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AMETEK announce 4Q15 results

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Hydrocarbon Engineering,

AMETEK, Inc. has announced its financial results for the three month and full year periods ended 31 December 2015.

AMETEK reported 4Q15 sales of US$988 million, down 4% from last year's fourth quarter. Excluding realignment costs of US$20.7 million, or US$0.06 per diluted share, 4Q15 operating income was down 1% to US$229.5 million, operating margins were up 50 basis points to 23.2%, and diluted earnings per share of US$0.63 were unchanged from the 4Q14 adjusted levels. 4Q14 adjusted results excluded US$5.2 million, or US$0.01 per diluted share, of Zygo integration costs.

"I am very pleased with AMETEK's results in the fourth quarter and for the full year. We achieved record levels of operating performance and diluted earnings per share this year despite an increasingly challenging global economic environment. Our solid results reflect the continued excellent work of all AMETEK colleagues in executing our four growth strategies," noted Frank S. Hermance, AMETEK Chairman and Chief Executive Officer.

On a GAAP basis, 4Q15 operating income was US$208.8 million and diluted earnings per share were US$0.57, and 4Q14 operating income was US$227.1 million and diluted earnings per share were US$0.62. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying the release.

Electronic Instruments Group (EIG)

For 4Q15, EIG sales were US$628.4 million, down 2% versus US$644.4 million in last year's comparable quarter. Excluding 4Q15 realignment costs and 4Q14 Zygo integration costs, operating income increased 2% to a record US$170.9 million, and operating margins were up 110 basis points to 27.2%.

"EIG performed well in this slow growth environment. Lower sales in the quarter were driven by currency headwinds and weakness across our oil and gas businesses. Our aerospace business continues to perform well. Operating performance was very strong with operating margins up 110 basis points benefitting from our focus on operational excellence initiatives," added Mr. Hermance.

On a GAAP basis, EIG operating income was US$161.7 million in 4Q15 and US$162.9 million in the 4Q14.

Electromechanical Group (EMG)

In the fourth quarter, EMG sales were US$359.6 million, down 5% from last year's fourth quarter. Excluding realignment costs, operating income was down 8% to US$70.9 million and operating margins were 19.7% for the quarter.

"EMG managed well through a very difficult market environment in the fourth quarter. Sales were impacted by foreign currency headwinds and weakness across our engineered materials, interconnects and packaging businesses largely as a result of continued commodity price deflation," said Mr. Hermance.

On a GAAP basis, EMG operating income was US$60.2 million in the 4Q15.

2016 Outlook

"We do not anticipate a meaningful change in global economic conditions in 2016 with sluggish conditions across oil and gas, emerging markets and the broad industrial markets expected to continue. Despite this, we have proven that our strong portfolio of differentiated businesses, excellent operational capabilities, on going investments in new product development and geographic expansion, and a continued focus on strategic acquisitions should enable us to perform well in 2016," noted Mr. Hermance.

"We anticipate 2016 revenue to be up low single digits on a percentage basis from 2015. Earnings for 2016 are expected to be in the range of US$2.55 to US$2.65 per diluted share, flat to up 4% over 2015 adjusted results," added Mr. Hermance.

"1Q16 sales are expected to be down low single digits from last year's first quarter. We estimate our earnings to be approximately US$0.56 to US$0.58 per diluted share," concluded Mr. Hermance.

Adapted from press release by Francesca Brindle

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