AMETEK Announces Full-year and Fourth Quarter Results; Full Year Income Before Unusual Items Up 3%.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)--Jan. 29, 2002 AMETEK Inc. (NYSE NYSE See: New York Stock Exchange :AME See AIT. ) today announced full year and fourth quarter results. AMETEK achieved 2001 sales of $1.02 billion, unchanged from year 2000 results. 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. of $132.8 million was down 2% from $135.9 million for 2000. Income grew to $70.8 million, up 3% from the $68.5 million earned in 2000, 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 of $2.12 were up from $2.11 per share in 2000. All comparisons, unless otherwise noted, are before unusual items in the fourth quarter of 2001. Including these unusual items, net income for 2001 was $66.1 million or $1.98 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 compared with net income in 2000 of $68.5 million or $2.11 per diluted share. "In a very difficult economic environment, AMETEK posted strong 2001 results. For the full year, before unusual items, we established records for income and diluted earnings per share. We have taken the necessary steps to size our business to the current economic environment and are poised to significantly grow earnings when the economy recovers," commented Frank S. Hermance Hermance is a municipality of the Canton of Geneva, Switzerland. External links
Fourth Quarter Unusual Items "As a result of our budgeting process for 2002 and our outlook for the general economy, we have undertaken another round of significant cost reductions. Our fourth quarter and full-year results include expenses associated with this realignment 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. of our cost structure. In addition we recorded a significant tax benefit," said Mr. Hermance. In the fourth quarter the Company recorded expenses totaling $15 million after tax, or $.46 per diluted share, to cover the costs of employee reductions, facility closures, the continued migration to low-cost locales, and asset writedowns necessary to reflect the difficulties the economic environment has had on a number of our customers. We expect 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. savings from our cost reduction actions to be approximately $25 million. In the fourth quarter the Company also recorded a tax benefit of $11 million, or $.32 per diluted share, resulting from the closure of a number of tax years by U.S. federal and state tax authorities. Fourth Quarter Results AMETEK's fourth quarter 2001 sales of $237.3 million were an 8% decrease over the same period of 2000 caused by weak economic conditions which impacted many of our businesses. Our aerospace and power instrument businesses continued to perform well. Operating income for the fourth quarter of 2001 was $28.6 million, a 16% decrease from the $34.1 million recorded in the same period of 2000. Income in the fourth quarter of 2001 totaled $16.2 million, or $.48 per diluted share, down from fourth quarter 2000 levels of $17.2 million, or $.53 per diluted share. After unusual items, net income for the fourth quarter of 2001 was $11.5 million, or $.34 per diluted share, as compared with $17.2 million, or $.53 per diluted share, in the same period of 2000. 2002 Outlook Mr. Hermance commented, "Due to the continuing weak economic conditions in many of our businesses we expect revenues to be up only slightly this year. The significant cost reductions taken in 2001 and planned for 2002 should enable AMETEK to deliver record earnings of approximately $2.50 per diluted share, up 18% from 2001. This estimate includes $.30 from the elimination of amortization of goodwill in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with 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. The impact of our cost reduction activities should make the second half of 2002 stronger than the first half. Our forecast does not include 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 , which could provide upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside to our expectations." The group commentary that follows excludes unusual items detailed in the attached financial tables. 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 year, EMG's sales increased 1% to $519.8 million, compared with $515.2 million in 2000. The full-year impacts of the Prestolite Electric and GS Electric acquisitions drove this improvement. Operating income was $81.3 million for 2001, up 5% from the $77.6 million earned in 2000 due to exceptional cost control in a very difficult environment. For the fourth quarter of 2001, EMG's sales were $113.2 million, a 13% decrease over the same period of 2000. Operating income of $18.7 million is essentially unchanged from the $18.9 million recorded in the same period of 2000. 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 2001 were $499.5 million, down 2% from 2000 levels of $509.5 million. Acquisitions and strong aerospace and power markets did not offset the impact of the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. on the other EIG businesses. Operating income was $69.5 million for 2001, as compared to $78.8 million earned in 2000. For the 2001 fourth quarter, EIG sales were $124.1 million, down 3% from 2000 levels of $128.4. The additional revenue from the EDAX EDAX Energy Dispersive Spectroscopy acquisition and strong aerospace and power instrument markets minimized the impact of the economic slowdown. Operating income for the fourth quarter was $13.9 million, as compared with $20.5 million in the fourth quarter of 2000. Operating income in the fourth quarter of 2001 was impacted by the slowing economy. In addition, the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of a long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time customer issue in the fourth quarter of 2000 created a difficult comparison. Acquisition of Instruments for Research and Applied Science (IRAS IRAS: see infrared astronomy. ) On December December: see month. 28, 2001 AMETEK completed the acquisition of Instruments for Research and Applied Science (IRAS), a leading developer and manufacturer of analytic an·a·lyt·ic or an·a·lyt·i·cal adj. 1. Of or relating to analysis or analytics. 2. Expert in or using analysis, especially one who thinks in a logical manner. 3. Psychoanalytic. instrumentation instrumentation, in music: see orchestra and orchestration. instrumentation In technology, the development and use of precise measuring, analysis, and control equipment. , from PerkinElmer PerkinElmer, Inc. (NYSE: PKI) is an American multinational technology corporation, focused in the business areas of: Life and Analytical Sciences, Optoelectronics, and Fluid Sciences. , Inc. IRAS manufactures and markets technologically advanced analytical analytical, analytic pertaining to or emanating from analysis. analytical control control of confounding by analysis of the results of a trial or test. instrumentation that is used in a number of applications including nuclear spectroscopy spectroscopy Branch of analysis devoted to identifying elements and compounds and elucidating atomic and molecular structure by measuring the radiant energy absorbed or emitted by a substance at characteristic wavelengths of the electromagnetic spectrum (including gamma ray, , research electrochemistry electrochemistry, science dealing with the relationship between electricity and chemical changes. Of principal interest are the reactions that take place between electrodes and the electrolytes in electric and electrolytic cells (see electrolysis), as well as the , and electronic signal processing See DSP. . IRAS, based in Oak Ridge Oak Ridge, city (1990 pop. 27,310), Anderson and Roane counties, E Tenn., on Black Oak Ridge and the Clinch River; founded by the U.S. government 1942, inc. as an independent city 1959. , TN, has 275 employees and is expected to report sales of approximately $50 million for 2001. The purchase price was approximately $63 million in cash. "Our acquisition of IRAS further expands AMETEK's position in differentiated analytical instruments," notes AMETEK Chairman and Chief Executive Officer Frank S. Hermance. "IRAS significantly extends our capabilities in the measurement of physical properties. It brings new technologies, applications and end market opportunities to AMETEK and also provides an additional platform for growth," he adds. IRAS will operate as a new division of our Electronic Instruments Group - Advanced Measurement Technology and will continue to market its products under the ORTEC ORTEC Oak Ridge Technical Enterprises Corp. , Princeton Princeton, borough (1990 pop. 12,016) and surrounding township (1990 pop. 13,198), Mercer co., W central N.J.; settled late 1600s, borough inc. 1813, township est. 1838. A leading education center, it is the seat of Princeton Univ. Applied Research and Signal Recovery brand names. Conference Call AMETEK, Inc. will Web cast its Fourth Quarter 2001 investor conference call on Wednesday Wednesday: see week. , January January: see month. 30, 2002, beginning at 8:15 AM EST EST electroshock therapy. EST abbr. electroshock therapy . 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: Strategic Acquisitions & Alliances, Global & Market Expansion, New Products, and Operational Excellence. Its 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
(Dollars and shares in thousands, except per share amounts)
Twelve months ended
December 31,
--------------------------------------------------
2001
-------------------------------------
Before Unusual After
Unusual Items(a) Unusual
Items Items 2000
----------- ----------- ----------- -----------
Net sales $ 1,019,289 -- $ 1,019,289 $ 1,024,660
----------- ----------- ----------- -----------
Expenses:
Cost of sales,
excluding
depreciation 759,379 $ 18,540 777,919 761,548
Selling,
general and
administrative 95,132 3,523 98,655 95,147
Depreciation 31,942 1,223 33,165 32,075
----------- ----------- ----------- -----------
Total expenses 886,453 23,286 909,739 888,770
----------- ----------- ----------- -----------
Operating income
(loss) 132,836 (23,286) 109,550 135,890
Other income
(expenses):
Interest expense (27,913) -- (27,913) (29,203)
Other, net 1,028 1,697 2,725 (549)
----------- ----------- ----------- -----------
Income (loss)
before income
taxes 105,951 (21,589) 84,362 106,138
Provision for
(benefit from)
income taxes 35,133 (16,882) 18,251 37,606
----------- ----------- ----------- -----------
Net Income (loss) $ 70,818 ($ 4,707) $ 66,111 $ 68,532
=========== =========== =========== ===========
Diluted earnings
(loss) per
share $ 2.12 ($ 0.14) $ 1.98 $ 2.11
=========== =========== =========== ===========
Basic earnings
(loss) per
share $ 2.16 ($ 0.14) $ 2.01 $ 2.13
=========== =========== =========== ===========
Average common
shares
outstanding:
Diluted shares 33,445 33,445 33,445 32,534
=========== =========== =========== ===========
Basic shares 32,838 32,838 32,838 32,131
=========== =========== =========== ===========
Dividends per
share $ 0.24 -- $ 0.24 $ 0.24
=========== =========== =========== ===========
(a) Fourth quarter and year 2001 includes unusual pretax charges
totaling $23.3 million, $15.3 million after tax ($0.46 per diluted
share). The charges were for employee reductions, facility
closures, and the continued migration to low-cost locales ($12.4
million), as well as asset writedowns ($10.9 million). The periods
also include a tax benefit and related interest income (reported
in other income) of $10.5 million after tax ($0.32 per diluted
share) resulting from the closure of a number of open tax years.
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(Dollars in thousands)
Twelve months ended
December 31,
---------------------------------------------------
(Unaudited)
2001
--------------------------------------
Before After
Unusual Unusual Unusual
Items Items (a) Items 2000
---------- ---------- ---------- ----------
Net sales
-----------------
Electronic
Instruments $ 499,528 -- $ 499,528 $ 509,504
Electromechanical 519,761 -- 519,761 515,156
---------- ---------- ---------- ----------
Total
Consolidated $1,019,289 -- $1,019,289 $1,024,660
========== ========== ========== ==========
Operating income
(loss)
-----------------
Electronic
Instruments $ 69,460 ($ 12,425) $ 57,035 $ 78,771
Electromechanical 81,274 (10,636) 70,638 77,560
---------- ---------- ---------- ----------
Total segments 150,734 (23,061) 127,673 156,331
Corporate and
other (17,898) (225) (18,123) (20,441)
---------- ---------- ---------- ----------
Total
Consolidated $ 132,836 ($ 23,286) $ 109,550 $ 135,890
========== ========== ========== ==========
(a) See note on Consolidated Statement of Income for twelve months
ended December 31, 2001.
AMETEK, Inc.
CONSOLIDATED STATEMENT OF INCOME
(Dollars and shares in thousands, except per share amounts)
Three months ended
December 31,
--------------------------------------------
(Unaudited)
2001
---------------------------------
Before After
Unusual Unusual Unusual
Items Items (a) Items 2000
-------- --------- -------- --------
Net sales $237,263 - $237,263 $258,246
-------- --------- -------- --------
Expenses:
Cost of sales,
excluding
depreciation 176,747 $18,540 195,287 191,547
Selling, general
and administrative 24,063 3,523 27,586 23,606
Depreciation 7,860 1,223 9,083 8,966
-------- --------- -------- --------
Total expenses 208,670 23,286 231,956 224,119
-------- --------- -------- --------
Operating income (loss) 28,593 (23,286) 5,307 34,127
Other income (expenses):
Interest expense (6,639) - (6,639) (7,670)
Other, net 247 1,697 1,944 (50)
-------- --------- -------- --------
Income (loss) before
income taxes 22,201 (21,589) 612 26,407
Provision for (benefit
from) income taxes 6,035 (16,882) (10,847) 9,170
-------- --------- -------- --------
Net Income (loss) $16,166 ($4,707) $11,459 $17,237
======== ========= ======== ========
Diluted earnings
(loss) per share $0.48 ($0.14) $0.34 $0.53
======== ========= ======== ========
Basic earnings (loss)
per share $0.49 ($0.14) $0.35 $0.53
======== ========= ======== ========
Average common
shares outstanding:
Diluted shares 33,334 33,334 33,334 32,726
======== ========= ======== ========
Basic shares 32,733 32,733 32,733 32,302
======== ========= ======== ========
Dividends per share $0.06 - $0.06 $0.06
======== ========= ======== ========
(a) See note on Consolidated Statement of Income for twelve months
ended December 31, 2001.
AMETEK, INC.
INFORMATION BY BUSINESS SEGMENT
(Dollars in thousands)
Three months ended
December 31,
--------------------------------------------
(Unaudited)
2001
--------------------------------------------
Before After
Unusual Unusual Unusual
Items Items(a) Items 2000
-------- -------- -------- --------
Net sales
----------------------
Electronic Instruments $124,062 - $124,062 $128,449
Electromechanical 113,201 - 113,201 129,797
-------- -------- -------- --------
Total Consolidated $237,263 - $237,263 $258,246
======== ======== ======== ========
Operating income (loss)
----------------------
Electronic Instruments $13,914 ($12,425) $1,489 $20,462
Electromechanical 18,725 (10,636) 8,089 18,884
-------- -------- -------- --------
Total segments 32,639 (23,061) 9,578 39,346
Corporate and other (4,046) (225) (4,271) (5,219)
-------- -------- -------- --------
Total Consolidated $28,593 ($23,286) $5,307 $34,127
======== ======== ======== ========
(a) See note on Consolidated Statement of Income for twelve months
ended December 31, 2001.
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