Tuesday, electronics device maker Ametek, Inc. (AME) reported a 21% decline in second quarter earnings as sales slid 19% due to challenging economic conditions. The Paoli, Pennsylvania-based company also provided earnings forecast for the third quarter and cut its earnings outlook for fiscal 2009.
Net income for the quarter slid 21% to $51.8 million from $65.8 million in the corresponding period last year. Earnings per share declined to $0.48 from $0.61 per share in the same period last year but came in line with the $0.48 per share projected by nine analysts polled by Thomson Financial. Analysts' estimates typically exclude special items.
Sales fell 19% to $524.9 million from $648.77 million in the same period last year. Seven Street analysts expected the company to report sales of $549.02 million for the quarter.
Operating income was $93.2 million, down 18% from $114.1 million recorded in the year-ago quarter. Operating margins improved 20 basis points to 17.8% in the second quarter of 2009.
Electronic Instruments Group sales decreased 17% to $286.3 million. Operating income declined 23% to $59.8 million and operating margins for the quarter were 20.9% as compared to 22.8% in the second quarter of the previous year.
Electromechanical Group sales declined 22% to $238.7 million, and operating income fell to $41.5 million from $53.1 million recorded in the same period last year. Operating margins remained unchanged at 17.4% for both quarters.
For the six month period, net income declined to $110.9 million or $1.03 per share from $132.2 million or $1.23 per share in the same period last year. Sales decreased to $1.08 billion from $1.26 billion in the year-ago period.
Looking ahead, for the third quarter, earnings are expected to be in the range of approximately $0.38 to $0.42 per share. Sales are expected to be down about 20% from last year's third quarter. For the third quarter of fiscal 2008, the company reported sales of $647.42 million. Currently, analysts expect the company to earn $0.55 per share on revenues of $572.4 million for the third quarter of 2009.
For the full year, the company expects earnings to be in the range of $1.85 to $2.00 per share. Previously, earnings were forecast to be in the range of $2.10 to $2.25 per share. Street analysts presently expect the company to report earnings of $2.16 per share for 2009. Revenue is expected to decline approximately high-teens on a percentage basis.
AME is currently up $2.66 or 6.99% and trades at $35.38.
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