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Ametek's CEO Discusses Q2 2012 Results - Earnings Call Transcript

I will remind you that any statements made by AMETEK during the call that are not historical in nature are to be considered forward-looking statements. As such, these statements are subject to change based on various risk factors and uncertainties that may cause actual results to differ significantly from expectations.

A detailed discussion of the risks and uncertainties that may affect our future results is contained in AMETEK's filings with the Securities and Exchange Commission. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements. I will also refer you to the Investors section of www.ametek.com for a reconciliation of any non-GAAP financial measures used during the conference call.

We will begin today with prepared remarks by Frank and Bob, and then we will take your questions. With that, I will turn the meeting over to Frank.

Frank S. Hermance

Thank you, Kevin, and good morning, everyone. In the quarter, we established records for orders, operating income, operating margins, net income, and diluted earnings per share. Orders in the second quarter were a record at $916 million, up 15% from the prior year. The book-to-bill ratio in the quarter was 1.11.

Sales in the second quarter were up 9% to $825.9 million. Internal growth was flat due to a weak international environment, while acquisitions added 10% and currency was a 1% headwind. Excluding the cost-driven motor business, which was impacted by weakness in Europe and the impact of a very difficult comparison in Asia, our internal growth was 3% in the quarter.

Operating income for the second quarter was superb. It increased 18% to a record $185 million from $157 million last year, reflecting the impact from our operational excellence activities and our longer cycle, higher-margin businesses.

Operating income margin in the quarter was a record at 22.4%, a 170 basis point improvement over the second quarter of 2011. Net income was up 21% to $113.7 million, and diluted earnings per share of $0.47 were up 21% over last year’s second quarter and above the top end of our prior guidance of $0.45. Both net income and diluted earnings per share were records.

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