AME
$80.96
Amtek
($.54)
(.66%)
Earnings Details
2nd Quarter June 2018
Tuesday, July 31, 2018 6:55:00 AM
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Summary

Amtek Beats

Amtek (AME) reported 2nd Quarter June 2018 earnings of $0.83 per share on revenue of $1.2 billion. The consensus earnings estimate was $0.78 per share on revenue of $1.2 billion. The Earnings Whisper number was $0.81 per share. Revenue grew 13.6% on a year-over-year basis.

The company said it expects third quarter earnings of $0.76 to $0.78 per share and 2018 earnings of $3.16 to $3.20 per share. The company's previous guidance was 2018 earnings of $3.06 to $3.12 per share. The current consensus earnings estimate is $0.77 per share for the quarter ending September 30, 2018 and $3.14 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
$0.83
Earnings Whisper
$0.81
Consensus Estimate
$0.78
Reported Revenue
$1.21 Bil
Revenue Estimate
$1.18 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

AMETEK Announces Record Second Quarter Results and Raises 2018 Guidance

BERWYN, Pa., July 31, 2018 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended June 30, 2018.  

AMETEK's second quarter 2018 sales were a record $1.21 billion, up 14% compared to the second quarter of 2017, with organic sales growth of 7%. Second quarter operating income increased 18% over the same quarter last year to a record $270.1 million.  Operating income margins in the second quarter were 22.3%, up 70 basis points versus the prior year. Earnings in the quarter were $0.83 per diluted share, up 28% compared to the prior year period.

"AMETEK's businesses again delivered exceptional results," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Continued strong organic sales growth, contributions from recent acquisitions and outstanding operating performance enabled us to exceed our expectations and deliver robust growth in sales and earnings per share."  

Electronic Instruments Group (EIG)
Second quarter EIG sales were a record $744.5 million, up 13% over the same quarter of 2017. Operating income for the quarter was $193.8 million, an 18% increase over the same period last year, and operating margins expanded 110 basis points to 26.0%.

"EIG delivered record-level sales and exceptional operating performance in the quarter. The double-digit sales increase was driven by broad based organic sales growth and contributions from the recent acquisitions. Operating margins increased sharply on higher sales and continued execution of our operational excellence efforts," commented Mr. Zapico.

Electromechanical Group (EMG)
Second quarter sales for EMG were also a record at $464.5 million, up 14% compared to the second quarter of 2017. EMG operating income in the quarter was a record $94.3 million, an 11% increase over the prior year, and operating margins were 20.3% in the quarter.

"EMG also delivered excellent results in the second quarter with double-digit sales growth and a record level of operating income.  The sales growth was driven by strong organic growth and contributions from the acquisition of FMH Aerospace," noted Mr. Zapico.

2018 Outlook  
"We are very pleased with the company's performance in the second quarter and through the first half of the year. These results highlight the strength of the AMETEK business model and the success we are having in driving our growth strategies," commented Mr. Zapico.

"Given these strong second quarter results, we are again raising guidance for 2018. We now expect 2018 earnings per diluted share to be in the range of $3.16 to $3.20, up 21% to 23% over 2017's adjusted diluted earnings per share. This is an increase from our previous guidance range of $3.06 to $3.12 per diluted share. We continue to expect overall sales for the year to be up low-double digits on a percentage basis, with organic sales up mid-single digits," he added.

"Overall sales in the third quarter of 2018 are expected to be up high-single digits on a percentage basis versus the prior year period. Third quarter earnings are expected to be in the range of $0.76 to $0.78 per diluted share, up 15% to 18% over the same quarter in 2017," concluded Mr. Zapico.

Conference Call
AMETEK will webcast its second quarter 2018 investor conference call on Tuesday, July 31, 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 $4.8 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


 Six Months Ended


 June 30,


 June 30,


2018


2017 (1)


2018


2017 (1)

Net sales

$1,208,935


$1,064,604


$2,381,582


$2,072,286









Cost of sales

791,248


702,191


1,568,048


1,369,593

Selling, general and administrative

147,601


132,864


285,280


255,697

     Total operating expenses

938,849


835,055


1,853,328


1,625,290









Operating income

270,086


229,549


528,254


446,996









Interest expense

(20,784)


(24,552)


(42,470)


(49,068)

Other expense, net

(1,081)


(1,642)


(1,739)


(3,151)









Income before income taxes

248,221


203,355


484,045


394,777









Provision for income taxes

54,361


52,874


108,845


105,370









Net income

$   193,860


$   150,481


$   375,200


$   289,407









Diluted earnings per share

$        0.83


$        0.65


$        1.61


$        1.25

Basic earnings per share

$        0.84


$        0.65


$        1.62


$        1.26









Weighted average common shares outstanding:








     Diluted shares

233,297


231,588


233,131


231,296

     Basic shares

231,252


230,158


231,090


229,853









Dividends per share

$        0.14


$        0.09


$        0.28


$        0.18









 

(1) - The three and six months ended June 30, 2017 have been restated to reflect the adoption of new accounting guidance in 2018, which resulted in the presentation of $2.8 million and $5.7 million, respectively, of other net periodic benefit income in Other 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


 Six Months Ended


 June 30,


 June 30,


2018


2017


2018


2017

Net sales:








     Electronic Instruments

$   744,458


$   657,663


$1,460,884


$1,277,432

     Electromechanical

464,477


406,941


920,698


794,854

          Consolidated net sales

$1,208,935


$1,064,604


$2,381,582


$2,072,286









Operating income:








Segment operating income:








     Electronic Instruments

$   193,831


$   163,755


$   377,190


$   319,016

     Electromechanical

94,250


84,568


185,252


162,911

          Total segment operating income

288,081


248,323


562,442


481,927

     Corporate administrative expenses

(17,995)


(18,774)


(34,188)


(34,931)

          Consolidated operating income

$   270,086


$   229,549


$   528,254


$   446,996

 

 

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



 June 30,


 December 31,


2018


2017


 (Unaudited)



ASSETS




Current assets:




     Cash and cash equivalents

$     557,693


$     646,300

     Receivables, net

710,956


668,176

     Inventories, net

614,390


540,504

     Other current assets

135,087


79,675

          Total current assets

2,018,126


1,934,655





Property, plant and equipment, net

490,126


493,296

Goodwill

3,252,002


3,115,619

Other intangibles, investments and other assets

2,392,198


2,252,494

          Total assets

$  8,152,452


$  7,796,064





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




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

$     307,661


$     308,123

     Accounts payable and accruals

874,856


830,540

          Total current liabilities

1,182,517


1,138,663





Long-term debt, net

1,838,224


1,866,166

Deferred income taxes and other long-term liabilities

793,615


763,602

Stockholders' equity

4,338,096


4,027,633

          Total liabilities and stockholders' equity

$  8,152,452


$  7,796,064





 

Cision View original content:http://www.prnewswire.com/news-releases/ametek-announces-record-second-quarter-results-and-raises-2018-guidance-300689061.html

SOURCE AMETEK, Inc.