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AMETEK Announces Second Quarter 2016 Results

BERWYN, Pa., Aug. 4, 2016 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2016. 

AMETEK reported second quarter 2016 sales of $977.7 million, down 3% from last year's second quarter.  Operating income was $219.0 million and operating margins were 22.4% in the quarter.  Diluted earnings per share declined 8% from last year's second quarter to $0.59 per diluted share.  

"Our second quarter results were in-line with our expectations despite further market weakness," notes David A. Zapico, AMETEK Chief Executive Officer.  "Our business teams continue to do a solid job managing through these challenging and uncertain market conditions."   

"Cash flow was strong, with operating cash flow of $189 million for the quarter, a 16% increase over the same period of 2015.  We continue to use our cash flow to support our acquisition strategy, having closed two acquisitions subsequent to the end of the quarter," says Mr. Zapico.

Electronic Instruments Group (EIG)

For the second quarter of 2016, EIG sales were $596.0 million, essentially flat with last year's second quarter.  Operating income was $152.1 million and operating margins were a strong 25.5%.

"Our Power & Industrial businesses had a good quarter, bolstered by contributions from the acquisitions of ESP/SurgeX and Brookfield Engineering Laboratories.  This growth was more than offset by softness in our Process businesses largely as a result of the weak market conditions in oil and gas," comments Mr. Zapico.

Electromechanical Group (EMG)

In the second quarter, EMG sales decreased 6% to $381.7 million.  Operating income was $80.3 million and operating margins were 21.0% in the quarter.

"EMG results were impacted by weakness within our Engineered Materials, Interconnects and Packaging businesses," adds Mr. Zapico.

2016 Outlook       

"The economic environment remains difficult to predict as customers remain cautious and capital projects are delayed.  We believe that our business has stabilized and the second half of the year will be similar to the first half," notes Mr. Zapico.

"We now expect 2016 sales to be down low-single digits with organic sales down mid-single digits on a percentage basis versus 2015, with earnings for 2016 in the range of $2.28 to $2.32 per diluted share," adds Mr. Zapico. 

"Third quarter 2016 sales are expected to be down mid-single digits on a percentage basis compared to last year's third quarter.  We estimate our earnings in the third quarter to be approximately $0.54 to $0.55 per diluted share," notes Mr. Zapico.  

"Despite these short-term market headwinds, I am very confident in our future growth opportunities given the high level of differentiation in our businesses, our strong operational capabilities, and our proven ability to deploy capital on strategic acquisitions.  Most importantly, I am confident in our team's ability to manage through these challenging times and execute on the long-term growth strategies that will continue to make AMETEK successful," concludes Mr. Zapico.  

Conference Call

The Company will webcast its Second Quarter 2016 investor conference call on Thursday, August 4, 2016 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 electromechanical devices with annual sales of $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 AMETEK's 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, 


2016


2015


2016


2015

Net sales

$   977,706


$1,003,726


$1,922,104


$1,987,785

Operating expenses:








     Cost of sales, excluding depreciation

621,584


633,925


1,226,940


1,269,890

     Selling, general and administrative

118,959


112,702


231,153


223,586

     Depreciation

18,127


16,780


36,452


33,038

          Total operating expenses 

758,670


763,407


1,494,545


1,526,514









Operating income 

219,036


240,319


427,559


461,271

Other expenses:








     Interest expense

(23,706)


(22,678)


(47,107)


(45,364)

     Other, net

(4,769)


(2,493)


(6,849)


(3,973)

Income before income taxes

190,561


215,148


373,603


411,934

Provision for income taxes

52,368


59,635


101,240


114,314









Net income

$   138,193


$   155,513


$   272,363


$   297,620









Diluted earnings per share

$        0.59


$        0.64


$        1.16


$        1.22

Basic earnings per share

$        0.59


$        0.64


$        1.16


$        1.23









Weighted average common shares outstanding:








     Diluted shares

234,790


243,621


235,503


243,209

     Basic shares

233,285


241,498


234,134


241,222









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, 


2016


2015


2016


2015

Net sales:








     Electronic Instruments

$   595,992


$   596,464


$1,164,948


$1,190,262

     Electromechanical

381,714


407,262


757,156


797,523

          Consolidated net sales

$   977,706


$1,003,726


$1,922,104


$1,987,785









Income:








Segment operating income:








     Electronic Instruments

$   152,115


$   163,993


$   293,947


$   315,210

     Electromechanical

80,316


89,294


159,742


171,258

          Total segment operating income

232,431


253,287


453,689


486,468

     Corporate administrative and other expenses

(13,395)


(12,968)


(26,130)


(25,197)

          Consolidated operating income

$   219,036


$   240,319


$   427,559


$   461,271

 

 


AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 June 30, 


 December 31, 


2016


2015


 (Unaudited) 



ASSETS




Current assets:




     Cash and cash equivalents

$     456,195


$     381,005

     Receivables, net

596,589


603,295

     Inventories, net

536,971


514,451

     Other current assets

117,867


120,076

          Total current assets

1,707,622


1,618,827





Property, plant and equipment, net

475,471


484,548

Goodwill

2,827,460


2,706,633

Other intangibles, investments and other assets

1,945,227


1,850,442

          Total assets

$  6,955,780


$  6,660,450





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




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

$     599,329


$     384,924

     Accounts payable and accruals

608,133


639,097

          Total current liabilities

1,207,462


1,024,021





Long-term debt, net

1,542,823


1,553,116

Deferred income taxes and other long-term liabilities

848,918


828,687

Stockholders' equity

3,356,577


3,254,626

          Total liabilities and stockholders' equity

$  6,955,780


$  6,660,450

 

Contact: Kevin Coleman +1 610-889-5247

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ametek-announces-second-quarter-2016-results-300308843.html

SOURCE AMETEK, Inc.