Ametek 4Q profit rises; 1Q outlook pressures stock

posted: 14 DAYS 13 HOURS AGO

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PAOLI, Pa. -Ametek Inc., which makes electric motors and instruments, reported fourth-quarter profits rose on higher order rates from customers and cost cuts.

The company also said it believes earnings per share will rise 10 per cent to 15 percent in 2010.

Profit for the final three months of the year came in at the high end of company guidance.

The manufacturer earned $51.9 million, or 48 cents per share, compared with $43.8 million, or 41 cents per share, a year earlier. The latest results edged out the 47 cents per share expected by analysts polled by Thomson Reuters.

However, last year's results were dragged down by a 25 cent per share restructuring cost when the Paoli, Pa., company cut jobs, closed factories and took asset writedowns to lower its overhead.

Ametek's quarterly revenue fell 16 percent to $523.5 million from $623.7 million. Analysts had expected $513.1 million.

CEO Frank Hermance said market conditions were difficult during the quarter but that Ametek the higher order rates were encouraging.

Order rates were 4 percent gain over the same period in 2008 and 20 percent greater than the third quarter of 2009.

Shares edged lower, however, because company guidance for the current quarter was 7 to 9 cents off Wall Street expectations.

For the entire year, Ametek's profit fell 17 percent to $205.8 million, or $1.91 per share, from $247 million, or $2.30 per share. The 2009 profit beats a $1.90 per share analyst expectation. Yearly revenue also fell 17 percent to $2.1 billion from $2.53 billion, compared to an analyst estimate of $2.09 billion.

Ametek shares fell 47 cents to $36.66.

2010-01-26 13:25:23