July 31 (Reuters) - Industrial tools maker Ametek ( AME )
raised its annual profit forecast on Thursday, after
beating second-quarter estimates, benefiting from steady demand
in its electromechanical segment (EMG) and its recent
acquisition of FARO Technologies.
Shares of Ametek ( AME ), which makes testing and measurement
instruments, medical devices as well as automation solutions,
rose about 6% in early trading following the results.
Quarterly sales at the electromechanical unit, which
produces specialized motors, sensors and motion control systems
used across industrial and aerospace markets, rose 6% to $618.5
million from a year ago.
The segment has been a key growth driver for the Berwyn,
Pennsylvania-based company as manufacturers ramp up automation
and efficiency investments despite a mixed macroeconomic
backdrop.
"EMG had an excellent quarter highlighted by strong organic
sales and orders growth, record-level operating income and
robust margin expansion," CEO David Zapico said.
Ametek's ( AME ) purchase of FARO Technologies, which closed earlier
this month, also helped the firm expand its market.
The company forecast 2025 adjusted profit in the range of
$7.06 to $7.20 per share, above its prior view of $7.02 to
$7.18.
It expects annual overall sales to be up mid-single digits,
compared with its previous forecast of low-single digit
percentage growth.
Ametek ( AME ) earned second-quarter profit of $1.78 per share on an
adjusted basis, beating analysts' average estimate of $1.69 per
share, according to data compiled by LSEG.
The company's quarterly net sales rose to $1.78 billion from
$1.74 billion a year ago. Analysts were expecting revenue of
$1.73 billion.