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AMETEK, Inc.$71.22$.26.37%

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 AMETEK Announces Strong Second Quarter 2017 Results
   Wednesday, August 02, 2017 6:55:00 AM ET

AMETEK, Inc. (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

View original content:http://www.prnewswire.com/news-releases/ametek-announces-strong-second-quarter-2017-results-30049787

SOURCE AMETEK, Inc.

https://rt.prnewswire.com/rt.gif?NewsItemId=PH55982&Transmission_Id=201708020655PR_NEWS_USPR_____PH55982&DateId=20170802



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