AMETEK Achieves Double-Digit Growth in Third Quarter - Sales and Earnings Per Share Increase 13% -
16 October 2000
AMETEK Achieves Double-Digit Growth in Third Quarter - Sales and Earnings Per Share Increase 13% -
PAOLI, Pa., Oct. 16 AMETEK Inc. today
announced third quarter results that reflect double-digit growth in sales,
operating income, net income and diluted earnings per share. Quarterly
records were established for operating income and income from continuing
operations.
AMETEK's third quarter 2000 sales of $255.1 million increased 13% over the
same period in 1999. Operating income for the third quarter of 2000 reached
$34.1 million, a 12% increase from the same period of 1999. Net income
totaled $17.3 million, up 11% from $15.6 million in the third quarter of 1999.
Earnings per share rose 13% to $.53 per diluted share from $.47 per diluted
share in the third quarter of 1999. The Company's operational excellence and
strategic acquisition programs, combined with internal growth in a number of
its businesses, drove these results.
For the first nine months of 2000, AMETEK's sales increased 11% to
$766.4 million from $688.8 million for the first nine months of 1999.
Operating income totaled $101.8 million, a 14% increase from $89.3 million
earned in the first nine months of last year. Net income for the first nine
months of 2000 rose 12% to $51.3 million and diluted earnings per share were
$1.58, a 14% increase over the same period of 1999.
"Our excellent third quarter results demonstrate AMETEK's continued
ability to generate strong earnings and top-line growth," said 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 third quarter of 2000, EIG sales grew 8% to $124.2 million from
last year's level of $114.7 million. Group revenues benefited from the recent
acquisition of Rochester Instrument Systems and the 1999 acquisitions of
Drexelbrook Engineering and Patriot Sensors and Controls. Group operating
income for the third quarter of 2000 was up 8% to $19.7 million as compared
with the $18.1 million in the same period of 1999. EIG's operating income
margin was 15.8% in the third quarter of 2000, unchanged from the third
quarter of 1999.
Mr. Hermance added, "Our aerospace, power, and process businesses continue
to perform well, while our heavy-vehicle business has declined as
anticipated."
Electromechanical Group (EMG)
EMG's sales were $130.9 million, a 17% increase over the third quarter of
1999. Adjusting for the impact of currency translation, EMG sales would have
grown 20%. Group operating income of $19.8 million in the third quarter of
2000 increased 17%, as compared with the $16.9 million reported for the same
period of 1999. EMG's operating income margin was 15.1% in the third quarter
of 2000, unchanged from the third quarter of 1999.
"The acquisition of several businesses from Prestolite, strength in our
differentiated businesses, and good floor care markets drove the growth in
EMG's sales. Revenue growth and continued implementation of our global `best
cost' strategy were responsible for the increased operating income," 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.
Conference Call
AMETEK, Inc. will Web cast its Third Quarter 2000 investor conference call
on Tuesday, October 17, 2000, beginning at 9:00 a.m. 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.
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 Nine months ended
September 30, September 30,
2000 1999 2000 1999
Net sales $255,098 $226,258 $766,414 $688,776
Expenses:
Cost of sales,
excluding
depreciation 189,458 167,150 570,001 517,647
Selling,
general and
administrative 24,241 21,452 71,541 59,880
Depreciation 7,293 7,138 23,109 21,998
Total expenses 220,992 195,740 664,651 599,525
Operating income 34,106 30,518 101,763 89,251
Other income (expenses):
Interest expense (7,839) (6,512) (21,533) (18,399)
Other, net 249 182 (499) 545
Income before
income taxes 26,516 24,188 79,731 71,397
Provision for
income taxes 9,198 8,594 28,436 25,644
Net Income $17,318 $15,594 $51,295 $45,753
Diluted earnings
per share $0.53 $0.47 $1.58 $1.39
Basic earnings
per share $0.54 $0.48 $1.60 $1.42
Average common shares
outstanding:
Diluted shares 32,529 33,163 32,470 32,992
Basic shares 32,138 32,466 32,074 32,323
Dividends per share $0.06 $0.06 $0.18 $0.18
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(Dollars in thousands)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Net sales
Electronic
Instruments $124,206 $114,729 $381,055 $333,566
Electromechanical 130,892 111,529 385,359 355,210
Total Consolidated $255,098 $226,258 $766,414 $688,776
Operating income
Electronic
Instruments $19,658 $18,140 $58,309 $50,885
Electromechanical 19,776 16,851 58,676 52,057
Total segments 39,434 34,991 116,985 102,942
Corporate and other (5,328) (4,473) (15,222) (13,691)
Total Consolidated $34,106 $30,518 $101,763 $89,251
For more information, contact William J. Burke of AMETEK, 610-889-5249.