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8-K - LIVE FILING - AMETEK INC/htm_45610.htm

Exhibit 99.1

CORPORATE OFFICE
1100 Cassatt Road, Berwyn, PA 19312

Contact: Kevin C. Coleman (610) 889-5247

AMETEK ANNOUNCES RECORD RESULTS

—Diluted Earnings Per Share Up 21%—

—Increasing 2012 Earnings Estimate to $1.83 — $1.85 Per Diluted Share—

Berwyn, PA, July 24, 2012 – AMETEK, Inc. (NYSE: AME) today announced second quarter results that established records for orders, operating income, operating margins, net income and diluted earnings per share. In addition, backlog at June 30, 2012 exceeded $1 billion and was an all-time high.

All per share amounts in this press release reflect the impact of a 3-for-2 stock split paid on June 29, 2012.

AMETEK’s second quarter 2012 sales of $825.9 million were up 9% over the same period of 2011. Operating income for the second quarter of 2012 was $185.0 million, an 18% increase from the $157.0 million recorded in the same period of 2011. Operating margins improved 170 basis points to 22.4% in the second quarter of 2012. Net income increased 21% to $113.7 million, or $0.47 per diluted share, from the second quarter 2011 levels of $94.1 million, or $0.39 per diluted share.

“AMETEK performed well in the second quarter in a slowing global economic environment. Our Operational Excellence initiatives, contributions from acquired businesses, and the continued strength of our aerospace and oil and gas businesses allowed us to exceed our second quarter earnings expectations and raise our 2012 earnings guidance. We have and will continue to take appropriate actions to manage our costs while remaining an active acquirer,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

Electronic Instruments Group (EIG)
For the second quarter of 2012, EIG sales increased 11% to $452.1 million. Operating income was $117.7 million, compared with $101.5 million in the second quarter of 2011, a 16% increase. Operating margins for the quarter were 26.0%, up 110 basis points from 24.9% in last year’s second quarter.

“EIG performed well in the second quarter. Sales were up due to strength in our aerospace and oil and gas businesses, combined with contributions from the recently acquired O’Brien, TMC, EM Test, and Reichert Technologies businesses. Operating margins expanded 110 basis points to 26.0%, benefitting from our Operational Excellence initiatives,” said Mr. Hermance.

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AMETEK ANNOUNCES RECORD RESULTS
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Electromechanical Group (EMG)
For the second quarter of 2012, EMG sales increased 6% to $373.8 million. Operating income in the second quarter of 2012 of $78.8 million was up 14%, compared with $69.2 million in the same period of 2011. Operating margins were 21.1% in the second quarter of 2012, up 140 basis points from 19.7% in last year’s second quarter. Sales, operating income and operating margins were all at record levels in the quarter.

“EMG had a solid second quarter. Sales were up on core growth in our differentiated businesses and the contributions from the acquisitions of Avicenna Technology, Coining and Dunkermotoren, more than offsetting weakness in our cost-driven motor business. Operating margins were up 140 basis points in the quarter to a record 21.1% driven by our Operational Excellence initiatives,” commented Mr. Hermance.

2012 Outlook
“Our strong portfolio of businesses, record backlog, proven operational capabilities, and a successful focus on strategic acquisitions should enable us to perform well for the remainder of 2012 and beyond. We are increasing our earnings guidance for 2012 even though we expect the slowdown in the global economic environment to continue. We are responding with additional cost containment actions to ensure that we are properly positioned for the remainder of 2012 and into 2013. We will remain an active acquirer,” noted Mr. Hermance.

“We anticipate 2012 revenue to be up low double digits on a percentage basis from 2011 with organic growth of low to mid single digits on a percentage basis. Earnings for 2012 are expected to be in the range of $1.83 to $1.85 per diluted share, up 16% to 17% over 2011, reflecting the leveraged impact of core growth, the benefit from recent acquisitions and our operational initiatives. This is an increase from our previous guidance of $1.80 to $1.83 per diluted share that was given as part of our first quarter earnings release,” added Mr. Hermance.

“Third quarter sales are expected to be up low double digits on a percentage basis over last year’s third quarter. We estimate our earnings to be approximately $0.45 to $0.46 per diluted share, an increase of 13% to 15% over last year’s third quarter of $0.40 per diluted share,” concluded Mr. Hermance.

—MORE—

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AMETEK ANNOUNCES RECORD RESULTS
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Conference Call
The Company will webcast its Second Quarter 2012 investor conference call on Tuesday, July 24, 2012, 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 annualized 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.

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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,
    2012   2011           2012   2011
Net sales
  $ 825,898     $ 758,834             $ 1,653,050     $ 1,476,617  
 
                                       
Operating expenses:
                                        
Cost of sales, excluding depreciation
    531,753       499,956               1,068,036       972,760  
Selling, general and administrative
    95,646       89,685               190,682       171,177  
Depreciation
    13,521       12,238               26,578       23,705  
 
                                       
Total operating expenses
    640,920       601,879               1,285,296       1,167,642  
 
                                       
 
                                       
Operating income
    184,978       156,955               367,754       308,975  
Other expenses:
                                       
Interest expense
    (18,843 )     (17,339 )             (37,680 )     (34,489 )
Other, net
    (1,848 )     (2,381 )             (4,088 )     (3,866 )
 
                                       
Income before income taxes
    164,287       137,235               325,986       270,620  
Provision for income taxes
    50,600       43,091               102,149       86,041  
 
                                       
Net income
  $ 113,687     $ 94,144             $ 223,837     $ 184,579  
 
                                       
 
                                       
Diluted earnings per share
  $ 0.47     $ 0.39             $ 0.92     $ 0.76  
 
                                       
Basic earnings per share
  $ 0.47     $ 0.39             $ 0.93     $ 0.77  
 
                                       
 
                                       
Weighted average common shares outstanding:
                                       
Diluted shares
    243,121       243,322               243,214       243,300  
 
                                       
Basic shares
    241,168       240,609               240,677       240,100  
 
                                       
 
                                       
Dividends per share
  $ 0.06     $ 0.04             $ 0.10     $ 0.08  
 
                                       

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

                                         
    Three Months Ended           Six Months Ended
    June 30,           June 30,
    2012   2011           2012   2011
Net sales:
                                        
Electronic Instruments
  $ 452,128     $ 407,382             $ 920,936     $ 796,224  
Electromechanical
    373,770       351,452               732,114       680,393  
 
                                       
Consolidated net sales
  $ 825,898     $ 758,834             $ 1,653,050     $ 1,476,617  
 
                                       
 
                                       
Income:
                                       
Segment operating income:
                                       
Electronic Instruments
  $ 117,651     $ 101,481             $ 240,676     $ 201,441  
Electromechanical
    78,760       69,156               149,637       132,082  
 
                                       
Total segment operating income
    196,411       170,637               390,313       333,523  
Corporate administrative and other expenses
    (11,433 )     (13,682 )             (22,559 )     (24,548 )
 
                                       
Consolidated operating income
  $ 184,978     $ 156,955             $ 367,754     $ 308,975  
 
                                       

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

                                 
         June 30,                December 31,        
    2012           2011        
    (Unaudited)                        
ASSETS
                                              
Current assets:
                               
Cash, cash equivalents and marketable securities
  $ 168,472             $ 174,955          
Receivables, net
    482,799               438,245          
Inventories
    415,610               380,471          
Other current assets
    93,981               65,448          
 
                               
Total current assets
    1,160,862               1,059,119          
 
                               
Property, plant and equipment, net
    361,485               325,329          
Goodwill
    2,052,547               1,806,237          
Other intangibles, investments and other assets
    1,339,162               1,128,805          
 
                               
Total assets
  $ 4,914,056             $ 4,319,490          
 
                               
 
                               
LIABILITIES AND STOCKHOLDERS’ EQUITY
                               
Current liabilities:
                               
Short-term borrowings and current portion of long-term debt
  $ 388,708             $ 140,508          
Accounts payable and accruals
    507,672               488,367          
 
                               
Total current liabilities
    896,380               628,875          
 
                               
Long-term debt
    1,122,893               1,123,416          
Deferred income taxes and other long-term liabilities
    604,229               514,394          
Stockholders’ equity
    2,290,554               2,052,805          
 
                               
Total liabilities and stockholders’ equity
  $ 4,914,056             $ 4,319,490          
 
                               

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