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AMETEK Announces Record Third Quarter 2017 Results And Raises Full Year 2017 Guidance
-- Reports quarterly sales up 15% over prior period --
-- Achieves record diluted earnings per share of $0.66, up 18% over prior year --
-- Generates operating cash flow of $239 million, up 41% over prior period --

BERWYN, Pa., Nov. 2, 2017 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2017.

AMETEK's third quarter 2017 sales were a record $1.08 billion, an increase of 15% compared to the third quarter of 2016.  Operating income increased 16% to $232.8 million versus the prior year and operating margins were 21.5%, up 20 basis points compared to the same period last year. Diluted earnings per share were a record $0.66, an 18% increase compared to the third quarter of 2016. Orders were up 16% in the quarter. 

"AMETEK's businesses delivered another exceptional quarter with record-level performance," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Strong organic sales growth and contributions from recent acquisitions allowed us to achieve double-digit sales and earnings growth, exceeding our expectations for the quarter. As a result, we are again increasing our full year 2017 guidance."

"In addition to the excellent sales and earnings performance, AMETEK continues to generate strong cash flow reflecting the strength of our business model, with third quarter operating cash flow of $239 million, up 41% over the same period of 2016," added Mr. Zapico.

Electronic Instruments Group (EIG)

For the third quarter of 2017, EIG sales were a record $671.6 million, an increase of 16% from the third quarter of 2016. EIG operating income was $164.4 million, up 15% over the prior year, and operating margins were 24.5% in the quarter.

"EIG delivered outstanding performance in the third quarter, driven by strong, broad based organic sales growth and contributions from the recent acquisitions of Rauland and MOCON," commented Mr. Zapico. "Solid orders growth and improving trends in key markets continue to drive our positive expectations for the future."   

Electromechanical Group (EMG)

In the third quarter of 2017, EMG sales were $413.2 million, up 13% compared to the third quarter of 2016. EMG operating income increased 18% to $84.1 million and operating margins were strong at 20.3%, up 80 basis points from last year's third quarter.

"EMG performed exceptionally well in the third quarter.  Excellent organic sales growth and contributions from the recent acquisition of Laserage drove strong sales growth. Operating income margins increased sharply on higher sales and continued focus on Operational Excellence initiatives," noted Mr. Zapico.

2017 Outlook       

"We are very pleased with our results through the first nine months of the year. Our businesses continue to operate at a very high level through the execution of our Growth Strategies. Given our strong performance in the third quarter and our positive outlook for the fourth quarter, we are again increasing guidance for 2017," commented Mr. Zapico.  

"We now expect 2017 sales to increase approximately low-double digits on a percentage basis compared to 2016, with organic sales up mid-single digits. We are increasing our 2017 earnings guidance range to $2.57 to $2.58 per diluted share, up 12% over 2016 adjusted diluted earnings per share. This is an increase from our previous range of $2.46 to $2.52 per diluted share," he added.

"Fourth quarter 2017 sales are expected to be up low-double digits on a percentage basis compared to the same period last year. We estimate fourth quarter earnings to be approximately $0.66 to $0.67 per diluted share, up 14% to 16% compared to the fourth quarter 2016 adjusted diluted earnings per share," concluded Mr. Zapico.

Conference Call

AMETEK will webcast its third quarter 2017 investor conference call on Thursday, November 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.

Contact:
AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania 19312
kevin.coleman@ametek.com
Phone: 610.889.5247

 

(Financial Information Follows)

 

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)



 Three Months Ended


 Nine Months Ended


 September 30,


 September 30,


2017


2016


2017


2016

Net sales

$1,084,799


$   945,030


$3,157,085


$2,867,134

Operating expenses:








     Cost of sales

719,718


630,744


2,084,392


1,894,136

     Selling, general and administrative

132,250


113,170


387,179


344,323

          Total operating expenses

851,968


743,914


2,471,571


2,238,459









Operating income

232,831


201,116


685,514


628,675

Other expenses:








     Interest expense

(24,709)


(23,609)


(73,777)


(70,716)

     Other, net

(3,695)


(3,259)


(12,533)


(10,108)

Income before income taxes

204,427


174,248


599,204


547,851

Provision for income taxes

50,896


43,561


156,266


144,801









Net income

$   153,531


$   130,687


$   442,938


$   403,050









Diluted earnings per share

$        0.66


$        0.56


$        1.91


$        1.72

Basic earnings per share

$        0.67


$        0.56


$        1.93


$        1.73









Weighted average common shares outstanding:








     Diluted shares

232,253


232,721


231,615


234,576

     Basic shares

230,439


231,894


230,049


233,387









Dividends per share

$        0.09


$        0.09


$        0.27


$        0.27









 

 


AMETEK, Inc.


Information by Business Segment


(In thousands)


(Unaudited)





 Three Months Ended


 Nine Months Ended


 September 30,


 September 30,


2017


2016


2017


2016

Net sales:








     Electronic Instruments

$   671,606


$   579,298


$1,949,038


$1,744,246

     Electromechanical

413,193


365,732


1,208,047


1,122,888

          Consolidated net sales

$1,084,799


$   945,030


$3,157,085


$2,867,134









Income:








Segment operating income:








     Electronic Instruments

$   164,448


$   142,695


$   486,385


$   436,642

     Electromechanical

84,059


71,439


248,968


231,181

          Total segment operating income

248,507


214,134


735,353


667,823

     Corporate administrative and other expenses

(15,676)


(13,018)


(49,839)


(39,148)

          Consolidated operating income

$   232,831


$   201,116


$   685,514


$   628,675











 

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 September 30,


 December 31,


2017


2016


 (Unaudited)



ASSETS




Current assets:




     Cash and cash equivalents

$     736,415


$     717,259

     Receivables, net

640,815


592,326

     Inventories, net

546,876


492,104

     Other current assets

100,377


126,501

          Total current assets

2,024,483


1,928,190





Property, plant and equipment, net

494,973


473,230

Goodwill

3,138,742


2,818,950

Other intangibles, investments and other assets

2,125,103


1,880,304

          Total assets

$  7,783,301


$  7,100,674





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




     Short-term borrowings and current portion of long-term debt, net

$     509,567


$     278,921

     Accounts payable and accruals

760,774


645,520

          Total current liabilities

1,270,341


924,441





Long-term debt, net

1,920,879


2,062,644

Deferred income taxes and other long-term liabilities

825,926


857,076

Stockholders' equity

3,766,155


3,256,513

          Total liabilities and stockholders' equity

$  7,783,301


$  7,100,674





 

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SOURCE AMETEK, Inc.