BERWYN,
Pa., Aug. 1, 2023 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the second
quarter ended June 30, 2023.
AMETEK's second quarter 2023 sales were a record $1.65 billion, a 9% increase over the second
quarter of 2022, with organic sales growth of 5%. Operating income
increased 15% to a record $418.8
million and operating margins were a record 25.4%, up 130
basis points from the second quarter of 2022. Operating cash flow
in the quarter was $335 million, up
42% versus the prior year.
On a GAAP basis, second quarter earnings per diluted share were
$1.40. Adjusted earnings in the
quarter were a record $1.57 per
diluted share, up 14% from the second quarter of 2022. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.17 per
diluted share. A reconciliation of reported GAAP results to
adjusted results is included in the financial tables accompanying
this release and on the AMETEK website.
"AMETEK delivered impressive results in the second quarter,
achieving record sales, operating income, and adjusted earnings per
share," stated David A. Zapico,
AMETEK Chairman and Chief Executive Officer. "These exceptional
results exceeded expectations, driven by continued strong sales
growth and outstanding operating performance. Additionally, demand
remained solid in the quarter, resulting in a positive book-to-bill
ratio and a record backlog. Based on these results and our outlook
for the balance of the year, we are again raising our earnings
guidance for the full year."
Electronic Instruments Group (EIG)
EIG sales in the
second quarter were $1.13 billion, up
10% from the same quarter in 2022. EIG's operating income in the
quarter increased 16% to $307.1
million and operating income margins were 27.1%, an increase
of 130 basis points compared to the second quarter of 2022.
"EIG delivered another exceptional quarter," stated Mr. Zapico.
"Strong and broad-based sales growth was supported by solid demand
across our diverse end markets and the success of our organic
growth initiatives. Our continual focus on operational excellence
initiatives helped drive outstanding margin expansion and robust
operating income growth in the quarter."
Electromechanical Group (EMG)
EMG sales in the second
quarter were a record $511.5 million,
up 5% from the second quarter in 2022. EMG's second quarter
operating income was $136.2 million,
up 10% versus the prior year, while operating income margins were
26.6% in the quarter, up 100 basis points versus the prior
year.
"EMG's second quarter results were very strong, with outstanding
operating performance leading to excellent margin expansion and
operating income growth. EMG continues to demonstrate the strength
of our differentiated businesses and the effectiveness of our
operating capabilities," remarked Mr. Zapico.
2023 Outlook
"AMETEK's record performance in the
second quarter highlights the strength and flexibility of the
AMETEK Growth Model, as well as the dedicated efforts of all AMETEK
colleagues. Our differentiated businesses, diverse end market
exposures and proven operating capabilities, allow us to
successfully manage through economic cycles. Additionally, our
strong cash flows and solid balance sheet provide significant
capital to deploy on strategic acquisitions and drive sustainable,
long-term growth," stated Mr. Zapico.
"For 2023, we expect overall sales to be up mid-to-high single
digits compared to 2022. Adjusted diluted earnings per share are
now expected to be in the range of $6.18 to $6.26, an
increase of 9% to 10% over the comparable basis for 2022. This is
an increase from our previous guidance range of $5.96 to $6.10 per
diluted share," he added.
"We expect overall sales in the third quarter to be up
mid-single digits on a percentage basis versus the prior year.
Third quarter adjusted earnings per diluted share are anticipated
to be in the range of $1.56 to
$1.58, up 8% to 9% compared to the
third quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter
2023 investor conference call on Tuesday, August 1, 2023,
beginning at 8:30 AM ET. The live
audio webcast will be available and later archived in the Investors
section of www.ametek.com.
About AMETEK
AMETEK (NYSE: AME) is a leading global
provider of industrial technology solutions serving a diverse set
of attractive niche markets with annual sales over $6.0 billion. The AMETEK Growth Model integrates
the Four Growth Strategies - Operational Excellence, New Product
Development, Global and Market Expansion, and Strategic
Acquisitions - with a disciplined focus on cash generation and
capital deployment. AMETEK's objective is double-digit percentage
growth in earnings per share over the business cycle and a superior
return on total capital. Founded in 1930, AMETEK has been listed on
the NYSE for over 90 years and is a component of the S&P 500.
For more information, visit www.ametek.com.
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 risks related to AMETEK's ability to consummate and
successfully integrate future acquisitions; risks with
international sales and operations, including supply chain
disruptions; 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 Forms 10-K, 10-Q and 8-K. AMETEK disclaims any intention
or obligation to update or revise any forward-looking
statements.
Contact:
Kevin
Coleman
Vice President, Investor Relations and Treasurer
kevin.coleman@ametek.com
Phone: 610.889.5247
AMETEK,
Inc.
Consolidated
Statement of Income
(In thousands,
except per share amounts)
(Unaudited)
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2023
|
|
2022
|
|
2022
|
|
2021
|
Net
sales
|
$
1,646,111
|
|
$ 1,514,552
|
|
$
3,243,228
|
|
$ 2,973,077
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,053,190
|
|
988,175
|
|
2,075,715
|
|
1,937,008
|
Selling, general and
administrative
|
174,130
|
|
161,535
|
|
343,181
|
|
317,987
|
Total operating
expenses
|
1,227,320
|
|
1,149,710
|
|
2,418,896
|
|
2,254,995
|
Operating
income
|
418,791
|
|
364,842
|
|
824,332
|
|
718,082
|
Interest
expense
|
(18,723)
|
|
(20,350)
|
|
(39,292)
|
|
(39,920)
|
Other (expense) income,
net
|
(3,684)
|
|
1,973
|
|
(9,057)
|
|
4,525
|
Income before income
taxes
|
396,384
|
|
346,465
|
|
775,983
|
|
682,687
|
Provision for income
taxes
|
72,142
|
|
64,092
|
|
146,029
|
|
127,867
|
Net
income
|
$
324,242
|
|
$
282,373
|
|
$
629,954
|
|
$
554,820
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.40
|
|
$
1.22
|
|
$
2.72
|
|
$
2.39
|
Basic earnings per
share
|
$
1.41
|
|
$
1.23
|
|
$
2.74
|
|
$
2.40
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,261
|
|
231,247
|
|
231,245
|
|
232,156
|
Basic shares
|
230,478
|
|
230,100
|
|
230,302
|
|
230,790
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.25
|
|
$
0.22
|
|
$
0.50
|
|
$
0.44
|
AMETEK,
Inc.
Information by
Business Segment
(In
thousands)
(Unaudited)
|
|
|
Three Months
Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
1,134,646
|
|
$ 1,028,248
|
|
$
2,251,893
|
|
$ 2,016,007
|
Electromechanical
|
511,465
|
|
486,304
|
|
991,335
|
|
957,070
|
Consolidated net
sales
|
$
1,646,111
|
|
$ 1,514,552
|
|
$
3,243,228
|
|
$ 2,973,077
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
307,052
|
|
$
265,115
|
|
$
616,799
|
|
$
509,889
|
Electromechanical
|
136,215
|
|
124,371
|
|
256,719
|
|
252,580
|
Total segment
operating income
|
443,267
|
|
389,486
|
|
873,518
|
|
762,469
|
Corporate
administrative expenses
|
(24,476)
|
|
(24,644)
|
|
(49,186)
|
|
(44,387)
|
Consolidated operating
income
|
$
418,791
|
|
$
364,842
|
|
$
824,332
|
|
$
718,082
|
AMETEK,
Inc.
Condensed
Consolidated Balance Sheet
(In
thousands)
|
|
June
30,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
605,587
|
|
$
345,386
|
Receivables, net
|
936,909
|
|
919,335
|
Inventories, net
|
1,107,824
|
|
1,044,284
|
Other current
assets
|
249,235
|
|
219,053
|
Total current assets
|
2,899,555
|
|
2,528,058
|
|
|
|
|
Property, plant and
equipment, net
|
637,540
|
|
635,641
|
Right of use asset,
net
|
171,616
|
|
170,295
|
Goodwill
|
5,449,590
|
|
5,372,562
|
Other intangibles,
investments and other assets
|
3,681,550
|
|
3,724,564
|
Total assets
|
$
12,839,851
|
|
$
12,431,120
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
5,401
|
|
$
226,079
|
Accounts payable and
accruals
|
1,335,789
|
|
1,338,123
|
Total current liabilities
|
1,341,190
|
|
1,564,202
|
|
|
|
|
Long-term debt,
net
|
2,186,299
|
|
2,158,928
|
Deferred income taxes
and other long-term liabilities
|
1,230,991
|
|
1,231,478
|
Stockholders'
equity
|
8,081,371
|
|
7,476,512
|
Total liabilities and stockholders' equity
|
$
12,839,851
|
|
$
12,431,120
|
AMETEK,
Inc.
Reconciliations of
GAAP to Non-GAAP Financial Measures
(Unaudited)
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
June
30,
|
|
2023
|
|
2022
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.40
|
|
$
1.22
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.21
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.57
|
|
$
1.38
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
September 30,
2023
|
|
December 31,
2023
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.39
|
|
$
1.41
|
|
$
5.50
|
|
$
5.58
|
Pretax amortization of
acquisition-related intangible assets
|
0.22
|
|
0.22
|
|
0.89
|
|
0.89
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.05)
|
|
(0.05)
|
|
(0.21)
|
|
(0.21)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.56
|
|
$
1.58
|
|
$
6.18
|
|
$
6.26
|
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements
presented on a U.S. generally accepted accounting principles
("GAAP") basis with certain non-GAAP financial information to
provide investors with greater insight, increased transparency and
allow for a more comprehensive understanding of the information
used by management in its financial and operational
decision-making. Reconciliation of non-GAAP measures to their
most directly comparable GAAP measures are included in the
accompanying financial tables. These non-GAAP financial measures
should be considered in addition to, and not as a replacement for,
or superior to, the comparable GAAP measure, and may not be
comparable to similarly titled measures reported by other
companies.
The Company believes that these measures provide useful
information to investors by reflecting additional ways of viewing
AMETEK's operations that, when reconciled to the comparable GAAP
measure, helps our investors to better understand the long-term
profitability trends of our business, and facilitates easier
comparisons of our profitability to prior and future periods and to
our peers.
View original
content:https://www.prnewswire.com/news-releases/ametek-announces-record-second-quarter-results-and-raises-2023-guidance-301889602.html
SOURCE AMETEK, Inc.