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Tuesday, February 5, 2019

- Reports fourth quarter sales up 11% over prior year
- Reports GAAP earnings of $0.91 per diluted share; delivers adjusted earnings of $0.86 per diluted share, up 23% over 2017 adjusted earnings
- Provides 2019 adjusted earnings guidance of $3.95 to $4.05 per diluted share

BERWYN, PA, FEBRUARY 5, 2019 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the fourth quarter and full year ended December 31, 2018.

AMETEK’s fourth quarter 2018 sales were a record $1.27 billion, up 11% compared to the fourth quarter of 2017, with organic sales growth of 5%. Operating income increased 14% to a record $282.0 million, and operating margins expanded to 22.2%, up 50 basis points over the prior year’s adjusted results.

On a GAAP basis, fourth quarter earnings per diluted share were $0.91. Excluding an after-tax gain of $11.8 million, or $0.05 per diluted share, related to the finalization of the impact of the 2017 Tax Cuts and Jobs Act, fourth quarter earnings were $0.86 per diluted share, an increase of 23% over the prior year’s adjusted earnings. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.

“AMETEK completed an outstanding year with record results in the fourth quarter,” said David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Our businesses again delivered strong organic sales growth and outstanding operating performance driving robust sales and earnings growth in the quarter.”

“Additionally, our businesses continue to generate excellent levels of cash flow with operating cash flow in the fourth quarter a record $296 million,” added Mr. Zapico. “We remain focused on deploying our free cash flow on strategic acquisitions having deployed a record $1.1 billion of capital on acquisitions in 2018, including $750 million on three acquisitions in the fourth quarter. We also deployed $364 million on share repurchases in the quarter.”

For the full year, AMETEK’s sales were a record $4.8 billion, an increase of 13% over 2017, and organic sales growth was 7%. Operating income in 2018 was a record $1.08 billion, up 16%, and operating income margins were 22.2%, expanding 70 basis points over 2017’s adjusted results.

On a GAAP basis, earnings were $3.34 per diluted share. Excluding the after-tax gain of $0.05 per diluted share, 2018 earnings were $3.29 per diluted share, a 26% increase over 2017’s adjusted earnings.

Electronic Instruments Group (EIG)
Fourth quarter EIG sales were a record $826.0 million, up 11% over the fourth quarter of 2017. EIG operating income was a record $214.6 million in the quarter, up 11% over the prior-year period’s adjusted results, and operating margins were 26.0%.

“EIG finished the year with an outstanding fourth quarter, delivering excellent sales and operating income growth. In addition to solid organic growth and excellent operating performance, we completed five acquisitions across EIG in 2018,” noted Mr. Zapico.

Electromechanical Group (EMG)
EMG sales in the fourth quarter were $445.3 million, up 11% over the same quarter in 2017. EMG’s fourth quarter operating income was $85.8 million, an 18% increase, and operating margins were 19.3%, expanding 110 basis points over the prior year’s adjusted results.

“EMG also capped the year with exceptional results in the fourth quarter. Sales grew by double digits on strong, broad-based organic sales growth and contributions from the acquisition of FMH Aerospace. EMG continues to deliver excellent results through our Operational Excellence initiatives, which resulted in a sharp increase in operating income during the quarter,” commented Mr. Zapico.

2019 Outlook
Going forward, AMETEK will report and provide guidance on an adjusted diluted earnings per share basis that adds back non-cash, after-tax, acquisition related intangible amortization. The company believes this non-GAAP measure provides investors with a better understanding of its cash flows and core operating results and aligns more comparably to AMETEK’s acquisitive peer companies. A reconciliation of our GAAP to non-GAAP results and guidance will be included in financial tables accompanying our press releases.

“Our businesses delivered outstanding performance in 2018, positioning us well for continued success in 2019. The AMETEK Growth Model, which combines our four growth strategies of operational excellence, new product development, global and market expansion, and strategic acquisitions, along with a disciplined focus on cash generation and capital deployment continues to provide a scalable platform to drive long-term, sustainable growth,” noted Mr. Zapico.

“In 2019, we expect overall sales to be up high single digits on a percentage basis compared to 2018, driven by contributions from recent acquisitions, and 3% to 5% organic sales growth. On a GAAP basis, full year earnings per diluted share are expected to be in the range of $3.52 to $3.62. Adjusted earnings per diluted share are expected to be in the range of $3.95 to $4.05, an increase of 8% to 11% over the prior year’s comparable basis,” he added.

“For the first quarter of 2019, sales are expected to be up high single digits on a percentage basis compared to the prior-year. On a GAAP basis, earnings per diluted share are expected to be in the range of $0.84 to $0.86. Adjusted earnings per diluted share are anticipated to be in the range of $0.95 to $0.97, up 9% to 11% over the prior year comparable basis,” concluded Mr. Zapico.

Conference Call
AMETEK will webcast its fourth quarter 2018 investor conference call on Tuesday, February 5, 2019, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of

Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with sales of approximately $5.0 billion. AMETEK's growth model 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.

Forward-looking Information
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 AMETEK’s ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; AMETEK’s 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.

Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania 19312
Phone: 610.889.5247

(Financial Information Follows)