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8-K - LIVE FILING - AMETEK INC/htm_49197.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 29, 2014 – AMETEK, Inc. (NYSE: AME) today announced fourth quarter results that established records for sales, operating income, net income, diluted earnings per share and operating cash flow.

AMETEK’s fourth quarter 2013 sales of $942.5 million were up 12% over the same period of 2012. Operating income for the fourth quarter of 2013 was $210.5 million, an 11% increase from $190.0 million recorded in the same period of 2012. Operating margins were 22.3% in the quarter, as compared to 22.6% in last year’s quarter. Net income in the fourth quarter of 2013 increased 13% to $135.7 million from $119.9 million in last year’s fourth quarter. Diluted earnings per share increased 12% to $0.55 per diluted share from the fourth quarter 2012 level of $0.49 per diluted share.

“AMETEK had an excellent fourth quarter to complete another outstanding year in 2013. We established records for essentially all key financial metrics in the quarter. Core sales growth was strong, up 7% over last year’s fourth quarter, with broad based strength across our businesses. Our focus on Operational Excellence, coupled with the higher sales, resulted in record earnings for the quarter,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

“Cash flow was also very strong, with both the fourth quarter and full year results representing records. Operating cash flow was $210 million for the quarter and $661 million for the year,” continued Mr. Hermance.

For the full year, AMETEK achieved record levels of sales, operating income, operating margins, net income and diluted earnings per share. Full year sales were $3.6 billion, up 8% from 2012. Operating income in 2013 was $815.1 million, compared with $745.9 million last year, up 9%. Operating margins for 2013 of 22.7% were a 30 basis point improvement over 2012. Net income for the full year 2013 was $517.0 million, a 13% increase from the $459.1 million earned in 2012. Diluted earnings per share were $2.10 for 2013, up 12% from the $1.88 earned in 2012.

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AMETEK ANNOUNCES RECORD RESULTS
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Electronic Instruments Group (EIG)
For the 2013 fourth quarter, EIG sales increased 15% to $566.9 million. Operating income in the fourth quarter of 2013 increased 13% to $151.9 million, compared with $134.9 million in the fourth quarter of 2012. Operating margins were 26.8% in the quarter. Full year 2013 operating margins were 27.1%, a 60 basis point increase over 2012.

“EIG had a very strong fourth quarter. Excellent core growth in our Process businesses and the contributions from the recent acquisitions of Controls Southeast, Creaform and Powervar also contributed to the sales increase,” notes Mr. Hermance.

Electromechanical Group (EMG)
In the fourth quarter, EMG sales increased 8% to $375.6 million. Operating income in the fourth quarter of 2013 of $70.5 million was up 8%, compared with $65.2 million in the same period of 2012. Operating margins for the quarter were 18.8%, unchanged from last year’s fourth quarter.

“EMG had a good quarter with strong sales growth. Growth was broad based across our Differentiated businesses as well as in our Floorcare and Specialty Motors business,” adds Mr. Hermance.

2014 Outlook
“We expect our businesses overall to show solid growth in 2014 as economic conditions continue to modestly improve across our end markets. We expect to see balanced growth across our businesses during the year. AMETEK’s continued focus on our core strategies of operational excellence, global and market expansion, new product development and strategic acquisitions position us well in 2014 and beyond,” notes Mr. Hermance.

“We anticipate 2014 revenue to be up high single digits on a percentage basis from 2013. Earnings for 2014 are expected to be in the range of $2.30 to $2.35 per diluted share, up 10% to 12% over 2013, reflecting the leveraged impact of core growth, continued operational excellence initiatives, and the benefit of contributions from recent acquisitions,” adds Mr. Hermance.

“First quarter 2014 sales are expected to be up high single digits from last year’s first quarter. We estimate our earnings to be approximately $0.55 to $0.57 per diluted share, an increase of 8% to 12% over last year’s first quarter of $0.51 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 2013 investor conference call on Wednesday, January 29, 2014, 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 2013 sales of $3.6 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.

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,
    2013   2012           2013           2012
    (Unaudited)   (Unaudited)           (Unaudited)                
Net sales
  $ 942,468     $ 841,790             $ 3,594,136             $ 3,334,213  
 
                                               
Operating expenses:
                                                
Cost of sales, excluding depreciation
    609,845       544,642               2,323,642               2,154,132  
Selling, general and administrative
    106,688       93,829               398,177               380,532  
Depreciation
    15,390       13,365               57,238               53,677  
 
                                               
Total operating expenses
    731,923       651,836               2,779,057               2,588,341  
 
                                               
 
                                               
Operating income
    210,545       189,954               815,079               745,872  
Other expenses:
                                               
Interest expense
    (18,852 )     (18,834 )             (73,572 )             (75,472 )
Other, net
    (5,230 )     (319 )             (16,712 )             (7,925 )
 
                                               
Income before income taxes
    186,463       170,801               724,795               662,475  
Provision for income taxes
    50,795       50,903               207,796               203,343  
 
                                               
Net income
  $ 135,668     $ 119,898             $ 516,999             $ 459,132  
 
                                               
 
                                               
Diluted earnings per share
  $ 0.55     $ 0.49             $ 2.10             $ 1.88  
 
                                               
Basic earnings per share
  $ 0.55     $ 0.49             $ 2.12             $ 1.90  
 
                                               
 
                                               
Weighted average common shares outstanding:
                                               
Diluted shares
    246,816       245,286               246,065               243,986  
 
                                               
Basic shares
    244,659       242,559               243,915               241,512  
 
                                               
 
                                               
Dividends per share
  $ 0.06     $ 0.06             $ 0.24             $ 0.22  
 
                                               

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

                                                 
    Three Months Ended           Year Ended
    December 31,           December 31,
    2013   2012           2013           2012
    (Unaudited)   (Unaudited)           (Unaudited)                
Net sales:
                                                
Electronic Instruments
  $ 566,907     $ 494,547             $ 2,034,594             $ 1,872,557  
Electromechanical
    375,561       347,243               1,559,542               1,461,656  
 
                                               
Consolidated net sales
  $ 942,468     $ 841,790             $ 3,594,136             $ 3,334,213  
 
                                               
 
                                               
Income:
                                               
Segment operating income:
                                               
Electronic Instruments
  $ 151,855     $ 134,861             $ 552,110             $ 497,116  
Electromechanical
    70,528       65,244               309,402               292,205  
 
                                               
Total segment operating income
    222,383       200,105               861,512               789,321  
Corporate administrative and other expenses
    (11,838 )     (10,151 )             (46,433 )             (43,449 )
 
                                               
Consolidated operating income
  $ 210,545     $ 189,954             $ 815,079             $ 745,872  
 
                                               

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

                         
    December 31,           December 31,
    2013           2012
    (Unaudited)                
ASSETS
                         
Current assets:
                       
Cash and cash equivalents
  $ 295,203             $ 157,984  
Receivables, net
    536,701               507,850  
Inventories
    452,848               428,935  
Other current assets
    80,268               69,974  
 
                       
Total current assets
    1,365,020               1,164,743  
 
                       
Property, plant and equipment, net
    402,790               383,483  
Goodwill
    2,408,363               2,208,239  
Other intangibles, investments and other assets
    1,693,668               1,433,591  
 
                       
Total assets
  $ 5,869,841             $ 5,190,056  
 
                       
 
                       
LIABILITIES AND STOCKHOLDERS’ EQUITY
                       
Current liabilities:
                       
Short-term borrowings and current portion of long-term debt
  $ 273,315             $ 320,654  
Accounts payable and accruals
    583,554               559,315  
 
                       
Total current liabilities
    856,869               879,969  
 
                       
Long-term debt
    1,141,750               1,133,121  
Deferred income taxes and other long-term liabilities
    735,955               641,815  
Stockholders’ equity
    3,135,267               2,535,151  
 
                       
Total liabilities and stockholders’ equity
  $ 5,869,841             $ 5,190,056  
 
                       

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