AMETEK Announces Second Quarter Results
BERWYN, Pa., Aug. 4, 2020 /PRNewswire/ -- AMETEK, Inc. (NYSE: AME) today announced its financial results for the second quarter ended June 30, 2020.
AMETEK's second quarter 2020 sales were $1.01 billion, a 22% decline compared to the second quarter of 2019. Operating income in the quarter was $227.0 million and operating margins were 22.4%.
On a GAAP basis, second quarter earnings per diluted share were $0.72. Adjusted earnings were $0.84 per diluted share. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.12 per diluted share. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.
"As we manage through the COVID-19 pandemic we continue to focus on the safety and well-being of all AMETEK colleagues. This remains our highest priority," said David A. Zapico, AMETEK Chairman and Chief Executive Officer.
"While our businesses were impacted by the pandemic during the second quarter, AMETEK colleagues rose to the challenge and delivered strong performance that exceeded expectations," added Mr. Zapico. "Our businesses were able to mitigate the impact of sales weakness with impressive operating execution resulting in record adjusted EBITDA margins at 28.6%."
"We further bolstered our already strong balance sheet and liquidity position with outstanding cash generation," Mr. Zapico continued. "Operating cash flow in the second quarter was $315 million, up 28% compared to the prior-year period, and free cash flow conversion was 183% of net income. AMETEK remains well positioned to continue to invest in our growth initiatives during this economic downturn while being positioned to deploy meaningful capital on acquisitions."
Electronic Instruments Group (EIG)
"EIG sales in the quarter were impacted by the global pandemic," noted Mr. Zapico. "However, our businesses delivered strong operating performance in the face of these difficult market conditions with excellent operating margins."
Electromechanical Group (EMG)
"EMG drove outstanding operating performance in the quarter, despite lower sales due to the global pandemic. Through continued execution of Operational Excellence initiatives, EMG expanded operating margins by an impressive 170 basis points over last year's second quarter," commented Mr. Zapico.
"Given the on-going uncertainty related to the spread of COVID-19 and the effect that may have across economies, we will not be providing guidance at this time," added Mr. Zapico. "We will provide forward guidance when visibility improves."
Use of Non-GAAP Financial Information
The Company supplements its consolidated financial statements presented on a U.S. generally accepted accounting principles ("GAAP") basis with certain non–GAAP financial information to provide investors with greater insight, increased transparency and allow for a more comprehensive understanding of the information used by management in its financial and operational decision-making. Reconciliation of non–GAAP measures to their most directly comparable GAAP measures are included in the accompanying financial tables. These non–GAAP financial measures should be considered in addition to, and not as a replacement for, or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.
SOURCE AMETEK, Inc.
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