AMETEK Achieves Record Results; Sales Up 11%, Earnings Per Share Increases 16%
18 April 2000
AMETEK Achieves Record Results; Sales Up 11%, Earnings Per Share Increases 16%
PAOLI, Pa., April 18 AMETEK Inc. (NYSE: AME) today
announced record quarterly sales, operating income and diluted earnings per
share from continuing operations. Each of these results were double-digit
improvements over last year's first quarter. Revenue gains from acquisitions
and stronger end markets, together with continued cost reduction initiatives,
were responsible for AMETEK's strong performance.
AMETEK's first quarter 2000 sales of $255.8 million increased 11% over the
same period of 1999. The effect of acquisitions made during 1999 and stronger
demand for a number of the Company's product lines drove this increase.
Operating income for the first quarter of 2000 reached $33.9 million, a 16%
increase from the same period of 1999. Net income totaled $16.8 million, up
15% from $14.6 million in the first quarter of 1999. Earnings per share rose
16% to $.52 per diluted share from the first quarter 1999 level of $.45 per
diluted share.
"AMETEK's strong first quarter performance demonstrates the fundamental
soundness of our Four Growth Strategies as well as our ability to effectively
implement these strategies," commented Frank S. Hermance, AMETEK president and
chief executive officer. "We are producing double-digit growth in earnings
with strong revenue gains. We are confident in our outlook for 2000 and
expect to achieve our seventh consecutive year of double-digit percentage
growth in income and earnings per share from continuing operations."
Electronic Instruments Group (EIG)
For the first quarter of 2000, EIG sales grew 20% to $130.8 million from
last year's level of $109.2 million, benefiting from the 1999 acquisitions of
Patriot Sensors & Controls, Gulton Statham Transducers, and Drexelbrook
Engineering, as well as stronger market conditions for our process
instrumentation products. Group operating income for the first quarter was up
19% to $19.6 million, representing 15.0% of sales, as compared with
$16.5 million, or 15.1% of sales, in the same period of 1999. The Group's
focused cost reduction activities and the additional profitability generated
by acquired companies were principally responsible for the increase in
operating income.
Mr. Hermance added, "The process instrumentation market continues to show
strength, particularly in Asia, where conditions have improved considerably.
Our aerospace business is expanding despite the slowdown in large commercial
aircraft sales. Acquisitions, expansion of our aerospace technology to other
markets and growth in the regional and business jet markets have enabled our
aerospace business to grow at double-digit percentage rates. The
profitability of our heavy-vehicle and food instrumentation business was
strong in the first quarter.
Electromechanical Group (EMG)
EMG's sales were $125.0 million, up from $121.7 million in the first
quarter of 1999. Group operating income of $19.2 million in the first quarter
of 2000 increased 12%, as compared with the $17.2 million reported for the
same period of 1999. EMG's operating income margin increased to 15.4% in the
first quarter of 2000, compared with 14.1% in the first quarter of 1999.
"Higher revenues from our differentiated technical motor and specialty
metals products businesses, combined with the continued solid implementation
of our global best-cost strategy, drove the strong growth in operating
margins. Global floor care market conditions are positive. Asian and North
American markets are expanding, while European markets have stabilized,"
concluded Mr. Hermance.
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 Growth 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 (Unaudited)
(Dollars and shares in thousands, except per share amounts)
Three months ended
March 31,
2000 1999
Net sales $255,812 $230,878
Expenses:
Cost of sales, excluding depreciation 189,967 175,572
Selling, general and administrative 23,832 18,653
Depreciation 8,126 7,504
Total expenses 221,925 201,729
Operating income 33,887 29,149
Other income (expenses):
Interest expense (7,029) (6,026)
Other, net (679) (320)
Income before income taxes 26,179 22,803
Provision for income taxes 9,425 8,207
Net Income $16,754 $14,596
Diluted earnings per share $0.52 $0.45
Basic earnings per share $0.52 $0.45
Average common shares outstanding:
Diluted shares 32,428 32,711
Basic shares 32,005 32,174
Dividends per share $0.06 $0.06
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(Dollars in thousands)
Three months ended
March 31,
2000 1999
Net sales
Electronic Instruments $130,814 $109,214
Electromechanical 124,998 121,664
Total Consolidated $255,812 $230,878
Operating income
Electronic Instruments $19,641 $16,499
Electromechanical 19,215 17,194
Total segments 38,856 33,693
Corporate and other (4,969) (4,544)
Total Consolidated $33,887 $29,149
CONTACT: William J. Burke of AMETEK, 610-889-5249.