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

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Steve Barger: Some automation and robotics OEMs have recently talked about distribution channel bottlenecks being a hindrance to growth, can you just talk about what you’re seeing in that market, both near-term and expectations for how that market grows in the future?

Dave Zapico: Yes, I think for 2023, we think that business will be at mid-single-digits. And both our automation and our engineering solutions will be up mid-single-digits, I think that we’re selling to mainly OEM customers there. So, you’re going to have a bit of the effect of the ordering patterns, a change in ordering patterns there, but we have a really healthy backlog. So, it’s really what we talked about customers are changing ordering patterns. We’re really good at delivery. So, we’re meeting our customer commitments, so they’re now ordering at normal lead times. So, you’ll see a little bit of the order corrections that we talked about in Q4 continuing. But we still have a record backlog and all the comments that I made hold for that part of the business also.

Steve Barger: Got it. Thanks. And obviously semiconductor demand has been under pressure, especially on the memory side. But you just said you’re in the right places to grow. That mean, you’re supplying the makers of tools that go to foundry and logic or just how will you grow this year in the context of what’s a pretty tough memory side?

Dave Zapico: Right, it’s pretty tough. And again, we grew mid-teens in 2022. So, that growth for 2023 is up low-to-mid. So, it’s a substantial decline. But we’re still growing and the reason we’re growing the key application areas, at our CAMECA business, they’re really involved in semiconductor research and development and staying ahead and getting the next generation. And we have some tools that are must haves for the semiconductor market, and really strong backlogs and orders are continuing well. And then, the second area is we’re in the EUV optics area for used in semiconductor fabrication. So, the EUV market is kind of separate from the memory market and really strong. So, those two areas are the good part of our semiconductor business and they’re really strong. And that’s why we think we’ll still be able to grow low to mid-single-digits in an environment where you have some of the headwinds.

Steve Barger: That’s great detail. Thank you.

Dave Zapico: Okay, thank you, Steve.

Operator: And ladies and gentlemen, this concludes our question-and-answer session. I would like to turn the conference back over to Kevin Coleman for any closing remarks.

Kevin Coleman: Great. Thank you again, Rocco. And thank you, everyone for joining us for our conference call. As a reminder, a replay of today’s webcast can be accessed in the Investors section of ametek.com. Have a great day.

Operator: Thank you. Ladies and gentlemen, this concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines and have a wonderful day.

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