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AMETEK Announces Third Quarter 2016 Results

BERWYN, Pa., Nov. 1, 2016 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2016. 

AMETEK reported third quarter 2016 sales of $945.0 million, down 5% from last year's third quarter.  Operating income was $201.1 million and operating margins were 21.3% in the quarter.  Diluted earnings per share of $0.56 were down 14% from last year's third quarter.      

"I am pleased with our team's performance having delivered results that met our expectations in a challenging macro environment," said David A. Zapico, AMETEK Chief Executive Officer.  "Although prior year comparisons were impacted by weakness in oil and gas and metals markets, we are encouraged to see these markets begin to stabilize." 

Electronic Instruments Group (EIG)

In the third quarter of 2016, EIG sales were $579.3 million, down 3% from last year's third quarter.  Operating income was $142.7 million and operating margins were 24.6% in the quarter. 

"Sales in EIG benefited from the recent acquisitions of Brookfield, ESP/SurgeX, Nu Instruments and HS Foils.  This growth was offset in large part by weakness across our oil and gas businesses.  We are continuing to see solid growth across our Ultra Precision Technologies business," added Mr. Zapico. 

Electromechanical Group (EMG)

For the third quarter of 2016, EMG sales decreased 9% to $365.7 million.  Operating income was $71.4 million and operating margins were 19.5% in the quarter.

"Sales continue to be impacted by weakness across our Engineered Materials, Interconnects and Packaging businesses," noted Mr. Zapico.

2016 Outlook       

"We continue to expect 2016 sales to be down low-single digits with organic sales down mid-single digits on a percentage basis versus 2015.  We have tightened our earnings guidance range for 2016 to $2.29 to $2.31 per diluted share, leaving the mid-point of our previous guidance unchanged," adds Mr. Zapico. 

"Fourth quarter 2016 sales are expected to be down low-single digits on a percentage basis compared to last year's fourth quarter.  We estimate our earnings in the fourth quarter to be approximately $0.57 to $0.59 per diluted share," notes Mr. Zapico.  

"I am confident in our team's ability to manage through these market headwinds and am very excited about the long-term opportunity for AMETEK.  We remain focused on investing in our businesses for the long-term, deploying our strong cash flow on strategic acquisitions, and driving commercial and operational synergies across our businesses," concludes Mr. Zapico.

Conference Call

The Company will webcast its third quarter 2016 investor conference call on Tuesday, November 1, 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 electro-mechanical 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.

 

 

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)



 Three Months Ended 


 Nine Months Ended 


 September 30, 


 September 30, 


2016


2015


2016


2015

Net sales

$   945,030


$   998,527


$ 2,867,134


$ 2,986,312

Operating expenses:








     Cost of sales, excluding depreciation

612,702


631,790


1,839,642


1,901,680

     Selling, general and administrative

113,170


112,116


344,323


335,702

     Depreciation

18,042


17,006


54,494


50,044

          Total operating expenses 

743,914


760,912


2,238,459


2,287,426









Operating income 

201,116


237,615


628,675


698,886

Other expenses:








     Interest expense

(23,609)


(23,684)


(70,716)


(69,048)

     Other, net

(3,259)


(2,325)


(10,108)


(6,298)

Income before income taxes

174,248


211,606


547,851


623,540

Provision for income taxes

43,561


55,208


144,801


169,522









Net income

$   130,687


$   156,398


$   403,050


$   454,018









Diluted earnings per share

$         0.56


$         0.65


$         1.72


$         1.87

Basic earnings per share

$         0.56


$         0.65


$         1.73


$         1.89









Weighted average common shares outstanding:








     Diluted shares

232,721


241,238


234,576


242,552

     Basic shares

231,894


239,959


233,387


240,801









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, 


2016


2015


2016


2015

Net sales:








     Electronic Instruments

$   579,298


$   598,515


$ 1,744,246


$ 1,788,777

     Electromechanical

365,732


400,012


1,122,888


1,197,535

          Consolidated net sales

$   945,030


$   998,527


$ 2,867,134


$ 2,986,312









Income:








Segment operating income:








     Electronic Instruments

$   142,695


$   162,530


$   436,642


$   477,740

     Electromechanical

71,439


86,671


231,181


257,929

          Total segment operating income

214,134


249,201


667,823


735,669

     Corporate administrative and other expenses

(13,018)


(11,586)


(39,148)


(36,783)

          Consolidated operating income

$   201,116


$   237,615


$   628,675


$   698,886









 

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 September 30, 


 December 31, 


2016


2015


 (Unaudited) 



ASSETS




Current assets:




     Cash and cash equivalents

$     445,469


$     381,005

     Receivables, net

595,143


603,295

     Inventories, net

537,227


514,451

     Other current assets

119,051


120,076

          Total current assets

1,696,890


1,618,827





Property, plant and equipment, net

478,647


484,548

Goodwill

2,846,106


2,706,633

Other intangibles, investments and other assets

1,955,419


1,850,442

          Total assets

$  6,977,062


$  6,660,450





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




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

$     613,684


$     384,924

     Accounts payable and accruals

603,054


639,097

          Total current liabilities

1,216,738


1,024,021





Long-term debt, net

1,540,742


1,553,116

Deferred income taxes and other long-term liabilities

846,383


828,687

Stockholders' equity

3,373,199


3,254,626

          Total liabilities and stockholders' equity

$  6,977,062


$  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-third-quarter-2016-results-300354320.html

SOURCE AMETEK, Inc.