01—Abstract
Summary
Summary of the 10-K filed February 24, 2011. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. (AME) reported a strong 2010, with sales increasing 18% to $2.47 billiona, 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%b and completed a three-for-two stock split, signaling confidence in its financial health and future prospects.
02—Key points
Key Highlights
- AMETEK reported an 18% year-over-year increase in net sales for 2010, reaching $2.47 billion.
- The company achieved record operating income, operating margins, net income, and diluted earnings per share in 2010.
- Six strategic acquisitions were completed in 2010, contributing to revenue growth and market position.
- Both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG) showed strong internal sales growth, of approximately 15% and 12% respectively.
- The company increased its quarterly cash dividend by 50% and executed a three-for-two stock split.
- Backlog of unfilled orders reached a record $828.8 million at the end of 2010.
- International sales represented 49% of consolidated net sales, demonstrating the company's global reach.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2010filed February 24, 2011Financial Statements
FY2010 against FY2009
| Line item | FY2010FY2009 | Change |
|---|---|---|
| Revenue | $2.47B$2.10B | +17.8% |
| R&D Expenses | $56.80M$50.50M | +12.5% |
| SG&A Expenses | $296.48M$254.14M | +16.7% |
| Operating Expenses | $1.99B$1.73B | +14.8% |
| Operating Income | $482.16M$366.05M | +31.7% |
| Interest Expense | $67.52M$68.75M | −1.8% |
| Net Income | $283.93M$205.77M | +38.0% |
| EPS (Basic) | $1.19$0.85 | +39.5% |
| EPS (Diluted) | $1.18$0.85 | +39.4% |
| Shares Outstanding (Basic) | 238.58M240.27M | −0.7% |
| Shares Outstanding (Diluted) | 241.33M242.66M | −0.6% |
05—Questions
Frequently Asked Questions
What were AMETEK's key financial achievements in 2010?
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.
How did AMETEK's acquisition strategy impact its 2010 results?
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).
What is AMETEK's strategy for future growth?
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.
What is AMETEK's approach to capital allocation and shareholder returns?
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.
06—Continue