BERWYN, Pa., April 29, 2015 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the three
month period ended March 31,
2015.
AMETEK's first quarter 2015 sales of $984.1 million were up 1% over the same period of
2014. Excluding realignment costs of $15.9 million, or approximately $0.04 per diluted share, operating income
increased 7% to a record $236.8
million, operating margins were up 140 basis points to
24.1%, and diluted earnings per share increased 11% to $0.63 per diluted share from the first quarter
2014.
"AMETEK achieved solid results to begin the year with
outstanding operating performance across the Company and double
digit earnings growth. Since the strong U.S. dollar and
sluggish global economy will impact our 2015 sales growth, we have
proactively taken actions to properly position AMETEK to deliver
earnings in-line with our initial guidance," noted Frank S. Hermance, AMETEK Chairman and Chief
Executive Officer.
On a GAAP basis, operating income in the first quarter was
$221.0 million and diluted earnings
per share were $0.59. A
reconciliation of reported GAAP results to adjusted results is
included in the financial tables accompanying the
release.
Electronic Instruments Group (EIG)
In the first
quarter of 2015, EIG sales increased 4% to $593.8 million. Excluding realignment
costs, operating income increased 7% to $160.5 million and operating margins were up 70
basis points to 27.0%.
"EIG had a very good first quarter. Solid core growth in
our Aerospace, Power and Industrial businesses combined with the
contributions from recent acquisitions drove the overall sales
growth. Operating performance was very strong, with margins
up 70 basis points in the quarter," notes Mr. Hermance.
On a GAAP basis, EIG operating income was $151.2 million in the quarter.
Electromechanical Group (EMG)
For the first quarter
of 2015, EMG sales decreased 3% to $390.3
million. Excluding realignment costs, operating income
increased 6% to $88.5 million and
operating margins increased 190 basis points to 22.7%.
"EMG also had a very solid quarter with excellent operating
performance. Organic sales were up on strength in our
Precision Motion Control and Engineered Materials, Interconnects
and Packaging businesses. Operating margins were up sharply
driven by our continued Operational Excellence initiatives," adds
Mr. Hermance.
On a GAAP basis, EMG operating income was $82.0 million in the quarter.
2015 Outlook
"We are confident in our ability to
continue to deliver strong earnings growth due to our excellent
portfolio of businesses, proven operational capabilities, organic
growth investments, and a successful focus on strategic
acquisitions," notes Mr. Hermance.
"We now anticipate 2015 sales to be down slightly compared to
2014 due to the impact of foreign currency. Organic sales are
expected to increase low-single digits on a percentage basis over
2014, which is at the low-end of our initial guidance range.
We continue to expect earnings for 2015, excluding first quarter
realignment costs, to be in the range of $2.58 to $2.63 per diluted share, up 7% to 9%
over 2014 adjusted earnings per share," adds Mr. Hermance.
"Second quarter 2015 sales are expected to be roughly flat with
last year's second quarter. We estimate our earnings in the
second quarter to be approximately $0.63 to
$0.64 per diluted share, an increase of 3% to 5% over last
year's second quarter of $0.61 per
diluted share," concludes Mr. Hermance.
Conference Call
AMETEK will webcast its First Quarter
2015 investor conference call on Wednesday,
April 29, 2015, beginning at 8:30 AM
ET. The live audio webcast will be available at the
Investors section of www.ametek.com and at
www.streetevents.com. The call will also be archived at the
Investors section of www.ametek.com.
Corporate Profile
AMETEK is a leading global
manufacturer of electronic instruments and electro-mechanical
devices with annual sales of $4.0 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 our ability to consummate and successfully
integrate future acquisitions; risks associated with international
sales and operations; our 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.
(Financial Information Follows)
|
AMETEK,
Inc.
|
|
Consolidated
Statement of Income
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
Net
sales
|
$ 984,059
|
|
$ 975,292
|
|
Operating
expenses:
|
|
|
|
|
Cost of sales, excluding
depreciation
|
635,965
|
|
625,170
|
|
Selling, general and
administrative
|
110,884
|
|
112,625
|
|
Depreciation
|
16,258
|
|
15,866
|
|
Total operating expenses
|
763,107
|
|
753,661
|
|
|
|
|
|
Operating
income
|
220,952
|
|
221,631
|
|
Other
expenses:
|
|
|
|
|
Interest expense
|
(22,686)
|
|
(18,838)
|
|
Other, net
|
(1,480)
|
|
(3,877)
|
|
Income before income
taxes
|
196,786
|
|
198,916
|
|
Provision for income
taxes
|
54,679
|
|
58,330
|
|
|
|
|
|
Net
income
|
$ 142,107
|
|
$ 140,586
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.59
|
|
$ 0.57
|
|
Basic earnings per
share
|
$
0.59
|
|
$ 0.57
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
Diluted shares
|
242,797
|
|
247,229
|
|
Basic shares
|
240,947
|
|
244,911
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.06
|
|
AMETEK,
Inc.
|
|
Information by
Business Segment
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
Three Months
Ended
|
|
March
31,
|
|
2015
|
|
2014
|
|
Net
sales:
|
|
|
|
|
Electronic
Instruments
|
$ 593,798
|
|
$ 572,394
|
|
Electromechanical
|
390,261
|
|
402,898
|
|
Consolidated net sales
|
$ 984,059
|
|
$ 975,292
|
|
|
|
|
|
Income:
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
Electronic
Instruments
|
$ 151,217
|
|
$ 150,319
|
|
Electromechanical
|
81,964
|
|
83,880
|
|
Total segment operating income
|
233,181
|
|
234,199
|
|
Corporate administrative and
other expenses
|
(12,229)
|
|
(12,568)
|
|
Consolidated operating income
|
$ 220,952
|
|
$ 221,631
|
|
AMETEK,
Inc.
|
|
Condensed
Consolidated Balance Sheet
|
|
(In
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 406,587
|
|
$ 377,615
|
|
Receivables, net
|
592,301
|
|
585,462
|
|
Inventories, net
|
506,086
|
|
495,896
|
|
Other current
assets
|
125,198
|
|
119,631
|
|
Total current assets
|
1,630,172
|
|
1,578,604
|
|
|
|
|
|
Property, plant and
equipment, net
|
434,401
|
|
448,446
|
|
Goodwill
|
2,566,962
|
|
2,614,030
|
|
Other intangibles,
investments and other assets
|
1,725,123
|
|
1,779,883
|
|
Total assets
|
$ 6,356,658
|
|
$ 6,420,963
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 254,038
|
|
$ 286,201
|
|
Accounts payable and
accruals
|
665,882
|
|
649,943
|
|
Total current liabilities
|
919,920
|
|
936,144
|
|
|
|
|
|
Long-term
debt
|
1,418,638
|
|
1,427,825
|
|
Deferred income taxes
and other long-term liabilities
|
754,238
|
|
817,433
|
|
Stockholders'
equity
|
3,263,862
|
|
3,239,561
|
|
Total liabilities and stockholders' equity
|
$ 6,356,658
|
|
$ 6,420,963
|
|
AMETEK,
Inc.
|
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
|
(In thousands,
except per share amounts)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
March
31,
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$ 151,217
|
|
$ 150,319
|
|
|
Realignment
costs
|
|
9,251
|
|
-
|
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
$ 160,468
|
|
$ 150,319
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$ 81,964
|
|
$ 83,880
|
|
|
Realignment
costs
|
|
6,534
|
|
-
|
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
$ 88,498
|
|
$ 83,880
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$ 220,952
|
|
$ 221,631
|
|
|
Realignment
costs
|
|
15,894
|
|
-
|
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$ 236,846
|
|
$ 221,631
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$ 142,107
|
|
$ 140,586
|
|
|
Realignment
costs
|
|
10,808
|
(1)
|
-
|
|
|
Adjusted Net income
(Non-GAAP)
|
|
$ 152,915
|
|
$ 140,586
|
|
|
|
|
|
|
|
|
|
(1) Represents
adjustments at 32.0% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.59
|
|
$ 0.57
|
|
|
Realignment
costs
|
|
0.04
|
|
-
|
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.63
|
|
$ 0.57
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
25.5%
|
|
26.3%
|
|
|
Realignment
costs
|
|
1.5%
|
|
0.0%
|
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
27.0%
|
|
26.3%
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
21.0%
|
|
20.8%
|
|
|
Realignment
costs
|
|
1.7%
|
|
0.0%
|
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
22.7%
|
|
20.8%
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
22.5%
|
|
22.7%
|
|
|
Realignment
costs
|
|
1.6%
|
|
0.0%
|
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
24.1%
|
|
22.7%
|
|
|
|
|
Use of Non-GAAP
Financial Information
|
|
|
The Company
supplements its consolidated financial statements presented on a
U.S. generally accepted accounting principles ("GAAP") basis with
certain non‑GAAP financial information to provide investors with
greater insight, increased transparency and allow for a more
comprehensive understanding of the information used by management
in its financial and operational decision-making. Reconciliation of
non‑GAAP measures to their most directly comparable GAAP measures
are included in the accompanying financial tables. These non‑GAAP
financial measures should be considered in addition to, and not as
a replacement for, or superior to, the comparable GAAP measure, and
may not be comparable to similarly titled measures reported by
other companies.
|
|
|
The Company believes
that these measures provide useful information to investors by
reflecting additional ways of viewing AMETEK's operations that,
when reconciled to the comparable GAAP measure, helps our investors
to better understand the long-term profitability trends of our
business, and facilitates easier comparisons of our profitability
to prior and future periods and to our peers. The items described
above have been excluded from this measure because items of this
nature and/or size occur with inconsistent frequency, occur for
reasons that may be unrelated to AMETEK's commercial performance
during the period and/or we believe are not indicative of AMETEK's
ongoing operating costs or gains in a given period, which we
believe may obscure underlying business trends and make comparisons
of long-term performance difficult.
|
Contact: Kevin Coleman (610)
889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-first-quarter-2015-results-300073831.html
SOURCE AMETEK, Inc.