AMETEK Achieves Record Results; --Company Posts 8% Increase in Net Income--.Business Editors PAOLI Pa·o·li , Pasquale di 1725-1807. Corsican patriot who led (from 1755) the struggle for independence from Genoa. , Pa.--(BUSINESS WIRE)--April 22, 2002 AMETEK Inc. (NYSE NYSE See: New York Stock Exchange :AME See AIT. ) today announced first quarter results that established records for 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 2002 sales of $263.6 million were essentially unchanged from the $264.1 million recorded in the first quarter of 2001. Operating income for the first quarter of 2002 was $36.4 million, a 2% increase over the same period of 2001. Net income totaled $19.7 million, up 8% from $18.3 million in the first quarter of 2001. Diluted earnings per share rose 7% to $.59 per share from the first quarter 2001 level of $.55 per share. On January January: see month. 1, 2002 AMETEK adopted SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System #142, which eliminates amortization of goodwill. The impact of the amortization of goodwill in AMETEK's 2001 first quarter results was $.07 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. "AMETEK's first quarter performance in a still challenging economic environment is the result of continued solid execution of our Four Growth Strategies, particularly our operational excellence and acquisition strategies, " commented Frank S. Hermance Hermance is a municipality of the Canton of Geneva, Switzerland. External links
"Our revenue and profitability were favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the three strategic acquisitions we completed last year. We also have taken the necessary steps to size our business to the current economic environment. These actions enabled AMETEK to post strong earnings this quarter and provide for leveraged earnings growth when the economy recovers," he added. 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) ) EIG sales for the first quarter of 2002 were up 9% to $136.8 million from last year's level of $126.0 million. Group operating income for the first quarter was up 11% to $21.0 million, versus $18.8 million in the same period of 2001. Group operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: were 15.3% in the current quarter, up from 15.0% in the first quarter of 2001. "The contributions from EDAX EDAX Energy Dispersive Spectroscopy and IRAS IRAS: see infrared astronomy. , acquired in 2001, and positive results from our aerospace and power instrument businesses drove the top and bottom line for EIG," noted 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. ) EMG's sales were $126.8 million, down 8% from $138.0 million in the first quarter of 2001. Group operating income of $20.6 million in the first quarter of 2002 was down 6%, compared with the $21.9 million reported for the same period of 2001. EMG's operating income margin increased to 16.2% in the first quarter of 2002 from 15.9% in the first quarter of 2001. "Market conditions for EMG remained weak in the quarter, particularly in global floor care. Revenues benefited from the contribution of GS Electric, acquired in 2001. Despite difficult market conditions, EMG continues to make significant progress in lowering its cost structure," added Mr. Hermance. Outlook "Our expectations for 2002 remain unchanged. We continue to look for modest revenue growth due to weak economic conditions in a number of our markets. The cost reduction activities taken over the past year and a half should enable us to post record earnings this year of approximately $2.50, up 18% from last year. Our expectations for 2002 reflect the elimination of amortization of goodwill. The amortization of goodwill in our full-year 2001 results totaled $.30 per diluted share," commented Mr. Hermance. "We maintain our cautious stance on prospects for an economic rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective this year, though evidence is mounting that such a recovery will happen. If a recovery does occur, our expectations for the year may be conservative," concluded Mr. Hermance. Conference Call AMETEK, Inc. will Web cast its First Quarter 2002 investor conference call on Tuesday Tuesday: see week. , April 23, 2002, beginning at 9:00 AM ET. 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 2001 sales of more than $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 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 2000 Index Russell 2000 Index An index measuring the performance of the 2,000 smallest companies in the Russell 3000 Index, which is made up of 3,000 of the biggest U.S. stocks. The Russell 2000 serves as a benchmark for small-cap stocks in the United States. . Forward-looking 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 (Unaudited)
(Dollars and shares in thousands, except per share amounts)
Three months ended
March 31,
----------------------------
2002 2001
---------- ----------
Net sales $ 263,558 $ 264,071
---------- ----------
Expenses:
Cost of sales, excluding depreciation 191,786 195,924
Selling, general and administrative 27,775 24,144
Depreciation 7,563 8,300
---------- ----------
Total expenses 227,124 228,368
---------- ----------
Operating income (a) 36,434 35,703
Other income (expenses):
Interest expense (6,894) (7,660)
Other, net (196) 255
---------- ----------
Income before income taxes 29,344 28,298
Provision for income taxes 9,679 10,026
---------- ----------
Net Income (a) $ 19,665 $ 18,272
========== ==========
Diluted earnings per share (a) $ 0.59 $ 0.55
========== ==========
Basic earnings per share (a) $ 0.60 $ 0.56
========== ==========
Average common shares outstanding:
Diluted shares 33,506 33,243
========== ==========
Basic shares 32,799 32,624
========== ==========
Dividends paid per share $ 0.06 $ 0.06
========== ==========
(a) - Goodwill amortization in the first quarter of 2001 was $2.7
million, $2.3 million after tax, (or $0.07 per diluted share). Such
amortization is excluded from the Company's 2002 results effective
January 1, 2002, in accordance with SFAS No. 142, "Goodwill and Other
Intangible Assets."
AMETEK, Inc.
INFORMATION BY BUSINESS SEGMENT (Unaudited)
(Dollars in thousands)
Three months ended
March 31,
-------------------------
2002 2001
---------- ----------
Net sales
----------------------
Electronic Instruments $136,801 $126,028
Electromechanical 126,757 138,043
---------- ----------
Total Consolidated $263,558 $264,071
========== ==========
Operating income
----------------------
Electronic Instruments $20,959 $18,844
Electromechanical 20,573 21,891
---------- ----------
Total segments (a) 41,532 40,735
Corporate and other (5,098) (5,032)
---------- -----------
Total Consolidated $36,434 $35,703
========== ===========
(a) - Segment operating income in the first quarter of 2001 included
goodwill amortization of $2.7 million, of which $1.6 million was for
EIG, and $1.1 million for EMG. Goodwill is excluded from the 2002
results. Also, see note on Consolidated Statement of Income.
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