Try our mobile app
BERWYN, Pa., Nov. 2, 2021 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the third quarter ended September 30, 2021.
AMETEK's third quarter 2021 sales were a record $1.44 billion, a 28% increase over the third quarter of 2020, with organic sales growth of 17%. Operating income increased 25% to a record $337.6 million and operating margins were 23.4% with strong core operating margin expansion.
On a GAAP basis, third quarter earnings per diluted share were $1.10. Adjusted earnings were a record $1.26 per diluted share, up 25% versus the prior year's adjusted results. 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's results in the quarter were outstanding," commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Our businesses delivered record results which exceeded our expectations despite a challenging operating environment. Order growth remains strong and broad-based resulting in a record $2.6 billion backlog. Given this performance, we are again raising our sales and earnings guidance for the full year."
Electronic Instruments Group (EIG)Third quarter EIG sales were a record $981.8 million, up 31% compared to last year's third quarter. EIG's operating income in the quarter was up 20% to a record $245.1 million, and operating margins were 25.0%.
"EIG performed extremely well in the quarter delivering record sales and operating income driven by strong organic sales growth and the contribution from recent acquisitions," noted Mr. Zapico. "Sales growth remains robust across our businesses reflecting continued strengthening in our end markets."
Electromechanical Group (EMG)EMG sales in the third quarter were $458.9 million, an increase of 21% over the third quarter of 2020. Operating income for EMG increased 36% over the prior-year period to a record $114.6 million, and operating margins were up 270 basis points to a record 25.0%.
"EMG had an impressive quarter with strong sales growth and outstanding operating performance," commented Mr. Zapico. "Our EMG businesses delivered exceptional results with broad-based sales growth, operating income up 36% over the prior year, and record level operating margins."
2021 Outlook"Our businesses continue to perform exceedingly well in a challenging environment. Our success reflects the hard work and commitment of all AMETEK colleagues worldwide as well as the power of the AMETEK Growth Model. Our differentiated businesses, diversified market exposures and proven operating model provide us the ability to drive long-term, sustainable growth," continued Mr. Zapico.
"Following our third quarter results, we are increasing our guidance for the year. For 2021, we now expect overall sales to be up in the low 20% range with organic sales up low double digits on a percentage basis versus 2020. Adjusted earnings per diluted share are expected to be in the range of $4.76 to $4.78 an increase of 21% over the prior year comparable basis. This is an increase from our previous adjusted earnings guidance range of $4.62 to $4.68 per diluted share," he added.
"We expect overall sales in the fourth quarter to be up in the low 20% range compared to the fourth quarter of 2020. Adjusted earnings per diluted share are anticipated to be in the range of $1.28 to $1.30, up 19% to 20% over the same period in 2020," concluded Mr. Zapico.
Conference CallAMETEK will webcast its third quarter 2021 investor conference call on Tuesday, November 2, 2021, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.
About AMETEKAMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annualized 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 InformationStatements 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 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 ColemanVice President, Investor Relations1100 Cassatt RoadBerwyn, Pennsylvania 19312kevin.coleman@ametek.comPhone: 610.889.5247
AMETEK, Inc. | ||||||||||
Consolidated Statement of Income | ||||||||||
(In thousands, except per share amounts) | ||||||||||
(Unaudited) | ||||||||||
Three Months Ended | Nine Months Ended | |||||||||
September 30, | September 30, | |||||||||
2021 | 2020 | 2021 | 2020 | |||||||
Net sales | $1,440,681 | $1,126,942 | $4,042,769 | $3,341,082 | ||||||
Cost of sales | 949,402 | 732,705 | 2,651,506 | 2,226,547 | ||||||
Selling, general and administrative | 153,716 | 123,496 | 443,744 | 384,764 | ||||||
Total operating expenses | 1,103,118 | 856,201 | 3,095,250 | 2,611,311 | ||||||
Operating income | 337,563 | 270,741 | 947,519 | 729,771 | ||||||
Interest expense | (20,476) | (21,187) | (59,865) | (66,597) | ||||||
Other income (expense), net | 2,581 | (1,479) | (3,775) | 142,428 | ||||||
Income before income taxes | 319,668 | 248,075 | 883,879 | 805,602 | ||||||
Provision for income taxes | 62,208 | 43,494 | 175,507 | 154,188 | ||||||
Net income | $257,460 | $204,581 | $708,372 | $651,414 | ||||||
Diluted earnings per share | $1.10 | $0.88 | $3.04 | $2.82 | ||||||
Basic earnings per share | $1.11 | $0.89 | $3.07 | $2.84 | ||||||
Weighted average common shares outstanding: | ||||||||||
Diluted shares | 233,000 | 231,460 | 232,712 | 230,904 | ||||||
Basic shares | 231,171 | 229,576 | 230,811 | 229,254 | ||||||
Dividends per share | $0.20 | $0.18 | $0.60 | $0.54 | ||||||
AMETEK, Inc. | |||||||
Information by Business Segment | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three Months Ended | Nine Months Ended | ||||||
September 30, | September 30, | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Net sales: | |||||||
Electronic Instruments | $981,815 | $748,372 | $2,706,673 | $2,170,479 | |||
Electromechanical | 458,866 | 378,570 | 1,336,096 | 1,170,603 | |||
Consolidated net sales | $1,440,681 | $1,126,942 | $4,042,769 | $3,341,082 | |||
Operating income: | |||||||
Segment operating income: | |||||||
Electronic Instruments | $245,118 | $203,749 | $678,652 | $534,613 | |||
Electromechanical | 114,571 | 84,303 | 332,038 | 245,154 | |||
Total segment operating income | 359,689 | 288,052 | 1,010,690 | 779,767 | |||
Corporate administrative expenses | (22,126) | (17,311) | (63,171) | (49,996) | |||
Consolidated operating income | $337,563 | $270,741 | $947,519 | $729,771 | |||
AMETEK, Inc. | |||
Condensed Consolidated Balance Sheet | |||
(In thousands) | |||
September 30, | December 31, | ||
2021 | 2020 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $358,676 | $1,212,822 | |
Receivables, net | 768,386 | 597,472 | |
Inventories, net | 738,688 | 559,171 | |
Other current assets | 196,065 | 153,005 | |
Total current assets | 2,061,815 | 2,522,470 | |
Property, plant and equipment, net | 597,488 | 526,530 | |
Right of use asset, net | 169,075 | 167,233 | |
Goodwill | 5,180,999 | 4,224,906 | |
Other intangibles, investments and other assets | 3,670,318 | 2,916,344 | |
Total assets | $11,679,695 | $10,357,483 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term borrowings and current portion of long-term debt, net | $415,667 | $132,284 | |
Accounts payable and accruals | 1,218,159 | 943,631 | |
Total current liabilities | 1,633,826 | 1,075,915 | |
Long-term debt, net | 2,238,920 | 2,281,441 | |
Deferred income taxes and other long-term liabilities | 1,248,553 | 1,050,781 | |
Stockholders' equity | 6,558,396 | 5,949,346 | |
Total liabilities and stockholders' equity | $11,679,695 | $10,357,483 | |
AMETEK, Inc. | ||||||||
Reconciliations of GAAP to Non-GAAP Financial Measures | ||||||||
(Unaudited) | ||||||||
ADJUSTED DILUTED EARNINGS PER SHARE | ||||||||
Diluted Earnings Per Share | ||||||||
Three Months Ended | ||||||||
September 30, | September 30, | |||||||
2021 | 2020 | |||||||
Diluted earnings per share (GAAP) | $1.10 | $0.88 | ||||||
Pretax amortization of acquisition-relatedintangible assets | 0.21 | 0.17 | ||||||
Income tax benefit on amortization ofacquisition-related intangible assets | (0.05) | (0.04) | ||||||
Adjusted Diluted earnings per share (Non-GAAP) | $1.26 | $1.01 | ||||||
Forecasted Diluted Earnings Per Share | ||||||||
Three Months Ended | Year Ended | |||||||
December 31, 2021 | December 31, 2021 | |||||||
Low | High | Low | High | |||||
Diluted earnings per share (GAAP) | $1.12 | $1.14 | $4.16 | $4.18 | ||||
Pretax amortization of acquisition-relatedintangible assets | 0.21 | 0.21 | 0.79 | 0.79 | ||||
Income tax benefit on amortization ofacquisition-related intangible assets | (0.05) | (0.05) | (0.19) | (0.19) | ||||
Adjusted Diluted earnings per share (Non-GAAP) | $1.28 | $1.30 | $4.76 | $4.78 | ||||
Use of Non-GAAP Financial Information | ||||||||
The Company supplements its consolidated financial statements presented on a U.S. 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. | ||||||||
View original content:https://www.prnewswire.com/news-releases/ametek-announces-record-third-quarter-results-and-raises-2021-guidance-301413439.html
SOURCE AMETEK, Inc.
