,316       96,767       526,581       399,457  
Corporate administrative and other expenses
    (13,792 )     (7,574 )     (44,423 )     (33,407 )
 
                               
Consolidated operating income
  $ 135,524     $ 89,193     $ 482,158     $ 366,050  
 
                               

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AMETEK, Inc.
Condensed Consolidated Balance Sheet
(In thousands)

                 
    December 31,   December 31,
    2010   2009
 
  (Unaudited)        
ASSETS
               
Current assets:
               
Cash, cash equivalents and marketable securities
  $ 168,853     $ 251,350  
Receivables, net
    399,913       331,383  
Inventories
    335,253       311,542  
Other current assets
    77,214       75,155  
 
               
Total current assets
    981,233       969,430  
 
               
Property, plant and equipment, net
    318,126       310,053  
Goodwill
    1,573,645       1,277,291  
Other intangibles, investments and other assets
    951,235       689,258  
 
               
Total assets
  $ 3,824,239     $ 3,246,032  
 
               
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Short-term borrowings and current portion of long-term debt
  $ 97,152     $ 85,801  
Accounts payable and accruals
    456,651       338,481  
 
               
Total current liabilities
    553,803       424,282  
 
               
Long-term debt
    1,071,360       955,880  
Deferred income taxes and other long-term liabilities
    424,738       298,846  
Stockholders’ equity
    1,774,338       1,567,024  
 
               
Total liabilities and stockholders’ equity
  $ 3,824,239     $ 3,246,032  
 
               

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