AMETEK, Inc. (NYSE:AME) Q4 2022 Earnings Call Transcript

Brett Linzey: No, that’s it. Great quarter, and I appreciate all the insight.

Dave Zapico: Thank you, Brett.

Operator: Thank you. And our next questioner today is Scott Graham from Loop. Please go ahead.

Scott Graham: Hey, good morning all. And really congrats on that Zygo, that’s a pretty big deal.

Dave Zapico: Hey, that’s a really interesting, that’s really helping, but that team did a great job. And it’s working on fusion energy is a great thing. And, it just shows our capability.

Scott Graham: Yes, for sure. Thank you. The orders gave you said up 1.5 in the quarter. Was that organic? And can you also tell the split by segment?

Dave Zapico: Yes. That was overall worse. Organic was down minus 2. And so, overall orders were up 1.5. Organic was minus 2. And both segments were about at that same 1:1 book-to-bill. So, wasn’t a distinct difference between the segments, and as I said, overall demand environment showed a solid 10 straight quarter of book-to-bill. So, we have a strong backlog. And as we have this dynamic of customers returning to more normalized ordering patterns, we have a strong backlog. So, we feel pretty good about it.

Scott Graham: Okay, great. Thank you. Based on your answer to the prior question, is it possible then that sales volumes could sort of flatten out in the second half of the year. And your growth organic is essentially all price? Is that what you are what you are thinking cadence wise?

Bill Burke: I don’t think in the second half of the year. I mean we are going to have some healthy price. But I think it’s going to actually increase a bit in the second-half. And, if you think about our order rates we have that mid single digit sales growth forecasted. We think we are going to grow orders also. So, orders are going to grow a little bit less than sales as our forecast. But, they are going to grow. And really by the end of the year, our backlog is still going to be at elevated levels. It will be down a bit, but at elevated levels historically. So, we are clearly done with our strong backlog which will provide a buffer is there is some kind of downturn. We don’t see it right now. And our orders will be up, but it will be up a little less than sales. And again, at the end of 2023, we have historically elevated levels of backlog similar to now.

Scott Graham: Yes, great. Hey, thank you.

Bill Burke: Yes, Scott.

Operator: Our next question comes from Matt Summerville at D.A. Davidson. Please go ahead.

Will Jellison: Hi, good morning. This is Will Jellison on for Matt Summerville today.

Dave Zapico: Hello, good morning.

Will Jellison: I was curious about your recent acquisitions with Navitar and RTDS. And just about your first observations with those companies as part of the AMETEK portfolio. How did things unfold related to expectations? And how are things going with bringing them into the fold?