Wednesday, January 28, 2015
BERWYN, Pa., Jan. 28, 2015 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month and full year periods ended December 31, 2014.
AMETEK's fourth quarter 2014 sales of $1.02 billion were up 9% over the same period of 2013. Excluding Zygo integration costs of $5.2 million, or approximately $0.01 per diluted share, operating income increased 10% to a record $232.3 million, operating margins were up 40 basis points, and diluted earnings per share increased 15% to a record $0.63 per diluted share from the fourth quarter 2013.
"AMETEK had a strong fourth quarter to complete another excellent year. Strong growth, record operating performance, and the contributions from our acquired businesses allowed us to exceed our fourth quarter earnings expectations. In addition, our orders were very strong in the quarter, totaling $1.0 billion, up 10% from last year's fourth quarter with 7% core growth," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
"Cash flow was also very strong, with both the fourth quarter and full year results representing records. Operating cash flow was $213.3 million for the quarter and $726.0 million for the year," continued Mr. Hermance.
For the full year, AMETEK achieved record levels of orders, sales, operating income, net income and diluted earnings per share. Full year sales were $4.02 billion, up 12% from 2013. Excluding Zygo integration costs of $18.9 million, or approximately $0.05 per diluted share, operating income in 2014 was $917.5 million, up 13%, and diluted earnings per share were $2.42, up 15% from 2013.
On a GAAP basis, in the fourth quarter operating income was $227.1 million and diluted earnings per share were $0.62. For the full year, operating income was $898.6 million, and diluted earnings per share were $2.37. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying the release.
Electronic Instruments Group (EIG)
For the 2014 fourth quarter, EIG sales increased 14% to $644.4 million. Operating income, excluding the Zygo integration costs, increased 11% to $168.1 million over the fourth quarter of 2013.
"EIG had a very solid fourth quarter. Strong sales growth was driven by excellent organic growth in our Aerospace business, combined with contributions from our recent acquisitions," notes Mr. Hermance.
On a GAAP basis, EIG operating income was $162.9 million.
Electromechanical Group (EMG)
In the fourth quarter, EMG sales increased 1% to $379.8 million. Operating income in the fourth quarter increased 9% to $77.0 million. Operating margins for the quarter were 20.3%, up 150 basis points from last year's fourth quarter.
"EMG performed very well in the quarter with excellent operating performance and solid core growth in our Precision Motion Control and Engineered Materials, Interconnects and Packaging businesses. Operating margins were up sharply driven by the sales growth and our continued Operational Excellence initiatives," adds Mr. Hermance.
"We expect our businesses overall to show solid growth in 2015. AMETEK's strong portfolio of differentiated businesses, proven operational capabilities, continued investment in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2015 and beyond," notes Mr. Hermance.
"We anticipate 2015 revenue to be up mid-single digits on a percentage basis from 2014. Earnings for 2015 are expected to be in the range of $2.58 to $2.63 per diluted share, up 7% to 9% over 2014, reflecting the leveraged impact of core growth, continued operational excellence initiatives, and the benefit of contributions from recent acquisitions," adds Mr. Hermance.
"First quarter 2015 sales are expected to be up mid-single digits from last year's first quarter. We estimate our earnings to be approximately $0.61 to $0.63 per diluted share, an increase of 7% to 11% over last year's first quarter of $0.57 per diluted share," concludes Mr. Hermance.
AMETEK will webcast its Fourth Quarter 2014 investor conference call on Wednesday, January 28, 2015, 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 2014 sales of $4.0 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.
Contact: Kevin Coleman (610) 889-5247