(Source: Business Wire)
AMETEK, Inc. (NYSE:AME) today announced first quarter results. AMETEK's first quarter 2009 sales of $552.9 million were down 10% over the same period of 2008. Operating income for the first quarter of 2009 was $106.2 million, a 9% decline from $116.2 million recorded in the same period of 2008. Operating margins improved 20 basis points to 19.2% in the first quarter of 2009. Net income in the first quarter of 2009 declined 11% to $59.1 million, or $0.55 per diluted share, from the first quarter 2008 level of $66.4 million, or $0.62 per diluted share.
"I am pleased with our results this quarter, given a very difficult economic environment," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. "Although the global economy impacted our sales to a higher degree than anticipated, we were able to accelerate our cost reduction activities and meet our earnings expectations."
Operating cash flow was very strong, totaling $110 million for the first quarter of 2009, up 44% from the first quarter of 2008.
Electronic Instruments Group (EIG)
For the 2009 first quarter, EIG sales decreased 11% to $302.5 million. Operating income was $69.1 million, compared with $79.2 million in the first quarter of 2008, a decrease of 13%. Operating margins for the quarter decreased 50 basis points to 22.8% as compared to 23.3% in the first quarter of 2008.
"EIG had a good first quarter in this difficult market environment. Revenue was down, driven predominantly by weakness in the Process and Industrial businesses. Operating margins were down only 50 basis points, reflecting the excellent operational performance of the group and their strong focus on reducing costs," said Mr. Hermance.
Electromechanical Group (EMG)
For the first quarter of 2009, EMG sales were $250.4 million, an 8% decrease over the same period of 2008. Operating income of $46.2 million was down 2% from the $47.1 million recorded in the same period of 2008. Operating margins for the quarter were 18.4%, up 100 basis points from 17.4% in the first quarter of 2008.
"Given the state of the economy, EMG also had a good first quarter. Not surprisingly, our Cost Driven Motor business struggled in the current economic environment. Sales in the Differentiated businesses were up due to the benefits from acquired businesses. Operating margins were up 100 basis points as a result of very effective operational excellence and cost reduction initiatives in the Differentiated businesses as well as the Cost Driven Motor business," commented Mr. Hermance.
2009 Outlook
"We expect 2009 to be a very challenging year. As a result of the continuing global economic downturn, revenue is now expected to decline approximately 10%," commented Mr. Hermance. "We expect our earnings for the year to be in the range of $2.10 to $2.25 per diluted share. Included in our estimates are an additional $20 million in cost reductions which augment the $75 million in cost reductions announced after the end of 2008."
"Second quarter 2009 sales are expected to be down in the mid-teens on a percentage basis from last year's second quarter. We estimate our earnings to be approximately $0.45 to $0.50 per diluted share," noted Mr. Hermance.
Mr. Hermance continued, "AMETEK has successfully navigated difficult market conditions before. We are focused on executing our restructuring initiatives, generating strong cash flow and solid financial results. We continue to invest in new products, global expansion and strategic acquisitions to position ourselves for an economic upturn when it occurs."
Conference Call
AMETEK, Inc. will Web cast its First Quarter 2009 investor conference call on Tuesday, April 21, 2009 beginning at 8:30 AM ET. The live audio Web cast will be available at the Investors section of www.ametek.com and at www.streetevents.com. The call will be archived at www.ametek.com.
Corporate Profile
AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with 2008 sales of $2.5 billion.
