CORPORATE OFFICE 1100 Cassatt Road, Berwyn, PA 19312
Contact: Kevin C. Coleman (610) 889-5247
AMETEK ANNOUNCES RECORD RESULTS
Berwyn, PA, January 24, 2013 – AMETEK, Inc. (NYSE: AME) today announced fourth quarter and full year results that established records for orders, sales, operating income, operating margins, net income and diluted earnings per share.
AMETEK’s fourth quarter 2012 sales of $841.8 million were up 10% over the same period of 2011. Operating income for the fourth quarter of 2012 was $190.0 million, a 13% increase from $167.4 million recorded in the same period of 2011. Operating margins improved 70 basis points to a record 22.6% in the fourth quarter of 2012. Net income in the fourth quarter of 2012 increased 18% to $119.9 million from $101.9 million in last year’s fourth quarter. Diluted earnings per share increased 17% to $0.49 per diluted share from the fourth quarter 2011 level of $0.42 per diluted share.
“AMETEK had a solid fourth quarter to complete a very strong 2012. We established records for essentially all key financial metrics in the quarter despite continued sluggish market conditions. Operating margins expanded 70 basis points to a record 22.6%, resulting from our focus on Operational Excellence initiatives. Orders were very strong in the quarter, totaling $956 million, up 28% from last year’s fourth quarter with 4% core growth,” notes 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 $192 million for the quarter and $611 million for the year, up 25% and 20%, respectively, compared with the same periods in 2011,” continued Mr. Hermance.
For the full year, AMETEK achieved record levels of orders, sales, operating income, operating margins, net income and diluted earnings per share. Full year sales were $3.33 billion, up 12% from 2011. Operating income in 2012 was $745.9 million, compared with $635.9 million last year, up 17%. Operating margins for 2012 of 22.4% were a 110 basis point improvement over 2011. Net income for the full year 2012 was up $74.6 million to $459.1 million, a 19% increase from the $384.5 million earned in 2011. Diluted earnings per share were $1.88 for 2012, up 19% from the $1.58 earned in 2011.
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AMETEK ANNOUNCES RECORD RESULTS Page 2
Electronic Instruments Group (EIG) In the fourth quarter, EIG sales increased 12% to $494.5 million. Operating income in the fourth quarter of 2012 increased 16% to $134.9 million, compared with $116.3 million in the fourth quarter of 2011. Operating margins were a record 27.3%, up 100 basis points from 26.3% in last year’s fourth quarter.
“EIG had a very solid fourth quarter. Sales grew 12% in the quarter on continued strength in our oil and gas, and aerospace businesses, combined with the contributions from the acquisitions of O’Brien and Micro-Poise. Operating margins benefitted from our Operational Excellence initiatives,” notes Mr. Hermance.
Electromechanical Group (EMG) For the fourth quarter of 2012, EMG sales increased 8% to $347.2 million. Operating income in the fourth quarter of 2012 of $65.2 million was up 5%, compared with $62.3 million in the same period of 2011. Operating margins for the quarter were 18.8%, compared with 19.4% in last year’s fourth quarter.
“EMG had a good quarter. Sales increased 8% on core growth in our Precision Motion Control business and the contribution from the acquisition of Dunkermotoren. We experienced softness in several end markets as customers turned increasingly cautious due to macro-economic uncertainties,” adds Mr. Hermance.
2013 Outlook “We expect our businesses overall to show solid growth in 2013, with organic growth stronger in the second half of the year. Our higher margin, longer cycle, oil and gas, power, and aerospace businesses should show particular strength. AMETEK’s strong portfolio of differentiated businesses, proven operational capabilities, continued investment in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2013,” notes Mr. Hermance.
“We anticipate 2013 revenue to be up in the high single digits on a percentage basis from 2012, reflecting low to mid single digit core growth and contributions from recent acquisitions including Dunkermotoren and Micro-Poise. Earnings for 2013 are expected to be in the range of $2.07 to $2.12 per diluted share, up 10% to 13% over 2012, reflecting the leveraged impact of core growth, operational excellence initiatives, and the benefit of contributions from recent acquisitions,” adds Mr. Hermance.
“First quarter 2013 sales are expected to be up approximately 10% from last year’s first quarter. We estimate our earnings to be approximately $0.49 to $0.51 per diluted share, an increase of 9% to 13% over last year’s first quarter of $0.45 per diluted share,” concludes Mr. Hermance.
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AMETEK ANNOUNCES RECORD RESULTS Page 3
Conference Call AMETEK will webcast its Fourth Quarter 2012 investor conference call on Thursday, January 24, 2013, 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 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 annual sales of $3.3 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)
Three Months Ended
Year Ended
December 31,
December 31,
2012
2011
2012
2011
(Unaudited)
(Unaudited)
(Unaudited)
Net sales
$
841,790
$
762,751
$
3,334,213
$
2,989,914
Operating expenses:
Cost of sales, excluding depreciation
544,642
489,753
2,154,132
1,955,779
Selling, general and administrative
93,829
92,125
380,532
349,321
Depreciation
13,365
13,493
53,677
48,873
Total operating expenses
651,836
595,371
2,588,341
2,353,973
Operating income
189,954
167,380
745,872
635,941
Other expenses:
Interest expense
(18,834
)
(17,984
)
(75,472
)
(69,729
)
Other, net
(319
)
(2,417
)
(7,925
)
(9,570
)
Income before income taxes
170,801
146,979
662,475
556,642
Provision for income taxes
50,903
45,072
203,343
172,178
Net income
$
119,898
$
101,907
$
459,132
$
384,464
Diluted earnings per share
$
0.49
$
0.42
$
1.88
$
1.58
Basic earnings per share
$
0.49
$
0.42
$
1.90
$
1.60
Weighted average common shares outstanding:
Diluted shares
245,286
242,274
243,986
243,161
Basic shares
242,559
239,944
241,512
240,383
Dividends per share
$
0.06
$
0.04
$
0.22
$
0.16
1
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AMETEK, Inc. Information by Business Segment (In thousands)
Three Months Ended
Year Ended
December 31,
December 31,
2012
2011
2012
2011
(Unaudited)
(Unaudited)
(Unaudited)
Net sales:
Electronic Instruments
$
494,547
$
441,455
$
1,872,557
$
1,647,195
Electromechanical
347,243
321,296
1,461,656
1,342,719
Consolidated net sales
$
841,790
$
762,751
$
3,334,213
$
2,989,914
Income:
Segment operating income:
Electronic Instruments
$
134,861
$
116,318
$
497,116
$
420,197
Electromechanical
65,244
62,265
292,205
262,710
Total segment operating income
200,105
178,583
789,321
682,907
Corporate administrative and other expenses
(10,151
)
(11,203
)
(43,449
)
(46,966
)
Consolidated operating income
$
189,954
$
167,380
$
745,872
$
635,941
2
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AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands)
December 31,
December 31,
2012
2011
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
156,227
$
170,392
Receivables, net
507,850
438,245
Inventories
428,935
380,471
Other current assets
64,962
70,011
Total current assets
1,157,974
1,059,119
Property, plant and equipment, net
380,796
325,329
Goodwill
2,208,180
1,806,237
Other intangibles, investments and other assets
1,437,675
1,128,805
Total assets
$
5,184,625
$
4,319,490
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
320,654
$
140,508
Accounts payable and accruals
552,683
488,367
Total current liabilities
873,337
628,875
Long-term debt
1,133,121
1,123,416
Deferred income taxes and other long-term liabilities
641,517
514,394
Stockholders’ equity
2,536,650
2,052,805
Total liabilities and stockholders’ equity
$
5,184,625
$
4,319,490
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