AMETEK Announces Record Third Quarter Results and Raises 2022 Guidance
AMETEK, Inc. reported a record third quarter 2022, with sales reaching $1.55 billion, an 8% increase year-over-year and 11% organic growth. Operating income grew 14% to $384.5 million, with margins at 24.8%, up 140 basis points. Adjusted earnings per share (EPS) hit a record of $1.45, marking a 15% increase from the previous year. The company raised its 2022 sales and EPS guidance, expecting a 10% sales increase and adjusted EPS between $5.61 and $5.63.
- Record third quarter sales of $1.55 billion, an 8% increase year-over-year.
- Organic sales growth of 11% indicating strong demand.
- Operating income increased by 14% to $384.5 million.
- Adjusted earnings per share reached a record $1.45, up 15% from 2021.
- Raised full-year sales guidance to approximately 10% increase over 2021.
- Adjusted EPS guidance increased to $5.61 to $5.63.
- None.
BERWYN, Pa., Nov. 1, 2022 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the third quarter ended September 30, 2022.
AMETEK's third quarter 2022 sales were a record
On a GAAP basis, third quarter earnings per diluted share were
"AMETEK's results for the third quarter were excellent," commented David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Continued strong sales and orders growth combined with outstanding execution drove robust margin expansion and record earnings which exceeded our estimates. Our highly differentiated businesses and flexible operating structure enabled us to manage through an increasingly dynamic macro environment and deliver record results. Given this performance, we are again raising our sales and earnings guidance for the full year."
Electronic Instruments Group (EIG)
EIG sales in the third quarter were
"EIG performed exceptionally well in the quarter with strong and broad-based sales growth and excellent operating results," noted Mr. Zapico. "We continue to see solid demand in our key end markets, in particular across our Process businesses."
Electromechanical Group (EMG)
Third quarter EMG sales were a record
"Our EMG businesses delivered exceptional performance in the third quarter. Continued strong sales growth and tremendous operating execution drove robust margin expansion and record level operating margins," noted Mr. Zapico.
2022 Outlook
"Our businesses continue to perform extraordinarily well in a difficult environment. AMETEK's flexible and disciplined growth model allows us to navigate external challenges, deliver exceptional results and ensure we are positioned for long term success. Our differentiated businesses, diversified market exposures, proven operating capabilities and strong cash flows provide us the ability to drive long-term, sustainable growth," continued Mr. Zapico.
"For 2022, we now expect overall sales to be up approximately
"We expect overall sales in the fourth quarter to be up mid-single digits on a percentage basis versus the prior year. Fourth quarter adjusted earnings per diluted share are anticipated to be in the range of
Conference Call
AMETEK will webcast its third quarter 2022 investor conference call on Tuesday, November 1, 2022, 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 is a leading global manufacturer of electronic instruments and electromechanical devices with 2021 sales of
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 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:
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 | Nine Months Ended | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net sales | $ 1,551,786 | $ 1,440,681 | $ 4,524,863 | $ 4,042,769 | |||
Cost of sales | 1,004,596 | 949,402 | 2,941,604 | 2,651,506 | |||
Selling, general and administrative | 162,670 | 153,716 | 480,657 | 443,744 | |||
Total operating expenses | 1,167,266 | 1,103,118 | 3,422,261 | 3,095,250 | |||
Operating income | 384,520 | 337,563 | 1,102,602 | 947,519 | |||
Interest expense | (20,245) | (20,476) | (60,165) | (59,865) | |||
Other income (expense), net | 3,227 | 2,581 | 7,752 | (3,775) | |||
Income before income taxes | 367,502 | 319,668 | 1,050,189 | 883,879 | |||
Provision for income taxes | 69,861 | 62,208 | 197,728 | 175,507 | |||
Net income | $ 297,641 | $ 257,460 | $ 852,461 | $ 708,372 | |||
Diluted earnings per share | $ 1.29 | $ 1.10 | $ 3.68 | $ 3.04 | |||
Basic earnings per share | $ 1.30 | $ 1.11 | $ 3.70 | $ 3.07 | |||
Weighted average common shares outstanding: | |||||||
Diluted shares | 230,714 | 233,000 | 231,675 | 232,712 | |||
Basic shares | 229,500 | 231,171 | 230,360 | 230,811 | |||
Dividends per share | $ 0.22 | $ 0.20 | $ 0.66 | $ 0.60 | |||
AMETEK, Inc. | |||||||
Information by Business Segment | |||||||
(In thousands) | |||||||
(Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2022 | 2021 | 2022 | 2021 | ||||
Net sales: | |||||||
Electronic Instruments | $ 1,054,124 | $ 981,815 | $ 3,070,131 | $ 2,706,673 | |||
Electromechanical | 497,662 | 458,866 | 1,454,732 | 1,336,096 | |||
Consolidated net sales | $ 1,551,786 | $ 1,440,681 | $ 4,524,863 | $ 4,042,769 | |||
Operating income: | |||||||
Segment operating income: | |||||||
Electronic Instruments | $ 272,714 | $ 245,118 | $ 782,603 | $ 678,652 | |||
Electromechanical | 136,467 | 114,571 | 389,047 | 332,038 | |||
Total segment operating income | 409,181 | 359,689 | 1,171,650 | 1,010,690 | |||
Corporate administrative expenses | (24,661) | (22,126) | (69,048) | (63,171) | |||
Consolidated operating income | $ 384,520 | $ 337,563 | $ 1,102,602 | $ 947,519 | |||
AMETEK, Inc. | |||
Condensed Consolidated Balance Sheet | |||
(In thousands) | |||
September 30, | December 31, | ||
2022 | 2021 | ||
(Unaudited) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 309,944 | $ 346,772 | |
Receivables, net | 876,460 | 829,213 | |
Inventories, net | 1,025,130 | 769,175 | |
Other current assets | 221,034 | 183,605 | |
Total current assets | 2,432,568 | 2,128,765 | |
Property, plant and equipment, net | 594,926 | 617,138 | |
Right of use asset, net | 161,217 | 169,924 | |
Goodwill | 5,190,196 | 5,238,726 | |
Other intangibles, investments and other assets | 3,660,025 | 3,743,634 | |
Total assets | $ 12,038,932 | $ 11,898,187 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Current liabilities: | |||
Short-term borrowings and current portion of long-term debt, net | $ 272,027 | $ 315,093 | |
Accounts payable and accruals | 1,319,356 | 1,248,221 | |
Total current liabilities | 1,591,383 | 1,563,314 | |
Long-term debt, net | 2,085,364 | 2,229,148 | |
Deferred income taxes and other long-term liabilities | 1,229,513 | 1,233,841 | |
Stockholders' equity | 7,132,672 | 6,871,884 | |
Total liabilities and stockholders' equity | $ 12,038,932 | $ 11,898,187 | |
AMETEK, Inc. | |||
Reconciliations of GAAP to Non-GAAP Financial Measures | |||
(Unaudited) | |||
Diluted Earnings Per Share | |||
Three Months Ended | |||
September 30, | |||
2022 | 2021 | ||
Diluted earnings per share (GAAP) | $ 1.29 | $ 1.10 | |
Pretax amortization of acquisition-related intangible assets | 0.21 | 0.21 | |
Income tax benefit on amortization of acquisition-related intangible assets | (0.05) | (0.05) | |
Adjusted Diluted earnings per share (Non-GAAP) | $ 1.45 | $ 1.26 | |
Forecasted Diluted Earnings Per Share | |||||||
Three Months Ended | Year Ended | ||||||
December 31, 2022 | December 31, 2022 | ||||||
Low | High | Low | High | ||||
Diluted earnings per share (GAAP) | $ 1.29 | $ 1.31 | $ 4.97 | $ 4.99 | |||
Pretax amortization of acquisition-related intangible 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) | $ 1.45 | $ 1.47 | $ 5.61 | $ 5.63 | |||
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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