AMETEK, Inc. announced its financial results for the third quarter ended September 30, 2023.
AMETEK's third quarter 2023 sales were $1.62 billion, a 5% increase over the third quarter of 2022. Operating income increased 14% to a record $438.1 million and operating margins were a record 27.0%, up 220 basis points from the third quarter of 2022. Operating cash flow in the quarter was a record $473 million, up 45% versus the prior year.
On a GAAP basis, third quarter earnings per diluted share were $1.47. Adjusted earnings in the quarter were a record $1.64 per diluted share, up 13% from the third 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 excellent results in the third quarter, highlighted by exceptional operating performance, robust margin expansion and strong cash flows," stated David A. Zapico, AMETEK Chairman and Chief Executive Officer. "The strength of the AMETEK Growth Model was evident in our third quarter results as solid sales growth and operational excellence initiatives drove record earnings and cash flow. Given this strong performance 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 third quarter were $1.14 billion, up 8% from the same quarter in 2022. EIG's operating income in the quarter increased 23% to a record $335.2 million and operating income margins were a record 29.5%, an increase of 360 basis points compared to the third quarter of 2022.
"EIG achieved exceptional results in the third quarter with continued strong sales growth and record operating results," commented Mr. Zapico. "EIG's sales growth was driven by solid organic sales growth and the contributions from recent acquisitions, while their operating performance was outstanding leading to sizeable margin expansion in the quarter."
Electromechanical Group (EMG)
EMG sales in the third quarter were $486.7 million, down 2% from the third quarter of 2022. EMG's third quarter operating income was $127.5 million while operating income margins were a very solid 26.2% in the quarter.
"EMG delivered strong operating performance in the third quarter as we navigated a dynamic environment driven by the impact of inventory normalization on short-term customer demand. Growth remained strong across our aerospace, defense and medical businesses in the quarter," commented Mr. Zapico.
2023 Outlook
"AMETEK's outstanding performance in the third quarter highlights our ability to successfully manage through economic cycles and consistently deliver exceptional results. The strength and flexibility of the AMETEK Growth Model, combined with our attractive, diversified market exposures and strong balance sheet, position us well to drive sustainable growth in the long term," commented Mr. Zapico.
"For 2023, we continue to 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 $6.31 to $6.33, an increase of approximately 11% over the comparable basis for 2022. This is an increase from our previous guidance range of $6.18 to $6.26 per diluted share," he added.
"We expect overall sales in the fourth quarter to be up mid-single digits on a percentage basis versus the prior year. Fourth quarter adjusted earnings per diluted share are anticipated to be in the range of $1.61 to $1.63, up 6% to 7% compared to the fourth quarter of 2022," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its third quarter 2023 investor conference call on Tuesday, October 31, 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.
