CORPORATE OFFICE 1100 Cassatt Road, Berwyn, PA 19312
Contact: William J. Burke (610) 889-5249
AMETEK ANNOUNCES RECORD RESULTS
Berwyn, PA, January 27, 2011 – AMETEK, Inc. (NYSE: AME) today announced fourth quarter results that established quarterly records for orders, sales, operating income, diluted earnings per share and operating cash flow. In addition, backlog at December 31, 2010 was $829 million – an all-time high.
All per share amounts in this press release reflect the impact of a 3-for-2 stock split paid on December 21, 2010.
AMETEK’s fourth quarter 2010 sales of $678.0 million were up 30% over the same period of 2009. Operating income was $135.5 million in the fourth quarter of 2010, compared with $89.2 million in the same period of 2009. Operating income margin in the quarter of 20.0% was a 300 basis point improvement over the fourth quarter of 2009. Net income in the fourth quarter of 2010 increased 57% to $81.2 million, from $51.9 million in last year’s fourth quarter. Diluted earnings per share on a post-split basis increased 56% to $0.50 per diluted share, from the fourth quarter 2009 level of $0.32 per diluted share.
“AMETEK had a tremendous fourth quarter to complete an outstanding 2010. Orders were up 25% to a record $720.8 million in the quarter with broad based strength evident in most of our markets. Sales were up 30% on the strength of the order input and the contributions from the acquisitions completed this year. Our focus on Operational Excellence, coupled with the higher sales, resulted in record earnings and cash flow for the quarter,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
“Cash flow was superb, with both the fourth quarter and the full year results representing records. Operating cash flow was $128 million for the quarter and $423 million for the year, up 18% and 16% respectively, compared to the same periods in 2009,” continued Mr. Hermance.
For the full year 2010, AMETEK achieved sales of $2.47 billion, up 18% from 2009. Operating income in 2010 was $482.2 million compared with $366.1 million last year, up 32%. Operating income margin for 2010 of 19.5% was a 210 basis point improvement over 2009. Net income for the full year 2010 was $283.9 million, up 38% from the $205.8 million earned in 2009. Diluted earnings per share on a post-split basis were $1.76 for 2010, up 39% from the $1.27 earned in 2009. Operating income, operating margins, net income and diluted earnings per share were all full-year records for the Company.
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AMETEK ANNOUNCES RECORD RESULTS Page 2
Electronic Instruments Group (EIG) For the 2010 fourth quarter, EIG sales increased 32% to $377.8 million. Operating income in the fourth quarter of 2010 increased 61% to $90.4 million, compared with $56.1 million in the fourth quarter of 2009. For the fourth quarter of 2010, operating margins were 23.9%, up 430 basis points from 19.6% in last year’s fourth quarter.
“EIG had a tremendous fourth quarter. Excellent core growth resulted from the continuing strength in our Process, Power and Industrial businesses. As expected, our oil and gas businesses showed sizable improvement. The recent Atlas Materials Testing Technology acquisition also contributed to the revenue increase. This higher revenue, coupled with a streamlined cost structure, enabled us to significantly expand operating margins,” said Mr. Hermance.
Electromechanical Group (EMG) For the 2010 fourth quarter, EMG sales increased 26% to $300.1 million. Operating income in the fourth quarter of 2010 increased 45% to $58.9 million, compared with $40.7 million in the fourth quarter of 2009. For the fourth quarter of 2010, operating margins were 19.6%, up 250 basis points from 17.1% in last year’s fourth quarter.
“EMG also had an excellent fourth quarter. Strong core growth in our differentiated businesses and the contributions from the acquisitions of Haydon Enterprises, Technical Services for Electronics and Ameron drove the top line increase. Operating margins were up nicely on the higher revenues and our lowered cost structure,” commented Mr. Hermance.
2011 Outlook “We expect our businesses to continue to show solid growth in 2011, with our longer cycle oil and gas, power and aerospace business showing particular strength. Our record backlog, strong portfolio of businesses, proven operational capabilities, and a successful focus on strategic acquisitions should enable us to perform well in 2011,” noted Mr. Hermance.
“We anticipate 2011 revenue to be up low double digits on a percentage basis from 2010. Earnings for 2011 are expected to be in the range of $2.00 to $2.07 per diluted share on a post-split basis, up 14% to 18% over 2010, reflecting the leveraged impact of core growth and our streamlined cost structure,” added Mr. Hermance.
“First quarter 2011 sales are expected to be up high teens on a percentage basis from last year’s first quarter. We estimate our earnings to be approximately $0.46 to $0.48 per diluted share on a post-split basis, an increase of 28% to 33% over last year’s first quarter of $0.36,” concluded Mr. Hermance.
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AMETEK ANNOUNCES RECORD RESULTS Page 3
Conference Call The Company will Web cast its Fourth Quarter 2010 investor conference call on Thursday, January 27, 2011, beginning at 8:30 AM ET. The live audio Web cast will be available at the Investors section ofwww.ametek.com and atwww.streetevents.com. The call will also be archived at the Investors section ofwww.ametek.com.
Corporate Profile AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with annualized sales of $2.7 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 and the Russell 1000 Indices.
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)
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AMETEK, Inc. Consolidated Statement of Income (In thousands, except per share amounts)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2010
2009
2010
2009
(Unaudited)
(Unaudited)
(Unaudited)
Net sales
$
677,975
$
523,500
$
2,470,952
$
2,098,355
Operating expenses:
Cost of sales, excluding depreciation
446,594
359,074
1,646,892
1,435,953
Selling, general and administrative
83,221
64,738
296,482
254,143
Depreciation
12,636
10,495
45,420
42,209
Total operating expenses
542,451
434,307
1,988,794
1,732,305
Operating income
135,524
89,193
482,158
366,050
Other expenses:
Interest expense
(16,981
)
(16,674
)
(67,522
)
(68,750
)
Other, net
(3,529
)
(941
)
(8,386
)
(2,667
)
Income before income taxes
115,014
71,578
406,250
294,633
Provision for income taxes
33,775
19,694
122,318
88,863
Net income
$
81,239
$
51,884
$
283,932
$
205,770
Diluted earnings per share (a)
$
0.50
$
0.32
$
1.76
$
1.27
Basic earnings per share (a)
$
0.51
$
0.32
$
1.79
$
1.28
Weighted average common shares outstanding (a):
Diluted shares
161,455
162,564
160,884
161,775
Basic shares
159,150
160,743
159,056
160,182
Dividends per share (a)
$
0.06
$
0.04
$
0.18
$
0.16
(a) Share and per share amounts have been adjusted to reflect a three-for-two stock split paid to stockholders on December 21, 2010.
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AMETEK, Inc. Information by Business Segment (In thousands)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2010
2009
2010
2009
(Unaudited)
(Unaudited)
(Unaudited)
Net sales:
Electronic Instruments
$
377,839
$
286,009
$
1,324,113
$
1,146,578
Electromechanical
300,136
237,491
1,146,839
951,777
Consolidated net sales
$
677,975
$
523,500
$
2,470,952
$
2,098,355
Income:
Segment operating income:
Electronic Instruments
$
90,394
$
56,085
$
316,184
$
232,875
Electromechanical
58,922
40,682
210,397
166,582
Total segment operating income
149,316
96,767
526,581
399,457
Corporate administrative and other expenses
(13,792
)
(7,574
)
(44,423
)
(33,407
)
Consolidated operating income
$
135,524
$
89,193
$
482,158
$
366,050
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AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands)
December 31,
December 31,
2010
2009
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable securities
$
168,853
$
251,350
Receivables, net
399,913
331,383
Inventories
335,253
311,542
Other current assets
77,214
75,155
Total current assets
981,233
969,430
Property, plant and equipment, net
318,126
310,053
Goodwill
1,573,645
1,277,291
Other intangibles, investments and other assets
951,235
689,258
Total assets
$
3,824,239
$
3,246,032
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
97,152
$
85,801
Accounts payable and accruals
456,651
338,481
Total current liabilities
553,803
424,282
Long-term debt
1,071,360
955,880
Deferred income taxes and other long-term liabilities
424,738
298,846
Stockholders’ equity
1,774,338
1,567,024
Total liabilities and stockholders’ equity
$
3,824,239
$
3,246,032
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