AMETEK Announces Record Second Quarter Results and Raises 2022 Guidance

BERWYN, Pa., Aug. 2, 2022 /PRNewswire/ — AMETEK, Inc. (NYSE: AME) today announced its financial results for the second quarter ended June 30, 2022.

AMETEK’s second quarter 2022 sales were a record $1.51 billion, a 9% increase over the second quarter of 2021, with organic sales growth of 12%. Operating income increased 15% to a record $364.8 million and operating margins were 24.1%, up 130 basis points from second quarter 2021 margins.

On a GAAP basis, second quarter earnings per diluted share were $1.22. Adjusted earnings in the quarter were a record $1.38 per diluted share, up 20% from the second quarter of 2021. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.16 per diluted share. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.

“AMETEK delivered excellent results in the second quarter with record sales, operating income and adjusted earnings per share,” commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. “Our results were ahead of expectations driven by strong organic sales growth and continued impressive operating performance. Additionally, end demand remains strong and broad-based with excellent organic orders growth in the quarter. Given this performance, we are raising our earnings guidance for the full year.”

Electronic Instruments Group (EIG)

EIG sales in the second quarter were $1.03 billionup 10% from the second quarter of 2021. EIG’s operating income in the quarter increased 17% to $265.1 million and operating income margins were 25.8%, an increase of 150 basis points versus the second quarter of 2021.

“EIG delivered outstanding operating results in the second quarter,” noted Mr. Zapico. “Sales growth was broad-based and stronger than expected while EIG’s operational excellence initiatives drove robust margin expansion in the quarter.”

Electromechanical Group (EMG)

Second quarter EMG sales were a record $486.3 millionup 7% from the same quarter in 2021. EMG’s second quarter operating income was $124.4 millionup 11% versus the prior year, while operating income margins were 25.6% in the quarter, up 70 basis points versus the prior year.

“EMG had another strong quarter with excellent sales growth and outstanding operating performance resulting in continued strong margin expansion,” commented Mr. Zapico.

2022 Outlook

“Our businesses again delivered exceptional results in an increasingly challenging environment. This continued success reflects the hard work and commitment of all AMETEK colleagues, the quality of our niche, differentiated businesses, and the proven strength of the AMETEK Growth model. Our flexible operating structure allows us to quickly react to changing economic conditions, while our balance sheet and strong cash flows position us well to continue to deploy capital on value enhancing, strategic acquisitions,” noted Mr. Zapico.

“For 2022, we expect overall sales to be up high single digits compared to 2021. Adjusted diluted earnings per share are now expected to be in the range of $5.46 that $5.54an increase of 13% to 14% over the comparable basis for 2021. This is an increase from our previous guidance range of $5.34 that $5.44 per diluted share,” he added.

“We expect overall sales in the third quarter to be up mid-single digits versus the prior year. Third quarter adjusted earnings per diluted share are anticipated to be in the range of $1.36 that $1.38up 8% to 10% compared to the third quarter of 2021,” concluded Mr. Zapico.

Conference Call

AMETEK will webcast its second quarter 2022 investor conference call on Tuesday, August 2, 2022starting at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.

About AMETEK

AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2021 sales of $5.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies – Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions – with a disciplined focus on cash generation and capital deployment. 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.

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 risks related to COVID-19 and its potential impact on AMETEK’s operations, supply chain, and demand across key end markets; AMETEK’s ability to consummate and successfully integrate future acquisitions; risks with international sales and operations, including supply chain disruptions; 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 US 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:
Kevin Coleman
Vice President, Investor Relations and Treasurer
[email protected]
Phone: 610.889.5247

AMETEK, Inc.

Consolidated Statement of Income

(In thousands, except per share amounts)

(Unaudited)



Three Months Ended
June 30,


Six Months Ended
June 30,


in 2022


in 2021


in 2022


in 2021

Net sales

$1,514,552


$1,386,346


$2,973,077


$2,602,088









Cost of sales

988,175


912,712


1,937,008


1,702,104

Selling, general and administrative

161,535


157,023


317,987


290,028

Total operating expenses

1,149,710


1,069,735


2,254,995


1,992,132









Operating income

364,842


316,611


718,082


609,956









Interest expense

(20,350)


(20,442)


(39,920)


(39,389)

Other income (expense), net

1,973


(4,414)


4,525


(6,356)









Income before income taxes

346,465


291,755


682,687


564,211









Provision for income taxes

64,092


60,076


127,867


113,299









Net income

$282,373


$231,679


$554,820


$450,912









Diluted earnings per share

$1.22


$1.00


$2.39


$1.94

Basic earnings per share

$1.23


$1.00


$2.40


$1.96









Weighted average common shares outstanding:








Diluted shares

231,247


232,841


232,156


232,569

Basic shares

230,100


230,828


230,790


230,632









Dividends per share

$ 0.22


$0.20


$0.44


$0.40

AMETEK, Inc.

Information by Business Segment

(In thousands)

(Unaudited)



Three Months Ended

June 30,


Six Months Ended

June 30,


in 2022


in 2021


in 2022


in 2021

Net sales:








Electronic Instruments

$1,028,248


$933,934


$2,016,007


$1,724,858

Electromechanical

486,304


452,412


957,070


877,230

Consolidated net sales

$1,514,552


$1,386,346


$2,973,077


$2,602,088









Operating income:








Segment operating income:








Electronic Instruments

$265,115


$226,637


$509,889


$433,534

Electromechanical

124,371


112,434


252,580


217,467

Total segment operating income

389,486


339,071


762,469


651,001

Corporate administrative expenses

(24,644)


(22,460)


(44,387)


(41,045)

Consolidated operating income

$364,842


$316,611


$718,082


$609,956

AMETEK, Inc.

Condensed Consolidated Balance Sheet

(In thousands)



June 30,


December 31,


in 2022


in 2021


(Unaudited)



ASSETS




Current assets:




Cash and cash equivalents

$348,653


$346,772

Receivables, net

885,080


829,213

Inventories, net

966,609


769,175

Other current assets

211,272


183,605

Total current assets

2,411,614


2,128,765





Property, plant and equipment, net

597,153


617,138

Right of use asset, net

168,829


169,924

Goodwill

5,173,411


5,238,726

Other intangibles, investments and other assets

3,633,964


3,743,634

Total assets

$11,984,971


$11,898,187





LIABILITIES AND STOCKHOLDERS’ EQUITY




Current liabilities:




Short-term borrowings and current portion of long-term debt, net

$354,791


$315,093

Accounts payable and accruals

1,278,238


1,248,221

Total current liabilities

1,633,029


1,563,314





Long-term debt, net

2,147,362


2,229,148

Deferred income taxes and other long-term liabilities

1,254,489


1,233,841

Stockholders’ equity

6,950,091


6,871,884

Total liabilities and stockholders’ equity

$11,984,971


$11,898,187

AMETEK, Inc.

Reconciliations of GAAP to Non-GAAP Financial Measures

(Unaudited)






Diluted Earnings Per Share


Three Months Ended


June 30,


in 2022


in 2021





Diluted earnings per share (GAAP)

$1.22


$1.00

Pretax amortization of acquisition-related intangible assets

0.21


0.20

Income tax benefit on amortization of acquisition-related intangible assets

(0.05)


(0.05)

Adjusted diluted earnings per share (Non-GAAP)

$1.38


$1.15


Forecasted Diluted Earnings Per Share


Three Months Ended


Year Ended


September 30, 2022


December 31, 2022


Low


High


Low


High









Diluted earnings per share (GAAP)

$1.20


$1.22


$ 4.82


$4.90

Pretax amortization of acquisition-related intangibles
assets

0.21


0.21


0.84


0.84

Income tax benefit on amortization of acquisition-
related intangible assets

(0.05)


(0.05)


(0.20)


(0.20)

Adjusted diluted earnings per share (Non-GAAP)

$1.36


$1.38


$5.46


$5.54

Use of Non-GAAP Financial Information

The Company supplements its consolidated financial statements presented on a US generally accepted accounting principles (“GAAP”) basis with certain non-GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non-GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non-GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.

The Company believes that these measures provide useful information to investors by reflecting additional ways of viewing AMETEK’s operations that, when reconciled to the comparable GAAP measure, helps our investors to better understand the long-term profitability trends of our business, and facilitates easier comparisons of our profitability to prior and future periods and to our peers.

SOURCE AMETEK, Inc.

.

Leave a Reply

Your email address will not be published.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker