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AMETEK CONTINUES STRATEGIC RESIZING OF ITS AEROSPACE AND INDUSTRIAL GAUGE OPERATIONS; RESIZING CHARGE INCLUDED IN THIRD QUARTER RESULTS

 PAOLI, Pa., Nov. 1 /PRNewswire/ -- Consistent with its previously announced program to resize its aerospace and industrial gauge operations, AMETEK Inc. (NYSE: AME) today reported that it is taking a $4.4 million (pre-tax), or 6 cents per share, resizing charge for its third quarter ended Sept. 30, 1993, as well as a 2 cents per share reduction in its quarterly earnings to reflect the Administration's retroactive increase in the federal income tax rate.
 Inclusive of these actions, AMETEK had net income for the 1993 third quarter of $2 million, or 5 cents per share, on sales of $175.0 million. This compares to net income of $10.7 million or 25 cents per share on sales of $186.0 million for the third quarter of 1992.
 Walter E. Blankley, chairman and chief executive officer, said, "The strategic actions we are taking to resize our operations in the Precision Instruments Group are designed to significantly enhance the Group's long-term operating efficiency and profit potential. We expect that the resizing of the Group's operations will result in a significant improvement in its operating profit in 1994.
 "Most of the third quarter resizing charges are noncash. AMETEK's cash flow from operating activities was $35.4 million for the nine months. The Company's financial position remains strong with $64 million in cash and securities on its balance sheet and only moderate levels of debt," Blankley said.
 For the nine months ended Sept. 30, 1993, AMETEK had net income of $14.3 million, or 33 cents per share, including an $8 million (pre-tax) or 11 cents per share resizing charge; sales were $548.9 million. Of the $8 million resizing charge, $3.6 million was previously recorded in the first six months of 1993. This compares to net income of $33.8 million or 77 cents per share, on sales of $578.1 million for the first nine months of 1992.
 Precision Instruments Markets
 Blankley stated, "As a consequence of the lackluster economies in most major global markets, the Precision Instruments business continues to be soft, with poor market conditions prevailing in the aerospace products and the process and analytical instruments areas.
 "As we have previously reported, AMETEK has been conducting an extensive ongoing study with respect to the resizing of our aerospace and gauge operations and, as a result, charges to earnings were possible during 1993. Charges to date have resulted from the resizing begun in the first quarter. Union negotiations, which ended in October, at the Sellersville plant did not secure the reduction in labor costs and changes in union work rules necessary to be cost competitive. In the absence of the concessions requested of the union, we plan to relocate the Sellersville aerospace operations, which will result in another charge in the fourth quarter. Moreover, we continue to study other opportunities for restructuring which could result in additional charges. These actions, which impact our near-term earnings, will enable us to build on our leadership position in the markets we serve."
 Electro-mechanical Group Has Capacity in Place for Long-Term Growth
 Blankley said, "As a result of the strengthening in customer orders over recent weeks, we expect the Electro-mechanical Group to produce stronger fourth quarter operating earnings in comparison to the third quarter. For the third quarter, results were somewhat impacted by competitive activities in the floor care marketplace. Sales were also reduced by the economic recession in Europe and by the lire devaluation. We have completed start-up of the Rock Creek, N.C., plant which is now in production; the Graham, N.C., plant realignment is proceeding on plan and will be completed early next year. Accordingly, we have capacity in place for long-term growth, and the start-up costs are substantially behind us."
 Industrial Materials Group Has Strength in Specialty Metals
 Blankley concluded, "The Industrial Materials Group reported a $.9 million decrease in operating earnings to $5.0 million on sales of $44.3 million for the quarter despite improved performance by Specialty Metal Products."
 AMETEK, INC.
 CONSOLIDATED STATEMENT OF INCOME
 (Unaudited)
 (Dollars in thousands except per share amounts)
 Three months Nine months
 Periods ended Sept. 30, 1993 1992 1993 1992
 Net sales $175,003 $185,996 $548,937 $578,078
 Expenses:
 Cost of sales,
 excluding
 depreciation 138,182 141,665 428,878 437,159
 Selling, general and
 administrative 19,079 18,968 59,291 58,861
 Depreciation 6,867 7,346 21,145 21,963
 Resizing Charges (A) 4,385 --- 7,990 ---
 Total expenses 168,513 167,979 517,304 517,983
 Operating income 6,490 18,017 31,633 60,095
 Other income
 (expenses):
 Interest Expense (4,338) (4,870) (13,431) (15,095)
 Other, net 1,961 2,374 5,559 5,601
 Income before taxes 4,113 15,521 23,761 50,601
 Provision for income
 taxes 2,133 4,813 9,463 16,824
 Net Income $1,980 $10,708 $14,298 $33,777
 Earnings per share $0.05 $0.25 $0.33 $0.77
 Dividends per share $0.17 $0.17 $0.51 $0.51
 Average common shares
 outstanding 43,637,840 44,140,160 43,989,141 44,067,947
 (A) Resizing charges are related to the Company's aerospace and general gauge operations, and primarily include costs associated with workforce reductions. These charges were $4.4 million, or $.06 per share, in the third quarter of 1993, and $8 million, or $.11 per share, in the nine months of 1993, of which $3.6 million was previously recorded in the first half of this year.
 AMETEK, INC.
 INFORMATION BY BUSINESS SEGMENT
 (Unaudited)
 (In thousands)
 Three months Nine months
 Periods ended Sept. 30, 1993 1992 1993 1992
 Sales:
 Electro-mechanical $62,399 $73,794 $206,956 $232,179
 Precision Instruments 68,333 71,972 208,888 222,060
 Industrial Materials 44,271 40,230 133,093 123,839
 Total Segments $175,003 $185,996 $548,937 $578,078
 Operating Income:
 Electro-mechanical $6,829 $11,779 $26,581 $36,866
 Precision Instruments 315 6,385 4,727 22,932
 Industrial Materials 5,003 5,933 16,943 17,510
 Total Segments 12,147 24,097 48,251 77,308
 Corporate and other (5,657) (6,080) (16,618) (17,213)
 Consolidated $6,490 $18,017 $31,633 $60,095
 /delval/
 -0- 11/1/93
 /CONTACT: William F. Cleary or Chelle Carlson of AMETEK, 215-647-2121/
 (AME)


CO: AMETEK, Inc. ST: Pennsylvania IN: MAC SU: ERN

MP-JM -- PH002 -- 9066 11/01/93 10:42 EST
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Date:Nov 1, 1993
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