Summary
AMETEK, Inc. reported a strong performance for the fiscal year ending December 30, 2017, setting records for orders, sales, operating income, net income, and diluted earnings per share. This robust growth was driven by a strengthening global economic environment, successful integration of recent acquisitions, and continued focus on their 'Operational Excellence' strategy. The company expanded its product portfolio through three strategic acquisitions in 2017: Rauland-Borg Corporation (communications solutions), MOCON, Inc. (gas analysis instrumentation), and Arizona Instrument LLC (moisture and gas measurement instruments), all of which are expected to contribute positively to future results. The company's balanced approach to growth, emphasizing both organic expansion and strategic acquisitions, along with its diversified end markets and global presence, positions it well for continued success. Investors should note the positive impact of the U.S. Tax Cuts and Jobs Act, which provided a significant net benefit to earnings in 2017. AMETEK continues to focus on innovation and operational efficiency to drive shareholder value.
Financial Highlights
56 data points| Revenue | $4.30B |
| Cost of Revenue | $2.85B |
| Gross Profit | $1.45B |
| R&D Expenses | $130.40M |
| SG&A Expenses | $535.18M |
| Operating Expenses | $3.40B |
| Operating Income | $903.62M |
| Interest Expense | $98.03M |
| Net Income | $681.47M |
| EPS (Basic) | $2.96 |
| EPS (Diluted) | $2.94 |
| Shares Outstanding (Basic) | 230.23M |
| Shares Outstanding (Diluted) | 231.84M |
Key Highlights
- 1AMETEK achieved record orders of $4,539.8 million and record sales of $4,300.2 million in 2017, representing year-over-year increases of 18.0% and 12.0% respectively.
- 2Diluted earnings per share (EPS) increased by 34.2% to $2.94 in 2017, up from $2.19 in 2016.
- 3The company completed three strategic acquisitions in 2017 (Rauland, MOCON, Arizona Instrument) for $556.6 million, further strengthening its market positions.
- 4Organic sales growth was 6% for the year, with Electronic Instruments Group (EIG) at 5% and Electromechanical Group (EMG) at 8%.
- 5Operating cash flow increased by 10.1% to $833.3 million in 2017.
- 6The Tax Cuts and Jobs Act resulted in a one-time net benefit of $91.6 million in 2017, increasing EPS by $0.39.
- 7Backlog of unfilled orders reached a record $1,396.1 million at the end of 2017.