BERWYN, PA — In their first-quarter report for the year 2024, AMETEK Inc. (NYSE: AME), the electronic instruments and electromechanical devices manufacturer, has proclaimed a record-breaking sales figure of $1.74 billion, a substantial 9% surge from the same quarter the prior year. Their adjusted earnings calculated per diluted share for the quarter also witnessed a significant 10% increase, rising to $1.64 from the first quarter of 2023, an indicator of the expanding profit margin.
AMETEK’s notable increases in both sales and adjusted earnings were driven by a combination of core business growth and effective cost management, highlighted by a hefty 180 basis point core margin expansion realized in Q1 2024. The company also reported robust operating cash flow of $410 million and a striking free cash flow conversion rate of 123%.
AMETEK Chairman and CEO, David Zapico, hailed the firm for its excellent performance over Q1 2024, stating, “Our businesses delivered outstanding operating performance resulting in record adjusted operating income.”
The company’s Electronic Instruments Group (EIG) performed remarkably well during the first quarter with the sales figure touching $1.16 billion, a 4% increase on a year-over-year basis. EIG’s operating income saw a substantial 14% growth, accompanied by a record 30.5% operating income margin.
“Our EIG business and the effectiveness of our flexible operating structure were reflected in the tremendous results we achieved in the first quarter,” added Mr. Zapico.
The Electromechanical Group (EMG), another key division of AMETEK, also reported record first-quarter sales of $579.4 million, marking a 21% increase compared to the first quarter of 2023. EMG’s core operating margins stood at 24.1% after accounting for recent acquisitions and Paragon integration costs.
Despite inventory normalization challenges, the EMG division demonstrated robust results during the first quarter. Mr. Zapico applauded the team for their ability to manage adverse impacts on sales effectively.
In terms of outlook for 2024, Mr. Zapico spoke optimistically, expressing confidence in their growth model’s capability to drive double-digit earnings growth. He stated, “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.”
The company anticipates a low double-digit percentage increase in overall sales for the full year compared to 2023. Adjusted earnings per diluted share are predicted to range from $6.74 to $6.86, signifying a 6% to 8% increase over the prior year, marking an upward revision from their previous guidance.
For the second quarter of 2024, AMETEK expects an overall sales increase in the mid to high single digits compared to the same period the prior year. The company anticipates adjusted earnings per share to range from $1.63 to $1.65, denoting a 4% to 5% rise compared to Q2 2023.
AMETEK, with its exceptional Q1 2024 performance, has set high expectations for the forthcoming quarters, suggesting potential high returns for its investors and affirming its prosperous position in the market.
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