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8-K - LIVE FILING - AMETEK INC/htm_46943.htm

Exhibit 99.1

CORPORATE OFFICE
1100 Cassatt Road, Berwyn, PA 19312

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

AMETEK ANNOUNCES RECORD RESULTS

Berwyn, PA, January 24, 2013 – 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.

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AMETEK ANNOUNCES RECORD RESULTS
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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.

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AMETEK ANNOUNCES RECORD RESULTS
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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.

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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           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  
 
                                               

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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  
 
                                               

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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  
 
                       

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