AMETEK INC/ Quarterly Report for Q1 Ended Mar 31, 2011

Summary

AMETEK INC. (AME) reported a strong first quarter for 2011, setting new records for orders, sales, operating income, net income, and diluted earnings per share compared to the prior year period. The company experienced robust internal growth across both its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), complemented by successful contributions from recent acquisitions made in 2010. This broad-based performance indicates a positive trajectory for the company, with management expressing confidence in continued strength throughout the remainder of 2011. Consolidated net sales surged by 28.9% to $717.8 million, driven by a significant 18% internal sales growth and the impact of acquired businesses. New orders also saw a substantial increase of 37.2% to $798.7 million, leading to a record backlog of $909.7 million as of March 31, 2011. Profitability improved significantly, with operating income growing by 48.4% and net income rising by 56.1%, demonstrating effective cost management and operating leverage. International sales represented over 50% of total revenue, highlighting AMETEK's global reach.

Key Highlights

• 1Record-breaking first quarter for orders, sales, operating income, net income, and diluted EPS.
• 2Consolidated net sales increased by 28.9% to $717.8 million, with 18% driven by internal growth.
• 3New orders grew by 37.2% to $798.7 million, resulting in a record backlog of $909.7 million.
• 4Operating income increased by 48.4% to $152.0 million, with margins improving to 21.2% from 18.4%.
• 5Net income rose by 56.1% to $90.4 million, translating to diluted EPS of $0.56, up from $0.36 in the prior year.
• 6Both Electronic Instruments Group (EIG) and Electromechanical Group (EMG) reported strong sales and operating income growth, with improved margins.
• 7International sales accounted for 50.3% of total revenue, underscoring the company's global market penetration.

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