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8-K - LIVE FILING - AMETEK INC/htm_55218.htm

Exhibit 99.1

Contact: Kevin Coleman 610-889-5247

AMETEK ANNOUNCES STRONG SECOND QUARTER 2017 RESULTS
— Reports quarterly sales up 9% from prior period —
— Achieves diluted earnings per share of $0.65, up 10% over prior year —
— Increases 2017 earnings estimate to $2.46 — $2.52 per diluted share —

BERWYN, PA, AUGUST 2, 2017 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2017.

AMETEK reported second quarter 2017 sales of $1.06 billion, a 9% increase compared to the second quarter of 2016. Operating income increased 6% to $232.4 million versus the prior year and operating margins were 21.8% in the quarter. Diluted earnings per share increased 10% to $0.65 from the second quarter of 2016. Orders were up 20% in the quarter.

“AMETEK’s financial results in the second quarter were outstanding,” said David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Strong sales growth combined with superb operating performance drove double digit earnings growth and excellent cash flow generation. Given these results and our positive outlook for the balance of the year, we are again increasing our full year 2017 guidance.”

Electronic Instruments Group (EIG)
For the second quarter of 2017, EIG sales were $657.7 million, up 10% from the second quarter of 2016. EIG operating income was $165.2 million and operating margins were 25.1% in the quarter.

“EIG had a great quarter with excellent sales and operating performance. Sales were up nicely on solid organic growth and the contributions from the acquisitions of Nu Instruments, HS Foils and Rauland,” commented Mr. Zapico. “We continue to see broad based sales growth across our EIG businesses and our encouraged by the strong orders performance in the first half of the year.”

(Continued)

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AMETEK ANNOUNCES STRONG SECOND QUARTER 2017 RESULTS
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Electromechanical Group (EMG)
In the second quarter of 2017, EMG sales were $406.9 million, up 7% compared to the second quarter of 2016. EMG operating income was $85.6 million and operating margins were a very strong 21.0% in the quarter.

“EMG also had a great quarter with outstanding sales and orders growth. Sales were up driven by solid organic growth across all businesses and the contribution from the acquisition of Laserage,” noted Mr. Zapico.

2017 Outlook
“We are very encouraged by the excellent first half results. Sales and order growth has been strong and broad based. We are executing very well and generating strong cash flow, which we will continue to invest back into our businesses and on strategic acquisitions. While our performance reflects, in part, improving macro-economic conditions, it also highlights the underlying quality of our businesses and the strength of our Growth Strategies,” commented Mr. Zapico.

“As a result of the second quarter performance, we are increasing our sales and earnings guidance for the full year. We now anticipate 2017 sales to increase high-single digits on a percentage basis, with organic sales up low to mid-single digits. We are increasing our 2017 earnings guidance range to $2.46 to $2.52 per diluted share, up 7% to 10% over 2016 adjusted diluted earnings per share. This is an increase from our previous range of $2.40 to $2.48 per diluted share,” he added.

“For the third quarter, we anticipate sales will increase approximately 10% compared to the same period last year. We expect our earnings to be approximately $0.60 to $0.62 per diluted share, up 7% to 11% versus the third quarter of 2016,” concluded Mr. Zapico.

Conference Call
AMETEK will webcast its second quarter 2017 investor conference call on Wednesday, August 2, 2017, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

(Continued)

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AMETEK ANNOUNCES STRONG SECOND QUARTER 2017 RESULTS
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Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annual sales of approximately $4.0 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 AMETEK’s ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; AMETEK’s 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)

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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,
    2017   2016           2017   2016
Net sales
  $ 1,064,604     $ 977,706             $ 2,072,286     $ 1,922,104  
 
                                       
Operating expenses:
                                        
Cost of sales
    699,739       639,711               1,364,674       1,263,392  
Selling, general and administrative
    132,480       118,959               254,929       231,153  
 
                                       
Total operating expenses
    832,219       758,670               1,619,603       1,494,545  
 
                                       
 
                                       
Operating income
    232,385       219,036               452,683       427,559  
Other expenses:
                                       
Interest expense
    (24,552 )     (23,706 )             (49,068 )     (47,107 )
Other, net
    (4,478 )     (4,769 )             (8,838 )     (6,849 )
 
                                       
Income before income taxes
    203,355       190,561               394,777       373,603  
Provision for income taxes
    52,874       52,368               105,370       101,240  
 
                                       
Net income
  $ 150,481     $ 138,193             $ 289,407     $ 272,363  
 
                                       
 
                                       
Diluted earnings per share
  $ 0.65     $ 0.59             $ 1.25     $ 1.16  
 
                                       
Basic earnings per share
  $ 0.65     $ 0.59             $ 1.26     $ 1.16  
 
                                       
 
                                       
Weighted average common shares outstanding:
                                       
Diluted shares
    231,588       234,790               231,296       235,503  
 
                                       
Basic shares
    230,158       233,285               229,853       234,134  
 
                                       
 
                                       
Dividends per share
  $ 0.09     $ 0.09             $ 0.18     $ 0.18  
 
                                       

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

                                 
    Three Months Ended   Six Months Ended
    June 30,   June 30,
    2017   2016   2017   2016
Net sales:
                               
Electronic Instruments
  $ 657,663     $ 595,992     $ 1,277,432     $ 1,164,948  
Electromechanical
    406,941       381,714       794,854       757,156  
 
                               
Consolidated net sales
  $ 1,064,604     $ 977,706     $ 2,072,286     $ 1,922,104  
 
                               
 
                               
Income:
                               
Segment operating income:
                               
Electronic Instruments
  $ 165,216     $ 152,115     $ 321,937     $ 293,947  
Electromechanical
    85,559       80,316       164,909       159,742  
 
                               
Total segment operating income
    250,775       232,431       486,846       453,689  
Corporate administrative and other expenses
    (18,390 )     (13,395 )     (34,163 )     (26,130 )
 
                               
Consolidated operating income
  $ 232,385     $ 219,036     $ 452,683     $ 427,559  
 
                               

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

                 
    June 30,   December 31,
    2017   2016
    (Unaudited)        
ASSETS
               
Current assets:
               
Cash and cash equivalents
  $ 516,483     $ 717,259  
Receivables, net
    642,263       592,326  
Inventories, net
    541,213       492,104  
Other current assets
    89,314       126,501  
 
               
Total current assets
    1,789,273       1,928,190  
 
               
Property, plant and equipment, net
    492,507       473,230  
Goodwill
    3,117,129       2,818,950  
Other intangibles, investments and other assets
    2,136,104       1,880,304  
 
               
Total assets
  $ 7,535,013     $ 7,100,674  
 
               
 
               
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
Current liabilities:
               
Short-term borrowings and current portion of long-term debt, net
  $ 272,550     $ 278,921  
Accounts payable and accruals
    722,596       645,520  
 
               
Total current liabilities
    995,146       924,441  
 
               
Long-term debt, net
    2,128,838       2,062,644  
Deferred income taxes and other long-term liabilities
    818,833       857,076  
Stockholders’ equity
    3,592,196       3,256,513  
 
               
Total liabilities and stockholders’ equity
  $ 7,535,013     $ 7,100,674  
 
               

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