How did AMETEK's sales perform in the first quarter of 2002?

Consolidated net sales for the first quarter of 2002 were $263.6 million, essentially flat compared to $264.1 million in the first quarter of 2001. Sales in the Electronic Instruments Group (EIG) increased by 8.5% due to acquisitions and strong performance in aerospace and power instruments. However, sales in the Electromechanical Group (EMG) decreased by 8.2%, primarily due to adverse market conditions in the global floor care sector.

What was the impact of adopting SFAS No. 142 on AMETEK's earnings?

AMETEK adopted SFAS No. 142, 'Goodwill and Other Intangible Assets,' effective January 1, 2002, which eliminated the amortization of goodwill. This change resulted in an increase in reported net income and adjusted earnings per share for the first quarter of 2002, as goodwill amortization expenses from the prior year were no longer recognized. It also contributed to a lower effective tax rate of 33.0% in Q1 2002 compared to 35.4% in Q1 2001.

How is AMETEK managing its financial condition and liquidity?

The company generated $9.0 million in cash from operating activities in the first quarter of 2002, a significant improvement from the $0.9 million used in the prior year, largely due to lower working capital requirements, particularly in inventories. Cash used for investing activities was $5.3 million, primarily for property, plant, and equipment additions. Financing activities used $5.5 million. AMETEK believes it has sufficient cash-generating capabilities and available credit facilities to meet its foreseeable needs.

What is the outlook for AMETEK's segments, and what are the key factors affecting performance?

The Electronic Instruments Group (EIG) showed strong growth driven by recent acquisitions and demand in aerospace and power instruments. The Electromechanical Group (EMG) faced headwinds from the global floor care market, though an acquisition provided some offset. Management cited cost reduction initiatives and operational improvements as contributing factors to improved operating margins across both segments. The company's backlog remained stable at $276.5 million.

AME 10-Q Quarterly Report Q1 FY2002 — Revenue, Net Income, EPS

Summary

AMETEK, Inc. reported its first-quarter 2002 results, showing a slight increase in net income to $19.7 million from $18.3 million in the prior year period. While consolidated net sales remained largely flat year-over-year at $263.6 million, this was primarily due to strong growth in the Electronic Instruments Group (EIG), driven by recent acquisitions and strength in aerospace and power instruments. This growth offset a decline in the Electromechanical Group (EMG), which was impacted by challenging conditions in the global floor care markets. Key operational improvements and strategic adjustments were evident. The adoption of SFAS No. 142, eliminating goodwill amortization, positively impacted reported earnings and tax rates. The company also benefited from cost reduction initiatives implemented in the fourth quarter of 2001. Despite a decrease in new orders, AMETEK maintained a stable backlog, and improved operating margins across both segments. The company expressed confidence in its liquidity and capital resources to meet future needs.

Key Highlights

1Net income increased by 7.6% to $19.7 million in Q1 2002 compared to $18.3 million in Q1 2001.
2Consolidated net sales were $263.6 million, virtually unchanged from $264.1 million in the prior year.
3Electronic Instruments Group (EIG) sales grew 8.5% driven by acquisitions and strong performance in aerospace and power instruments.
4Electromechanical Group (EMG) sales decreased by 8.2% primarily due to weak global floor care markets, partially offset by an acquisition.
5Effective January 1, 2002, the adoption of SFAS No. 142 eliminated goodwill amortization, positively impacting reported net income and reducing the effective tax rate.
6Operating income as a percentage of sales improved to 15.8% from 15.4% year-over-year, reflecting operational efficiencies and acquisitions.
7Consolidated operating income increased by 2.0% to $36.4 million.

AMETEK INC/ Quarterly Report for Q1 Ended Mar 31, 2002

Summary

Key Highlights

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