AMETEK, Inc. announced its financial results for the second quarter ended June 30, 2023.
AMETEK's second quarter 2023 sales were a record $1.65 billion, a 9% increase over the second quarter of 2022, with organic sales growth of 5%. Operating income increased 15% to a record $418.8 million and operating margins were a record 25.4%, up 130 basis points from the second quarter of 2022. Operating cash flow in the quarter was $335 million, up 42% versus the prior year.
On a GAAP basis, second quarter earnings per diluted share were $1.40. Adjusted earnings in the quarter were a record $1.57 per diluted share, up 14% from the second quarter of 2022. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.17 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.
"AMETEK delivered impressive results in the second quarter, achieving record sales, operating income, and adjusted earnings per share," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "These exceptional results exceeded expectations, driven by continued strong sales growth and outstanding operating performance. Additionally, demand remained solid in the quarter, resulting in a positive book-to-bill ratio and a record backlog. Based on these results and our outlook for the balance of the year, we are again raising our earnings guidance for the full year."
Electronic Instruments Group (EIG)
EIG sales in the second quarter were $1.13 billion, up 10% from the same quarter in 2022. EIG's operating income in the quarter increased 16% to $307.1 million and operating income margins were 27.1%, an increase of 130 basis points compared to the second quarter of 2022.
"EIG delivered another exceptional quarter," stated Mr. Zapico. "Strong and broad-based sales growth was supported by solid demand across our diverse end markets and the success of our organic growth initiatives. Our continual focus on operational excellence initiatives helped drive outstanding margin expansion and robust operating income growth in the quarter."
Electromechanical Group (EMG)
EMG sales in the second quarter were a record $511.5 million, up 5% from the second quarter in 2022. EMG's second quarter operating income was $136.2 million, up 10% versus the prior year, while operating income margins were 26.6% in the quarter, up 100 basis points versus the prior year.
"EMG's second quarter results were very strong, with outstanding operating performance leading to excellent margin expansion and operating income growth. EMG continues to demonstrate the strength of our differentiated businesses and the effectiveness of our operating capabilities," remarked Mr. Zapico.
2023 Outlook
"AMETEK's record performance in the second quarter highlights the strength and flexibility of the AMETEK Growth Model, as well as the dedicated efforts of all AMETEK colleagues. Our differentiated businesses, diverse end market exposures and proven operating capabilities, allow us to successfully manage through economic cycles. Additionally, our strong cash flows and solid balance sheet provide significant capital to deploy on strategic acquisitions and drive sustainable, long-term growth," stated Mr. Zapico.
"For 2023, we expect overall sales to be up mid-to-high single digits compared to 2022. Adjusted diluted earnings per share are now expected to be in the range of $6.18 to $6.26, an increase of 9% to 10% over the comparable basis for 2022. This is an increase from our previous guidance range of $5.96 to $6.10 per diluted share," he added.
"We expect overall sales in the third quarter to be up mid-single digits on a percentage basis versus the prior year. Third quarter adjusted earnings per diluted share are anticipated to be in the range of $1.56 to $1.58, up 8% to 9% compared to the third quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its second quarter 2023 investor conference call on Tuesday, August 1, 2023, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.
