AMETEK ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR RESULTS AND ISSUES 2018 GUIDANCE

четверг, февраля 1, 2018

AMETEK ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR RESULTS AND ISSUES 2018 GUIDANCE

-- Reports fourth quarter sales up 17% --
-- Reports fourth quarter GAAP earnings of $1.03 per diluted share, up 119% over prior year--
-- Delivers adjusted earnings of $0.70 per diluted share, up 21% over 2016 adjusted earnings --
-- Provides 2018 earnings guidance of $2.95 to $3.05 per diluted share --
-- Deploys $273 million on the acquisition of two businesses --
-- Announces increase in regular quarterly dividend from $0.09 to $0.14 per share --


BERWYN, PA, FEBRUARY 1, 2018 – AMETEK, Inc. (NYSE: AME) today announced its financial results for the three month and full year periods ended December 31, 2017, delivering record levels of sales, operating income, net income, diluted earnings per share and cash flow for both the fourth quarter and full year.

 

AMETEK reported fourth quarter 2017 sales of $1.14 billion, an increase of 17% compared to the fourth quarter of 2016 with 9% organic sales growth. On a GAAP basis, fourth quarter 2017 operating income was $229.6 million and diluted earnings per share were $1.03. Excluding an after-tax gain of $75.5 million, or $0.33 per diluted share, fourth quarter 2017 operating income was $251.4 million, up 18%, and diluted earnings per share were $0.70, up 21%, each over the prior year’s adjusted results.

The fourth quarter of 2017 after-tax gain of $75.5 million includes a one-time, non-cash gain of $185.8 million related to the remeasurement of AMETEK’s deferred tax liabilities as a result of the Tax Cuts and Jobs Act (“Tax Reform”). This gain was partially offset by a $94.2 million charge related to repatriation and associated withholding taxes due to Tax Reform, and $16.1 million of realignment expense and charitable donations in the fourth quarter. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website. These impacts from Tax Reform should be considered provisional and may be subject to further adjustment. 

“AMETEK’s businesses finished the year exceptionally well, delivering another quarter with record-level performance,” said David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Driven by outstanding organic sales growth, recent acquisition contributions and strong operating performance, AMETEK achieved 17% sales growth and 21% adjusted earnings growth in the quarter.”

“In addition, our businesses generated $253 million in operating cash flow in the quarter, with exceptional free cash flow conversion, which speaks to the strength of our business model and outstanding execution. This strength is reflected in our strong acquisition activity, having just deployed approximately $273 million on two acquisitions, while also announcing a 56% increase in our dividend from $0.09 to $0.14 per share,” noted Mr. Zapico. 

For the full year, AMETEK reported sales of $4.3 billion, up 12% over 2016.  On a GAAP basis, full year 2017 operating income was $915.1 million and diluted earnings per share were $2.94. Excluding the after-tax gain of $75.5 million, or $0.33 per diluted share, full year 2017 operating income was $936.9 million, up 11%, and full year diluted earnings per share were $2.61, up 13%, both over the prior year’s adjusted results.

Electronic Instruments Group (EIG)

EIG sales in the fourth quarter were a record $741.5 million, a 20% increase over the fourth quarter of 2016. On a GAAP basis, EIG fourth quarter 2017 operating income was $191.1 million. Excluding realignment costs in both periods, fourth quarter EIG operating income was a record $195.6 million, an increase of 20% over the prior year, and operating margins were excellent at 26.4% in the quarter.

“EIG performed exceptionally well in the fourth quarter and for the full year, delivering outstanding orders and sales growth. The sales growth was driven by very strong and broad based organic sales growth of 9% and the contributions from the acquisitions of Rauland and MOCON,” commented Mr. Zapico.     

Electromechanical Group (EMG)

Fourth quarter sales for EMG were $401.6 million, up 13% over the fourth quarter of 2016. On a GAAP basis, EMG fourth quarter 2017 operating income was $61.9 million. Excluding realignment costs in both periods, fourth quarter EMG operating income was $74.2 million, an increase of 18% over the prior year and operating margins were 18.5%, up 80 basis points over last year’s fourth quarter.

“EMG also had an outstanding fourth quarter to complete a great year.  Continued strong order growth drove a 10% increase in organic sales in the quarter, with the acquisition of Laserage contributing the balance of the overall sales growth.  EMG also delivered excellent operating performance in the quarter,” noted Mr. Zapico.

2018 Outlook         

“We are very well positioned as we enter 2018.  Our businesses are operating at a very high level across their attractive niche market segments and we continue to make investments in these businesses to better position AMETEK for long-term organic growth. Our strong cash flows, robust balance sheet and proven ability to deploy capital on value enhancing acquisitions give us confidence entering the year,” commented Mr. Zapico.  

“In 2018, we expect overall sales to increase approximately 7% to 9%, driven by contributions from recent acquisitions and 3% to 5% organic sales growth. Diluted earnings per share for 2018 are estimated to be in the range of $2.95 to $3.05, up 13% to 17% compared to the adjusted results of 2017,” he added.

“Sales in the first quarter of 2018, are expected to be up low-double digits on a percentage basis compared to the first quarter of 2017. We anticipate first quarter 2018 earnings per diluted share to be in the range of $0.70 to $0.72, an increase of 17% to 20% over the first quarter of 2017 results,” concluded Mr. Zapico.

Conference Call

AMETEK will webcast its fourth quarter 2017 investor conference call on Thursday, February 1, 2018, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

Corporate Profile

AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized sales of more than $4.5 billion. AMETEK's Corporate Growth Plan is based on Four Key Strategies: Operational Excellence, Strategic Acquisitions, 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 500 Index.

Forward-looking Information

Statements in this news release relating to future events, such as AMETEK’s expected business and financial performance are "forward-looking statements." 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 AMETEK’s ability to consummate and successfully integrate future acquisitions; risks associated with international sales and operations; AMETEK’s 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; the ability to maintain adequate liquidity and financing sources; and general economic conditions affecting the industries we serve. 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, 10-Q and 8-K. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.

Contact:

AMETEK, Inc.
Kevin Coleman
Vice President, Investor Relations
1100 Cassatt Road
Berwyn, Pennsylvania 19312
kevin.coleman@ametek.com
Phone: 610.889.5247

(Financial Information Follows)