CORPORATE OFFICE 1100 Cassatt Road, Berwyn, PA 19312
Contact: William J. Burke (610) 889-5249
AMETEK ANNOUNCES RECORD RESULTS
—Increasing 2011 Earnings Estimate to $2.30 — $2.34 Per Diluted Share—
Berwyn, PA, July 26, 2011 – AMETEK, Inc. (NYSE: AME) today announced second quarter results that established quarterly records for sales, operating income, net income and diluted earnings per share. In addition, backlog at June 30, 2011 was $948 million – an all time high.
AMETEK’s second quarter 2011 sales of $758.8 million were up 28% over the $591.9 million reported in the second quarter of 2010. Operating income for the second quarter of 2011 was $157.0 million, a 36% increase from $115.6 million recorded in the same period of 2010. Operating margins improved 120 basis points to 20.7% in the second quarter of 2011. Net income in the second quarter of 2011 increased 40% to $94.1 million, or $0.58 per diluted share, from the second quarter 2010 level of $67.4 million, or $0.42 per diluted share.
“AMETEK had a great second quarter. Orders were up 24% to $797 million in the quarter with particular strength in our long cycle process, power and aerospace markets. Sales were up 28% on the strength of the order input and the contributions from acquisitions completed during the last year. Our focus on Operational Excellence, coupled with the higher sales, resulted in record earnings for the quarter,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
“Cash flow was superb, with operating cash flow totaling $115 million for the quarter, an increase of 30% over the second quarter of 2010,” continued Mr. Hermance.
For the first half of 2011, AMETEK sales increased 29% to $1.48 billion from $1.15 billion in the same period of 2010. Operating income increased 42% to $309.0 million, from $218.0 million earned in the first half of last year. Net income for the first half of 2011 was $184.6 million, up 47% from $125.3 million in the same period of 2010. Diluted earnings per share were $1.14 for the first half of 2011, up 46% from $0.78 per diluted share in the first half of 2010.
Electronic Instruments Group (EIG) For the 2011 second quarter, EIG sales increased 31% to $407.4 million. Operating income was $101.5 million, compared with $73.7 million in the second quarter of 2010, an increase of 38%. Operating margins for the quarter increased 110 basis points to 24.9% as compared to 23.8% in the second quarter of 2010.
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AMETEK ANNOUNCES RECORD RESULTS Page 2
“EIG had an excellent second quarter. Strong core growth resulted from the continuing strength in our Process, Power and Industrial businesses. As expected, our oil and gas businesses showed sizable strength. 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 second quarter of 2011, EMG sales were $351.5 million, a 25% increase over the same period of 2010. Operating income of $69.2 million was up 32% from the $52.3 million recorded in the same period of 2010. Operating margins for the quarter were up 120 basis points to 19.7%, as compared to 18.5% in the second quarter of 2010.
“EMG also had a very good quarter. Sales were up on strong growth in our differentiated businesses as well as the contributions from the Technical Services for Electronics, Haydon Kerk, Avicenna Technology and Coining acquisitions. Operating margins improved by 120 basis points, driven by higher revenue 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 high teens on a percentage basis from 2010. Earnings for 2011 are expected to be in the range of $2.30 to $2.34 per diluted share, up 31% to 33% over 2010, reflecting the leveraged impact of core growth and our streamlined cost structure. This is an increase from our previous guidance of $2.20 to $2.25 per diluted share,” added Mr. Hermance.
“Third quarter 2011 sales are expected to be up approximately mid teens on a percentage basis over last year’s third quarter. We estimate our earnings to be approximately $0.57 to $0.59 per diluted share, an increase of 19% to 23% over last year’s third quarter of $0.48 per diluted share,” concluded Mr. Hermance.
Conference Call AMETEK, Inc. will webcast its Second Quarter 2011 investor conference call on Tuesday, July 26, 2011 beginning at 8:30 AM ET. The live audio webcast will be available at the Investors section ofwww.ametek.com and atwww.streetevents.com. The call will be archived atwww.ametek.com.
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AMETEK ANNOUNCES RECORD RESULTS Page 3
Corporate Profile AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with annualized sales of $3 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) (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2010
2011
2010
Net sales
$
758,834
$
591,941
$
1,476,617
$
1,148,603
Operating expenses:
Cost of sales, excluding depreciation
499,956
395,499
972,760
771,223
Selling, general and administrative
89,685
69,849
171,177
137,392
Depreciation
12,238
10,998
23,705
21,947
Total operating expenses
601,879
476,346
1,167,642
930,562
Operating income
156,955
115,595
308,975
218,041
Other expenses:
Interest expense
(17,339
)
(16,730
)
(34,489
)
(33,484
)
Other, net
(2,381
)
(1,621
)
(3,866
)
(2,136
)
Income before income taxes
137,235
97,244
270,620
182,421
Provision for income taxes
43,091
29,853
86,041
57,085
Net income
$
94,144
$
67,391
$
184,579
$
125,336
Diluted earnings per share
$
0.58
$
0.42
$
1.14
$
0.78
Basic earnings per share
$
0.59
$
0.43
$
1.15
$
0.79
Weighted average common shares outstanding:
Diluted shares
162,215
160,003
162,200
160,679
Basic shares
160,406
158,501
160,067
159,214
Dividends per share
$
0.06
$
0.04
$
0.12
$
0.08
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AMETEK, Inc. Information by Business Segment (In thousands) (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2011
2010
2011
2010
Net sales:
Electronic Instruments
$
407,382
$
309,895
$
796,224
$
608,559
Electromechanical
351,452
282,046
680,393
540,044
Consolidated net sales
$
758,834
$
591,941
$
1,476,617
$
1,148,603
Income:
Segment operating income:
Electronic Instruments
$
101,481
$
73,720
$
201,441
$
142,786
Electromechanical
69,156
52,262
132,082
95,626
Total segment operating income
170,637
125,982
333,523
238,412
Corporate administrative and other expenses
(13,682
)
(10,387
)
(24,548
)
(20,371
)
Consolidated operating income
$
156,955
$
115,595
$
308,975
$
218,041
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AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands)
June 30,
December 31,
2011
2010
(Unaudited)
ASSETS
Current assets:
Cash, cash equivalents and marketable securities
$
203,110
$
168,853
Receivables, net
439,865
399,913
Inventories
364,317
335,253
Other current assets
75,840
70,473
Total current assets
1,083,132
974,492
Property, plant and equipment, net
331,614
318,126
Goodwill
1,712,781
1,573,645
Other intangibles, investments and other assets
1,027,247
952,652
Total assets
$
4,154,774
$
3,818,915
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
127,713
$
97,152
Accounts payable and accruals
474,182
453,707
Total current liabilities
601,895
550,859
Long-term debt
1,083,284
1,071,360
Deferred income taxes and other long-term liabilities
483,952
421,492
Stockholders’ equity
1,985,643
1,775,204
Total liabilities and stockholders’ equity
$
4,154,774
$
3,818,915
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