AMETEK Inc., based in Paoli, PA, U.S., said its full year 2002 results established records for sales, operating income, net income, and diluted earnings per share. AMETEK has 2002 sales of U.S. $1.04 billion, up 2 percent from 2001. Its operating income of $148.7 million was up 12 percent from $132.8 million in 2001. Income grew to $83.7 million, up 18 percent from $70.8 million in 2001. Diluted earnings per share of $2.49 were up from $2.12 per share in 2001.
Including unusual items in the fourth quarter of 2001 net income for 2001 was $66.1 million, or $1.98 per diluted share.
"AMETEK performed extremely well in 2002," noted Frank S. Hermance, AMETEK chairman and chief executive officer (CEO). "Contributions from businesses we acquired and from our operational excellence initiatives allowed us to post top and bottom line growth in a very difficult economic environment.
"In addition, we substantially reduced our working capital during 2002 due to an excellent effort across the company. Inventory and receivables were down $29 million, exceeding the $20 million reduction we targeted. We used the cash generated to make contributions to our defined benefit pension plans, which on an after tax basis, reduced operating cash flow by approximately $19 million."
Mr. Hermance said he expects 2003 to be another challenging year and AMETEK does not anticipate significant improvement in the current economic conditions in manufacturing.
"We expect revenues to be up modestly with earnings in the range of $2.65 - $2.75 per diluted share, an increase of 6 percent to 10 percent over 2002," he said. "This estimate includes the positive impact of our recent acquisition of Airtechnology and approximately $7 million pretax, or $.14 per diluted share, of additional pension expense. Without the additional pension expense, our earnings would be up approximately 12 percent to 16 percent versus 2002."
"Our first quarter 2003 sales are expected to be down slightly from last year's first quarter, as the top-line benefits of the Airtechnology acquisition are offset by weaker aerospace, power and heavy vehicle markets. We expect our earnings to be about equal to last year's level of $.59 per diluted share after the additional pension expense. Without the additional pension expense, earnings would be up approximately 6 percent," concluded Mr. Hermance.
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