(Source: PRNewswire-FirstCall)
PAOLI, Pa., July 28 /PRNewswire-FirstCall/ -- AMETEK, Inc. today announced second quarter results. AMETEK's second quarter 2009 sales of $524.9 million were down 19% over the same period of 2008. Operating income for the second quarter of 2009 was $93.2 million, an 18% decline from $114.1 million recorded in the same period of 2008. Operating margins improved 20 basis points to 17.8% in the second quarter of 2009. Net income in the second quarter of 2009 declined 21% to $51.8 million, or $0.48 per diluted share, from the second quarter 2008 level of $65.8 million, or $0.61 per diluted share.
"In the face of challenging economic conditions, we delivered solid financial results," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer. "Although the global economic slowdown impacted our sales to a higher degree than anticipated, our operational excellence initiatives enabled us to grow operating margins and meet our second quarter earnings expectations."
Operating cash flow was very strong, totaling $74 million for the second quarter of 2009, up 13% from the second quarter of 2008.
For the first half of 2009, AMETEK sales decreased 14% to $1.08 billion from $1.26 billion in the same period of 2008. Operating income totaled $199.4 million, a 13% decrease from $230.3 million earned in the first half of last year. Net income for the first half of 2009 was $110.9 million, down 16% from $132.2 million in the same period of 2008. Diluted earnings per share were $1.03 for the first half of 2009, down 16% from $1.23 per diluted share in the first half of 2008. Operating cash flow was $184 million, up 30% from the first half of 2008.
Electronic Instruments Group (EIG)
For the 2009 second quarter, EIG sales decreased 17% to $286.3 million. Operating income was $59.8 million, compared with $78.1 million in the second quarter of 2008, a decrease of 23%. Operating margins for the quarter were 20.9% as compared to 22.8% in the second quarter of 2008.
"EIG did well in a very difficult market environment. Revenue was down, driven predominantly by weakness in the Process and Industrial businesses. Operating income benefited from our strong focus on reducing costs," said Mr. Hermance.
Electromechanical Group (EMG)
For the second quarter of 2009, EMG sales were $238.7 million, a 22% decrease over the same period of 2008. Operating income of $41.5 million was down 22% from the $53.1 million recorded in the same period of 2008. Operating margins for the quarter were 17.4%, unchanged from the second quarter of 2008.
"Given the state of the economy and its impact on group revenue, EMG had a solid second quarter. We experienced weakness in both the cost driven and differentiated businesses. Operating margins were flat as very effective cost reduction and operational excellence initiatives were able to offset the impact of the lower sales volume," commented Mr. Hermance.
2009 Outlook
"2009 continues to be a very challenging year. We now expect revenue to decline approximately high-teens on a percentage basis," commented Mr. Hermance. "We expect our earnings for the year to be in the range of $1.85 to $2.00 per diluted share."
"Third quarter 2009 sales are expected to be down approximately 20% from last year's third quarter. We estimate our earnings to be approximately $0.38 to $0.42 per diluted share," noted Mr. Hermance.
Mr. Hermance continued, "AMETEK continues to successfully navigate difficult market conditions. We remain 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 Second Quarter 2009 investor conference call on Tuesday, July 28, 2009 beginning at 8:30 AM ET. The live audio Web cast will be available at the Investors section of http://www.ametek.com/ and at http://www.streetevents.com/. The call will be archived at http://www.ametek.com/.
