AMETEK Posts Record Full-Year and Fourth
Quarter Results
PAOLI, Pa., Jan. 22 AMETEK Inc. today
announced record results for sales, operating income, net income and diluted
earnings per share for the full-year and fourth quarter of 2000.
"AMETEK had an excellent 2000, achieving our seventh consecutive year of
double-digit growth in earnings," said Frank S. Hermance, AMETEK chairman and
chief executive officer. "Our growth strategies are yielding excellent
results as evidenced by our continued ability to profitably grow AMETEK."
Full-Year Sales Exceed $1 Billion; Earnings per Share Increase 14%
AMETEK's sales established a new record in 2000, exceeding $1 billion for
the first time. Sales for 2000 were $1.02 billion, an increase of 11% from
the $924.8 million posted in 1999. AMETEK also established records for
operating income, net income and diluted earnings per share. Operating income
of $135.9 million was up 14% from $118.8 million for 1999. Net income grew to
$68.5 million, up 13% from the $60.8 million earned in 1999, and diluted
earnings per share of $2.11 were up 14% from $1.85 per share in 1999.
Fourth Quarter Net Income and Earnings per Share Rise 15%
AMETEK's fourth quarter 2000 sales of $258.2 million were a 9% increase
over the same period of 1999, driven by continued strength in several core
businesses and the impact of acquisitions made during the past year.
Operating income for the fourth quarter of 2000 was $34.1 million, a 16%
increase from the $29.5 million recorded in the same period of 1999. Net
income in the fourth quarter of 2000 totaled $17.2 million, or $.53 per
diluted share, up 15% from fourth quarter 1999 levels of $15.0 million, or
$.46 per diluted share. The 2000 results also established fourth quarter
records for sales, operating income, net income and diluted earnings per
share.
Cost-Reduction Actions Accelerated
"As the fourth quarter progressed it became apparent that U.S. economic
growth was slowing. As a result, we accelerated cost-reduction efforts across
the Company. These actions include a more aggressive movement of production
to low-cost locales, a resizing of several businesses, and general expense
reductions company-wide," said Mr. Hermance.
Approximately $3.4 million of expense for these activities is reflected in
the operating results for the fourth quarter. Separately, AMETEK's fourth
quarter results include a pretax gain of approximately $3.6 million from the
settlement of a long-standing issue with a major customer in the Electronic
Instruments Group.
2001 Outlook
Mr. Hermance commented, "Revenue growth for 2001 is anticipated to be in
the mid to high single-digit percentage level, reflecting current trends in
the general economy, our particular end markets, and the additional revenue
from acquisitions made in 2000. We expect that AMETEK will post record
earnings in 2001, with the second half of 2001 stronger than the first half."
Electronic Instruments Group (EIG)
EIG had a strong year in 2000, with sales up 13% to $509.5 million from
1999 levels of $451.1 million, driven by the contributions of our strategic
acquisitions and strength in several core markets. Operating income was
$78.8 million for 2000, a 13% increase over the $70.0 million earned in 1999.
Operating margins were 15.5% in both years.
For the 2000 fourth quarter, EIG sales grew 9% to $128.4 million from a
level of $117.5 million in 1999, benefiting from the acquisitions of
Drexelbrook and Rochester Instrument Systems. Operating income for the fourth
quarter was up 7% to $20.5 million. Operating margins were 15.9% of sales,
below the exceptionally strong 16.2% of sales earned in the fourth quarter of
1999.
Mr. Hermance added, "Our aerospace, power and process businesses performed
well in 2000, while our heavy-vehicle business experienced a significant
decline."
Electromechanical Group (EMG)
For the year, EMG's sales increased 9% to $515.2 million, compared with
$473.7 million in 1999. Adjusting for the unfavorable impact of currency
translation, EMG sales would have grown 12% for the year. Operating income
was $77.6 million for 2000, up 15% from the $67.6 million earned in 1999.
Operating margins were 15.1%, up from 14.3% in 1999.
For the fourth quarter of 2000, EMG's sales were $129.8 million, a 10%
increase over the same period of 1999. Adjusting for the unfavorable impact
of currency translation, EMG sales would have grown 13% in the quarter.
Operating income of $18.9 million in the current quarter is up 22%, as
compared with the $15.5 million recorded in the same period of 1999. EMG's
operating margin increased to 14.5% in the 2000 fourth quarter from 13.1% in
the same period of 1999.
"EMG sales increased as a result of the acquisition of several businesses
from Prestolite Electric and strength in our differentiated businesses.
Operating income and margins expanded with continued implementation of our
global `best-cost' strategy and the addition of acquired companies," added Mr.
Hermance.
Conference Call
AMETEK, Inc. will Web cast its Year-end 2000 investor conference call on
Tuesday, January 23, 2001, beginning at 8:15 AM EST. The live audio Web cast
will be available at http://www.ametek.com/investors and at http://www.streetevents.com. To
access the Web cast from ametek.com, click on the Audio Conference Call link.
The call will be archived at http://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. AMETEK's Corporate Growth Plan is based on Four Key
Strategies: Strategic Acquisitions & Alliances, Global & Market Expansion,
New Products, and Operational Excellence. Its objective is double-digit
percentage growth in earnings per share 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 2000 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.
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(Dollars and shares in thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31,
(Unaudited)
2000 1999 2000 1999
Net sales $258,246 $236,021 $1,024,660 $924,797
Expenses:
Cost of sales,
excluding
depreciation 191,547 178,363 761,548 696,011
Selling, general
and administrative 23,606 19,471 95,147 79,351
Depreciation 8,966 8,641 32,075 30,638
Total expenses 224,119 206,475 888,770 806,000
Operating income 34,127 29,546 135,890 118,797
Other income
(expenses):
Interest expense (7,670) (6,386) (29,203) (24,776)
Other, net (50) (96) (549) 440
Income before income
taxes 26,407 23,064 106,138 94,461
Provision for income
taxes 9,170 8,050 37,606 33,693
Net Income $17,237 $15,014 $68,532 $60,768
Diluted earnings
per share $0.53 $0.46 $2.11 $1.85
Basic earnings
per share $0.53 $0.47 $2.13 $1.88
Average common shares
outstanding:
Diluted shares 32,726 32,723 32,534 32,925
Basic shares 32,302 32,219 32,131 32,297
Dividends per share $0.06 $0.06 $0.24 $0.24
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(Dollars in thousands)
Three months ended Twelve months ended
December 31, December 31,
(Unaudited)
2000 1999 2000 1999
Net sales
Electronic
Instruments $128,449 $117,506 $509,504 $451,072
Electromechanical 129,797 118,515 515,156 473,725
Total Consolidated $258,246 $236,021 $1,024,660 $924,797
Operating income
Electronic
Instruments $20,462 $19,080 $78,771 $69,965
Electromechanical 18,884 15,518 77,560 67,575
Total segments 39,346 34,598 156,331 137,540
Corporate and other (5,219) (5,052) (20,441) (18,743)
Total Consolidated $34,127 $29,546 $135,890 $118,797
CONTACT: William J. Burke of AMETEK, 610-889-5249.
