10-KPeriod: FY2015

AMETEK INC/ Annual Report, Year Ended Dec 31, 2015

Filed February 25, 2016For Securities:AME

Summary

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.

Financial Highlights

54 data points
Beta

Revenue

$3.97B

34.1% Gross Margin

Net Income

$590.86M

14.9% Net Margin

EPS (Diluted)

$2.45

Total Assets

$6.66B

Cash & Equivalents

$381.00M

Free Cash Flow

$603.46M

Financial Statements
Beta
Revenue$3.97B
Cost of Revenue$2.62B
Gross Profit$1.36B
R&D Expenses$116.30M
SG&A Expenses$448.59M
Operating Expenses$3.07B
Operating Income$907.72M
Interest Expense$91.80M
Net Income$590.86M
EPS (Basic)$2.46
EPS (Diluted)$2.45
Shares Outstanding (Basic)239.91M
Shares Outstanding (Diluted)241.59M

Key Highlights

  • 1AMETEK 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.
  • 2Net 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.
  • 3The 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.
  • 4AMETEK 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.
  • 5The company generated strong free cash flow of $603.4 million in 2015, underscoring its ability to fund operations and strategic initiatives.
  • 6AMETEK actively managed its capital structure, repurchasing approximately $435.4 million in common stock and maintaining a debt-to-capitalization ratio of 37.4%.

Frequently Asked Questions

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.

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.

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.

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.