10-KPeriod: FY2007

AMETEK INC/ Annual Report, Year Ended Dec 31, 2007

Filed February 27, 2008For Securities:AME

Summary

AMETEK, Inc. (AME) demonstrated strong financial performance in 2007, reporting record sales of $2.1 billion, a 17% increase from 2006. This growth was fueled by robust internal expansion in both its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), alongside contributions from seven strategic acquisitions made during the year. The company also achieved record net income and diluted earnings per share, alongside a significant 23% increase in cash flow from operating activities. AMETEK's strategy continues to focus on differentiated niche markets through its Corporate Growth Plan, emphasizing Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions. The company's diverse product portfolio, serving industries like aerospace, defense, medical, and industrial markets, positions it well for continued growth. The strong financial results and effective acquisition integration underscore AMETEK's consistent execution of its business strategy, making it an attractive prospect for investors seeking growth and stability.

Financial Highlights

30 data points
Beta

Revenue

$2.14B

Net Income

$228.02M

10.7% Net Margin

EPS (Diluted)

$0.94

Cash & Equivalents

$170.14M

Free Cash Flow

$240.90M

Financial Statements
Beta
Revenue$2.14B
SG&A Expenses$263.47M
Operating Expenses$1.75B
Operating Income$386.57M
Interest Expense$46.87M
Net Income$228.02M
EPS (Basic)$0.96
EPS (Diluted)$0.94
Shares Outstanding (Basic)238.12M
Shares Outstanding (Diluted)242.06M

Key Highlights

  • 1Achieved record sales of $2.1 billion in 2007, a 17% increase year-over-year.
  • 2Reported record net income and diluted earnings per share for 2007.
  • 3Generated record cash flow from operating activities, increasing by 23% to $278.5 million.
  • 4Completed seven strategic acquisitions in 2007 with combined annualized sales of $230 million.
  • 5International sales represented 49% of total sales, demonstrating global reach and diversification.
  • 6Invested $102.9 million in research, development, and engineering to drive innovation and new product introductions.
  • 7Strengthened financial flexibility by amending its revolving credit facility to $550 million and completing a $450 million senior notes private placement.

Frequently Asked Questions

In 2007, AMETEK achieved record-breaking performance, with total sales reaching $2.1 billion, a 17% increase over 2006. The company also recorded its highest-ever net income and diluted earnings per share. Furthermore, cash flow from operating activities saw a significant 23% rise, reaching $278.5 million.

AMETEK's growth strategy is built upon four pillars: Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions and Alliances. The company actively pursues acquisitions in differentiated niche markets and invests in R&D to introduce innovative products, while also expanding its global presence.

AMETEK operates through two main groups: the Electronic Instruments Group (EIG), which focuses on monitoring, testing, calibration, and display devices for process, aerospace, industrial, and power markets, and the Electromechanical Group (EMG), which supplies highly engineered electromechanical devices and specialty metals for sectors including aerospace, defense, medical, and office products. Both segments contribute to the company's diversified revenue streams.

AMETEK enhanced its financial flexibility in 2007 by amending its revolving credit facility to increase borrowing capacity to $550 million and extending its maturity. The company also successfully completed a private placement of $450 million in senior notes. These actions supported its acquisition strategy and provided ample liquidity for ongoing operations.