BERWYN,
Pa., Feb. 6, 2024 /PRNewswire/ -- AMETEK, Inc.
(NYSE: AME) today announced its financial results for the fourth
quarter ended December 31, 2023.
AMETEK's fourth quarter 2023 sales were a record $1.73 billion, a 6.5% increase over the fourth
quarter of 2022. Operating income increased 12% to a record
$445.0 million and operating margins
were 25.7%, up 120 basis points from the fourth quarter of 2022.
Operating cash flow in the quarter was a record $540.7 million, up 40% versus the prior year.
On a GAAP basis, fourth quarter earnings per diluted share were
$1.48. Adjusted earnings in the
quarter were a record $1.68 per
diluted share, up 11% from the fourth quarter of 2022. Adjusted
earnings adds back non-cash, after-tax, acquisition-related
intangible amortization of $0.20 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 fourth quarter and full year performance was
exceptional," noted David A. Zapico,
AMETEK Chairman and Chief Executive Officer. "Contributions from
organic sales growth and recent acquisitions, along with tremendous
operating performance, led to robust margin expansion, record
earnings and impressive cash flow growth in the quarter and the
full year. We also continued to strengthen our portfolio in 2023,
deploying approximately $2.25 billion
in capital on acquisitions, including our most recent acquisition,
Paragon Medical."
For the full year, AMETEK's sales were a record $6.60 billion, an increase of 7% over 2022.
Operating income was $1.71 billion,
up 14% versus the prior year, and operating income margins were
25.9%, expanding 150 basis points over last year's margins.
On a GAAP basis, full year 2023 earnings were $5.67 per diluted share. Full year adjusted
earnings were $6.38 per share, an
increase of 12% over 2022's comparable adjusted earnings of
$5.68 per share. AMETEK established
annual records for sales, operating income, operating margin, and
earnings per share.
Electronic Instruments Group (EIG)
EIG sales in the
fourth quarter were a record $1.24
billion, up 7% from the same quarter in 2022. EIG's
operating income in the quarter increased 17% to a record
$359.0 million and operating income
margins were 29.0%, an increase of 250 basis points compared to the
fourth quarter of 2022.
"EIG delivered outstanding results in the fourth quarter,"
commented Mr. Zapico. "The sales growth was driven by continued
solid organic growth and contributions from recent acquisitions.
Our EIG businesses drove exceptional margin expansion, a testament
to the quality of our businesses and our team's focus on driving
continuous operational improvements."
Electromechanical Group (EMG)
EMG sales in the fourth
quarter were $494.7 million, up 6%
from the fourth quarter of 2022. EMG's fourth quarter operating
income was $112.3 million, while
operating income margins were 22.7% in the quarter.
"EMG also delivered a strong fourth quarter performance with
continued excellent growth across our aerospace and defense
businesses and solid core margin expansion in the quarter," stated
Mr. Zapico.
2024 Outlook
"AMETEK's businesses delivered
exceptional results in the fourth quarter and for the full year.
The strength of the AMETEK Growth Model, alongside the outstanding
contributions of our colleagues, allowed us to deliver strong,
high-quality growth. The strength of our niche businesses, diverse
market exposures, record backlog and robust operating capabilities
position us for sustained growth. With a flexible balance sheet and
strong cash flows, we are well positioned to invest in our organic
growth initiatives and pursue strategic acquisitions to drive
long-term value creation," noted Mr. Zapico.
"For 2024, we expect overall sales to be up low double digits on
a percentage basis compared to 2023. Adjusted earnings per diluted
share are expected to be in the range of $6.70 to $6.85, an
increase of 5% to 7% over the comparable basis for 2023," he
added.
"For the first quarter of 2024, overall sales are expected to be
up low double digits on a percentage basis compared to the same
period last year. Adjusted earnings in the quarter are anticipated
to be in the range of $1.56 to
$1.60 per share, up 5% to 7% compared
to the first quarter of 2023," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its fourth
quarter 2023 investor conference call on Tuesday, February
6, 2024, 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 annualized sales over $7.0 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. Founded in 1930, AMETEK has been listed on
the NYSE for over 90 years and is a component of the S&P 500.
For more information, visit www.ametek.com.
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
U.S. Securities and Exchange Commission, including its most recent
reports on Forms 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
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales
|
$
1,730,885
|
|
$ 1,625,667
|
|
$
6,596,950
|
|
$ 6,150,530
|
|
|
|
|
|
|
|
|
Cost of
sales
|
1,115,850
|
|
1,063,657
|
|
4,212,485
|
|
4,005,261
|
Selling, general and
administrative
|
170,043
|
|
163,920
|
|
677,006
|
|
644,577
|
Total operating
expenses
|
1,285,893
|
|
1,227,577
|
|
4,889,491
|
|
4,649,838
|
Operating
income
|
444,992
|
|
398,090
|
|
1,707,459
|
|
1,500,692
|
Interest
expense
|
(24,117)
|
|
(23,021)
|
|
(81,795)
|
|
(83,186)
|
Other (expense) income,
net
|
(3,939)
|
|
3,435
|
|
(19,252)
|
|
11,186
|
Income before income
taxes
|
416,936
|
|
378,504
|
|
1,606,412
|
|
1,428,692
|
Provision for income
taxes
|
74,072
|
|
71,422
|
|
293,224
|
|
269,150
|
Net
income
|
$
342,864
|
|
$
307,082
|
|
$
1,313,188
|
|
$ 1,159,542
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
$
1.48
|
|
$
1.33
|
|
$
5.67
|
|
$
5.01
|
Basic earnings per
share
|
$
1.49
|
|
$
1.34
|
|
$
5.70
|
|
$
5.04
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding:
|
|
|
|
|
|
|
|
Diluted shares
|
231,794
|
|
231,118
|
|
231,509
|
|
231,536
|
Basic shares
|
230,782
|
|
229,750
|
|
230,519
|
|
230,208
|
|
|
|
|
|
|
|
|
Dividends per
share
|
$
0.25
|
|
$
0.22
|
|
$
1.00
|
|
$
0.88
|
AMETEK,
Inc.
Information by
Business Segment
(In
thousands)
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net
sales:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
1,236,227
|
|
$ 1,159,222
|
|
$
4,624,250
|
|
$ 4,229,353
|
Electromechanical
|
494,658
|
|
466,445
|
|
1,972,700
|
|
1,921,177
|
Consolidated net
sales
|
$
1,730,885
|
|
$ 1,625,667
|
|
$
6,596,950
|
|
$ 6,150,530
|
|
|
|
|
|
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
Segment operating
income:
|
|
|
|
|
|
|
|
Electronic
Instruments
|
$
358,992
|
|
$
307,126
|
|
$
1,310,962
|
|
$ 1,089,729
|
Electromechanical
|
112,316
|
|
114,546
|
|
496,569
|
|
503,593
|
Total segment
operating income
|
471,308
|
|
421,672
|
|
1,807,531
|
|
1,593,322
|
Corporate
administrative expenses
|
(26,316)
|
|
(23,582)
|
|
(100,072)
|
|
(92,630)
|
Consolidated operating
income
|
$
444,992
|
|
$
398,090
|
|
$
1,707,459
|
|
$ 1,500,692
|
AMETEK,
Inc.
Condensed
Consolidated Balance Sheet
(In
thousands)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
409,804
|
|
$
345,386
|
Receivables, net
|
1,012,932
|
|
919,335
|
Inventories, net
|
1,132,471
|
|
1,044,284
|
Other current
assets
|
269,461
|
|
219,053
|
Total current assets
|
2,824,668
|
|
2,528,058
|
|
|
|
|
Property, plant and
equipment, net
|
891,293
|
|
635,641
|
Right of use asset,
net
|
229,723
|
|
170,295
|
Goodwill
|
6,447,629
|
|
5,372,562
|
Other intangibles,
investments and other assets
|
4,630,220
|
|
3,724,564
|
Total assets
|
$
15,023,533
|
|
$
12,431,120
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Short-term borrowings and
current portion of long-term debt, net
|
$
1,417,915
|
|
$
226,079
|
Accounts payable and
accruals
|
1,464,658
|
|
1,338,123
|
Total current liabilities
|
2,882,573
|
|
1,564,202
|
|
|
|
|
Long-term debt,
net
|
1,895,432
|
|
2,158,928
|
Deferred income taxes
and other long-term liabilities
|
1,515,337
|
|
1,231,478
|
Stockholders'
equity
|
8,730,191
|
|
7,476,512
|
Total liabilities and stockholders' equity
|
$
15,023,533
|
|
$
12,431,120
|
AMETEK,
Inc.
Reconciliations of
GAAP to Non-GAAP Financial Measures
(Unaudited)
|
|
|
|
|
|
|
|
Diluted Earnings Per
Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.48
|
|
$
1.33
|
|
$
5.67
|
|
$
5.01
|
Pretax amortization of
acquisition-related intangible assets
|
0.26
|
|
0.25
|
|
0.93
|
|
0.89
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.06)
|
|
(0.06)
|
|
(0.22)
|
|
(0.22)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.68
|
|
$
1.52
|
|
$
6.38
|
|
$
5.68
|
|
|
|
|
|
Forecasted Diluted
Earnings Per Share
|
|
Three Months
Ended
|
|
Year
Ended
|
|
March 31,
2024
|
|
December 31,
2024
|
|
Low
|
|
High
|
|
Low
|
|
High
|
|
|
|
|
|
|
|
|
Diluted earnings per
share (GAAP)
|
$
1.35
|
|
$
1.39
|
|
$
5.88
|
|
$
6.03
|
Pretax amortization of
acquisition-related intangible assets
|
0.27
|
|
0.27
|
|
1.08
|
|
1.08
|
Income tax benefit on
amortization of acquisition-related intangible assets
|
(0.06)
|
|
(0.06)
|
|
(0.26)
|
|
(0.26)
|
Adjusted Diluted
earnings per share (Non-GAAP)
|
$
1.56
|
|
$
1.60
|
|
$
6.70
|
|
$
6.85
|
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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content:https://www.prnewswire.com/news-releases/ametek-announces-record-fourth-quarter-and-full-year-results-302053798.html
SOURCE AMETEK, Inc.