AME
$73.57
Amtek
($.07)
(.10%)
Earnings Details
1st Quarter March 2018
Wednesday, May 2, 2018 6:50:00 AM
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Summary

AMETEK Raises Guidance

Amtek (AME) reported 1st Quarter March 2018 earnings of $0.78 per share on revenue of $1.2 billion. The consensus earnings estimate was $0.72 per share on revenue of $1.1 billion. Revenue grew 16.4% on a year-over-year basis.

The company said it expects second quarter earnings of $0.76 to $0.78 per share and 2018 earnings of $3.06 to $3.12 per share. The company's previous guidance was 2018 earnings of $2.95 to $3.05 per share. The current consensus earnings estimate is $0.77 per share for the quarter ending June 30, 2018 and $3.05 per share for the year ending December 31, 2018.

Ametek Inc is a manufacturer of electronic instruments and electromechanical devices with operations in North America, Europe, Asia and South America.

Results
Reported Earnings
$0.78
Earnings Whisper
-
Consensus Estimate
$0.72
Reported Revenue
$1.17 Bil
Revenue Estimate
$1.12 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

AMETEK Announces Record First Quarter Results And Raises 2018 Guidance

BERWYN, Pa., May 2, 2018 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended March 31, 2018.  

AMETEK's first quarter 2018 sales were a record $1.17 billion, up 16% compared to the first quarter of 2017, with organic sales growth of 8%. Orders were a record $1.34 billion, up 20% over the prior year. Operating income in the quarter increased 19% to a record $258.2 million and operating margins of 22.0% were up 40 basis points over the prior year. First quarter diluted earnings per share of $0.78 were up 30% versus the same quarter in 2017.

"AMETEK delivered outstanding results to start the year," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Excellent organic sales growth, contributions from recently completed acquisitions and exceptional operating performance allowed AMETEK to deliver 30% earnings growth in the quarter. Record backlog, continued strong order momentum and positive market trends provides us with an optimistic outlook for the remainder of the year, prompting us to raise our full year guidance for 2018."

Electronic Instruments Group (EIG)  
In the first quarter of 2018, EIG sales were $716.4 million, up 16% over the same quarter of 2017. EIG operating income for the quarter was $183.4 million, an increase of 18% over the same period last year, and operating margins expanded 50 basis points to 25.6%.

"EIG delivered excellent results in the quarter, with the robust sales growth driven by strong organic sales growth and contributions from the recent acquisitions of Rauland, MOCON and Arizona Instrument," commented Mr. Zapico. "The higher sales combined with our operational excellence initiatives drove outstanding operating margin expansion in the quarter."   

Electromechanical Group (EMG)  
EMG sales in the first quarter were a record $456.2 million, an 18% increase compared to the first quarter last year. EMG operating income in the quarter was $91.0 million, an increase of 16% over the prior year. Operating margins were a very strong 19.9% in the quarter.

"EMG also had an excellent start to the year with outstanding sales growth and strong operating performance. Sales increased sharply on low-double digit organic sales growth and contributions from the acquisition of FMH Aerospace. EMG also delivered solid operating performance in the quarter through the execution of our operational excellence efforts," noted Mr. Zapico.

2018 Outlook       
"The first quarter's results were excellent and firmly position AMETEK for strong sales and earnings growth in 2018. Our businesses continue to deliver exceptional performance, generating excellent sales growth, margin expansion and cash flows through the execution of our Four Growth Strategies. We remain focused on strategically investing in our businesses to accelerate growth both organically and through value enhancing strategic acquisitions," commented Mr. Zapico.  

"We now expect overall sales in 2018 to increase low-double digits on a percentage basis, with organic sales up mid-single digits. We are increasing our 2018 earnings guidance range to $3.06 to $3.12 per diluted share, up 17% to 20% over 2017's adjusted diluted earnings per share. This is an increase from our initial guidance range of $2.95 to $3.05 per diluted share," he added.

"Overall sales in the second quarter of 2018 are expected to be up approximately 10% compared to the same quarter in 2017. We expect second quarter earnings per diluted share to be in the range of $0.76 to $0.78, up 17% to 20% over the same quarter last year," concluded Mr. Zapico.

Conference Call 
AMETEK will webcast its first quarter 2018 investor conference call on Wednesday, May 2, 2018, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

Corporate Profile 
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of more than $4.7 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, 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 500 Index.

Forward-looking Information 
Statements in this news release relating to future events, such as AMETEK's expected business and financial performance are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors and uncertainties include AMETEK's ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; AMETEK's ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK's filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.

Contact: 
AMETEK, Inc. 
Kevin Coleman 
Vice President, Investor Relations 
1100 Cassatt Road 
Berwyn, Pennsylvania 19312 
kevin.coleman@ametek.com 
Phone: 610.889.5247

(Financial Information Follows)

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)



 Three Months Ended


 March 31,


2018


2017 (1)

Net sales

$   1,172,647


$    1,007,682





Cost of sales

776,800


667,402

Selling, general and administrative

137,679


122,833

     Total operating expenses

914,479


790,235





Operating income

258,168


217,447





Interest expense

(21,686)


(24,516)

Other income (expense), net

(658)


(1,509)





Income before income taxes

235,824


191,422





Provision for income taxes

54,484


52,496





Net income

$      181,340


$       138,926





Diluted earnings per share

$           0.78


$            0.60

Basic earnings per share

$           0.79


$            0.61





Weighted average common shares outstanding:




     Diluted shares

232,965


231,004

     Basic shares

230,928


229,548





Dividends per share

$           0.14


$            0.09



(1) - The first quarter of 2017 has been restated to reflect the adoption of new accounting guidance in 2018, which resulted in the presentation of $2.9 million of other net periodic benefit income in Other income (expense), net rather than in Operating income, with no change in Net income.

 

 

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



 Three Months Ended


 March 31,


2018


2017

Net sales:




     Electronic Instruments

$      716,426


$       619,769

     Electromechanical

456,221


387,913

          Consolidated net sales

$   1,172,647


$    1,007,682





Operating income:




Segment operating income:




     Electronic Instruments

$      183,359


$       155,261

     Electromechanical

91,002


78,343

          Total segment operating income

274,361


233,604

     Corporate administrative expenses

(16,193)


(16,157)

          Consolidated operating income

$      258,168


$       217,447





 


 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 March 31,


 December 31,


2018


2017


 (Unaudited)



ASSETS




Current assets:




     Cash and cash equivalents

$     556,776


$     646,300

     Receivables, net

684,617


668,176

     Inventories, net

596,312


540,504

     Other current assets

122,500


79,675

          Total current assets

1,960,205


1,934,655





Property, plant and equipment, net

492,350


493,296

Goodwill

3,238,599


3,115,619

Other intangibles, investments and other assets

2,367,207


2,252,494

          Total assets

$  8,058,361


$  7,796,064





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




     Short-term borrowings and current portion of long-term debt, net

$     308,069


$     308,123

     Accounts payable and accruals

851,854


830,540

          Total current liabilities

1,159,923


1,138,663





Long-term debt, net

1,897,633


1,866,166

Deferred income taxes and other long-term liabilities

796,408


763,602

Stockholders' equity

4,204,397


4,027,633

          Total liabilities and stockholders' equity

$  8,058,361


$  7,796,064





 

 

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SOURCE AMETEK, Inc.