Summary
AMETEK, Inc. reported a challenging third quarter for 2009, reflecting the impact of the global economic recession. Net sales decreased by 23.2% year-over-year to $497.1 million, and net income fell by 39.4% to $43.0 million. Diluted EPS was $0.40, down from $0.66 in the prior year's third quarter. Despite the revenue decline, the company managed its operating expenses effectively, with SG&A expenses decreasing by 18.3% and corporate administrative expenses by 18.9%. The company also saw an increase in cash provided by operating activities by 25.1% for the first nine months of 2009, largely due to lower working capital levels and a tax refund, resulting in improved free cash flow. The company completed several acquisitions in 2009, including High Standard Aviation, and made smaller acquisitions in India. These, along with 2008 acquisitions, helped offset some of the internal sales decline. AMETEK is focused on cost reduction initiatives and operational excellence to navigate the current economic environment. The company maintains strong liquidity, with $201.0 million in cash and cash equivalents at quarter-end and is in compliance with all debt covenants.
Financial Highlights
51 data points| Revenue | $497.06M |
| SG&A Expenses | $63.86M |
| Operating Expenses | $419.58M |
| Operating Income | $77.47M |
| Interest Expense | $17.38M |
| Net Income | $43.02M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 240.44M |
| Shares Outstanding (Diluted) | 242.43M |
Key Highlights
- 1Net sales for the third quarter of 2009 declined 23.2% to $497.1 million compared to $647.4 million in the same period of 2008, primarily due to the global economic recession.
- 2Net income for the third quarter of 2009 decreased by 39.4% to $43.0 million, resulting in diluted EPS of $0.40, down from $0.66 in Q3 2008.
- 3Operating income margin decreased to 15.6% in Q3 2009 from 18.5% in Q3 2008, reflecting lower sales and increased restructuring charges.
- 4Cash provided by operating activities for the first nine months of 2009 increased by 25.1% to $255.9 million, driven by lower working capital and a tax refund, leading to stronger free cash flow.
- 5The company completed two small acquisitions in 2009 (High Standard Aviation and two Indian businesses) and continues to integrate prior year acquisitions, which partially offset internal sales declines.
- 6Total debt decreased to $1,059.7 million at September 30, 2009, from $1,111.7 million at December 31, 2008, with the debt-to-capital ratio improving to 41.7% from 46.3%.
- 7AMETEK reported $201.0 million in cash and cash equivalents at the end of the third quarter of 2009, an increase from $87.0 million at year-end 2008, indicating strong liquidity.