Tuesday, October 28, 2014
BERWYN, Pa., Oct. 28, 2014 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2014.
AMETEK's third quarter 2014 sales of $1.03 billion were up 16% over the same period of 2013 and at a record level. Excluding Zygo integration costs of $13.7 million, or $0.05 per diluted share, operating income for the third quarter of 2014 increased 13% to a record $231.8 million, and diluted earnings per share increased 19% to a record $0.62 per diluted share from the third quarter of 2013. Operating cash flow totaled $197 million for the quarter, an increase of 18% over the same period of 2013.
"AMETEK had another terrific quarter. We delivered record performance as a result of the continued strong execution of our Four Growth Strategies. Solid core growth combined with our Operational Excellence initiatives and the contributions from recent acquisitions allowed us to deliver excellent results and exceed our third quarter earnings expectations," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
The third quarter 2014 results include one-time tax events benefitting the tax line, largely offset by a related negative impact in other expense.
On a GAAP basis, operating income was $218.1 million and diluted earnings per share were $0.57. A reconciliation of reported GAAP results to adjusted results is included with the financial tables accompanying this release.
Electronic Instruments Group (EIG)
In the third quarter of 2014, EIG sales increased 26% to $631.6 million. Operating income, excluding the Zygo integration costs, was $162.0 million in the quarter, a 17% increase over the third quarter of 2013, and operating margins were 25.6% in the quarter.
"EIG had an excellent third quarter. The strong sales growth was driven by broad based strength across our Aerospace, Process and Power & Industrial businesses. The contributions from the eight recent acquisitions completed in this Group were also a key driver in our overall growth," said Mr. Hermance.
On a GAAP basis, EIG operating income was $148.3 million.
Electromechanical Group (EMG)
In the third quarter of 2014, EMG sales increased 3% to $400.2 million. Operating income in the third quarter was up 6% to $82.0 million. Operating margins were 20.5% in the third quarter of 2014, up 60 basis points from last year's comparable quarter.
"EMG also had a solid quarter with strong operating performance. Sales were up on strength in our Precision Motion Control and Engineered, Materials, Interconnects and Packaging businesses. Operating margins were up nicely driven by the higher sales and our Operational Excellence initiatives," commented Mr. Hermance.
"We are very pleased with the performance of our businesses. While the global economy remains sluggish, we are confident in our ability to continue to deliver strong sales and earnings growth due to our excellent portfolio of businesses, proven operational capabilities, increased investments in organic growth initiatives, and a successful focus on strategic acquisitions," commented Mr. Hermance.
"We continue to anticipate 2014 revenue to be up low double digits on a percentage basis from 2013 reflecting solid core growth and the contributions from recent acquisitions. Earnings for 2014, excluding Zygo integration costs, are expected to be in the range of $2.40 to $2.42 per diluted share, up 14% to 15% from last year. This reflects an increase in the low end of our previous guidance from $2.37 to $2.40 per diluted share," added Mr. Hermance.
"Fourth quarter sales are expected to be up high single digits on a percentage basis over last year's fourth quarter. We estimate our earnings to be approximately $0.60 to $0.62 per diluted share, including the additional interest expense associated with our recent private placement and foreign exchange headwinds. This earnings guidance represents an increase of 9% to 13% over last year's fourth quarter of $0.55 per diluted," concluded Mr. Hermance.
The Company will webcast its Third Quarter 2014 investor conference call on Tuesday, October 28, 2014, beginning at 8:30 AM ET. The live audio webcast will be available at the Investors section of www.ametek.com and at www.streetevents.com. The call will also be archived at the Investors section of www.ametek.com.
AMETEK is a leading global manufacturer of electronic instruments and electro-mechanical devices with 2013 sales of $3.6 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, Global & Market Expansion and New Products. AMETEK's 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 500 Index.
Statements in this news release relating to future events, such as AMETEK's expected business and financial performance are "forward-looking statements." Forward-looking statements are subject to various factors and uncertainties that may cause actual results to differ significantly from expectations. These factors and uncertainties include our ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; our ability to successfully develop new products, open new facilities or transfer product lines; the price and availability of raw materials; compliance with government regulations, including environmental regulations; changes in the competitive environment or the effects of competition in our markets; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. A detailed discussion of these and other factors that may affect our future results is contained in AMETEK's filings with the U.S. Securities and Exchange Commission, including its most recent reports on Form 10-K, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.