EXHIBIT 99(a)
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| AMETEK |
| NEWS LOGO |
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CORPORATE OFFICE
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801
Contact: William J. Burke (610) 889-5249
AMETEK ANNOUNCES FIRST QUARTER RESULTS
-- REAFFIRMS 2003 EARNINGS FORECAST --
Paoli, PA, April 22, 2003 -- AMETEK Inc. (NYSE: AME) today announced that its
overall results for the first quarter are in line with its expectations. First
quarter 2003 sales of $267.5 million were up 2% from the $263.6 million recorded
in the first quarter of 2002. Operating income for the first quarter of 2003 was
$36.7 million up 1% from the first quarter of 2002. Net income was $19.7 million
and diluted earnings per share were $.59, both essentially unchanged from last
year's first quarter levels. Cash flow from operations was excellent, increasing
to nearly $26 million in the first quarter, up from $9 million in last year's
first quarter. Working capital management was the largest contributor to this
increase.
"We are very pleased with our first quarter performance given the weak economic
conditions in the manufacturing sector. Our profitability met our expectations
and reflects continued solid execution of our four growth strategies," commented
Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
"Operational excellence initiatives, including movement of manufacturing to
low-cost locales, continue to provide excellent results. We are also very
pleased with the recent acquisitions of Airtechnology and Solidstate Controls.
Both are highly differentiated companies that contributed to our solid
performance in the first quarter," he added.
ELECTROMECHANICAL GROUP (EMG)
EMG's sales of $133.9 million were up 6% from $126.8 million in the first
quarter of 2002. First quarter group operating income of $21.8 million also was
up 6%, compared with the $20.6 million reported for the same period of 2002.
EMG's operating income margin in the first quarter of 2003 increased to 16.3%
from 16.2% in the first quarter of 2002.
"EMG had a good first quarter. The revenue increase was driven by the
acquisition of Airtechnology. The performance of our floorcare business was up
slightly, with strong performance in Europe and weak performance in the United
States," added Mr. Hermance.
ELECTRONIC INSTRUMENTS GROUP (EIG)
EIG first quarter 2003 sales were $133.6 million, down 2% from last year's level
of $136.8 million. First quarter group operating income was down 5% to $20.0
million, versus $21.0 million in the same period of 2002. Group operating
margins were 15.0%, down from 15.3% in the first quarter of 2002.
"Our revenues were positively impacted by strong performance in our high-end
analytical instrumentation businesses and the acquisition of Solidstate
Controls, while our aerospace and power businesses were much weaker than a year
ago," noted Mr. Hermance.
EXHIBIT 99(a)
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AMETEK ANNOUNCES FIRST QUARTER RESULTS
PAGE 2.
OUTLOOK
"For the balance of the year, market conditions are expected to remain weak for
many of our businesses, particularly aerospace and power. As in the past, we are
managing the cost structure of the company very closely and making adjustments
where required. We are reaffirming our full-year forecast of modest revenue
growth with diluted earnings per share in the range of $2.65 to $2.75 per
diluted share," he added.
SOLIDSTATE CONTROLS ACQUISITION COMPLETED
Effective February 28, 2003, AMETEK completed the acquisition of Solidstate
Controls, Inc., a leading supplier of Uninterruptible Power Supply (UPS) systems
for the process and power generation industries, for approximately $36 million
in cash. With its headquarters in Columbus, Ohio, Solidstate Controls has
estimated annual sales of $45 million.
Solidstate Controls designs and manufactures highly customized inverters and UPS
systems that its customers use to ensure a steady supply of clean power to keep
their critical processes functioning properly. These critical processes
typically involve harsh environments and have a correspondingly high cost of
failure. Key markets for Solidstate's products are oil production, oil refining,
chemical, petrochemical, steel and power generation (including fossil fuel and
nuclear power utilities).
In January 2003, AMETEK announced the acquisition of Airtechnology Holdings
Limited.
CONFERENCE CALL
AMETEK, Inc. will Web cast it's First Quarter 2003 investor conference call on
Wednesday, April 23, 2003, beginning at 9:00 AM ET. 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 2002 sales of more than $1 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 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.
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(Financial Information Follows)
EXHIBIT 99(a)
AMETEK, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(In thousands, except per share amounts)
THREE MONTHS ENDED
MARCH 31,
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2003 2002
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NET SALES $ 267,531 $ 263,558
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EXPENSES:
Cost of sales, excluding depreciation 195,064 191,786
Selling, general and administrative 27,315 27,775
Depreciation 8,475 7,563
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Total expenses 230,854 227,124
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OPERATING INCOME 36,677 36,434
Other income (expenses):
Interest expense (6,632) (6,894)
Other, net (887) (196)
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Income before income taxes 29,158 29,344
Provision for income taxes 9,440 9,679
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NET INCOME $ 19,718 $ 19,665
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DILUTED EARNINGS PER SHARE $ 0.59 $ 0.59
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BASIC EARNINGS PER SHARE $ 0.60 $ 0.60
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AVERAGE COMMON SHARES OUTSTANDING:
Diluted shares 33,646 33,506
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Basic shares 32,982 32,799
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Dividends paid per share $ 0.06 $ 0.06
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EXHIBIT 99(a)
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (UNAUDITED)
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
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2003 2002
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NET SALES
Electronic Instruments $ 133,601 $ 136,801
Electromechanical 133,930 126,757
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Total Consolidated $ 267,531 $ 263,558
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OPERATING INCOME
Electronic Instruments $ 19,982 $ 20,959
Electromechanical 21,801 20,573
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Total segments 41,783 41,532
Corporate and other (5,106) (5,098)
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Total Consolidated $ 36,677 $ 36,434
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