AMETEK Inc. today announced third quarter results that set records for operating income, net income and diluted earnings per share. The company is a leading global supplier of electronic instruments and electric motors based in Paoli, PA.
AMETEK's third quarter 2002 sales of U.S. $257.0 million were essentially unchanged from the third quarter of 2001. Operating income for the third quarter was $38.1 million, a 15 percent increase over the same period of 2001. Net income totaled $21.4 million, up 21 percent from $17.7 million in the 2001 third quarter.
AMETEK said it continues generating excellent cash flow. Operating cash flow was $23.6 million for the third quarter. For the first nine months of 2002, operating cash flow was $80.3 million, up 66 percent from the same period of 2001, said to be driven by strong working capital management.
"Despite a continuing difficult economic environment, AMETEK posted strong third quarter results, the bottom line impact of operational excellence initiatives and the acquisition of Instruments for Research and Applied Science (IRAS) drove our solid performance," said Frank S. Hermance, AMETEK chairman and chief executive officer.
For the first nine months of 2002, AMETEK sales increased 1 percent to $788.0 million from $782.0 million in the same period of 2001. Operating income totaled $112.2 million; an 8 percent increase from $104.2 million earned in the first nine months of last year. Net income for the first nine months of 2002 was $62.4 million, up 14 percent from $54.7 million in the same period of 2001. Diluted earnings per share were up 14 percent to $1.86 for the first nine months of 2002, versus $1.63 in 2001.
"2002 remains a challenging year for the manufacturing sector of the economy with no recovery in sight," Mr. Hermance said. "For the fourth quarter we expect revenues to be up mid-single digits from last year's fourth quarter, and up modestly for the year. The significant cost reductions that we have put in place since the latter part of 2000 are yielding bottom-line benefits. We continue to expect earnings this year of approximately $2.50 per share, up 18 percent from the $2.12 earned in 2001 before unusual items. Our expectations reflect the elimination of amortization of goodwill, which totaled $.30 per diluted share in our full-year 2001 results."
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