Summary
AMETEK, Inc. (AME) reported its 2009 fiscal year results, a period marked by the global economic recession. Despite a 17% decrease in net sales compared to 2008, falling to $2.1 billion, the company demonstrated resilience. This was achieved through successful operational excellence initiatives and the integration of strategic acquisitions made throughout 2008 and 2009, which helped to offset internal sales declines. The company operates through two main segments: the Electronic Instruments Group (EIG) and the Electromechanical Group (EMG), serving diverse end markets such as aerospace, defense, industrial, and medical. AMETEK emphasizes a strategy of growth through operational excellence, new product development, global expansion, and strategic acquisitions, a strategy that has enabled it to navigate the challenging economic environment. The company also managed its balance sheet effectively, reducing total debt and maintaining a healthy liquidity position.
Financial Highlights
53 data points| Revenue | $2.10B |
| R&D Expenses | $50.50M |
| SG&A Expenses | $254.14M |
| Operating Expenses | $1.73B |
| Operating Income | $366.05M |
| Interest Expense | $68.75M |
| Net Income | $205.77M |
| EPS (Basic) | $0.85 |
| EPS (Diluted) | $0.85 |
| Shares Outstanding (Basic) | 240.27M |
| Shares Outstanding (Diluted) | 242.66M |
Key Highlights
- 1Net sales decreased by 17.1% to $2.1 billion in 2009 compared to $2.5 billion in 2008, primarily due to the global economic recession impacting order rates.
- 2Despite the sales decline, AMETEK reported solid operating income ($366.1 million) and net income ($205.8 million), demonstrating cost control and operational efficiency.
- 3The company completed three strategic acquisitions in 2009 (High Standard Aviation, Unispec Marketing Pvt. Ltd. & Thelsha Technical Services Pvt. Ltd., and Ameron Global), adding to its portfolio and geographic reach.
- 4International sales represented 49.2% of consolidated net sales in 2009, highlighting the company's global presence and diversification.
- 5Research, development, and engineering expenses were $101.4 million (before customer reimbursements), with sales from products introduced in the last three years accounting for 18.8% of total sales, indicating a focus on innovation.
- 6The company successfully reduced its total debt to $1,041.7 million at the end of 2009, down from $1,111.7 million in 2008, and maintained a strong available borrowing capacity under its revolving credit facility.
- 7The company repurchased no shares in 2009, after repurchasing approximately 1.3 million shares in 2008, signaling a focus on preserving capital during the economic downturn.