AMETEK Achieves Double-Digit Growth in Second Quarter
17 July 2000
Sales Up 10%, Earnings Per Share Increases 13%
PAOLI, Pa. - AMETEK Inc. today announced second quarter results that
reflect double-digit growth in sales, operating income, net income and diluted
earnings per share. Quarterly records were established for income and diluted
earnings per share from continuing operations.
AMETEK's second quarter 2000 sales of $255.5 million increased 10% over
the same period in 1999. Operating income for the second quarter of 2000
reached $33.8 million, a 14% increase from the same period of 1999. Net
income totaled $17.2 million, up 11% from $15.6 million in the second quarter
of 1999. Earnings per share rose 13% to $.53 per diluted share from $.47 per
diluted share in the second quarter of 1999. These results were driven by
acquisitions made during 1999 as well as internal growth.
For the first half of 2000, AMETEK's sales increased 11% to $511.3 million
from $462.5 million in the first half of 1999. Operating income totaled
$67.7 million, a 15% increase from $58.7 million earned in the first half of
last year. Net income for the first half of 2000 rose 13% to $34.0 million
and diluted earnings per share were $1.05, a 14% increase over the same period
of 1999.
"Our excellent second quarter results demonstrate AMETEK's continued
ability to generate double-digit growth in earnings with strong top-line
growth," commented Frank S. Hermance, AMETEK president and chief executive
officer. "We are confident we will 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 second quarter of 2000, EIG sales grew 15% to $126.0 million from
last year's level of $109.6 million. The Group benefited from the 1999
acquisitions of Patriot Sensors & Controls, Gulton Statham Transducers, and
Drexelbrook Engineering as well as the continued strength of our process
instrumentation and aerospace products businesses. Group operating income for
the second quarter of 2000 was up 17% to $19.0 million, representing 15.1% of
sales, as compared with $16.2 million, or 14.8% of sales, in the same period
of 1999.
Mr. Hermance added, "We have seen continued strength in our process
instrumentation markets, particularly in the semiconductor equipment sector.
Our aerospace business continues to grow at double-digit rates. This is the
result of acquisitions, strength in the business and regional jet markets, and
expansion into the land gas turbine market with our aerospace technology. We
are experiencing some softness in our heavy-vehicle business."
Electromechanical Group (EMG)
EMG's sales were $129.5 million, a 6% increase over the second quarter of
1999. Group operating income of $19.7 million in the second quarter of 2000
increased 9%, as compared with the $18.0 million reported for the same period
of 1999. EMG's operating income margin increased to 15.2% in the second
quarter of 2000, versus 14.8% in the second quarter of 1999.
"Strength in our higher margin, differentiated specialty metals and
technical motors businesses, combined with expanding floor care markets drove
the growth in EMG's sales. Adjusting for the impact of currency, EMG sales
would have grown 9%. Revenue growth and continued implementation of our
global `best cost' strategy were responsible for the increased margins,"
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.
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars and shares in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Net sales $255,504 $231,640 $511,316 $462,518
Expenses:
Cost of sales,
excluding
depreciation 190,732 174,925 380,699 350,497
Selling, general
and
administrative 23,468 19,775 47,300 38,428
Depreciation 7,534 7,356 15,660 14,860
Total expenses 221,734 202,056 443,659 403,785
Operating income 33,770 29,584 67,657 58,733
Other income (expenses):
Interest expense (6,665) (5,861) (13,694) (11,887)
Other, net (69) 683 (748) 363
Income before
income taxes 27,036 24,406 53,215 47,209
Provision for
income taxes 9,813 8,842 19,238 17,049
Net Income $17,223 $15,564 $33,977 $30,160
Diluted earnings
per share $0.53 $0.47 $1.05 $0.92
Basic earnings
per share $0.54 $0.48 $1.06 $0.94
Average common
shares outstanding:
Diluted shares 32,452 33,104 32,440 32,907
Basic shares 32,078 32,329 32,042 32,252
Dividends per share $0.06 $0.06 $0.12 $0.12
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(Dollars in thousands)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Net sales
Electronic
Instruments $126,035 $109,623 $256,849 $218,837
Electromechanical 129,469 122,017 254,467 243,681
Total
Consolidated $255,504 $231,640 $511,316 $462,518
Operating income
Electronic
Instruments $19,010 $16,246 $38,651 $32,745
Electromechanical 19,685 18,012 38,900 35,206
Total segments 38,695 34,258 77,551 67,951
Corporate and other (4,925) (4,674) (9,894) (9,218)
Total
Consolidated $33,770 $29,584 $67,657 $58,733