AMETEK Announces Fourth Quarter and Full Year Results.PAOLI, Pa. -- AMETEK, Inc. (NYSE NYSE See: New York Stock Exchange :AME See AIT. ) today announced fourth quarter and full year results. AMETEK's fourth quarter 2008 sales of $623.7 million were up 7% over the same period of 2007. Net income, which includes the impact of a fourth quarter restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , was $43.8 million 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 were $0.41, compared to $0.57 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 earned in the fourth quarter of 2007. For the full year 2008, AMETEK achieved sales of $2.53 billion, up 18% from 2007. Including the impact of the fourth quarter restructuring charge, net income for the full year 2008 was $247.0 million and diluted earnings per share were $2.30, compared to $2.12 per diluted share earned in 2007. In the fourth quarter, AMETEK recorded a pre-tax restructuring charge of approximately $40 million ($27.3 million, net of tax), or $0.25 per diluted share, to cover the costs of employee reductions, facility closures and asset write-downs necessary to realign re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. the Company's cost structure with expected market conditions. These actions and other cost reduction activities are expected to result in 2009 savings of approximately $75 million. The benefits from the restructuring activities will have a greater impact in the second half of the year. Adjusted earnings for the fourth quarter, which excludes the restructuring charge, increased 15% to $71.1 million, or $0.66 per diluted share, as compared to fourth quarter 2007 net income of $61.9 million, or $0.57 per diluted share. For the full year, adjusted earnings were $274.2 million or $2.55 per diluted share, a 20% increase in both measures from 2007. "Reflecting the global economic downturn, order rates for our businesses slowed dramatically in November and December. We expect difficult economic conditions to persist in Verb 1. persist in - do something repeatedly and showing no intention to stop; "We continued our research into the cause of the illness"; "The landlord persists in asking us to move" continue 2009 and have taken these cost reduction actions to appropriately align our cost structure with expected market conditions," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. "Despite these difficult economic conditions, AMETEK had a very good fourth quarter," added Mr. Hermance. "The contributions from acquired businesses enabled us to grow our top-line by 7% for the quarter, offsetting a weakening core growth environment. 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. margin, excluding the restructuring charge, was up 180 basis points and diluted earnings per share were up 16% in the quarter, driven by our top-line growth and operational excellence improvements," 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 2008 fourth quarter, EIG sales increased 8% to $361.6 million. Operating income, including the impact of the restructuring charge of $20.4 million, was $69.2 million, compared with $73.1 million in the fourth quarter of 2007, a decrease of 5%. Operating income, excluding the restructuring charge, was $89.6 million, compared with $73.1 million in the fourth quarter of 2007, an increase of 23%. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: for the quarter improved to 24.8%, from 21.8% in the fourth quarter of 2007. "EIG had a very good fourth quarter. Sales were up 8%, driven by our power and process instrument businesses, together with the contributions from our Vision Research, Xantrex Programmable Power and California Instrument acquisitions. Core growth weakened in the quarter. Operating margins, excluding the restructuring charge, expanded 300 basis points," 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 2008 fourth quarter, EMG sales increased 6% to $262.1 million. Operating income, including the impact of the restructuring charge of $19.4 million, was $24.7 million, compared with $42.4 million in the fourth quarter of 2007. Operating income, excluding the restructuring charge, was $44.1 million, compared with $42.4 million in the fourth quarter of 2007, an increase of 4%. Operating margins for the quarter were 16.8%, as compared with 17.2% in the fourth quarter of 2007. "EMG had a good fourth quarter, considering the economic environment. Sales were up on the contributions from the acquisitions of Reading Alloys, Muirhead Aerospace, Drake Air, Motion Control Group and Umeco Repair and Overhaul, more than offsetting difficult market conditions for our cost-driven motor businesses. Operating margins, before the restructuring charge, were down 40 basis points reflecting the impact of the economic downturn," commented Mr. Hermance. 2009 Outlook "We expect 2009 to be a very challenging year given the continuing global economic downturn, though we believe that AMETEK's strong portfolio of businesses, proven operational capabilities, lower cost structure, and a successful focus on strategic acquisitions will enable us to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. in 2009," noted Mr. Hermance. "Based on our current understanding of market conditions, which has a more than normal level of uncertainty, we anticipate 2009 revenue to be down slightly from 2008, reflecting the full year impact of our 2008 acquisitions, negative foreign currency headwinds and mid-single digit negative internal growth. Earnings for 2009 are expected to be in the range of $2.40 to $2.60 per diluted share," added Mr. Hermance. "First quarter 2009 sales are expected to be down slightly from last year's first quarter. We estimate our earnings to be approximately $0.54 to $0.58 per diluted share, as compared to last year's first quarter of $0.62," concluded Mr. Hermance. Non-GAAP Measures Non-GAAP measures used in this release regarding adjusted earnings and diluted earnings per share, which excludes the fourth quarter 2008 restructuring charge, have been provided as the Company is aware that investors will use this information in evaluating the Company. Conference Call The Company will Web cast its Fourth Quarter 2008 investor conference call on Friday, January 30, 2009, 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 electromechanical devices Noun 1. electromechanical device - a mechanical device that is operated by electricity mechanical device - mechanism consisting of a device that works on mechanical principles with annual sales of approximately $2.5 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 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 and the Russell 1000 Indices. Forward-looking Information Statements in this news release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events, such as AMETEK's expected business and financial performance, are "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. ." 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 general economic conditions affecting the industries we serve; our ability to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. and successfully integrate future acquisitions; risks associated with international sales and operations; our 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; and the ability to maintain adequate liquidity and financing sources. 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. (Financial Information Follows) [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED] |
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