EXHIBIT 99 (a)
CORPORATE OFFICE
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801
Contact: William J. Burke (610) 889-5249
AMETEK ACHIEVES RECORD SECOND QUARTER RESULTS
—Sales Increase 15%, Net Income Increases 25%—
—Internal Growth of 7%, Raising Estimates—
Paoli, PA, July 19, 2007 – AMETEK, Inc. (NYSE: AME) today announced second quarter results that established records for sales, operating income, net income and diluted earnings per share.
AMETEK’s second quarter 2007 sales of $519.5 million were up 15% over the same period of 2006. Operating income for the second quarter of 2007 was $96.6 million, a 22% increase from the $79.1 million recorded in the same period of 2006. Net income in the second quarter of 2007 increased 25% to $58.0 million, or $.54 per diluted share, from the second quarter 2006 level of $46.5 million, or $.43 per diluted share.
“AMETEK had an outstanding quarter which exceeded our expectations,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. “Strong internal growth of 7%, combined with the contributions from acquired businesses enabled us to grow the top-line by 15%. Operating income margin was up 100 basis points and diluted earnings per share were up 26% as we translated the top-line growth into bottom-line performance,” he commented.
For the first half of 2007, AMETEK sales increased 17% to $1.02 billion from $874.5 million in the same period of 2006. Operating income totaled $186.5 million, a 24% increase from $149.9 million earned in the first half of last year. Net income for the first half of 2007 was $108.9 million, up 26% from $86.7 million in the same period of 2006. Diluted earnings per share were $1.02 for the first half of 2007, up 26% from $.81 per diluted share in the first half of 2006.
Electronic Instruments Group (EIG)
For the 2007 second quarter, EIG sales increased 15% to $281.7 million. Operating income was $62.2 million, compared with $50.4 million in the second quarter of 2006, an increase of 23%. Operating margins for the quarter improved dramatically to 22.1%, from 20.7% in the second quarter of 2006.
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AMETEK ACHIEVES RECORD SECOND QUARTER RESULTS
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“EIG had a great second quarter. Sales were up on excellent core growth driven by our process and analytical, power and aerospace businesses together with the contribution from the Land Instruments, Precitech, Advanced Industries and B&S Aircraft Parts acquisitions. Operating income was up 23%, benefiting from the top-line growth as well as from operational excellence improvements,” said Mr. Hermance.
Electromechanical Group (EMG)
For the second quarter of 2007, EMG sales were $237.8 million, a 15% increase over the same period of 2006. Operating income of $43.7 million was up 19% from the $36.8 million recorded in the same period of 2006. Operating margins for the quarter were 18.4%, up from 17.8% in the second quarter of 2006.
“EMG also had a great second quarter. Sales were up on solid core growth and the contributions from the acquisitions of PennEngineering Motion Technologies, Southern Aeroparts, Seacon Phoenix and Hamilton Precision Metals. Profitability was up nicely as a result of the increased volume and our operational excellence initiatives,” commented Mr. Hermance.
2007 Outlook
“Given current market conditions and our strong second quarter results, we are raising our earnings estimate for the year to approximately $2.01 to $2.05 per diluted share, an increase of 18% to 20% over the 2006 level of $1.71 per diluted share. Revenue is estimated to increase in the mid teens on a percentage basis over 2006,” commented Mr. Hermance.
“Our third quarter 2007 sales are expected to be up approximately 10% from last year’s third quarter. We expect third quarter earnings to be approximately $.50 to $.51 per diluted share, an increase of 11% to 13% over last year’s third quarter level of $.45 per diluted share,” concluded Mr. Hermance.
Conference Call
AMETEK, Inc. will Web cast its Second Quarter 2007 investor conference call on Thursday, July 19, 2007, beginning at 8:30 AM ET. The live audio Web cast will be available atwww.ametek.com/investors and atwww.streetevents.com. The call will also be archived atwww.ametek.com/investors.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2006 sales of $1.8 billion. AMETEK’s Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions & Alliances, 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 MidCap 400 Index and the Russell 1000 Index.
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AMETEK ACHIEVES RECORD SECOND QUARTER RESULTS
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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 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.
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(Financial Information Follows)
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AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(In thousands, except per share amounts)
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net sales | $ | 519,468 | $ | 450,585 | $ | 1,024,751 | $ | 874,452 | ||||||||
Expenses: | ||||||||||||||||
Cost of sales, excluding depreciation | 350,235 | 308,308 | 693,581 | 601,076 | ||||||||||||
Selling, general and administrative | 62,856 | 53,315 | 124,907 | 104,127 | ||||||||||||
Depreciation | 9,767 | 9,863 | 19,729 | 19,349 | ||||||||||||
Total expenses | 422,858 | 371,486 | 838,217 | 724,552 | ||||||||||||
Operating income | 96,610 | 79,099 | 186,534 | 149,900 | ||||||||||||
Other expenses: | ||||||||||||||||
Interest expense | (10,998 | ) | (10,301 | ) | (21,907 | ) | (20,389 | ) | ||||||||
Other, net | (1,537 | ) | (589 | ) | (2,104 | ) | (1,326 | ) | ||||||||
Income before income taxes | 84,075 | 68,209 | 162,523 | 128,185 | ||||||||||||
Provision for income taxes | 26,062 | 21,741 | 53,610 | 41,459 | ||||||||||||
Net income | $ | 58,013 | $ | 46,468 | $ | 108,913 | $ | 86,726 | ||||||||
Diluted earnings per share | $ | 0.54 | $ | 0.43 | $ | 1.02 | $ | 0.81 | ||||||||
Basic earnings per share | $ | 0.55 | $ | 0.44 | $ | 1.03 | $ | 0.83 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Diluted shares | 107,433 | 106,849 | 107,157 | 106,767 | ||||||||||||
Basic shares | 105,665 | 105,128 | 105,395 | 104,983 | ||||||||||||
Dividends per share | $ | 0.06 | $ | 0.04 | $ | 0.12 | $ | 0.08 | ||||||||
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AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(In thousands)
Three months ended | Six months ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net sales | ||||||||||||||||
Electronic Instruments | $ | 281,713 | $ | 244,031 | $ | 564,646 | $ | 480,470 | ||||||||
Electromechanical | 237,755 | 206,554 | 460,105 | 393,982 | ||||||||||||
Total Consolidated | $ | 519,468 | $ | 450,585 | $ | 1,024,751 | $ | 874,452 | ||||||||
Operating income | ||||||||||||||||
Electronic Instruments | $ | 62,157 | $ | 50,399 | $ | 124,358 | $ | 98,111 | ||||||||
Electromechanical | 43,711 | 36,752 | 81,717 | 68,704 | ||||||||||||
Total segments | 105,868 | 87,151 | 206,075 | 166,815 | ||||||||||||
Corporate and other | (9,258 | ) | (8,052 | ) | (19,541 | ) | (16,915 | ) | ||||||||
Total Consolidated | $ | 96,610 | $ | 79,099 | $ | 186,534 | $ | 149,900 | ||||||||
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AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
June 30, | December 31, | |||||||
2007 | 2006 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash, cash equivalents | ||||||||
and marketable securities | $ | 86,690 | $ | 58,220 | ||||
Receivables, net | 367,322 | 328,762 | ||||||
Inventories | 265,469 | 236,783 | ||||||
Other current assets | 58,073 | 60,298 | ||||||
Total current assets | 777,554 | 684,063 | ||||||
Property, plant and equipment, net | 266,179 | 258,008 | ||||||
Goodwill | 921,686 | 881,433 | ||||||
Other intangibles, investments and other assets | 359,225 | 307,372 | ||||||
Total assets | $ | 2,324,644 | $ | 2,130,876 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings and current | ||||||||
portion of long-term debt | $ | 184,498 | $ | 163,608 | ||||
Accounts payable and accruals | 346,659 | 317,292 | ||||||
Total current liabilities | 531,157 | 480,900 | ||||||
Long-term debt | 526,057 | 518,267 | ||||||
Deferred income taxes and | ||||||||
other long-term liabilities | 183,155 | 165,037 | ||||||
Stockholders’ equity | 1,084,275 | 966,672 | ||||||
Total liabilities and stockholders’ equity | $ | 2,324,644 | $ | 2,130,876 | ||||
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