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News Release

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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., Aug. 2, 2017 /PRNewswire/ -- 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."

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.

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)

 

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









 

 

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











 

 

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

 

 

Contact: Kevin Coleman 610-889-5247

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SOURCE AMETEK, Inc.