Ametek Q3 Profit Meets Estimates, Expects Higher Earnings In Q4, Full Year

(RTTNews) - Ametek, Inc. (AME), a manufacturer of electronic instruments and electromechanical devices, Tuesday reported a rise in third-quarter profit, on higher revenues and improved margins. Earnings per share met analysts' expectations, while revenues topped view. The company also sees an increase in earnings per share for the fourth quarter and full-year 2013.

In the third quarter, Ametek's net income increased to $127.86 million or $0.52 per share from $115.4 million or $0.47 per share in the previous year. On average, 12 analysts polled by Thomson Reuters expected earnings per share of $0.52 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter grew 6 percent to $890.01 million from $839.37 million a year ago, while analysts estimated $886.04 million.

Electronic Instruments Group or EIG sales increased 9 percent to $499.8 million, and sales from Electromechanical Group or EMG totaled $390.2 million, up 2 percent from a year earlier.

Operating margins improved 60 basis points to 23 percent in the third quarter of 2013.

"Despite continued soft economic conditions, we were able to deliver record levels of sales and operating income on the strength of our long-cycle businesses and operational excellence initiatives. In addition, orders were very strong in the quarter, totaling $937 million, up 17% from last year's third quarter with 7% core growth," said Frank Hermance, chairman and chief executive officer.

Looking ahead to the fourth quarter, Ametek expects earnings to be around $0.54 per share, an increase of 10 percent over last year's fourth quarter of $0.49 per share. Analysts estimate earnings of $0.54 per share for the quarter.

Fourth quarter sales are expected to be up high single digits on a percentage basis over the prior-year's fourth quarter, with organic sales up mid-single digits on a percentage basis.

For full-year 2013, the company expects earnings to be about $2.09 per share, up 11% from last year. It anticipates full year revenues to be up mid-single digits on a percentage basis from 2012.

Analysts are looking for earnings of $2.09 per share for the full year.

Separately, Ametek announced that it has acquired Creaform, Inc., a developer and manufacturer of innovative portable 3D measurement technologies and a provider of 3D engineering services for about $120 million. Based near Quebec City, Canada, the privately held company has annual sales of about $52 million.

AME is currently trading at $47.76, up 3.62 percent on a volume 746 thousand share on the NYSE.