Ametek, Inc, Berwyn, Pennsylvania, USA, has released its financial results for the fourth quarter and full year ending December 31, 2020. The company’s Q4 2020 sales were $1.20 billion, an 8% decline compared to Q4 2019. Operating income in the quarter was $298.1 million, up slightly versus last year’s fourth quarter and operating margins were reported to be a record 24.9%.
Full year 2020 net sales were $4.50 billion, down from $5.10 billion in 2019. Operating income for the year was $1.03 billion, down from $1.18 billion in 2019. Net income for 2020 was up slightly on 2019, reported to be $872 million compared to $861 million in 2019.
“Ametek completed a challenging year with an excellent fourth quarter,” stated David A Zapico, Ametek Chairman and Chief Executive Officer. “We continued to see solid sequential sales and order improvements in the quarter despite the ongoing impacts of the COVID-19 pandemic. Furthermore, we delivered record operating results and substantial margin expansion in the fourth quarter, with EBITDA margins a robust 30.1%.”
“Additionally, our operational strength resulted in record levels of cash flow in the fourth quarter with operating cash flow up 13% to $386 million and free cash flow up 16% to $349 million representing 158% of net income, further strengthening our balance sheet and liquidity position.”
Electromechanical Group (EMG) sales in the fourth quarter were $379.5 million, down 11% from the same quarter in 2019. EMG’s fourth quarter operating income was $79.8 million and operating income margins were 21.0%, up 110 basis points versus the same period last year.
“EMG also delivered strong operating results in the quarter,” noted Zapico. “As EMG’s topline was negatively impacted by the divestiture of Reading Alloys and weaker demand due to the global pandemic, EMG drove impressive operating margin expansion through our cost and asset management initiatives.”
“This last year presented unprecedented challenges, both personally and professionally, for everyone at Ametek,” Zapico added. “Our employees stepped up to these challenges and our businesses delivered results that consistently exceeded our expectations.”
“Our success in 2020 was a testament to the strength of the Ametek Growth Model, our ability to navigate through difficult economic environments, and the tremendous efforts of our talented workforce. We remain committed to investing in our businesses and our people to drive long-term, sustainable growth.”
“While uncertainty remains, our diverse end markets, record backlog and solid order momentum provide a positive outlook for the year ahead,” he continued. “For 2021, we expect overall sales to be up mid-single digits on a percentage basis compared to 2020. Adjusted earnings per diluted share are expected to be in the range of $4.18 to $4.30, an increase of 6% to 9% over the comparable basis for 2020.”
“For the first quarter of 2021, overall sales are expected to be down low to mid-single digits compared to the same period last year. Adjusted earnings in the quarter are anticipated to be in the range of $0.97 to $1.02 per share,” concluded Zapico.