AMETEK Announces Record Second Quarter Results and Raises 2023 Guidance
- Record sales and earnings for Q2 2023, with a 9% increase in sales over Q2 2022.
- Operating income increased by 15% to $418.8 million, with operating margins at a record 25.4%.
- Adjusted earnings per diluted share were a record $1.57, up 14% from Q2 2022.
- Positive outlook for 2023, expecting overall sales to be up mid-to-high single digits compared to 2022, with adjusted diluted earnings per share expected to be in the range of $6.18 to $6.26, an increase of 9% to 10% over 2022.
- None.
AMETEK's second quarter 2023 sales were a record
On a GAAP basis, second quarter earnings per diluted share were
"AMETEK delivered impressive results in the second quarter, achieving record sales, operating income, and adjusted earnings per share," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "These exceptional results exceeded expectations, driven by continued strong sales growth and outstanding operating performance. Additionally, demand remained solid in the quarter, resulting in a positive book-to-bill ratio and a record backlog. Based on these results and our outlook for the balance of the year, we are again raising our earnings guidance for the full year."
Electronic Instruments Group (EIG)
EIG sales in the second quarter were
"EIG delivered another exceptional quarter," stated Mr. Zapico. "Strong and broad-based sales growth was supported by solid demand across our diverse end markets and the success of our organic growth initiatives. Our continual focus on operational excellence initiatives helped drive outstanding margin expansion and robust operating income growth in the quarter."
Electromechanical Group (EMG)
EMG sales in the second quarter were a record
"EMG's second quarter results were very strong, with outstanding operating performance leading to excellent margin expansion and operating income growth. EMG continues to demonstrate the strength of our differentiated businesses and the effectiveness of our operating capabilities," remarked Mr. Zapico.
2023 Outlook
"AMETEK's record performance in the second quarter highlights the strength and flexibility of the AMETEK Growth Model, as well as the dedicated efforts of all AMETEK colleagues. Our differentiated businesses, diverse end market exposures and proven operating capabilities, allow us to successfully manage through economic cycles. Additionally, our strong cash flows and solid balance sheet provide significant capital to deploy on strategic acquisitions and drive sustainable, long-term growth," stated Mr. Zapico.
"For 2023, we expect overall sales to be up mid-to-high single digits compared to 2022. Adjusted diluted earnings per share are now expected to be in the range of
"We expect overall sales in the third quarter to be up mid-single digits on a percentage basis versus the prior year. Third quarter adjusted earnings per diluted share are anticipated to be in the range of
Conference Call
AMETEK will webcast its second quarter 2023 investor conference call on Tuesday, August 1, 2023, 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 AMETEK
AMETEK (NYSE: AME) is a leading global provider of industrial technology solutions serving a diverse set of attractive niche markets with annual sales over
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 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
Contact:
Kevin Coleman
Vice President, Investor Relations and Treasurer
kevin.coleman@ametek.com
Phone: 610.889.5247
AMETEK, Inc. Consolidated Statement of Income (In thousands, except per share amounts) (Unaudited) | |||||||
Three Months Ended | Six Months Ended | ||||||
2023 | 2022 | 2022 | 2021 | ||||
Net sales | $ 1,646,111 | $ 1,514,552 | $ 3,243,228 | $ 2,973,077 | |||
Cost of sales | 1,053,190 | 988,175 | 2,075,715 | 1,937,008 | |||
Selling, general and administrative | 174,130 | 161,535 | 343,181 | 317,987 | |||
Total operating expenses | 1,227,320 | 1,149,710 | 2,418,896 | 2,254,995 | |||
Operating income | 418,791 | 364,842 | 824,332 | 718,082 | |||
Interest expense | (18,723) | (20,350) | (39,292) | (39,920) | |||
Other (expense) income, net | (3,684) | 1,973 | (9,057) | 4,525 | |||
Income before income taxes | 396,384 | 346,465 | 775,983 | 682,687 | |||
Provision for income taxes | 72,142 | 64,092 | 146,029 | 127,867 | |||
Net income | $ 324,242 | $ 282,373 | $ 629,954 | $ 554,820 | |||
Diluted earnings per share | $ 1.40 | $ 1.22 | $ 2.72 | $ 2.39 | |||
Basic earnings per share | $ 1.41 | $ 1.23 | $ 2.74 | $ 2.40 | |||
Weighted average common shares outstanding: | |||||||
Diluted shares | 231,261 | 231,247 | 231,245 | 232,156 | |||
Basic shares | 230,478 | 230,100 | 230,302 | 230,790 | |||
Dividends per share | $ 0.25 | $ 0.22 | $ 0.50 | $ 0.44 | |||
AMETEK, Inc. Information by Business Segment (In thousands) (Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Net sales: | |||||||
Electronic Instruments | $ 1,134,646 | $ 1,028,248 | $ 2,251,893 | $ 2,016,007 | |||
Electromechanical | 511,465 | 486,304 | 991,335 | 957,070 | |||
Consolidated net sales | $ 1,646,111 | $ 1,514,552 | $ 3,243,228 | $ 2,973,077 | |||
Operating income: | |||||||
Segment operating income: | |||||||
Electronic Instruments | $ 307,052 | $ 265,115 | $ 616,799 | $ 509,889 | |||
Electromechanical | 136,215 | 124,371 | 256,719 | 252,580 | |||
Total segment operating income | 443,267 | 389,486 | 873,518 | 762,469 | |||
Corporate administrative expenses | (24,476) | (24,644) | (49,186) | (44,387) | |||
Consolidated operating income | $ 418,791 | $ 364,842 | $ 824,332 | $ 718,082 | |||
AMETEK, Inc. Condensed Consolidated Balance Sheet (In thousands) | |||
June 30, | December 31, | ||
2023 | 2022 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 605,587 | $ 345,386 | |
Receivables, net | 936,909 | 919,335 | |
Inventories, net | 1,107,824 | 1,044,284 | |
Other current assets | 249,235 | 219,053 | |
Total current assets | 2,899,555 | 2,528,058 | |
Property, plant and equipment, net | 637,540 | 635,641 | |
Right of use asset, net | 171,616 | 170,295 | |
Goodwill | 5,449,590 | 5,372,562 | |
Other intangibles, investments and other assets | 3,681,550 | 3,724,564 | |
Total assets | $ 12,839,851 | $ 12,431,120 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term borrowings and current portion of long-term debt, net | $ 5,401 | $ 226,079 | |
Accounts payable and accruals | 1,335,789 | 1,338,123 | |
Total current liabilities | 1,341,190 | 1,564,202 | |
Long-term debt, net | 2,186,299 | 2,158,928 | |
Deferred income taxes and other long-term liabilities | 1,230,991 | 1,231,478 | |
Stockholders' equity | 8,081,371 | 7,476,512 | |
Total liabilities and stockholders' equity | $ 12,839,851 | $ 12,431,120 | |
AMETEK, Inc. Reconciliations of GAAP to Non-GAAP Financial Measures (Unaudited) | |||
Diluted Earnings Per Share | |||
Three Months Ended | |||
June 30, | |||
2023 | 2022 | ||
Diluted earnings per share (GAAP) | $ 1.40 | $ 1.22 | |
Pretax amortization of acquisition-related intangible assets | 0.22 | 0.21 | |
Income tax benefit on amortization of acquisition-related intangible assets | (0.05) | (0.05) | |
Adjusted Diluted earnings per share (Non-GAAP) | $ 1.57 | $ 1.38 | |
Forecasted Diluted Earnings Per Share | |||||||
Three Months Ended | Year Ended | ||||||
September 30, 2023 | December 31, 2023 | ||||||
Low | High | Low | High | ||||
Diluted earnings per share (GAAP) | $ 1.39 | $ 1.41 | $ 5.50 | $ 5.58 | |||
Pretax amortization of acquisition-related intangible assets | 0.22 | 0.22 | 0.89 | 0.89 | |||
Income tax benefit on amortization of acquisition-related intangible assets | (0.05) | (0.05) | (0.21) | (0.21) | |||
Adjusted Diluted earnings per share (Non-GAAP) | $ 1.56 | $ 1.58 | $ 6.18 | $ 6.26 | |||
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.
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SOURCE AMETEK, Inc.
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