10-KPeriod: FY2010

AMETEK INC/ Annual Report, Year Ended Dec 31, 2010

Filed February 24, 2011For Securities:AME

Summary

AMETEK, Inc. (AME) reported a strong 2010, with sales increasing 18% to $2.47 billion, driven by robust internal growth across its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), complemented by contributions from six strategic acquisitions. The company achieved record operating income, operating margins, net income, and diluted earnings per share. This performance reflects the successful execution of its four-pillar growth strategy: Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions and Alliances. The company's diversified business model, spanning aerospace, process, power, industrial, and floorcare markets, demonstrates resilience. AMETEK's commitment to innovation is evident in its new product introductions, and its focus on operational efficiency, including leveraging lower-cost manufacturing locations and Six Sigma initiatives, continues to enhance profitability. The company also increased its quarterly dividend by 50% and completed a three-for-two stock split, signaling confidence in its financial health and future prospects.

Financial Highlights

54 data points
Beta

Revenue

$2.47B

Net Income

$283.93M

11.5% Net Margin

EPS (Diluted)

$1.18

Total Assets

$3.82B

Cash & Equivalents

$163.21M

Free Cash Flow

$383.83M

Financial Statements
Beta
Revenue$2.47B
R&D Expenses$56.80M
SG&A Expenses$296.48M
Operating Expenses$1.99B
Operating Income$482.16M
Interest Expense$67.52M
Net Income$283.93M
EPS (Basic)$1.19
EPS (Diluted)$1.18
Shares Outstanding (Basic)238.58M
Shares Outstanding (Diluted)241.33M

Key Highlights

  • 1AMETEK reported an 18% year-over-year increase in net sales for 2010, reaching $2.47 billion.
  • 2The company achieved record operating income, operating margins, net income, and diluted earnings per share in 2010.
  • 3Six strategic acquisitions were completed in 2010, contributing to revenue growth and market position.
  • 4Both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG) showed strong internal sales growth, of approximately 15% and 12% respectively.
  • 5The company increased its quarterly cash dividend by 50% and executed a three-for-two stock split.
  • 6Backlog of unfilled orders reached a record $828.8 million at the end of 2010.
  • 7International sales represented 49% of consolidated net sales, demonstrating the company's global reach.

Frequently Asked Questions

In 2010, AMETEK achieved record performance with an 18% increase in sales to $2.47 billion, record operating income, operating income margins, net income, and diluted earnings per share. This was driven by strong internal growth and six strategic acquisitions.

AMETEK completed six acquisitions in 2010, spending $538.6 million. These acquisitions contributed to revenue growth and expanded the company's presence in various niche markets within both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG).

AMETEK's growth strategy is built on four pillars: Operational Excellence (through Six Sigma, global sourcing, and lean manufacturing), New Product Development, Global and Market Expansion, and Strategic Acquisitions and Alliances. The company aims for double-digit annual earnings per share growth over the business cycle.

AMETEK demonstrated its commitment to shareholders by increasing its quarterly cash dividend by 50% and executing a three-for-two stock split in 2010. The company also continued to repurchase shares under its authorization, repurchasing 3.1 million shares for $78.6 million.