AMETEK ANNOUNCES THIRD QUARTER 2015 RESULTS
-- Delivers Record Quarterly Diluted Earnings per Share --
BERWYN, PA, OCTOBER 27, 2015 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month period ended September 30, 2015.
AMETEK reported third quarter 2015 sales of $1.0 billion, down 3% from last year’s third quarter. Operating income increased 3% to $237.6 million, operating margins were up 130 basis points to 23.8%, and diluted earnings per share increased 5% to a record $0.65 per diluted share from the third quarter 2014 adjusted results.
“I am very pleased with AMETEK’s solid performance in the third quarter. Although the global economic environment remains challenging, we continue to deliver strong improvements in our operating margins and diluted earnings per share through the execution of our Four Growth Strategies,” noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.
Third quarter 2014 results exclude $13.7 million, or $0.05 per diluted share, in Zygo integration costs. A comparison of third quarter 2015 results to last year’s reported GAAP and adjusted results is included with the financial tables accompanying the release. All further references to 2014 results are on an adjusted basis.
Electronic Instruments Group (EIG)
In the third quarter of 2015, EIG sales were $598.5 million, down 5% versus $631.6 million in the previous year’s comparable quarter. Operating income was $162.5 million in the quarter, up slightly over last year’s third quarter, and operating margins were 27.2%, up 160 basis points over the prior year.
“EIG had a good third quarter in this difficult growth environment. The lower sales were driven largely by currency headwinds. Despite the lower sales, operating margins were very strong, increasing 160 basis points driven by our Operational Excellence initiatives,” added Mr. Hermance.
Electromechanical Group (EMG)
For the third quarter of 2015, EMG sales were $400.0 million, essentially flat with the third quarter 2014. Operating income increased 6% to $86.7 million and operating margins were 21.7%, up 120 basis points from 20.5% in last year’s third quarter.
“EMG also had a good quarter. Strong core growth in our Aerospace businesses and the contribution from the Global Tubes acquisition were offset by foreign currency headwinds and weakness within our Engineered Materials, Interconnects and Packaging business. Operating margins were very strong as a result of our Operational Excellence initiatives,” notes Mr. Hermance.
“As a result of the increasingly sluggish global macro environment, we now expect 2015 sales to be down low single digits on a percentage basis versus 2014. Earnings for the year, excluding the first quarter realignment costs, are anticipated to be approximately $2.55 per diluted share, up 5% from last year’s adjusted diluted earnings per share,” notes Mr. Hermance.
“Fourth quarter sales are estimated to be down low single digits on a percentage basis from last year’s fourth quarter. We expect our diluted earnings per share to be approximately $0.63 in the fourth quarter,” adds Mr. Hermance.
“We remain confident in our ability to continue to deliver strong earnings due to our excellent portfolio of business, proven operational capabilities, on-going growth investments and a successful focus on strategic acquisitions,” concluded Mr. Hermance.
The Company will webcast its Third Quarter 2015 investor conference call on Tuesday, October 27, 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 annual 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.