AMETEK Achieves Record First Quarter with Net Income Up 25%; Raises Full-Year Estimates.

Business Editors

PAOLI, Pa.--(BUSINESS WIRE)--April 21, 2004

AMETEK, Inc. (NYSE:AME) today announced first quarter results that established records for sales, operating income, and net income.

AMETEK's first quarter 2004 sales of $291.4 million were up 9% over the same period of 2003. Operating income for the first quarter of 2004 was $43.5 million, a 19% increase from the $36.7 million recorded in the same period of 2003. Net income in the first quarter of 2004 increased 25% to $24.7 million, or $.36 per diluted share, from first quarter 2003 levels of $19.7 million, or $.29 per diluted share. Sales, operating income, and net income were quarterly records.

"AMETEK had an excellent quarter," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. "Better than anticipated internal growth in both our Electronic Instruments and Electromechanical segments, plus contributions from businesses acquired last year enabled us to grow the top-line by 9%. We captured the leverage in our business model and significantly increased profitability," he commented.

"We had superb cash flow generation from our businesses during the quarter. Our cash flow from operations totaled approximately $41 million, a 58% increase over the first quarter of 2003. We are well on our way to another record year of operating cash flow," he added.

Electronic Instruments Group (EIG)

For the 2004 first quarter, EIG sales increased 13% to $150.6 million. Operating income was $26.1 million, compared with $20.0 million in the first quarter of 2003, an increase of 31%. Operating margins for the quarter improved to 17.3%, from 15.0% in the first quarter of 2003.

"EIG sales were up in the quarter due to contributions from Solidstate Controls and Chandler Instruments, both acquired in 2003, as well as strength in our process and industrial businesses. Strong operating results at our existing and newly acquired businesses drove EIG margins up 230 basis points," said Mr. Hermance.

Electromechanical Group (EMG)

For the first quarter of 2004, EMG's sales were $140.8 million, a 5% increase over the same period of 2003. Operating income of $23.3 million was up 7% from the $21.8 million recorded in the same period of 2003. Operating margins for the quarter were 16.6%, compared with 16.3% in the first quarter of 2003.

"EMG had a solid quarter with our differentiated businesses posting excellent sales growth. Operating margins were up as we brought the revenue increase to the bottom line," noted Mr. Hermance.

2004 Outlook

Mr. Hermance commented, "Given the improving economic environment, we are raising our estimates for the year. We now expect full-year revenues to be up mid to high single-digits on the benefits of our Chandler Instruments and Solidstate Controls acquisitions and improved internal growth in both Groups. Earnings are expected to be approximately $1.48 to $1.53 per diluted share, an increase of approximately 14% to 18% over 2003, driven by strength in our differentiated businesses, our continued focus on operational excellence, and contributions from our 2003 acquisitions.

"Our second quarter 2004 sales are expected to be up mid to high single-digits from last year's second quarter on internal growth in both segments and the contribution from our 2003 acquisition of Chandler Instruments. We expect our earnings to be approximately $.37 to $.38 per diluted share, an increase of approximately 16% to 19% over last year's second quarter," concluded Mr. Hermance.

Conference Call

AMETEK, Inc. will Web cast it's First Quarter 2004 investor conference call on Wednesday, April 21, 2004, beginning at 8:30 AM EST. The live audio Web cast will be available at www.ametek.com/investors and at www.streetevents.com. To access the Web cast from ametek.com, click on the Audio Conference Call link. The call will be archived at www.ametek.com/investors. To access the audio archive, click on the Audio Conference Call link in the Investors Section.

Corporate Profile

AMETEK is a leading global manufacturer of electronic instruments and electric motors with 2003 sales of nearly $1.1 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 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 400 Index and the Russell 1000 Index.

Forward-looking Information

Statements in this news release that are not historical are considered "forward-looking statements" 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.

                             AMETEK, Inc.
            CONSOLIDATED STATEMENT OF INCOME  (Unaudited)
               (In thousands, except per share amounts)

                                                  Three months ended
                                                       March 31,
                                                 ---------------------
                                                    2004       2003
                                                 ---------- ----------

Net sales                                         $291,423   $267,531
                                                 ---------- ----------
Expenses:
   Cost of sales, excluding depreciation           208,362    195,064
   Selling, general and administrative              30,890     27,315
   Depreciation                                      8,674      8,475
                                                 ---------- ----------
     Total expenses                                247,926    230,854
                                                 ---------- ----------

Operating income                                    43,497     36,677
Other income (expenses):
   Interest expense                                 (6,411)    (6,632)
   Other, net                                         (326)      (887)
                                                 ---------- ----------
Income before income taxes                          36,760     29,158
Provision for income taxes                          12,096      9,440
                                                 ---------- ----------
Net Income                                         $24,664    $19,718
                                                 ========== ==========

Diluted earnings per share (a)                       $0.36      $0.29
                                                 ========== ==========

Basic earnings per share (a)                         $0.37      $0.30
                                                 ========== ==========

Average common shares outstanding (a):
  Diluted shares                                    68,651     67,291
                                                 ========== ==========
  Basic shares                                      67,278     65,964
                                                 ========== ==========

Dividends per share (a)                              $0.06      $0.03
                                                 ========== ==========

(a) Amounts for 2003 have been restated to reflect a two-for-one stock
    split effective February 27, 2004.




                             AMETEK, Inc.
             INFORMATION BY BUSINESS SEGMENT (Unaudited)
                            (In thousands)

                                                  Three months ended
                                                       March 31,
                                                 ---------------------
                                                    2004       2003
                                                 ---------- ----------

         Net sales
---------------------------------
 Electronic Instruments                           $150,646   $133,601
 Electromechanical                                 140,777    133,930
                                                 ---------- ----------
   Total Consolidated                             $291,423   $267,531
                                                 ========== ==========


         Operating income
---------------------------------
 Electronic Instruments                            $26,121    $19,982
 Electromechanical                                  23,324     21,801
                                                 ---------- ----------
   Total segments                                   49,445     41,783
 Corporate and other                                (5,948)    (5,106)
                                                 ---------- ----------
        Total Consolidated                         $43,497    $36,677
                                                 ========== ==========




                             AMETEK, Inc.
                 CONDENSED CONSOLIDATED BALANCE SHEET
                            (In thousands)

                                              March 31,   December 31,
                                                 2004         2003
                                             ------------ ------------
                                             (unaudited)
ASSETS
------

Current assets:
    Cash, cash equivalents
      and marketable securities                  $26,665      $22,886
    Receivables, net                             195,247      189,010
    Inventories                                  151,784      143,359
    Other current assets                          23,836       26,811
                                             ------------ ------------
        Total current assets                     397,532      382,066

Property, plant and equipment, net               208,254      213,622
Goodwill, net                                    508,078      506,964
Other intangibles, investments and
 other assets                                    113,092      112,195
                                             ------------ ------------
        Total assets                          $1,226,956   $1,214,847
                                             ============ ============

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

Current liabilities:
    Short-term borrowings and current
     portion of long-term debt                   $76,524     $106,774
    Accounts payable and accruals                192,622      182,457
                                             ------------ ------------
        Total current liabilities                269,146      289,231

Long-term debt                                   318,834      317,674
Deferred income taxes and
 other long-term liabilities                      87,594       78,812
Stockholders' equity                             551,382      529,130
                                             ------------ ------------
        Total liabilities and
         stockholders' equity                 $1,226,956   $1,214,847
                                             ============ ============