10-KPeriod: FY2012

AMETEK INC/ Annual Report, Year Ended Dec 31, 2012

Filed February 21, 2013For Securities:AME

Summary

AMETEK, Inc. (AME) delivered a strong financial performance in 2012, setting records for orders, backlog, net sales, operating income, net income, and diluted earnings per share. The company reported net sales of $3.3 billion, an increase of 11.5% from the previous year, driven by contributions from strategic acquisitions and effective "Operational Excellence" initiatives. Net income rose by 19.4% to $459.1 million, translating to diluted earnings per share of $1.88, a 19.0% increase. The company also saw record operating cash flow, underscoring its operational efficiency and financial health. AMETEK's growth strategy continues to focus on four key pillars: Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions. The company actively pursued growth through acquisitions, completing seven businesses in 2012 across its Electronic Instruments Group (EIG) and Electromechanical Group (EMG). International sales represented over half of the company's net sales, highlighting its global reach and diversification. With a robust backlog and a clear growth strategy, AMETEK is well-positioned for continued performance in its diversified niche markets.

Financial Highlights

52 data points
Beta

Revenue

$3.33B

Net Income

$459.13M

13.8% Net Margin

EPS (Diluted)

$1.88

Total Assets

$5.19B

Cash & Equivalents

$157.98M

Free Cash Flow

$555.04M

Financial Statements
Beta
Revenue$3.33B
R&D Expenses$84.90M
SG&A Expenses$380.53M
Operating Expenses$2.59B
Operating Income$745.87M
Interest Expense$75.47M
Net Income$459.13M
EPS (Basic)$1.90
EPS (Diluted)$1.88
Shares Outstanding (Basic)241.51M
Shares Outstanding (Diluted)243.99M

Key Highlights

  • 1Record-breaking financial performance in 2012, with increases in net sales, operating income, net income, and diluted EPS.
  • 2Net sales reached $3.3 billion, up 11.5% year-over-year, driven by acquisitions and operational improvements.
  • 3Net income grew by 19.4% to $459.1 million, with diluted EPS at $1.88.
  • 4Seven strategic acquisitions were completed in 2012, expanding capabilities in areas like fluid/gas handling, motion control, and MRO for aerospace.
  • 5International sales accounted for 51.2% of total net sales, demonstrating significant global presence.
  • 6Research and development spending increased, with sales from new products introduced in the last three years representing 21.5% of net sales.
  • 7The company executed a three-for-two stock split and increased its quarterly cash dividend by 50%.

Frequently Asked Questions

AMETEK's primary growth strategy in 2012 centered on four key pillars: Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions and Alliances. The company actively pursued growth through strategic acquisitions, aiming to expand its product lines, enhance market positions, and improve operational efficiencies.

Acquisitions played a significant role in AMETEK's 2012 performance. The company completed seven acquisitions, spending $747.7 million. These acquisitions, such as O'Brien Corporation, Dunkermotoren GmbH, and Micro-Poise Measurement Systems, contributed to the 11.5% increase in net sales and expanded the company's presence in key niche markets within both the Electronic Instruments Group (EIG) and Electromechanical Group (EMG).

International sales are a crucial component of AMETEK's business, representing 51.2% of consolidated net sales in 2012. This substantial international presence, with operations across North America, Europe, and Asia, diversifies the company's revenue streams and reduces reliance on any single geographic market, mitigating risks associated with regional economic downturns.

AMETEK maintained strong financial flexibility in 2012. The company generated record operating cash flow of $612.5 million and free cash flow of $555.1 million. It also entered into a new five-year, $700 million revolving credit facility, providing additional capacity to support its growth initiatives, including acquisitions. The company's debt-to-capital ratio remained manageable at 36.4%.