AMETEK Achieves Record Results
-- Company Posts 9% Increase in Net Income --
PAOLI, Pa., April 18 AMETEK, Inc. today
announced first quarter results that established records for sales, operating
income, net income and diluted earnings per share.
AMETEK's first quarter 2001 sales of $264.1 million increased 3% over the
same period of 2000 as a result of acquisitions made during 2000 and stronger
demand for aerospace and power instrumentation. Operating income for the
first quarter of 2001 reached $35.7 million, a 5% increase over the same
period of 2000. Net income totaled $18.3 million, up 9% from $16.8 million in
the first quarter of 2000. Diluted earnings per share rose 6% to $.55 per
share from the first quarter 2000 level of $.52 per share.
"AMETEK's strong first quarter performance in a challenging economic
environment is the result of continued solid execution of our Four Growth
Strategies," commented Frank S. Hermance, AMETEK chairman and chief executive
officer.
"As the economy continued to weaken during the quarter, we decided to make
further reductions in our cost structure. These actions are in addition to
those announced in the fourth quarter of 2000. We remain committed to
adjusting our cost structure to the reality of the economic environment,"
added Mr. Hermance.
Electromechanical Group (EMG)
EMG's sales were $138.0 million, up 10% from $125.0 million in the first
quarter of 2000. Group operating income of $21.9 million in the first quarter
of 2001 increased 14%, compared with the $19.2 million reported for the same
period of 2000. EMG's operating income margin increased to 15.9% in the first
quarter of 2001, compared with 15.4% in the first quarter of 2000.
Mr. Hermance added, "The acquisition of several businesses from
Prestolite Electric and continued implementation of our global `best-cost'
strategy drove EMG's performance. The results were achieved despite weak
North American floor care markets. European floor care markets remained
strong."
Electronic Instruments Group (EIG)
EIG sales for the first quarter of 2001 were down 4% to $126.0 million
from last year's level of $130.8 million. Group operating income for the
first quarter was down 4% to $18.8 million versus $19.6 million in the same
period of 2000. Group operating margins were unchanged at 15.0%.
"The aerospace and power instrument businesses performed well and showed
good growth. This strength was more than offset by a very difficult
comparison to one year ago for heavy-vehicle instruments, and a general
slowdown in our process and industrial businesses. Our operating margins
remained strong," commented Mr. Hermance.
Outlook
"The economic outlook for many of our markets is clouded. For the second
quarter of 2001, we expect low to mid single-digit revenue growth and mid-
single digit growth in diluted earnings per share. We remain optimistic that
our Four Growth Strategies will continue to yield positive results and deliver
another year of record earnings for our shareholders," concluded Mr. Hermance.
Conference Call
AMETEK, Inc. will Web cast its First Quarter 2001 investor conference call
on Thursday, April 19, 2001, beginning at 9:00 AM EDT. 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 with 2000 sales of more than $1 billion. 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 over the business cycle 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.
(Financial Information Follows)
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars and shares in thousands, except per share amounts)
Three months ended
March 31,
2001 2000
Net sales $264,071 $255,812
Expenses:
Cost of sales, excluding
depreciation 195,924 189,967
Selling, general and
administrative 24,144 23,832
Depreciation 8,300 8,126
Total expenses 228,368 221,925
Operating income 35,703 33,887
Other income (expenses):
Interest expense (7,660) (7,029)
Other, net 255 (679)
Income before income taxes 28,298 26,179
Provision for income taxes 10,026 9,425
Net Income $18,272 $16,754
Diluted earnings per share $0.55 $0.52
Basic earnings per share $0.56 $0.52
Average common shares outstanding:
Diluted shares 33,243 32,428
Basic shares 32,624 32,005
Dividends paid per share $0.06 $0.06
AMETEK, Inc.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(Dollars in thousands)
Three months ended
March 31,
2001 2000
Net sales
Electronic Instruments $126,028 $130,814
Electromechanical 138,043 124,998
Total Consolidated $264,071 $255,812
Operating income
Electronic Instruments $18,844 $19,641
Electromechanical 21,891 19,215
Total segments 40,735 38,856
Corporate and other (5,032) (4,969)
Total Consolidated $35,703 $33,887
CONTACT: William J. Burke of AMETEK, 610-889-5249.
