Jeffrey Sprague's questions to AMETEK Inc (AME) leadership • Q3 2024
Question
Jeffrey Sprague asked about the sales trajectory for Paragon Medical, the drivers behind strong organic orders in the Electromechanical Group (EMG) despite destocking, the margin recovery outlook for 2025, and the current price-cost spread.
Answer
Chairman and CEO David Zapico noted that strong orders were broad-based across all EMG divisions. He confirmed Paragon met Q3 expectations and is well-positioned for when destocking abates. While avoiding 2025 guidance, he acknowledged the potential for a positive margin scenario. He also stated AMETEK achieved 3 points of price in the quarter, resulting in a 100-basis-point positive spread to the P&L, and expects a return to more normal pricing patterns.