AME
#It was difficult to hear you, but I think I have your questions.
The oil and gas business, as we talked before, was lower than forecasted in Q2, but stabilized.
So we saw orders in that second quarter that really matched our Q3 volume level.
So we feel good about that.
Coming into the year, it was about a $360 million business from AMETEK, about one-third of that is upstream, one-third of that is midstream and one-third is downstream.
The business is one-third US and two-thirds international.
We have $120 million take down this year, so the $360 million is going to be down $120 million.
That's about one-third.
It's about $60 million down in upstream and $60 million down in the combination of mid and downstream.
So, if you look at our upstream exposure, that's down about 60% and our mid and downstream exposure's about 20%.
Yes.
The pricing in the energy market is below the average for the whole Company.
It's a very difficult environment.
They have had to reduce cost to stay in business.
We still can maintain pricing because we have very premier positions with niche differentiated technologies, but it's certainly not at the AMETEK level, on average.
We are down a bit in the energy market, more in the upstream than the mid and downstream.
Sure.
Organic orders were minus 7%, so that was in line with sales.
Our EIG organic orders were down 5%.
EMG organic orders were down 9%.
Sure, <UNK>, I'll go around the world.
In the US, we were down high single-digits versus last year.
There was broader industrial weakness but the key factors driving the negative growth were oil and gas and metals.
In Europe, it was down low single-digit, so we've been at that level for several quarters.
Oil and gas impacted the region.
But we don't have much metals exposure in Europe.
In Asia, we were down mid single-digits.
China was down mid single-digits.
So, there was a little bit of an improvement in China, it was a better trend for Asia.
We were down double-digits for three quarters in a row.
Now, we are down mid single-digits.
China was a negative 4%.
Orders for the region, the entire Asia region, were a little bit better than the prior year, so it seems to be that Asia is stabilizing.
China is stabilizing.
The one emerging market that I'd point out that's doing better than the others, is India, that we have aboutmid single-digit growth in India.
It's a much smaller exposure, but our investments there are paying off.
Yes.
If I look at the trends in the US, even though we are down high single-digits, it's slightly better from last quarter.
Europe, that same trend is continuing.
In Asia, we are improving a bit but really it's ---+ we don't have anything factored in.
It's really a down mid single-digit.
Geographic wise, it is squared with our concept of stabilization.
Fundamentally, our business has stabilized.
We are working on earnings growth for 2017, now.
We're focused on our business.
We are getting ready to go into our budgeting process.
That budgeting process that we go through in Q3 and spreads into Q4, there's really no area immune from efficiency improvement.
We're going to look at things like global sourcing, low-cost region production, value analysis, value engineering, plant consolidations, all the tools that we have and we are going to get a healthy cost reduction target.
We're going to pair that with acquisitions.
That's how we're going to grow earnings next year.
So, geography is not a big factor in thinking through what we have to do for the balance of the year or what we have to do next year.
Yes.
That's direct exposure, it's not indirect exposure.
So, obviously, some impact in other markets that are not oil and gas related.
But that's a direct exposure and that will be down about $120 million this year.
Right.
Yes.
The total market exposure for AMETEK ---+ most of it is in process, but the total market expansion for AMETEK exposure, going into the year was $360 million.
That's the entire exposure.
I was talking about the indirect exposure, for example, you look at the helicopter market.
They used to use helicopters to fly to offshore platforms, so there's less demand for helicopters.
That's in our business jet and regional jet segment, that's where we report it.
So, when I was talking indirect, I was talking that.
The total oil and gas exposure is the $360 million.
Okay.
Thank you, Brandy.
Thanks everyone for joining the call today.
As a reminder, a replay of the call can be accessed at AMETEK.com and streetevents.com.
As always, we're available for additional calls and questions this afternoon.
Thank you.
