Welcome!

News Feed Item

AMETEK Announces Record Second Quarter 2014 Results and Raises Full Year Guidance

BERWYN, Pa., Aug. 5, 2014 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced second quarter results that established records for orders, sales, operating income, operating margins, net income and diluted earnings per share.  In addition, backlog at June 30, 2014 of $1.25 billion was an all-time high.   

AMETEK's second quarter 2014 sales of $990.7 million were up 13% over the same period of 2013.  Operating income for the second quarter of 2014 was $231.7 million, a 14% increase from the $202.6 million recorded in the same period of 2013.  Operating margins improved 30 basis points to 23.4%.  Net income increased 17% to $150.1 million, from $128.3 million in last year's second quarter.  Diluted earnings per share increased 17% to $0.61 per diluted share from the second quarter 2013 level of $0.52 per diluted share.    

"AMETEK achieved excellent results in the second quarter, delivering record operating performance.  Strong organic growth, Operational Excellence initiatives, and contributions from acquired businesses allowed us to exceed our second quarter earnings expectations and raise our 2014 earnings guidance.  In addition, we closed the acquisition of Zygo in the quarter," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

"Cash flow was also very strong, with operating cash flow totaling $155.1 million for the quarter, an increase of 21% over the same period of 2013," continued Mr. Hermance.

For the six months ended June 30, 2014, AMETEK sales increased 12% to $1.97 billion from $1.76 billion in the same period of 2013.  Operating income increased 13% to $453.4 million, from $399.8 million earned in the first six months of 2013.  Net income for the first six months of 2014 was $290.6 million, up 15% from $253.5 million in the same period of 2013.  Diluted earnings per share were $1.18 for the first six months of 2014, up 15% from $1.03 per diluted share in the first six months of 2013. 

Electronic Instruments Group (EIG)

For the second quarter of 2014, EIG sales increased 19% to $573.3 million.  Operating income was $151.5 million in the quarter, compared with $129.6 million in the second quarter of 2013, a 17% increase.  Operating margins for the quarter were very strong at 26.4%.    

"EIG had an excellent second quarter.  Strong core growth in our Aerospace, Process, and Power & Industrial businesses combined with the contributions from recent acquisitions drove the strong overall sales growth," said Mr. Hermance.

Electromechanical Group (EMG)

In the second quarter of 2014, EMG sales increased 6% to $417.4 million.  Operating income in the second quarter was up 10% to $92.1 million, compared with $83.4 million in the same period of 2013.  Operating margins were a record 22.1% in the second quarter of 2014, up 100 basis points from last year's second quarter.  

"EMG also had a great second quarter with strong sales growth and excellent operating performance.  Operating margins were up nicely driven by the higher sales and our Operational Excellence initiatives," commented Mr. Hermance.

2014 Outlook

"We are very pleased with our strong performance in the second quarter.  We are increasing our earnings guidance for the full year to reflect these strong results, the benefit of the Zygo acquisition and our expectations for the balance of the year," notes Mr. Hermance.

"We now anticipate 2014 revenue to be up low double digits on a percentage basis from 2013 reflecting solid core growth and the contributions from recent acquisitions.  Earnings for 2014 are now expected to be in the range of $2.37 to $2.42 per diluted share, up 13% to 15% over 2013, excluding one-time Zygo integration costs.  This earnings guidance is an increase from our previous guidance of $2.32 to $2.37 per diluted share that was provided in our first quarter earnings release," added Mr. Hermance.

"Third quarter sales are expected to be up mid-teens on a percentage basis over last year's third quarter.  We estimate our earnings to be approximately $0.59 to $0.61 per diluted share, excluding the one-time Zygo integration costs.  This earnings guidance represents an increase of 13% to 17% over last year's third quarter of $0.52 per diluted share," concluded Mr. Hermance.

Conference Call

The Company will webcast its Second Quarter 2014 investor conference call on Tuesday, August 5, 2014, 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 2013 sales of $3.6 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 our ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; our 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, 


2014


2013


2014


2013

Net sales

$   990,718


$   878,809


$1,966,010


$1,761,662

Operating expenses:








     Cost of sales, excluding depreciation

630,645


567,598


1,255,815


1,141,672

     Selling, general and administrative

113,316


94,912


225,941


192,520

     Depreciation

15,029


13,686


30,895


27,622

          Total operating expenses 

758,990


676,196


1,512,651


1,361,814









Operating income 

231,728


202,613


453,359


399,848

Other expenses:








     Interest expense

(18,981)


(18,154)


(37,819)


(36,477)

     Other, net

(4,326)


(2,667)


(8,203)


(5,191)

Income before income taxes

208,421


181,792


407,337


358,180

Provision for income taxes

58,358


53,471


116,688


104,713









Net income

$   150,063


$   128,321


$   290,649


$   253,467









Diluted earnings per share

$        0.61


$        0.52


$        1.18


$        1.03

Basic earnings per share

$        0.61


$        0.53


$        1.19


$        1.04









Weighted average common shares outstanding:








     Diluted shares

247,403


246,104


247,316


245,757

     Basic shares

245,201


243,666


245,056


243,475









Dividends per share

$        0.09


$        0.06


$        0.15


$        0.12

 

 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



 Three Months Ended 


 Six Months Ended 


 June 30, 


 June 30, 


2014


2013


2014


2013

Net sales:








     Electronic Instruments

$   573,289


$   483,339


$1,145,683


$   967,840

     Electromechanical

417,429


395,470


820,327


793,822

          Consolidated net sales

$   990,718


$   878,809


$1,966,010


$1,761,662









Income:








Segment operating income:








     Electronic Instruments

$   151,499


$   129,575


$   301,818


$   261,321

     Electromechanical

92,133


83,395


176,013


161,394

          Total segment operating income

243,632


212,970


477,831


422,715

     Corporate administrative and other expenses

(11,904)


(10,357)


(24,472)


(22,867)

          Consolidated operating income

$   231,728


$   202,613


$   453,359


$   399,848

 

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 June 30, 


 December 31, 


2014


2013


 (Unaudited) 



ASSETS




Current assets:




     Cash and cash equivalents

$     282,771


$     295,203

     Receivables, net

594,151


536,701

     Inventories

538,287


452,848

     Other current assets

115,461


84,377

          Total current assets

1,530,670


1,369,129





Property, plant and equipment, net

459,187


402,790

Goodwill

2,610,381


2,408,363

Other intangibles, investments and other assets

1,884,765


1,697,620

          Total assets

$  6,485,003


$  5,877,902





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




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

$     454,418


$     273,315

     Accounts payable and accruals

667,407


601,230

          Total current liabilities

1,121,825


874,545





Long-term debt

1,148,248


1,141,750

Deferred income taxes and other long-term liabilities

793,012


725,486

Stockholders' equity

3,421,918


3,136,121

          Total liabilities and stockholders' equity

$  6,485,003


$  5,877,902

 

Contact: Kevin C. Coleman (610) 889-5247

SOURCE AMETEK, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
VeriStor Systems has announced that CRN has named VeriStor to its 2017 Managed Service Provider (MSP) 500 list in the Elite 150 category. This annual list recognizes North American solution providers with cutting-edge approaches to delivering managed services. Their offerings help companies navigate the complex and ever-changing landscape of IT, improve operational efficiencies, and maximize their return on IT investments. In today’s fast-paced business environments, MSPs play an important role...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Have you ever noticed how some IT people seem to lead successful, rewarding, and satisfying lives and careers, while others struggle? IT author and speaker Don Crawley uncovered the five principles that successful IT people use to build satisfying lives and careers and he shares them in this fast-paced, thought-provoking webinar. You'll learn the importance of striking a balance with technical skills and people skills, challenge your pre-existing ideas about IT customer service, and gain new in...
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...