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Contact: Kevin C. Coleman (610) 889-5247
AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS
Berwyn, PA, August 7, 2013 – AMETEK, Inc. (NYSE: AME) today announced second quarter results that established records for operating income, operating margins, net income and diluted earnings per share. In addition, backlog at June 30, 2013 exceeded $1.1 billion and was an all-time high.
AMETEK’s second quarter 2013 sales of $878.8 million were up 6% over the same period of 2012. Operating income for the second quarter of 2013 was $202.6 million, a 10% increase from the $185.0 million recorded in the same period of 2012. Operating margins improved 70 basis points to 23.1% in the second quarter of 2013. Net income increased 13% to $128.3 million, or $0.52 per diluted share, from the second quarter 2012 level of $113.7 million, or $0.47 per diluted share.
“We are very pleased with our results this quarter given the continued soft economic environment. We delivered record operating performance as a result of the strength in our long-cycle businesses combined with our Operational Excellence initiatives,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
For the six months ended June 30, 2013, AMETEK sales increased 7% to $1.76 billion from $1.65 billion in the same period of 2012. Operating income increased 9% to $399.8 million, from $367.8 million earned in the first six months of 2012. Net income for the first six months was $253.5 million, up 13% from $223.8 million in the same period of 2012. Diluted earnings per share were $1.03 for the first six months of 2013, up 12% from $0.92 per diluted share in the first six months of 2012.
Electronic Instruments Group (EIG) For the second quarter of 2013, EIG sales increased 7% to $483.3 million. Operating income was $129.6 million, compared with $117.7 million in the second quarter of 2012, a 10% increase. Operating margins for the quarter were 26.8%, up 80 basis points from 26.0% in last year’s second quarter.
“EIG had an excellent second quarter. Sales were up due to strength in our oil and gas and aerospace businesses, combined with contributions from the recently acquired Micro-Poise business. Operating margins expanded 80 basis points to 26.8%, benefitting from the core sales growth and Operational Excellence initiatives,” said Mr. Hermance.
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AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS Page 2
Electromechanical Group (EMG) For the second quarter of 2013, EMG sales increased 6% to $395.5 million. Operating income in the second quarter was up 6% to a record $83.4 million, compared with $78.8 million in the same period of 2012. Operating margins were 21.1% in the second quarter of 2013, in line with last year’s second quarter.
“EMG also had a solid second quarter. Sales were up on strong growth in our Floorcare and Specialty Motors business, along with the contributions from the Dunkermotoren acquisition. Additionally, operating margins were very strong at 21.1%,” commented Mr. Hermance.
2013 Outlook “We expect sluggish market conditions to continue for the balance of 2013. Full year 2013 revenue is expected to be up mid-single digits on a percentage basis from 2012,” noted Mr. Hermance.
“We expect earnings for 2013 to be at the low end of our previous guidance range of $2.08 to $2.12 per diluted share, reflecting the weak economic environment. We continue to believe that AMETEK’s strong portfolio of businesses, operational excellence initiatives and successful focus on increasing shareholder value through strategic acquisitions will enable us to perform well in 2013 and beyond,” added Mr. Hermance.
“Third quarter sales are expected to be up mid-single digits on a percentage basis over last year’s third quarter. We estimate our earnings to be approximately $0.51 to $0.52 per diluted share, an increase of 9% to 11% over last year’s third quarter of $0.47 per diluted share,” concluded Mr. Hermance.
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AMETEK REPORTS RECORD SECOND QUARTER 2013 RESULTS Page 3
Conference Call The Company will webcast its Second Quarter 2013 investor conference call on Wednesday, August 7, 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 annualized sales of $3.5 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,
2013
2012
2013
2012
Net sales
$
878,809
$
825,898
$
1,761,662
$
1,653,050
Operating expenses:
Cost of sales, excluding depreciation
567,598
531,753
1,141,672
1,068,036
Selling, general and administrative
94,912
95,646
192,520
190,682
Depreciation
13,686
13,521
27,622
26,578
Total operating expenses
676,196
640,920
1,361,814
1,285,296
Operating income
202,613
184,978
399,848
367,754
Other expenses:
Interest expense
(18,154
)
(18,843
)
(36,477
)
(37,680
)
Other, net
(2,667
)
(1,848
)
(5,191
)
(4,088
)
Income before income taxes
181,792
164,287
358,180
325,986
Provision for income taxes
53,471
50,600
104,713
102,149
Net income
$
128,321
$
113,687
$
253,467
$
223,837
Diluted earnings per share
$
0.52
$
0.47
$
1.03
$
0.92
Basic earnings per share
$
0.53
$
0.47
$
1.04
$
0.93
Weighted average common shares outstanding:
Diluted shares
246,104
243,121
245,757
243,214
Basic shares
243,666
241,168
243,475
240,677
Dividends per share
$
0.06
$
0.06
$
0.12
$
0.10
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AMETEK, Inc. Information by Business Segment (In thousands) (Unaudited)
Three Months Ended
Six Months Ended
June 30,
June 30,
2013
2012
2013
2012
Net sales:
Electronic Instruments
$
483,339
$
452,128
$
967,840
$
920,936
Electromechanical
395,470
373,770
793,822
732,114
Consolidated net sales
$
878,809
$
825,898
$
1,761,662
$
1,653,050
Income:
Segment operating income:
Electronic Instruments
$
129,575
$
117,651
$
261,321
$
240,676
Electromechanical
83,395
78,760
161,394
149,637
Total segment operating income
212,970
196,411
422,715
390,313
Corporate administrative and other expenses
(10,357
)
(11,433
)
(22,867
)
(22,559
)
Consolidated operating income
$
202,613
$
184,978
$
399,848
$
367,754
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AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands)
June 30,
December 31,
2013
2012
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
207,614
$
157,984
Receivables, net
521,547
507,850
Inventories
438,912
428,935
Other current assets
75,728
69,974
Total current assets
1,243,801
1,164,743
Property, plant and equipment, net
372,715
383,483
Goodwill
2,181,997
2,208,239
Other intangibles, investments and other assets
1,394,021
1,433,591
Total assets
$
5,192,534
$
5,190,056
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings and current portion of long-term debt
$
125,658
$
320,654
Accounts payable and accruals
553,798
559,315
Total current liabilities
679,456
879,969
Long-term debt
1,118,086
1,133,121
Deferred income taxes and other long-term liabilities
637,849
641,815
Stockholders’ equity
2,757,143
2,535,151
Total liabilities and stockholders’ equity
$
5,192,534
$
5,190,056
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