AMETEK Achieves Record First Quarter Results; Sales Increase 27%, Net Income Increases 30%; Raising 2006 Earnings Estimates.PAOLI Pa·o·li , Pasquale di 1725-1807. Corsican patriot who led (from 1755) the struggle for independence from Genoa. , Pa. -- AMETEK, Inc. (NYSE NYSE See: New York Stock Exchange :AME See AIT. ) today announced first quarter results that established records for sales, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , net income and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . AMETEK's first quarter 2006 sales of $423.9 million were up 27% over the same period of 2005. Operating income for the first quarter of 2006 was $70.8 million, a 32% increase from the $53.6 million recorded in the same period of 2005. Net income in the first quarter of 2006 increased 30% to $40.3 million, or $.57 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, from the first quarter 2005 level of $31.0 million, or $.44 per diluted share. "AMETEK had an outstanding quarter which exceeded our expectations," noted Frank S. Hermance Hermance is a municipality of the Canton of Geneva, Switzerland. External links
adj. 1. Concerned exclusively with costs and profits: bottom-line issues. 2. Ruthlessly realistic; pragmatic: a bottom-line political strategy. performance," he commented. Electronic Instruments Group (EIG EIG Excellence in Government EIG Engineering Installation Group EIG Evènement Indésirable Grave (French) EIG Erie Insurance Group EIG Ecole Internationale de Genève (French) ) For the 2006 first quarter, EIG sales increased 31% to $236.4 million. Operating income was $47.7 million, compared with $36.3 million in the first quarter of 2005, an increase of 32%. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter improved to 20.2%, from 20.0% in the first quarter of 2005. "EIG had a great first quarter. Sales were up on strong core growth in our power, process and analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. , and aerospace businesses together with the contribution from the acquisitions of SPECTRO, Solartron and Pulsar Technologies. Operating income was up 32%, benefiting from the top-line growth and continued focus on operational excellence improvements," said Mr. Hermance. Electromechanical The use of electricity to run moving parts. Disk drives, printers and motors are examples. Electromechanical systems must be designed for the eventual deterioration of moving components that wear over time. The first TVs were electromechanical systems (see video/TV history). Group (EMG EMG abbr. electromyogram Electromyography (EMG) A diagnostic test that records the electrical activity of muscles. ) For the first quarter of 2006, EMG sales were $187.4 million, a 22% increase over the same period of 2005. Operating income of $32.0 million was up 31% from the $24.4 million recorded in the same period of 2005. Operating margins for the quarter were 17.0%, compared with 16.0% in the first quarter of 2005. "EMG also had a great first quarter. Sales were up nicely, driven by solid core growth in both our differentiated dif·fer·en·ti·ate v. dif·fer·en·ti·at·ed, dif·fer·en·ti·at·ing, dif·fer·en·ti·ates v.tr. 1. To constitute the distinction between: and cost-driven businesses and the acquisition of HCC HCC Hepatocellular Carcinoma (liver cancer) HCC Hertfordshire County Council (administrative region of south eastern England UK) HCC Harford Community College (Maryland) Industries. Profitability was strong as a result of the increased volume and our operational excellence initiatives," commented Mr. Hermance. 2006 Outlook "We expect 2006 to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. business model of mid-single digit A single character in a numbering system. In decimal, digits are 0 through 9. In binary, digits are 0 and 1. digit - An employee of Digital Equipment Corporation. See also VAX, VMS, PDP-10, TOPS-10, DEChead, double DECkers, field circus. core growth combined with approximately 10% acquisition growth, yielding a mid-teen percentage growth in overall revenue. Acquisition growth will be driven by the full-year impact of the SPECTRO, Solartron, HCC Industries and Pulsar Technologies acquisitions," commented Mr. Hermance. "Given our strong first quarter results and the expectation of continued strength in our markets, we have raised our estimated earnings to a range of $2.30 to $2.35 per diluted share, an increase of 19% to 21% over the 2005 level of $1.94 per diluted share." "Our second quarter 2006 sales are expected to be up in the high teens on a percentage basis from last year's second quarter. We expect second quarter earnings will be approximately $.57 to $.59 per diluted share, an increase of 16% to 20% over last year's second quarter," concluded Mr. Hermance. Accounting for Stock Options The above operating results reflect the adoption of FAS 123R for expensing stock options under the modified retrospective LAW, RETROSPECTIVE. A retrospective law is one that is to take effect, in point of time, before it was passed. 2. Whenever a law of this kind impairs the obligation of contracts, it is void. 3 Dall. 391. method. Results for 2005 have been adjusted on this basis. Conference Call AMETEK, Inc. will Web cast it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have First Quarter 2006 investor conference call on Thursday Thursday: see week. , April 20, 2006, beginning at 8:30 AM ET. The live audio Web cast will be available at www.ametek.com/investors and at www.streetevents.com. The call will also be archived at www.ametek.com/investors. Corporate Profile AMETEK is a leading global manufacturer of electronic instruments and electric motors with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of $1.6 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions & Alliances, Global & Market Expansion and New Products. AMETEK's objective is double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. 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 MidCap mid·cap adj. 1. Or or relating to corporations whose retained earnings and outstanding shares of common stock have a value between those of small cap companies and large cap corporations. 2. 400 Index and the Russell 1000 Index The Russell 1000 Index is a stock market index of US stocks. The ticker is "RUI" or similar. See Russell Indexes page for main discussion. See also the iShares Russell 1000. External links
Forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. Information Statements in this news release that are not historical are considered "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in AMETEK's Securities and Exchange Commission filings. (Financial Information Follows)
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
Three months ended
March 31, (Unaudited)
---------------------
2006 2005 (a)
---------- ----------
Net sales $423,867 $334,096
---------- ----------
Expenses:
Cost of sales, excluding depreciation 292,768 234,176
Selling, general and administrative 50,812 38,027
Depreciation 9,486 8,331
---------- ----------
Total expenses 353,066 280,534
---------- ----------
Operating income 70,801 53,562
Other (expenses) income:
Interest expense (10,088) (7,632)
Other, net (737) 158
---------- ----------
Income before income taxes 59,976 46,088
Provision for income taxes 19,718 15,117
---------- ----------
Net income $40,258 $30,971
========== ==========
Diluted earnings per share $0.57 $0.44
========== ==========
Basic earnings per share $0.58 $0.45
========== ==========
Average common shares outstanding:
Diluted shares 71,123 69,951
========== ==========
Basic shares 69,892 68,704
========== ==========
Dividends per share $0.06 $0.06
========== ==========
(a) Results for 2005 have been adjusted to reflect the retrospective
application of FAS 123R to expense stock options, which was
adopted effective January 1, 2006. The retrospective application
reduced 2005 net income by $1.1 million, or $0.02 per diluted
share.
AMETEK, Inc.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(In thousands)
Three months ended
March 31,
---------------------
2006 2005 (a)
---------- ----------
Net sales
---------------------------
Electronic Instruments $236,439 $180,921
Electromechanical 187,428 153,175
---------- ----------
Total Consolidated $423,867 $334,096
========== ==========
Operating income
---------------------------
Electronic Instruments $47,712 $36,250
Electromechanical 31,952 24,442
---------- ----------
Total segments 79,664 60,692
Corporate and other (8,863) (7,130)
---------- ----------
Total Consolidated $70,801 $53,562
========== ==========
(a) Operating income for 2005 has been adjusted to reflect the
retrospective application of FAS 123R to expense stock options,
which was adopted effective January 1, 2006. The retrospective
application reduced 2005 operating income by $1.5 million.
AMETEK, Inc.
CONDENSED CONSOLIDATED BALANCE SHEET
(In thousands)
March 31, December 31,
2006 2005
------------ ------------
(Unaudited)
ASSETS
------
Current assets:
Cash, cash equivalents
and marketable securities $48,123 $43,788
Receivables, net 289,957 269,395
Inventories 207,809 193,099
Other current assets 53,817 50,025
------------ ------------
Total current assets 599,706 556,307
Property, plant and equipment, net 225,689 228,450
Goodwill, net 799,578 785,185
Other intangibles, investments and other
assets 222,855 210,658
------------ ------------
Total assets $1,847,828 $1,780,600
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Short-term borrowings and current
portion of long-term debt $139,225 $156,130
Accounts payable and accruals 281,510 249,662
------------ ------------
Total current liabilities 420,735 405,792
Long-term debt 478,372 475,309
Deferred income taxes and
other long-term liabilities (a) 91,108 89,978
Stockholders' equity (a) 857,613 809,521
------------ ------------
Total liabilities and stockholders'
equity $1,847,828 $1,780,600
============ ============
(a) Amounts for 2005 have been adjusted to reflect the retrospective
application of FAS 123R, which was adopted effective January 1,
2006. The retrospective application reduced deferred income taxes
and increased stockholders' equity by $4.0 million.
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