AMETEK, Inc. has announced its financial results for the three month period ended 31 March 2016.
AMETEK's 1Q16 sales of US$944.4 million were down 4% over the same period of 2015. Operating income was down 12% to US$208.5 million and diluted earnings per share of US$0.57 were down 10% from the 1Q15 adjusted results. Operating margins were 22.1% in the quarter.
"As expected, demand remained weak in the quarter," said Chairman and Chief Executive Officer Frank S. Hermance. "Ongoing softness in oil and gas, metals and global industrial markets continues to drive meaningful headwinds. Despite these challenges, we were able to deliver solid first quarter earnings in line with our expectations."
1Q15 results exclude realignment costs of US$15.9 million, or approximately US$0.04 per diluted share. A comparison of 1Q16 results to last year's reported GAAP and adjusted results is included with the financial tables accompanying the release. All further references to 2015 results are on an adjusted basis.
In the first quarter, EMG sales decreased 4% to US$375.4 million. Operating income in the quarter was US$79.4 million, down 10% from last year's first quarter, and operating margins were 21.2% in the quarter.
"The lower sales versus last year were largely driven by the impacts from commodity price deflation across our engineered materials, interconnects and packaging businesses. We expect these end market conditions to sequentially improve during 2016 with a stronger second half than first half," notes Mr. Hermance.
"We have an excellent portfolio of differentiated businesses. We are confident in our ability to successfully execute on our growth strategies in order to capitalise on the tremendous opportunity we have to grow and expand these businesses. However, we are faced with the reality of a number of challenging end markets, which will continue to impact us in 2016," notes Mr. Hermance.
"We expect 2016 sales to be roughly flat versus last year with earnings expected to be in the range of US$2.42 - 2.52 per diluted share, down 1% to 5% versus 2015 adjusted results," adds Mr. Hermance."2Q16 sales are expected to be down low single digits compared to last year's second quarter. We estimate our earnings in the second quarter to be approximately US$0.58 to US$0.59 per diluted share, down 8% to 9% over last year's second quarter," concludes Mr. Hermance.
Adapted from press release by Francesca Brindle
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