01—Abstract
Summary
Summary of the 10-K filed February 23, 2012. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. reported a strong performance in 2011, achieving record net sales of $3.0 billiona, an increase of 21% from the prior year.
This growth was driven by robust internal performance in both its Electronic Instruments Group (EIG) and Electromechanical Group (EMG), as well as contributions from strategic acquisitions. The company highlighted its continued growth through a four-pronged strategy: Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions and Alliances. AMETEK's financial health remained solid, with record operating income and net income, accompanied by a significant increase in operating cash flow.
The company also expanded its financial flexibility by securing a new five-year revolving credit facility. Management's focus on innovation and cost control, coupled with a disciplined acquisition strategy, positions AMETEK for continued success in its diverse niche markets.
02—Key points
Key Highlights
- AMETEK achieved record net sales of $3.0 billion in 2011, a 21% increase year-over-year.
- Net income and diluted earnings per share also reached record levels in 2011.
- The company executed a successful acquisition strategy, completing five acquisitions in 2011 for $474.9 million, enhancing its product portfolio and market presence.
- Strong internal growth was reported in both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG).
- Operating income margins improved to 21.3% in 2011, up from 19.5% in 2010, reflecting operational efficiencies.
- The company secured a new $700 million five-year revolving credit facility, enhancing its financial flexibility.
- International sales represented 50.2% of total net sales, indicating a strong global presence.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 23, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $2.99B$2.47B | +21.0% |
| R&D Expenses | $78.00M$56.80M | +37.3% |
| SG&A Expenses | $349.32M$296.48M | +17.8% |
| Operating Expenses | $2.35B$1.99B | +18.4% |
| Operating Income | $635.94M$482.16M | +31.9% |
| Interest Expense | $69.73M$67.52M | +3.3% |
| Net Income | $384.46M$283.93M | +35.4% |
| EPS (Basic) | $1.60$1.19 | +34.5% |
| EPS (Diluted) | $1.58$1.18 | +33.9% |
| Shares Outstanding (Basic) | 240.38M238.58M | +0.8% |
| Shares Outstanding (Diluted) | 243.16M241.33M | +0.8% |
05—Questions
Frequently Asked Questions
What was AMETEK's overall financial performance in 2011?
AMETEK reported a very strong financial performance in 2011, achieving record net sales of $3.0 billion, a 21% increase from 2010. The company also set records for operating income, operating income margins, net income, diluted earnings per share, and operating cash flow. This growth was attributed to both internal sales increases across its segments and contributions from strategic acquisitions.
How did AMETEK's acquisitions contribute to its performance in 2011?
AMETEK completed five acquisitions in 2011 for a total of $474.9 million, adding businesses like Avicenna Technology, Coining Holding Company, Reichert Technologies, EM Test, and Technical Manufacturing Corporation. These acquisitions were strategic, aimed at strengthening product lines, improving market share, and increasing earnings, and they contributed positively to the company's overall sales growth and expanded its technological capabilities.
What are AMETEK's key growth strategies?
AMETEK's Corporate Growth Plan is built on four key strategies: 1) Operational Excellence, focusing on cost reduction and process improvements; 2) New Product Development, investing in innovation to maintain market leadership; 3) Global and Market Expansion, increasing presence in key international regions; and 4) Strategic Acquisitions and Alliances, acquiring businesses in differentiated niche markets. Management believes these strategies are designed to achieve double-digit annual earnings per share growth over the business cycle.
How does AMETEK manage its financial resources and debt?
AMETEK maintains a strong balance sheet and effective financial management. In September 2011, it secured a new $700 million revolving credit facility, enhancing its financial flexibility for growth initiatives, including acquisitions. The company's debt-to-capital ratio was managed at 38.1% at the end of 2011, and its free cash flow generation remains robust, providing ample resources for operations, investments, and returning value to shareholders. The company also actively repurchases its own stock to offset dilution.
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