BERWYN, Pa., Feb. 5, 2016 /PRNewswire/ -- AMETEK, Inc. (NYSE:
AME) today announced its financial results for the three month and
full year periods ended December 31,
2015.
AMETEK reported fourth quarter 2015 sales of $988.0 million, down 4% from last year's
fourth quarter. Excluding realignment costs of $20.7 million, or $0.06 per diluted share, fourth quarter 2015
operating income was down 1% to $229.5 million, operating margins were up 50
basis points to 23.2%, and diluted earnings per share of
$0.63 were unchanged from the fourth
quarter 2014 adjusted levels. Fourth quarter 2014 adjusted
results excluded $5.2 million,
or $0.01 per diluted share, of Zygo
integration costs.
"I am very pleased with AMETEK's results in the fourth quarter
and for the full year. We achieved record levels of operating
performance and diluted earnings per share this year despite an
increasingly challenging global economic environment. Our
solid results reflect the continued excellent work of all AMETEK
colleagues in executing our Four Growth Strategies," noted
Frank S. Hermance, AMETEK Chairman
and Chief Executive Officer.
On a GAAP basis, fourth quarter 2015 operating income was
$208.8 million and diluted
earnings per share were $0.57, and
fourth quarter 2014 operating income was $227.1 million and diluted earnings per
share were $0.62. A
reconciliation of reported GAAP results to adjusted results is
included in the financial tables accompanying the release.
Electronic Instruments Group (EIG)
For the fourth quarter of 2015, EIG sales were $628.4 million, down 2% versus $644.4 million in last year's comparable
quarter. Excluding fourth quarter 2015 realignment costs and
fourth quarter 2014 Zygo integration costs, operating income
increased 2% to a record $170.9 million, and operating margins were
up 110 basis points to 27.2%.
"EIG performed well in this slow growth environment. Lower
sales in the quarter were driven by currency headwinds and weakness
across our oil and gas businesses. Our Aerospace business
continues to perform well. Operating performance was very
strong with operating margins up 110 basis points benefitting from
our focus on Operational Excellence initiatives," added Mr.
Hermance.
On a GAAP basis, EIG operating income was $161.7 million in the 2015 fourth quarter
and $162.9 million in the 2014
fourth quarter.
Electromechanical Group (EMG)
In the fourth quarter, EMG sales were $359.6 million, down 5% from last year's
fourth quarter. Excluding realignment costs, operating income
was down 8% to $70.9 million and
operating margins were 19.7% for the quarter.
"EMG managed well through a very difficult market environment in
the fourth quarter. Sales were impacted by foreign currency
headwinds and weakness across our Engineered Materials,
Interconnects and Packaging businesses largely as a result of
continued commodity price deflation," notes Mr. Hermance.
On a GAAP basis, EMG operating income was $60.2 million in the 2015 fourth
quarter.
2016 Outlook
"We do not anticipate a meaningful change in global economic
conditions in 2016 with sluggish conditions across oil and gas,
emerging markets and the broad industrial markets expected to
continue. Despite this, we have proven that our strong
portfolio of differentiated businesses, excellent operational
capabilities, on-going investments in new product development and
geographic expansion, and a continued focus on strategic
acquisitions should enable us to perform well in 2016," noted Mr.
Hermance.
"We anticipate 2016 revenue to be up low single digits on a
percentage basis from 2015. Earnings for 2016 are expected to
be in the range of $2.55 to $2.65 per
diluted share, flat to up 4% over 2015 adjusted results," added Mr.
Hermance.
"First quarter 2016 sales are expected to be down low single
digits from last year's first quarter. We estimate our
earnings to be approximately $0.56 to
$0.58 per diluted share," concluded Mr. Hermance.
Conference Call
The Company will webcast its Fourth Quarter 2015 investor
conference call on Friday, February 5,
2016 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)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales
|
$ 987,983
|
|
$1,024,143
|
|
$3,974,295
|
|
$4,021,964
|
Operating
expenses:
|
|
|
|
|
|
|
|
Cost of sales, excluding
depreciation
|
647,600
|
|
663,463
|
|
2,549,280
|
|
2,597,017
|
Selling, general and
administrative
|
112,890
|
|
117,491
|
|
448,592
|
|
462,637
|
Depreciation
|
18,663
|
|
16,105
|
|
68,707
|
|
63,724
|
Total operating expenses
|
779,153
|
|
797,059
|
|
3,066,579
|
|
3,123,378
|
|
|
|
|
|
|
|
|
Operating
income
|
208,830
|
|
227,084
|
|
907,716
|
|
898,586
|
Other
expenses:
|
|
|
|
|
|
|
|
Interest expense
|
(22,747)
|
|
(22,566)
|
|
(91,795)
|
|
(79,928)
|
Other, net
|
(3,243)
|
|
3,016
|
|
(9,541)
|
|
(13,826)
|
Income before income
taxes
|
182,840
|
|
207,534
|
|
806,380
|
|
804,832
|
Provision for income
taxes
|
45,999
|
|
55,534
|
|
215,521
|
|
220,372
|
|
|
|
|
|
|
|
|
Net
income
|
$ 136,841
|
|
$ 152,000
|
|
$ 590,859
|
|
$ 584,460
|
|
|
|
|
|
|
|
|
Diluted earnings
per share
|
$
0.57
|
|
$ 0.62
|
|
$
2.45
|
|
$ 2.37
|
Basic earnings per
share
|
$
0.58
|
|
$ 0.62
|
|
$
2.46
|
|
$ 2.39
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
238,689
|
|
246,132
|
|
241,586
|
|
247,102
|
Basic shares
|
237,220
|
|
243,990
|
|
239,906
|
|
244,885
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.09
|
|
$ 0.09
|
|
$
0.36
|
|
$ 0.33
|
|
|
|
|
|
|
|
|
AMETEK,
Inc.
|
Information by
Business Segment
|
(In
thousands)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 628,415
|
|
$ 644,386
|
|
$2,417,192
|
|
$2,421,638
|
Electromechanical
|
359,568
|
|
379,757
|
|
1,557,103
|
|
1,600,326
|
Consolidated net sales
|
$ 987,983
|
|
$1,024,143
|
|
$3,974,295
|
|
$4,021,964
|
|
|
|
|
|
|
|
|
Income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$ 161,659
|
|
$ 162,861
|
|
$ 639,399
|
|
$ 612,992
|
Electromechanical
|
60,169
|
|
77,032
|
|
318,098
|
|
335,046
|
Total segment operating income
|
221,828
|
|
239,893
|
|
957,497
|
|
948,038
|
Corporate administrative and
other expenses
|
(12,998)
|
|
(12,809)
|
|
(49,781)
|
|
(49,452)
|
Consolidated operating income
|
$ 208,830
|
|
$ 227,084
|
|
$ 907,716
|
|
$ 898,586
|
|
AMETEK,
Inc.
|
Condensed
Consolidated Balance Sheet
|
(In
thousands)
|
|
|
December
31,
|
|
December
31,
|
|
2015
|
|
2014
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$ 381,005
|
|
$ 377,615
|
Receivables, net
|
603,295
|
|
585,462
|
Inventories, net
|
514,451
|
|
495,896
|
Other current
assets
|
120,862
|
|
119,631
|
Total current assets
|
1,619,613
|
|
1,578,604
|
|
|
|
|
Property, plant and
equipment, net
|
484,548
|
|
448,446
|
Goodwill
|
2,706,633
|
|
2,614,030
|
Other intangibles,
investments and other assets
|
1,853,736
|
|
1,779,883
|
Total assets
|
$ 6,664,530
|
|
$ 6,420,963
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt
|
$ 386,075
|
|
$ 286,201
|
Accounts payable and
accruals
|
639,097
|
|
649,943
|
Total current liabilities
|
1,025,172
|
|
936,144
|
|
|
|
|
Long-term
debt
|
1,556,045
|
|
1,427,825
|
Deferred income taxes
and other long-term liabilities
|
828,687
|
|
817,433
|
Stockholders'
equity
|
3,254,626
|
|
3,239,561
|
Total liabilities and stockholders' equity
|
$ 6,664,530
|
|
$ 6,420,963
|
|
AMETEK,
Inc.
|
Reconciliations of
GAAP to Non-GAAP Financial Measures
|
(In thousands,
except per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
income (GAAP)
|
|
$ 161,659
|
|
$ 162,861
|
|
$ 639,399
|
|
$ 612,992
|
|
|
Realignment
costs
|
|
9,267
|
|
-
|
|
18,518
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
5,222
|
|
-
|
|
18,877
|
|
Adjusted EIG Segment
operating income (Non-GAAP)
|
$ 170,926
|
|
$ 168,083
|
|
$ 657,917
|
|
$ 631,869
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
income (GAAP)
|
|
$ 60,169
|
|
$ 77,032
|
|
$ 318,098
|
|
$ 335,046
|
|
|
Realignment
costs
|
|
10,764
|
|
-
|
|
17,298
|
|
-
|
|
Adjusted EMG Segment
operating income (Non-GAAP)
|
$ 70,933
|
|
$ 77,032
|
|
$ 335,396
|
|
$ 335,046
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(GAAP)
|
|
$ 208,830
|
|
$ 227,084
|
|
$ 907,716
|
|
$ 898,586
|
|
|
Realignment
costs
|
|
20,711
|
|
-
|
|
36,605
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
5,222
|
|
-
|
|
18,877
|
|
Adjusted Operating
income (Non-GAAP)
|
|
$ 229,541
|
|
$ 232,306
|
|
$ 944,321
|
|
$ 917,463
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(GAAP)
|
|
$ 136,841
|
|
$ 152,000
|
|
$ 590,859
|
|
$ 584,460
|
|
|
Realignment
costs
|
|
13,868
|
(1)
|
-
|
|
24,676
|
(2)
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
3,177
|
(3)
|
-
|
|
13,894
|
(4)
|
Adjusted Net income
(Non-GAAP)
|
|
$ 150,709
|
|
$ 155,177
|
|
$ 615,535
|
|
$ 598,354
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Represents
adjustments at 33.0% tax rate.
|
|
|
|
|
|
|
|
|
|
(2) Represents
adjustments at 32.6% tax rate.
|
|
|
|
|
|
|
|
|
|
(3) Represents
adjustments at 39.2% tax rate.
|
|
|
|
|
|
|
|
|
|
(4) Represents
adjustments at 26.4% tax rate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
|
$
0.57
|
|
$ 0.62
|
|
$
2.45
|
|
$ 2.37
|
|
|
Realignment
costs
|
|
0.06
|
|
-
|
|
0.10
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
0.01
|
|
-
|
|
0.05
|
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
|
$
0.63
|
|
$ 0.63
|
|
$
2.55
|
|
$ 2.42
|
|
|
|
|
|
|
|
|
|
|
|
|
EIG Segment operating
margin (GAAP)
|
|
25.7%
|
|
25.3%
|
|
26.5%
|
|
25.3%
|
|
|
Realignment
costs
|
|
1.5
|
|
-
|
|
0.7
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
0.8
|
|
-
|
|
0.8
|
|
Adjusted EIG Segment
operating margin (Non-GAAP)
|
27.2%
|
|
26.1%
|
|
27.2%
|
|
26.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
EMG Segment operating
margin (GAAP)
|
|
16.7%
|
|
20.3%
|
|
20.4%
|
|
20.9%
|
|
|
Realignment
costs
|
|
3.0
|
|
-
|
|
1.1
|
|
-
|
|
Adjusted EMG Segment
operating margin (Non-GAAP)
|
19.7%
|
|
20.3%
|
|
21.5%
|
|
20.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin (GAAP)
|
|
21.1%
|
|
22.2%
|
|
22.8%
|
|
22.3%
|
|
|
Realignment
costs
|
|
2.1
|
|
-
|
|
1.0
|
|
-
|
|
|
Zygo integration
costs
|
|
-
|
|
0.5
|
|
-
|
|
0.5
|
|
Adjusted Operating
income margin (Non-GAAP)
|
|
23.2%
|
|
22.7%
|
|
23.8%
|
|
22.8%
|
|
|
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 +1
610-889-5247
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ametek-announces-fourth-quarter-2015-results-300215803.html
SOURCE AMETEK, Inc.