AMETEK, Inc. announced its financial results for the first quarter ended March 31, 2024.
AMETEK's first quarter 2024 sales were a record $1.74 billion, a 9% increase over the first quarter of 2023. On a GAAP basis, first quarter earnings per diluted share were $1.34. Adjusted earnings in the quarter were $1.64 per diluted share, up 10% from the first quarter of 2023. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortization of $0.21 per diluted share and excludes a pre-tax $29.2 million, or $0.10 per diluted share, charge for integration costs related to the Paragon Medical acquisition.
GAAP operating income was $417.2 million, or 24.0% of sales. Excluding the Paragon Medical charge, adjusted operating income was a record $446.4 million, up 10% versus last year's first quarter, with adjusted operating margins of 25.7%, up 30 basis points from the first quarter of 2023. A reconciliation of reported GAAP results to adjusted results is included in the financial tables accompanying this release and on the AMETEK website.
"I am very pleased with our results in the first quarter," said David A. Zapico, AMETEK Chairman and Chief Executive Officer. "Our businesses delivered outstanding operating performance resulting in record adjusted operating income, a robust 180 basis points of core margin expansion, and double-digit growth in adjusted earnings per share. We also generated strong cash flow in the quarter with operating cash flow of $410 million and free cash flow conversion of 123%."
Electronic Instruments Group (EIG)
EIG sales in the first quarter were $1.16 billion, up 4% from the same quarter in 2023. EIG's operating income in the quarter increased 14% to $352.9 million with operating income margins a record 30.5%, an increase of 280 basis points compared to the first quarter of 2023.
"EIG delivered strong results in the first quarter," noted Mr. Zapico. "Solid sales growth and tremendous operating performance drove sizeable margin expansion in the quarter. These results underscore the strength of our EIG business and the effectiveness of our flexible operating structure."
Electromechanical Group (EMG)
EMG sales in the first quarter were a record $579.4 million, up 21% from the first quarter of 2023. On a GAAP basis, EMG's first quarter operating income was $90.7 million, or 15.7% of sales. Excluding the Paragon integration costs and the dilutive impact from recent acquisitions, core operating margins were 24.1% in the quarter.
"Despite the continued headwinds from normalization of inventory levels across a portion of our customer base, our EMG businesses delivered solid results in the first quarter. Our teams are doing an outstanding job managing the short-term impacts on sales and our businesses are well positioned for solid growth in the second half of 2024," commented Mr. Zapico.
2024 Outlook
"Our businesses delivered excellent results in the quarter, highlighting the effectiveness of our growth model in driving double digit earnings growth. Supported by our leading positions within attractive market segments, our proven operating model, and our strong cash flows, we are strategically positioned for sustained success," noted Mr. Zapico.
"For 2024, we continue to expect overall sales to be up low double digits on a percentage basis compared to 2023. Adjusted earnings per diluted share are now expected to be in the range of $6.74 to $6.86, up 6% to 8% over the comparable basis for 2023. This is an increase from our previous guidance range of $6.70 to $6.85," he added.
"For the second quarter of 2024, overall sales are expected to be up mid to high single digits on a percentage basis compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $1.63 to $1.65 per share, up 4% to 5% compared to the second quarter of 2023," concluded Mr. Zapico.
Conference Call
AMETEK will webcast its first quarter 2024 investor conference call on Thursday, May 2, 2024, beginning at 8:30 AM ET. The live audio webcast will be available and later archived in the Investors section of www.ametek.com.
