Ametek, Inc., Berwyn, Pennsylvania, USA, has released its financial results for the third quarter ended September 30, 2020, reporting sales were $1.13 billion, a 12% decline compared to the third quarter of 2019. Operating income in the quarter was $270.7 million and operating margins were said to be a record 24%, up 40 basis points from the third quarter of 2019.
“Our teams did an outstanding job in the third quarter, managing ongoing challenges presented by the COVID-19 pandemic while providing essential support to our customers,” stated David A Zapico, Ametek chairman and Chief Executive Officer. “We continue to prioritise our employees’ safety and well-being by taking appropriate precautions across our facilities.”
“In the midst of the pandemic, Ametek was able to deliver record operating margins as well as EBITDA margins of 29.5%,” continued Zapico. “These outstanding results reflect the flexibility of the Ametek Growth Model and the exceptional talent and dedication of our employees. Operating cash flow in the quarter was $310 million, resulting in excellent free cash flow conversion of 146% of net income, further strengthening our balance sheet and liquidity position, providing us tremendous flexibility to deploy capital on strategic acquisitions.”
On a GAAP basis, third quarter earnings per diluted share were $0.88. Adjusted earnings in the quarter were $1.01 per diluted share, down 5% compared to the prior year’s comparable period. Adjusted earnings adds back non-cash, after-tax, acquisition-related intangible amortisation of $0.13 per diluted share.
Zapico added, “Our businesses have managed exceptionally well through the first nine months of what has certainly been an extraordinary year. We remain committed to investing in long-term, sustainable growth initiatives while reacting to the current dynamic market environment with a focus on cost and asset management. While the pandemic continues to present uncertainty, our end markets are gradually recovering, and we are well-positioned to deliver strong results.”
“Given this recovery and improved visibility across our businesses we are reinstating quarterly guidance. For the fourth quarter, we expect solid sequential improvements in sales versus the third quarter with year-over-year sales down high single digits on a percentage basis compared to last year’s fourth quarter. We anticipate fourth quarter adjusted earnings will be in the range of $1.00 to $1.04 per diluted share,” Zapico concluded.