EXHIBIT 99.1
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 FOURTH QUARTER AND FULL-YEAR RESULTS
—Fourth Quarter Sales Increase 21% and Net Income Increases 29%—
Paoli, PA, January 23, 2008 – AMETEK, Inc. (NYSE: AME) today announced fourth quarter and full-year results that established records for sales, operating income, net income and diluted earnings per share.
Fourth Quarter Results
AMETEK’s fourth quarter 2007 sales of $583.3 million were up 21% over the same period of 2006. Operating income for the fourth quarter of 2007 was $104.0 million, a 31% increase from the $79.3 million recorded in the same period of 2006. Net income in the fourth quarter of 2007 increased 29% to $61.9 million, or $.57 per diluted share, from the fourth quarter 2006 level of $47.8 million, or $.45 per diluted share.
Full-Year Results
AMETEK achieved 2007 sales of $2.14 billion, up 17% from full-year 2006 results. Operating income of $386.6 million was up 25% from $309.0 million for 2006. Net income grew to $228.0 million, up 25% from the $181.9 million earned in 2006, and diluted earnings per share of $2.12 were up 24% from $1.71 per share in 2006. Sales, operating income, net income and diluted earnings per share were full-year records.
“AMETEK had an excellent quarter, and another outstanding year,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. “Strong internal growth, combined with contributions from acquired businesses enabled us to grow our top-line by 21% for the quarter. Operating income margin was up 130 basis points, and diluted earnings per share were up 27% in the quarter, driven by our top-line growth and operational excellence improvements,” he commented.
Operating cash flow was very strong, totaling $96.6 million for the fourth quarter of 2007, up 48% from the fourth quarter of 2006. For the full year, operating cash flow was up 23% to $278.5 million.
Electronic Instruments Group (EIG)
For the 2007 fourth quarter, EIG sales increased 23% to $336.1 million. Operating income was $73.1 million, compared with $53.3 million in the fourth quarter of 2006, an increase of 37%. Operating margins for the quarter improved to 21.8%, from 19.5% in the fourth quarter of 2006.
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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
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“EIG had a tremendous fourth quarter. Sales were up on strong core growth driven by our aerospace, power, and process and analytic instrument businesses, together with the contributions from our Cameca, Advanced Industries, B&S Aircraft Parts and Precitech acquisitions. Operating margins expanded 230 basis points on broad-based improvements by our operating units,” said Mr. Hermance.
For the year, EIG sales of $1.20 billion were up 18% from 2006 sales of $1.02 billion. Operating income was $260.3 million for 2007, up 28%, versus $203.4 million earned in 2006.
Electromechanical Group (EMG)
For the fourth quarter of 2007, EMG sales were $247.1 million, a 19% increase over the same period of 2006. Operating income of $42.4 million was up 21% from the $35.0 million recorded in the same period of 2006. Operating margins for the quarter were 17.2%, up from 16.9% in the fourth quarter of 2006.
“EMG also had an excellent fourth quarter. Sales were up on strong core growth in our differentiated businesses and the contributions from the acquisitions of Southern Aeroparts, Seacon Phoenix, Hamilton Precision Metals and Umeco. Operating margins were up 30 basis points as a result of increased volume and our operational excellence initiatives,” commented Mr. Hermance.
For the year, EMG’s sales increased 17% to $937.1 million, compared with $802.8 million in 2006. Operating income was $167.2 million for 2007, up 19% from the $139.9 million earned in 2006.
2008 Outlook
“We expect 2008 to be another great year for AMETEK. Revenue is estimated to increase in the low double digits on a percentage basis,” commented Mr. Hermance. “Earnings are expected to be approximately $2.40 to $2.45 per diluted share, an increase of 13% to 16% over the 2007 level of $2.12 per diluted share.”
Mr. Hermance continued, “Our Operational Excellence capabilities, global customer base, exposure to long-cycle aerospace and power markets, and the full-year impact of acquisitions completed in 2007 should enable us to grow both the top and bottom lines and meet our earnings estimates, even as the U.S. economy slows.”
“First quarter 2008 sales are expected to be up in the high teens on a percentage basis from last year’s first quarter. We estimate our earnings to be approximately $0.56 to $0.58 per diluted share, an increase of 17% to 21% over last year’s first quarter of $0.48,” concluded Mr. Hermance.
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AMETEK ACHIEVES RECORD FOURTH QUARTER AND FULL-YEAR RESULTS
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Conference Call
AMETEK, Inc. will Web cast its Fourth Quarter 2007 investor conference call on Wednesday, January 23, 2008, 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 be archived atwww.ametek.com/investors.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2007 sales of more than $2.1 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.
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
(In thousands, except per share amounts)
Three months ended | Twelve months ended | |||||||||||||||
December31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||
Net sales | $ | 583,250 | $ | 480,674 | $ | 2,136,850 | $ | 1,819,290 | ||||||||
Expenses: | ||||||||||||||||
Cost of sales, excluding depreciation | 394,251 | 332,569 | 1,444,514 | 1,251,920 | ||||||||||||
Selling, general and administrative | 72,878 | 59,130 | 263,472 | 219,454 | ||||||||||||
Depreciation | 12,085 | 9,711 | 42,290 | 38,922 | ||||||||||||
Total expenses | 479,214 | 401,410 | 1,750,276 | 1,510,296 | ||||||||||||
Operating income | 104,036 | 79,264 | 386,574 | 308,994 | ||||||||||||
Other expenses: | ||||||||||||||||
Interest expense | (12,777 | ) | (10,616 | ) | (46,866 | ) | (42,167 | ) | ||||||||
Other, net | (736 | ) | (1,832 | ) | (3,264 | ) | (3,141 | ) | ||||||||
Income before income taxes | 90,523 | 66,816 | 336,444 | 263,686 | ||||||||||||
Provision for income taxes | 28,660 | 18,979 | 108,424 | 81,752 | ||||||||||||
Net income | $ | 61,863 | $ | 47,837 | $ | 228,020 | $ | 181,934 | ||||||||
Diluted earnings per share | $ | 0.57 | $ | 0.45 | $ | 2.12 | $ | 1.71 | ||||||||
Basic earnings per share | $ | 0.58 | $ | 0.46 | $ | 2.15 | $ | 1.74 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Diluted shares | 108,242 | 106,566 | 107,580 | 106,608 | ||||||||||||
Basic shares | 106,400 | 104,729 | 105,832 | 104,841 | ||||||||||||
Dividends per share | $ | 0.06 | $ | 0.06 | $ | 0.24 | $ | 0.18 | ||||||||
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AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(In thousands)
Three months ended | Twelve months ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Net sales | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
Electronic Instruments | $ | 336,105 | $ | 273,783 | $ | 1,199,757 | $ | 1,016,503 | ||||||||
Electromechanical | 247,145 | 206,891 | 937,093 | 802,787 | ||||||||||||
Total Consolidated | $ | 583,250 | $ | 480,674 | $ | 2,136,850 | $ | 1,819,290 | ||||||||
Operating income | ||||||||||||||||
Electronic Instruments | $ | 73,110 | $ | 53,319 | $ | 260,338 | $ | 203,430 | ||||||||
Electromechanical | 42,404 | 34,983 | 167,166 | 139,926 | ||||||||||||
Total segments | 115,514 | 88,302 | 427,504 | 343,356 | ||||||||||||
Corporate and other | (11,478 | ) | (9,038 | ) | (40,930 | ) | (34,362 | ) | ||||||||
Total Consolidated | $ | 104,036 | $ | 79,264 | $ | 386,574 | $ | 308,994 | ||||||||
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AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, | December 31, | |||||||
2007 | 2006 | |||||||
ASSETS | (Unaudited) | |||||||
Current assets: | ||||||||
Cash, cash equivalents | ||||||||
and marketable securities | $ | 180,981 | $ | 58,220 | ||||
Receivables, net | 395,631 | 328,762 | ||||||
Inventories | 301,679 | 236,783 | ||||||
Other current assets | 84,568 | 60,298 | ||||||
Total current assets | 962,859 | 684,063 | ||||||
Property, plant and equipment, net | 293,107 | 258,008 | ||||||
Goodwill | 1,047,451 | 881,433 | ||||||
Other intangibles, investments and other assets | 453,259 | 307,372 | ||||||
Total assets | $ | 2,756,676 | $ | 2,130,876 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term borrowings and current | ||||||||
portion of long-term debt | $ | 230,518 | $ | 163,608 | ||||
Accounts payable and accruals | 411,874 | 317,292 | ||||||
Total current liabilities | 642,392 | 480,900 | ||||||
Long-term debt | 672,437 | 518,267 | ||||||
Deferred income taxes and | ||||||||
other long-term liabilities | 200,842 | 165,037 | ||||||
Stockholders’ equity | 1,241,005 | 966,672 | ||||||
Total liabilities and stockholders’ equity | $ | 2,756,676 | $ | 2,130,876 | ||||
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