Summary
AMETEK, Inc. reported solid financial results for the six months ended June 30, 2000, demonstrating consistent growth across its two primary business segments: Electronic Instruments Group (EIG) and Electromechanical Group (EMG). Net sales increased by 10.6% to $511.3 million compared to the prior year period, driven by contributions from 1999 acquisitions and strong performance in process instruments, aerospace, technical motors, and specialty metal products. Despite a soft heavy-vehicle market impacting EIG, overall segment operating income grew by 14.1% to $77.5 million, with operating margins improving to 15.2%. The company also announced a significant acquisition on August 7, 2000, of certain assets of Prestolite Electric Incorporated for approximately $60 million, further expanding its Electromechanical segment. Financially, the company maintained adequate liquidity with $11.7 million in cash and cash equivalents and marketable securities, complemented by $123.1 million in unused revolving credit facility commitments. While operating activities showed a decrease in cash provided due to working capital requirements and inventory buildup, investing activities were significantly lower than the prior year, primarily due to reduced acquisition spending. The company anticipates the adoption of new accounting standards (SFAS 133 and 138) in 2001 will not materially impact its financial results due to limited use of derivative instruments.
Key Highlights
- 1Net sales increased by 10.6% to $511.3 million for the six months ended June 30, 2000, compared to $462.5 million in the prior year.
- 2Diluted earnings per share (EPS) rose to $1.05 for the six months ended June 30, 2000, from $0.92 in the comparable 1999 period.
- 3The Electronic Instruments Group (EIG) sales grew 17.4% driven by 1999 acquisitions and strong demand in aerospace and process instruments, though impacted by a soft heavy-vehicle market.
- 4The Electromechanical Group (EMG) saw a 4.4% sales increase, primarily from technical motors and specialty metal products, with foreign currency translation negatively affecting reported growth.
- 5Consolidated operating income for the six months increased by 15.2% to $67.7 million, with operating margin improving to 13.2% from 12.7%.
- 6AMETEK announced the acquisition of Prestolite Electric Incorporated's assets for approximately $60 million on August 7, 2000, to be included in the Electromechanical segment.
- 7The company maintained sufficient liquidity, with $11.7 million in cash and equivalents and significant unused credit facilities available.