Exhibit 99 (a)
{Letterhead of AMETEK appears here}
Contact: William J. Burke (610) 889-5249
AMETEK ANNOUNCES FULL-YEAR AND FOURTH QUARTER RESULTS
--FULL YEAR INCOME BEFORE UNUSUAL ITEMS UP 3%--
Paoli, PA, January 29, 2002 -- AMETEK Inc. (NYSE: AME) today announced full year
and fourth quarter results.
AMETEK achieved 2001 sales of $1.02 billion, unchanged from year 2000 results.
Operating income of $132.8 million was down 2% from $135.9 million for 2000.
Income grew to $70.8 million, up 3% from the $68.5 million earned in 2000, and
diluted earnings per share of $2.12 were up from $2.11 per share in 2000. All
comparisons, unless otherwise noted, are before unusual items in the fourth
quarter of 2001. Including these unusual items, net income for 2001 was $66.1
million or $1.98 per diluted share compared with net income in 2000 of $68.5
million or $2.11 per diluted share.
"In a very difficult economic environment, AMETEK posted strong 2001 results.
For the full year, before unusual items, we established records for income and
diluted earnings per share. We have taken the necessary steps to size our
business to the current economic environment and are poised to significantly
grow earnings when the economy recovers," commented Frank S. Hermance, AMETEK
Chairman and Chief Executive Officer.
FOURTH QUARTER UNUSUAL ITEMS
"As a result of our budgeting process for 2002 and our outlook for the general
economy, we have undertaken another round of significant cost reductions. Our
fourth quarter and full-year results include expenses associated with this
realignment of our cost structure. In addition we recorded a significant tax
benefit," said Mr. Hermance.
In the fourth quarter the Company recorded expenses totaling $15 million after
tax, or $.46 per diluted share, to cover the costs of employee reductions,
facility closures, the continued migration to low-cost locales, and asset
writedowns necessary to reflect the difficulties the economic environment has
had on a number of our customers. We expect annualized savings from our cost
reduction actions to be approximately $25 million.
In the fourth quarter the Company also recorded a tax benefit of $11 million, or
$.32 per diluted share, resulting from the closure of a number of tax years by
U.S. federal and state tax authorities.
FOURTH QUARTER RESULTS
AMETEK's fourth quarter 2001 sales of $237.3 million were an 8% decrease over
the same period of 2000 caused by weak economic conditions which impacted many
of our businesses. Our aerospace and power instrument businesses continued to
perform well. Operating income for the fourth quarter of 2001 was $28.6 million,
a 16% decrease from the $34.1 million recorded in the same period of
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AMETEK ANNOUNCES FULL YEAR AND FOURTH QUARTER RESULTS
PAGE 2.
2000. Income in the fourth quarter of 2001 totaled $16.2 million, or $.48 per
diluted share, down from fourth quarter 2000 levels of $17.2 million, or $.53
per diluted share. After unusual items, net income for the fourth quarter of
2001 was $11.5 million, or $.34 per diluted share, as compared with $17.2
million, or $.53 per diluted share, in the same period of 2000.
2002 OUTLOOK
Mr. Hermance commented, "Due to the continuing weak economic conditions in many
of our businesses we expect revenues to be up only slightly this year. The
significant cost reductions taken in 2001 and planned for 2002 should enable
AMETEK to deliver record earnings of approximately $2.50 per diluted share, up
18% from 2001. This estimate includes $.30 from the elimination of amortization
of goodwill in accordance with SFAS 142. The impact of our cost reduction
activities should make the second half of 2002 stronger than the first half. Our
forecast does not include an economic rebound, which could provide upside to our
expectations."
The group commentary that follows excludes unusual items detailed in the
attached financial tables.
ELECTROMECHANICAL GROUP (EMG)
For the year, EMG's sales increased 1% to $519.8 million, compared with $515.2
million in 2000. The full-year impacts of the Prestolite Electric and GS
Electric acquisitions drove this improvement. Operating income was $81.3 million
for 2001, up 5% from the $77.6 million earned in 2000 due to exceptional cost
control in a very difficult environment.
For the fourth quarter of 2001, EMG's sales were $113.2 million, a 13% decrease
over the same period of 2000. Operating income of $18.7 million is essentially
unchanged from the $18.9 million recorded in the same period of 2000.
ELECTRONIC INSTRUMENTS GROUP (EIG)
EIG sales for 2001 were $499.5 million, down 2% from 2000 levels of $509.5
million. Acquisitions and strong aerospace and power markets did not offset the
impact of the economic slowdown on the other EIG businesses. Operating income
was $69.5 million for 2001, as compared to $78.8 million earned in 2000.
For the 2001 fourth quarter, EIG sales were $124.1 million, down 3% from 2000
levels of $128.4. The additional revenue from the EDAX acquisition and strong
aerospace and power instrument markets minimized the impact of the economic
slowdown. Operating income for the fourth quarter was $13.9 million, as compared
with $20.5 million in the fourth quarter of 2000. Operating income in the fourth
quarter of 2001 was impacted by the slowing economy. In addition, the favorable
settlement of a long-standing customer issue in the fourth quarter of 2000
created a difficult comparison.
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AMETEK ANNOUNCES FULL YEAR AND FOURTH QUARTER RESULTS
PAGE 3.
ACQUISITION OF INSTRUMENTS FOR RESEARCH AND APPLIED SCIENCE (IRAS)
On December 28, 2001 AMETEK completed the acquisition of Instruments for
Research and Applied Science (IRAS), a leading developer and manufacturer of
analytic instrumentation, from PerkinElmer, Inc. IRAS manufactures and markets
technologically advanced analytical instrumentation that is used in a number of
applications including nuclear spectroscopy, research electrochemistry, and
electronic signal processing. IRAS, based in Oak Ridge, TN, has 275 employees
and is expected to report sales of approximately $50 million for 2001. The
purchase price was approximately $63 million in cash.
"Our acquisition of IRAS further expands AMETEK's position in differentiated
analytical instruments," notes AMETEK Chairman and Chief Executive Officer Frank
S. Hermance. "IRAS significantly extends our capabilities in the measurement of
physical properties. It brings new technologies, applications and end market
opportunities to AMETEK and also provides an additional platform for growth," he
adds.
IRAS will operate as a new division of our Electronic Instruments Group -
Advanced Measurement Technology and will continue to market its products under
the ORTEC, Princeton Applied Research and Signal Recovery brand names.
CONFERENCE CALL
AMETEK, Inc. will Web cast its Fourth Quarter 2001 investor conference call on
Wednesday, January 30, 2002, beginning at 8:15 AM EST. The live audio Web cast
will be available at www.ametek.com/investors and at www.streetevents.com. To
access the Web cast from ametek.com, click on the Audio Conference Call link.
The call will be archived at www.ametek.com/investors. To access the audio
archive, click on the Audio Conference Call link in the Investors Section.
CORPORATE PROFILE
AMETEK is a leading global manufacturer of electronic instruments and electric
motors with 2001 sales of more than $1 billion. AMETEK's Corporate Growth Plan
is based on Four Key Strategies: Strategic Acquisitions & Alliances, Global &
Market Expansion, New Products, and Operational Excellence. Its 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 2000 Index.
FORWARD-LOOKING INFORMATION
Statements in this news release that are not historical are considered
"forward-looking statements" and are subject to change based on various factors
and uncertainties that may cause actual results to differ significantly from
expectations. Those factors are contained in AMETEK's Securities and Exchange
Commission filings.
# # #
(Financial Information Follows)
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(Dollars and shares in thousands, except per share amounts)
TWELVE MONTHS ENDED
DECEMBER 31,
----------------------------------------------------------------------
2001
-------------------------------------------------
BEFORE UNUSUAL UNUSUAL AFTER UNUSUAL
ITEMS ITEMS (A) ITEMS 2000
-------------- ------------ --------------- ---------------
NET SALES $1,019,289 - $1,019,289 $1,024,660
--------------- ------------ --------------- ---------------
EXPENSES:
Cost of sales, excluding depreciation 759,379 $18,540 777,919 761,548
Selling, general and administrative 95,132 3,523 98,655 95,147
Depreciation 31,942 1,223 33,165 32,075
--------------- ------------ --------------- ---------------
Total expenses 886,453 23,286 909,739 888,770
--------------- ------------ --------------- ---------------
OPERATING INCOME (LOSS) 132,836 (23,286) 109,550 135,890
Other income (expenses):
Interest expense (27,913) - (27,913) (29,203)
Other, net 1,028 1,697 2,725 (549)
--------------- ------------ --------------- ---------------
Income (loss) before income taxes 105,951 (21,589) 84,362 106,138
Provision for (benefit from) income taxes 35,133 (16,882) 18,251 37,606
--------------- ------------ --------------- ---------------
NET INCOME (LOSS) $70,818 ($4,707) $66,111 $68,532
=============== ============ =============== ===============
Diluted earnings (loss) per share $2.12 ($0.14) $1.98 $2.11
=============== ============ =============== ===============
Basic earnings (loss) per share $2.16 ($0.14) $2.01 $2.13
=============== ============ =============== ===============
Average common shares outstanding:
Diluted shares 33,445 33,445 33,445 32,534
=============== ============ =============== ===============
Basic shares 32,838 32,838 32,838 32,131
=============== ============ =============== ===============
Dividends per share $0.24 - $0.24 $0.24
=============== ============ =============== ===============
(a) Fourth quarter and year 2001 includes unusual pretax charges totaling $23.3
million, $15.3 million after tax ($0.46 per diluted share). The charges were for
employee reductions, facility closures, and the continued migration to low-cost
locales ($12.4 million), as well as asset writedowns ($10.9 million). The
periods also include a tax benefit and related interest income (reported in
other income) of $10.5 million after tax ($0.32 per diluted share) resulting
from the closure of a number of open tax years.
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(Dollars in thousands)
TWELVE MONTHS ENDED
DECEMBER 31,
-----------------------------------------------------------------------
(UNAUDITED)
2001
------------------------------------------------------
BEFORE UNUSUAL UNUSUAL AFTER UNUSUAL
ITEMS ITEMS (A) ITEMS 2000
----------------- --------------- ---------------- -------------
NET SALES
- ------------------------------
Electronic Instruments $499,528 - $499,528 $509,504
Electromechanical 519,761 - 519,761 515,156
----------------- --------------- ---------------- -------------
Total Consolidated $1,019,289 - $1,019,289 $1,024,660
================= =============== ================ =============
OPERATING INCOME (LOSS)
- ------------------------------
Electronic Instruments $69,460 ($12,425) $57,035 $78,771
Electromechanical 81,274 (10,636) 70,638 77,560
----------------- --------------- ---------------- -------------
Total segments 150,734 (23,061) 127,673 156,331
Corporate and other (17,898) (225) (18,123) (20,441)
----------------- --------------- ---------------- -------------
Total Consolidated $132,836 ($23,286) $109,550 $135,890
================= =============== ================ =============
(a) See note on Consolidated Statement of Income for twelve months ended
December 31, 2001.
AMETEK, INC.
CONSOLIDATED STATEMENT OF INCOME
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
DECEMBER 31,
----------------------------------------------------------------------------
(UNAUDITED)
2001
-----------------------------------------------------
BEFORE UNUSUAL UNUSUAL AFTER UNUSUAL
ITEMS ITEMS (A) ITEMS 2000
--------------- --------------- ---------------- ---------------
NET SALES $237,263 -- $237,263 $258,246
--------------- --------------- ---------------- ---------------
EXPENSES:
Cost of sales, excluding depreciation 176,747 $18,540 195,287 191,547
Selling, general and administrative 24,063 3,523 27,586 23,606
Depreciation 7,860 1,223 9,083 8,966
--------------- --------------- ---------------- ---------------
Total expenses 208,670 23,286 231,956 224,119
--------------- --------------- ---------------- ---------------
OPERATING INCOME (LOSS) 28,593 (23,286) 5,307 34,127
Other income (expenses):
Interest expense (6,639) - (6,639) (7,670)
Other, net 247 1,697 1,944 (50)
--------------- --------------- ---------------- ---------------
Income (loss) before income taxes 22,201 (21,589) 612 26,407
Provision for (benefit from) income taxes 6,035 (16,882) (10,847) 9,170
--------------- --------------- ---------------- ---------------
NET INCOME (LOSS) $16,166 ($4,707) $11,459 $17,237
=============== =============== ================ ===============
DILUTED EARNINGS (LOSS) PER SHARE $0.48 ($0.14) $0.34 $0.53
=============== =============== ================ ===============
Basic earnings (loss) per share $0.49 ($0.14) $0.35 $0.53
=============== =============== ================ ===============
AVERAGE COMMON SHARES OUTSTANDING:
Diluted shares 33,334 33,334 33,334 32,726
=============== =============== ================ ===============
Basic shares 32,733 32,733 32,733 32,302
=============== =============== ================ ===============
Dividends per share $0.06 - $0.06 $0.06
=============== =============== ================ ===============
(a) See note on Consolidated Statement of Income for twelve months ended
December 31, 2001.
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(Dollars in thousands)
THREE MONTHS ENDED
DECEMBER 31,
-----------------------------------------------------------------------
(UNAUDITED)
2001
--------------------------------------------------------
BEFORE UNUSUAL UNUSUAL AFTER UNUSUAL
ITEMS ITEMS (A) ITEMS 2000
----------------- -------------- ---------------- ------------
NET SALES
- ----------------------------
Electronic Instruments $124,062 - $124,062 $128,449
Electromechanical 113,201 - 113,201 129,797
----------------- -------------- ---------------- ------------
Total Consolidated $237,263 - $237,263 $258,246
================= ============== ================ ============
OPERATING INCOME (LOSS)
- ----------------------------
Electronic Instruments $13,914 ($12,425) $1,489 $20,462
Electromechanical 18,725 (10,636) 8,089 18,884
----------------- -------------- ---------------- ------------
Total segments 32,639 (23,061) 9,578 39,346
Corporate and other (4,046) (225) (4,271) (5,219)
----------------- -------------- ---------------- ------------
Total Consolidated $28,593 ($23,286) $5,307 $34,127
================= ============== ================ ============
(a) See note on Consolidated Statement of Income for twelve months ended
December 31, 2001.