01—Abstract
Summary
Summary of the 10-K filed February 25, 2016. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. (AME) reported solid performance in its 2015 10-K filing, achieving record operating income, net income, and diluted earnings per share despite a slight decrease in overall net sales.
The company's strategic focus on operational excellence, strategic acquisitions, global expansion, and new product development continues to drive growth. AMETEK successfully integrated several acquisitions throughout the year, contributing to its performance and expanding its market reach in electronic instruments and electromechanical devices. The company's financial health remains strong, supported by robust operating cash flow and effective management of its debt and capital resources, even as it navigated a challenging global economic environment and currency headwinds.
02—Key points
Key Highlights
- AMETEK achieved record operating income ($907.7 million), net income ($590.9 million), and diluted earnings per share ($2.45) in 2015, demonstrating strong operational execution.
- Net sales for 2015 were $3,974.3 million, a slight decrease of 1.2% from 2014, impacted by foreign currency translation headwinds and a stronger U.S. dollar.
- The company completed two strategic acquisitions in 2015: Global Tubes and Surface Vision, investing $356.5 million to expand its offerings in electromechanical and electronic instruments segments.
- AMETEK continued its focus on R&D, with $116.3 million in company-funded R&D expenses, and noted that sales from new products introduced in the last three years represented 24.0% of net sales.
- The company generated strong free cash flow of $603.4 million in 2015, underscoring its ability to fund operations and strategic initiatives.
- AMETEK actively managed its capital structure, repurchasing approximately $435.4 million in common stock and maintaining a debt-to-capitalization ratio of 37.4%.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Ametek Inc kept $0.15.
- Revenue$3.97B100.0%
- Cost of revenue−$2.62B65.9%
- Gross profit$1.36B34.1%
- Operating costs−$448.6M11.3%
- Operating income$907.7M22.8%
- Interest, other & tax−$316.9M8.0%
- Net income$590.9M14.9%
04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 25, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $3.97B$4.02B | −1.2% |
| Cost of Revenue | $2.62B$2.66B | −1.6% |
| Gross Profit | $1.36B$1.36B | −0.4% |
| R&D Expenses | $116.30M$119.30M | −2.5% |
| SG&A Expenses | $448.59M$462.64M | −3.0% |
| Operating Expenses | $3.07B$3.12B | −1.8% |
| Operating Income | $907.72M$898.59M | +1.0% |
| Interest Expense | $91.80M$79.93M | +14.8% |
| Net Income | $590.86M$584.46M | +1.1% |
| EPS (Basic) | $2.46$2.39 | +2.9% |
| EPS (Diluted) | $2.45$2.37 | +3.4% |
| Shares Outstanding (Basic) | 239.91M244.88M | −2.0% |
| Shares Outstanding (Diluted) | 241.59M247.10M | −2.2% |
05—Questions
Frequently Asked Questions
What were AMETEK's key financial achievements in 2015?
In 2015, AMETEK set new records for operating income ($907.7 million), net income ($590.9 million), and diluted earnings per share ($2.45). This was achieved despite a slight year-over-year decline in net sales, showcasing the company's operational efficiency and strategic execution.
How did AMETEK's acquisition strategy contribute to its 2015 performance?
AMETEK continued its acquisitive growth strategy by acquiring Global Tubes and Surface Vision in 2015 for $356.5 million. These acquisitions, along with ongoing operational excellence initiatives, helped offset some of the challenges posed by foreign currency headwinds and a weaker global economy, contributing positively to the company's overall financial results.
What is AMETEK's outlook for its diverse product segments (EIG and EMG)?
AMETEK operates through two primary groups: Electronic Instruments Group (EIG) and Electromechanical Group (EMG). EIG focuses on advanced instruments for process, aerospace, and power markets, while EMG provides electromechanical devices like precision motion control and specialty metals. Both segments aim to leverage the company's growth strategies, with management expressing optimism about future performance driven by innovation and market positioning.
How did foreign currency fluctuations impact AMETEK's 2015 results?
AMETEK experienced an unfavorable impact from foreign currency translation of approximately 4% on net sales and internal orders in 2015. The stronger U.S. dollar also presented competitive impacts on its products sold overseas.
06—Continue