EXHIBIT 99(a)
AMETEK
CORPORATE OFFICE
37 North Valley Road, Building 4,
P.O. Box 1764, PAOLI, PA 19301-0801 NEWS
Contact: William J. Burke (610) 889-5249
AMETEK ACHIEVES RECORD FIRST QUARTER WITH NET INCOME UP 25%
--RAISES FULL-YEAR ESTIMATES--
Paoli, PA, April 21, 2004 - AMETEK, Inc. (NYSE: AME) today announced first
quarter results that established records for sales, operating income, and net
income.
AMETEK's first quarter 2004 sales of $291.4 million were up 9% over the same
period of 2003. Operating income for the first quarter of 2004 was $43.5
million, a 19% increase from the $36.7 million recorded in the same period of
2003. Net income in the first quarter of 2004 increased 25% to $24.7 million, or
$.36 per diluted share, from first quarter 2003 levels of $19.7 million, or $.29
per diluted share. Sales, operating income, and net income were quarterly
records.
"AMETEK had an excellent quarter," noted Frank S. Hermance, AMETEK Chairman and
Chief Executive Officer. "Better than anticipated internal growth in both our
Electronic Instruments and Electromechanical segments, plus contributions from
businesses acquired last year enabled us to grow the top-line by 9%. We captured
the leverage in our business model and significantly increased profitability,"
he commented.
"We had superb cash flow generation from our businesses during the quarter. Our
cash flow from operations totaled approximately $41 million, a 58% increase over
the first quarter of 2003. We are well on our way to another record year of
operating cash flow," he added.
ELECTRONIC INSTRUMENTS GROUP (EIG)
For the 2004 first quarter, EIG sales increased 13% to $150.6 million. Operating
income was $26.1 million, compared with $20.0 million in the first quarter of
2003, an increase of 31%. Operating margins for the quarter improved to 17.3%,
from 15.0% in the first quarter of 2003.
"EIG sales were up in the quarter due to contributions from Solidstate Controls
and Chandler Instruments, both acquired in 2003, as well as strength in our
process and industrial businesses. Strong operating results at our existing and
newly acquired businesses drove EIG margins up 230 basis points," said Mr.
Hermance.
ELECTROMECHANICAL GROUP (EMG)
For the first quarter of 2004, EMG's sales were $140.8 million, a 5% increase
over the same period of 2003. Operating income of $23.3 million was up 7% from
the $21.8 million recorded in the same period of 2003. Operating margins for the
quarter were 16.6%, compared with 16.3% in the first quarter of 2003.
"EMG had a solid quarter with our differentiated businesses posting excellent
sales growth. Operating margins were up as we brought the revenue increase to
the bottom line," noted Mr. Hermance.
-MORE-
AMETEK ACHIEVES RECORD FIRST QUARTER WITH NET INCOME UP 25%
PAGE 2
2004 OUTLOOK
Mr. Hermance commented, "Given the improving economic environment, we are
raising our estimates for the year. We now expect full-year revenues to be up
mid to high single-digits on the benefits of our Chandler Instruments and
Solidstate Controls acquisitions and improved internal growth in both Groups.
Earnings are expected to be approximately $1.48 to $1.53 per diluted share, an
increase of approximately 14% to 18% over 2003, driven by strength in our
differentiated businesses, our continued focus on operational excellence, and
contributions from our 2003 acquisitions.
"Our second quarter 2004 sales are expected to be up mid to high single-digits
from last year's second quarter on internal growth in both segments and the
contribution from our 2003 acquisition of Chandler Instruments. We expect our
earnings to be approximately $.37 to $.38 per diluted share, an increase of
approximately 16% to 19% over last year's second quarter," concluded Mr.
Hermance.
CONFERENCE CALL
AMETEK, Inc. will Web cast it's First Quarter 2004 investor conference call on
Wednesday, April 21, 2004, beginning at 8:30 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 2003 sales of nearly $1.1 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 1000 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 (UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2004 2003
--------- ---------
NET SALES $ 291,423 $ 267,531
--------- ---------
EXPENSES:
Cost of sales, excluding depreciation 208,362 195,064
Selling, general and administrative 30,890 27,315
Depreciation 8,674 8,475
--------- ---------
Total expenses 247,926 230,854
--------- ---------
OPERATING INCOME 43,497 36,677
Other income (expenses):
Interest expense (6,411) (6,632)
Other, net (326) (887)
--------- ---------
Income before income taxes 36,760 29,158
Provision for income taxes 12,096 9,440
--------- ---------
NET INCOME $ 24,664 $ 19,718
========= =========
DILUTED EARNINGS PER SHARE (a) $ 0.36 $ 0.29
========= =========
BASIC EARNINGS PER SHARE (a) $ 0.37 $ 0.30
========= =========
AVERAGE COMMON SHARES OUTSTANDING (a):
Diluted shares 68,651 67,291
========= =========
Basic shares 67,278 65,964
========= =========
Dividends per share (a) $ 0.06 $ 0.03
========= =========
(a) Amounts for 2003 have been restated to reflect a two-for-one stock split
effective February 27, 2004.
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (UNAUDITED)
(IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2004 2003
--------- ---------
NET SALES
Electronic Instruments $ 150,646 $ 133,601
Electromechanical 140,777 133,930
--------- ---------
Total Consolidated $ 291,423 $ 267,531
========= =========
OPERATING INCOME
Electronic Instruments $ 26,121 $ 19,982
Electromechanical 23,324 21,801
--------- ---------
Total segments 49,445 41,783
Corporate and other (5,948) (5,106)
--------- ---------
Total Consolidated $ 43,497 $ 36,677
========= =========
AMETEK, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
MARCH 31, December 31,
2004 2003
---------- ----------
(UNAUDITED)
ASSETS
Current assets:
Cash, cash equivalents and marketable securities $ 26,665 $ 22,886
Receivables, net 195,247 189,010
Inventories 151,784 143,359
Other current assets 23,836 26,811
---------- ----------
Total current assets 397,532 382,066
Property, plant and equipment, net 208,254 213,622
Goodwill, net 508,078 506,964
Other intangibles, investments and other assets 113,092 112,195
---------- ----------
Total assets $1,226,956 $1,214,847
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
portion of long-term debt $ 76,524 $ 106,774
Accounts payable and accruals 192,622 182,457
---------- ----------
Total current liabilities 269,146 289,231
Long-term debt 318,834 317,674
Deferred income taxes and other long-term liabilities 87,594 78,812
Stockholders' equity 551,382 529,130
---------- ----------
Total liabilities and stockholders' equity $1,226,956 $1,214,847
========== ==========