EXHIBIT 99(a)
CORPORATE OFFICE [AMETEK NEWS LOGO]
37 North Valley Road, Building 4, P.O. Box 1764, PAOLI, PA 19301-0801
Contact: William J. Burke (610) 889-5249
AMETEK ACHIEVES RECORD QUARTERLY RESULTS
--NET INCOME UP 27%, RAISES FULL YEAR ESTIMATES--
Paoli, PA, July 21, 2004 -- AMETEK Inc. (NYSE: AME) today announced second
quarter results that established quarterly records for sales, operating income,
net income and diluted earnings per share.
AMETEK's second quarter 2004 sales of $303.9 million were up 10% from the $276.9
million recorded in the second quarter of 2003. Operating income for the second
quarter of 2004 was $47.5 million, up 23% from the second quarter of 2003. Net
income of $27.7 million was up 27% from last year's second quarter and diluted
earnings per share were $.40 per share, up 25% over the same quarter of last
year.
"AMETEK performed very well in the second quarter driven by continued solid
execution of our Four Growth strategies," commented Frank S. Hermance, AMETEK
Chairman and Chief Executive Officer. "Excellent internal growth, operational
improvements and the contribution from acquisitions combined to generate
quarterly records for sales and earnings."
For the first half of 2004, AMETEK sales increased 9% to $595.3 million from
$544.4 million in the same period of 2003. Operating income totaled $91.0
million, a 21% increase from $75.4 million earned in the first half of last
year. Net income for the first half of 2004 was $52.3 million, up 26% from $41.5
million in the same period of 2003. Diluted earnings per share were up 23% to
$.76 per share for the first half of 2004.
ELECTRONIC INSTRUMENTS GROUP (EIG)
EIG's second quarter 2004 sales were $159.5 million, up 16% from last year's
level of $137.4 million. Second quarter group operating income was up 28% to
$28.0 million, versus $21.9 million in the same period of 2003. Group operating
margins were 17.6%, up from 15.9% in the second quarter of 2003.
"EIG had an excellent quarter," noted Mr. Hermance. "Revenue for the Group was
up 16% driven by strength in our process, industrial, and aerospace businesses
and the contributions from the Chandler Instruments and Taylor Hobson
acquisitions. Operating income was up sharply, driven by the top-line
performance and the benefits of our operational excellence initiatives across
the Group."
ELECTROMECHANICAL GROUP (EMG)
EMG's sales of $144.4 million were up 4% from $139.5 million in the second
quarter of 2003. Second quarter group operating income of $25.0 million was up
15%, versus $21.7 million reported for the same period of 2003. EMG's operating
income margin in the second quarter of 2004 was 17.3%, compared with 15.5% in
the second quarter of 2003.
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AMETEK ACHIEVES RECORD RESULTS
PAGE 2.
"EMG also had a great quarter. The differentiated businesses performed extremely
well with double-digit revenue growth, while our cost driven motor businesses
were down slightly. Operating margins jumped 180 basis points as we captured the
operating leverage in our differentiated businesses and continued to drive
operational improvement across the Group," added Mr. Hermance.
OUTLOOK
Mr. Hermance commented, "We are raising our estimates for the year. We now
expect full-year revenues to be up low double-digits on the benefits of our
acquisition program and improved internal growth in both Groups. Earnings are
expected to be approximately $1.54 to $1.58 per diluted share, an increase of
approximately 18% to 22% over 2003."
"Our third quarter 2004 sales are expected to be up low double-digits from last
year's third quarter on internal growth in both segments and the contribution
from the Taylor Hobson, Hughes-Treitler and Chandler Instruments acquisitions.
We expect our earnings to be approximately $.38 to $.40 per diluted share, an
increase of approximately 19% to 25% over last year's third quarter," concluded
Mr. Hermance.
AMETEK COMPLETES TWO ACQUISITIONS
On July 16, 2004, AMETEK completed the acquisition of the assets of
HUGHES-TREITLER MANUFACTURING CORPORATION, a privately held supplier of heat
exchangers and thermal management subsystems for the aerospace and defense
markets. Hughes-Treitler, located in Garden City, NY, has expected annual sales
of approximately $32 million. The purchase price is approximately $48 million in
cash.
"We are very excited about the acquisition of Hughes-Treitler," commented Mr.
Hermance. "It significantly expands our thermal management product offering to
the military and commercial aerospace markets. Hughes-Treitler provides
complementary products and serves a number of customers common to our other
aerospace and defense businesses. Together with our Rotron and Airtechnology
business units, Hughes-Treitler enables AMETEK to provide a broader range of
thermal management subsystems to our customers on a global basis."
Hughes-Treitler is a recognized market leader in heat exchangers and other
subsystems designed for equipment cooling or maintaining environmental integrity
in the commercial and military aerospace industries. Products include air-oil
coolers, air-air coolers, surface coolers, ECS evaporator condensers, fuel oil
coolers, liquid air heat exchangers, liquid oxygen heat exchangers, and buffer
air heat exchangers. These products are used in a variety of applications for
airframes, engine and avionics systems on aircraft as well as in military
vehicle, marine, space and industrial applications.
On June 18, 2004, AMETEK completed the acquisition of TAYLOR HOBSON HOLDINGS
LIMITED (`Taylor Hobson'), a leading manufacturer of ultra-precision measurement
instrumentation for a variety of markets, including optics, semiconductors, hard
disk drives and nanotechnology research. Taylor Hobson was acquired from funds
advised by Permira for a purchase price of approximately 51 million British
pound sterling ($94 million), net of cash received. With its headquarters in
Leicester, England, Taylor Hobson has expected 2004 sales of approximately
38 million British pound sterling ($70 million).
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AMETEK ACHIEVES RECORD RESULTS
PAGE 3.
"We are pleased with our acquisition of Taylor Hobson," commented Mr. Hermance.
"This is a highly differentiated business, focusing on the most complex and
critical measurements for its customers. Taylor Hobson significantly expands our
measurement capabilities into ultra-precision applications and is an excellent
fit with our strategic focus on adding more high-end analytical instrument
businesses. With this acquisition, our high-end analytical instrument businesses
now total more than $250 million in annual revenue."
"Taylor Hobson's instrumentation is able to measure the shape and finish of
surfaces to the sub-nanometer level. This measurement capability is a critical
enabling technology to support product development, manufacturing process
engineering and quality control. As product geometries continue to shrink,
Taylor Hobson's instrumentation becomes even more important," adds Mr. Hermance.
Taylor Hobson designs, manufactures and services a broad array of contact and
non-contact instrumentation for ultra-precise measurement applications. These
instruments measure surface texture, shape and roundness, dimensions that are
critical in many industries including optics, semiconductor, hard disk drive,
automotive and bearing manufacturing. Nanotechnology is becoming an increasingly
important market for Taylor Hobson's technology and represents AMETEK's first
entry into this exciting area.
CONFERENCE CALL
AMETEK, Inc. will Web cast it's Second Quarter 2004 investor conference call on
Wednesday, July 21, 2004, beginning at 8:30 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 annualized sales of more than $1.2 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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES $ 303,917 $ 276,870 $ 595,340 $ 544,401
--------- --------- --------- ---------
EXPENSES:
Cost of sales, excluding depreciation 215,583 201,285 423,945 396,349
Selling, general and administrative 31,952 28,252 62,842 55,567
Depreciation 8,902 8,593 17,576 17,068
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Total expenses 256,437 238,130 504,363 468,984
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OPERATING INCOME 47,480 38,740 90,977 75,417
Other income (expenses):
Interest expense (6,724) (6,335) (13,135) (12,967)
Other, net 289 (212) (37) (1,099)
--------- --------- --------- ---------
Income before income taxes 41,045 32,193 77,805 61,351
Provision for income taxes 13,378 10,377 25,474 19,817
--------- --------- --------- ---------
NET INCOME $ 27,667 $ 21,816 $ 52,331 $ 41,534
========= ========= ========= =========
DILUTED EARNINGS PER SHARE (a) $ 0.40 $ 0.32 $ 0.76 $ 0.62
========= ========= ========= =========
BASIC EARNINGS PER SHARE (a) $ 0.41 $ 0.33 $ 0.78 $ 0.63
========= ========= ========= =========
AVERAGE COMMON SHARES OUTSTANDING (a):
Diluted shares 68,914 67,154 68,783 67,223
========= ========= ========= =========
Basic shares 67,569 65,781 67,373 65,873
========= ========= ========= =========
Dividends per share (a) $ 0.06 $ 0.03 $ 0.12 $ 0.06
========= ========= ========= =========
(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 SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES
Electronic Instruments $ 159,519 $ 137,363 $ 310,165 $ 270,964
Electromechanical 144,398 139,507 285,175 273,437
--------- --------- --------- ---------
Total Consolidated $ 303,917 $ 276,870 $ 595,340 $ 544,401
========= ========= ========= =========
OPERATING INCOME
Electronic Instruments $ 28,011 $ 21,885 $ 54,132 $ 41,867
Electromechanical 25,025 21,690 48,349 43,491
--------- --------- --------- ---------
Total segments 53,036 43,575 102,481 85,358
Corporate and other (5,556) (4,835) (11,504) (9,941)
--------- --------- --------- ---------
Total Consolidated $ 47,480 $ 38,740 $ 90,977 $ 75,417
========= ========= ========= =========
AMETEK, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
JUNE 30, December 31,
2004 2003
----------- ------------
(UNAUDITED)
ASSETS
Current assets:
Cash, cash equivalents
and marketable securities $ 35,538 $ 22,886
Receivables, net 218,649 189,010
Inventories 164,069 143,359
Other current assets 24,695 26,811
----------- ------------
Total current assets 442,951 382,066
Property, plant and equipment, net 209,288 213,622
Goodwill, net 581,763 506,964
Other intangibles, investments and other assets 116,268 112,195
----------- ------------
Total assets $ 1,350,270 $ 1,214,847
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
portion of long-term debt $ 48,120 $ 106,774
Accounts payable and accruals 220,392 182,457
----------- ------------
Total current liabilities 268,512 289,231
Long-term debt 414,051 317,674
Deferred income taxes and
other long-term liabilities 84,273 78,812
Stockholders' equity 583,434 529,130
----------- ------------
Total liabilities and stockholders' equity $ 1,350,270 $ 1,214,847
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