EXHIBIT 99(A)
[AMETEK NEWS RELEASE LOGO]
Contact: William J. Burke (610) 889-5249
AMETEK ACHIEVES RECORD QUARTERLY RESULTS
--REVENUES INCREASE 16%, NET INCOME UP 32%--
Paoli, PA, October 20, 2004 -- AMETEK Inc. (NYSE: AME) today announced third
quarter results that established quarterly records for sales, operating income,
net income and diluted earnings per share.
AMETEK's third quarter 2004 sales of $310.7 million were up 16% from the $267.8
million recorded in the third quarter of 2003. Operating income for the third
quarter of 2004 was $50.5 million, up 28% from the third quarter of 2003. Net
income of $29.0 million was up 32% from last year's third quarter and diluted
earnings per share were $.42 per share, up 31% over the same quarter of last
year.
"AMETEK performed extremely well in the third quarter, establishing quarterly
records for sales and earnings. This record performance was driven by strong
internal growth, continued operational improvements, and contributions from our
strategic acquisitions," commented Frank S. Hermance, AMETEK Chairman and Chief
Executive Officer.
For the first nine months of 2004, AMETEK sales increased 12% to $906.0 million
from $812.2 million in the same period of 2003. Operating income totaled $141.4
million, a 23% increase from $114.9 million earned in the first nine months of
last year. Net income for the first nine months of 2004 was $81.4 million, up
28% from $63.5 million in the same period of 2003. Diluted earnings per share
were up 26% to $1.18 per share for the first nine months of 2004.
ELECTRONIC INSTRUMENTS GROUP (EIG)
EIG's third quarter 2004 sales were $172.9 million, up 24% from last year's
level of $139.0 million. Third quarter group operating income was up 29% to
$32.1 million, versus $24.9 million in the same period of 2003. Group operating
margins were 18.6%, up from 17.9% in the third quarter of 2003.
"EIG had a tremendous quarter," noted Mr. Hermance. "The revenue increase was
driven by 8% internal growth and the contributions from the Taylor Hobson and
Chandler Instruments 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 $137.8 million were up 7% from $128.8 million in the third
quarter of 2003. Third quarter group operating income of $24.0 million was up
11%, versus $21.6 million reported for the same period of 2003. EMG's operating
income margin in the third quarter of 2004 was 17.4%, compared with 16.8% in the
third quarter of 2003.
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AMETEK ACHIEVES RECORD RESULTS
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"EMG also had an excellent quarter. The revenue growth was driven by strong
performance in our differentiated businesses. Operating income was up 11% on the
addition of Hughes Treitler and our continued operational improvements across
the Group," added Mr. Hermance.
OUTLOOK
Mr. Hermance commented, "We are again raising our estimates for the year.
Full-year revenues are expected to be up low double-digits on the benefits of
our acquisition program and continued solid internal growth in each of our two
Groups. Earnings are expected to be approximately $1.59 to $1.61 per diluted
share, an increase of approximately 22% to 24% over 2003."
"Our fourth quarter 2004 sales are expected to be up low double-digits from last
year's fourth quarter on internal growth in both segments and the contribution
from the Taylor Hobson and Hughes-Treitler acquisitions. We expect our earnings
to be approximately $.41 to $.43 per diluted share, an increase of approximately
14% to 19% over last year's fourth quarter," concluded Mr. Hermance.
CONFERENCE CALL
AMETEK, Inc. will Web cast it's Third Quarter 2004 investor conference call on
Wednesday, October 20, 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 NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -----------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES $ 310,707 $ 267,781 $ 906,047 $ 812,182
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EXPENSES:
Cost of sales, excluding depreciation 216,534 190,049 640,479 586,398
Selling, general and administrative 35,112 30,130 97,954 85,697
Depreciation 8,608 8,123 26,184 25,191
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Total expenses 260,254 228,302 764,617 697,286
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OPERATING INCOME 50,453 39,479 141,430 114,896
Other income (expenses):
Interest expense (7,541) (6,459) (20,676) (19,426)
Other, net (659) 160 (696) (939)
--------- --------- --------- ---------
Income before income taxes 42,253 33,180 120,058 94,531
Provision for income taxes 13,233 11,262 38,707 31,079
--------- --------- --------- ---------
NET INCOME $ 29,020 $ 21,918 $ 81,351 $ 63,452
========= ========= ========= =========
DILUTED EARNINGS PER SHARE (a) $ 0.42 $ 0.32 $ 1.18 $ 0.94
========= ========= ========= =========
BASIC EARNINGS PER SHARE (a) $ 0.43 $ 0.33 $ 1.20 $ 0.96
========= ========= ========= =========
AVERAGE COMMON SHARES OUTSTANDING (a):
Diluted shares 69,552 67,721 69,039 67,389
========= ========= ========= =========
Basic shares 68,124 66,474 67,657 66,073
========= ========= ========= =========
Dividends per share (a) $ 0.06 $ 0.03 $ 0.18 $ 0.09
========= ========= ========= =========
(a) Amounts for 2003 have been restated to reflect a two-for-one stock split
effective February 27, 2004.
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AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (UNAUDITED)
(IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
----------------------------- -----------------------------
2004 2003 2004 2003
--------- --------- --------- ---------
NET SALES
Electronic Instruments $ 172,929 $ 138,978 $ 483,094 $ 409,942
Electromechanical 137,778 128,803 422,953 402,240
--------- --------- --------- ---------
Total Consolidated $ 310,707 $ 267,781 $ 906,047 $ 812,182
========= ========= ========= =========
OPERATING INCOME
Electronic Instruments $ 32,083 $ 24,886 $ 86,215 $ 66,753
Electromechanical 24,029 21,640 72,378 65,131
--------- --------- --------- ---------
Total segments 56,112 46,526 158,593 131,884
Corporate and other (5,659) (7,047) (17,163) (16,988)
--------- --------- --------- ---------
Total Consolidated $ 50,453 $ 39,479 $ 141,430 $ 114,896
========= ========= ========= =========
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AMETEK, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
SEPTEMBER 30, December 31,
2004 2003
---------- ----------
(UNAUDITED)
ASSETS
Current assets:
Cash, cash equivalents
and marketable securities $ 32,410 $ 22,886
Receivables, net 214,920 189,010
Inventories 167,615 143,359
Other current assets 34,567 26,811
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Total current assets 449,512 382,066
Property, plant and equipment, net 203,416 213,622
Goodwill, net 608,735 506,964
Other intangibles, investments and other assets 129,926 112,195
---------- ----------
Total assets $1,391,589 $1,214,847
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings and current
portion of long-term debt $ 79,454 $ 106,774
Accounts payable and accruals 204,461 182,457
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Total current liabilities 283,915 289,231
Long-term debt 407,964 317,674
Deferred income taxes and
other long-term liabilities 87,899 78,812
Stockholders' equity 611,811 529,130
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Total liabilities and stockholders' equity $1,391,589 $1,214,847
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