Ametek Inc. (NYSE:AME) Q2 2020 Earnings Conference Call - Final Transcript

Aug 04, 2020 • 08:30 am ET


Ametek Inc. (NYSE:AME) Q2 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Second Quarter 2020 AMETEK, Inc. Earnings Conference Call. [Operator Instructions]

It is now my pleasure to introduce, Vice President of Investor Relations, Kevin Coleman.

Kevin Coleman

Thank you, Andrew. Good morning, and thank you for joining us for AMETEK's second quarter 2020 earnings conference call. With me today are Dave Zapico, Chairman and Chief Executive Officer; and Bill Burke, Executive Vice President and Chief Financial Officer. AMETEK's second quarter results were released earlier this morning and are available on market systems and in the Investors section of our website. This call is also being webcasted and can be accessed on our website.

During the course of today's call, we will make forward-looking statements, which 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 the AMETEK's filings with the SEC, including in our 10-Q, which will be filed later today. AMETEK disclaims any intention or obligation to update or revise any forward-looking statements.

Any references made on this call to 2019 or 2020 results will be on an adjusted basis, excluding after-tax, acquisition-related, intangible amortization and also excluding the gain from the sale of Reading Alloys in the first quarter of 2020 and the realignment charge taken in the first quarter of 2020. Reconciliations between GAAP and adjusted measures can be found in our press release and on the Investors section of our website. We'll begin today with prepared remarks by Dave and Bill and then open it up for questions.

I'll now turn the meeting over to Dave.

David A. Zapico

Thank you, Kevin, and good morning, everyone. Despite an economic environment as challenging and uncertain as any we have ever faced in AMETEK, our businesses stood strong in the second quarter delivering outstanding operating performance that exceeded expectations. I wanted to start by thanking all AMETEK colleagues who are working tirelessly through this pandemic to provide our customers with great products and exceptional service. As our result of test, our employees are doing an amazing job.

The safety of our employees remains our highest priority. We continue to implement our pandemic response plan, which provides a pandemic for our businesses to manage our facilities and workforce during this pandemic. We are following CDC and local health and safety guidelines and are adjusting and enhancing our safety protocols as required to ensure safe working environment for our employees.

Now let me turn to our results for the quarter. Sales in the second quarter were $1.01 billion, down 22% versus the second quarter of 2019. Organic sales were also down 22% with recent acquisitions contributing 4%, the divestiture of Reading Alloys a three point headwind and foreign currency a one point headwind. Despite substantial demand weakness, as our business delivered exceptional operating performance. Operating income in the quarter was $227 million and operating margins were very