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10-QPeriod: Q3 FY2015

AMETEK INC/ Quarterly Report for Q3 Ended Sep 30, 2015

Filed November 5, 2015For Securities:AME

Summary

AMETEK Inc. reported solid financial results for the nine months ended September 30, 2015, demonstrating resilience in a challenging global environment. While net sales saw a slight decrease of 0.4% year-over-year to $2.99 billion, this was largely due to a 4% negative impact from foreign currency translation, offset by a similar increase from recent acquisitions. The company successfully integrated two key acquisitions in 2015: Global Tubes and Surface Vision, which contributed to revenue growth. Profitability remained strong, with net income increasing by 5.0% to $454.0 million and diluted EPS rising by 6.9% to $1.87. This performance reflects the effectiveness of AMETEK's Operational Excellence initiatives, which helped improve operating margins despite increased pension contributions and realignment costs. Cash flow from operations was robust, generating $473.1 million, though slightly lower than the prior year primarily due to a significant pension contribution. The company strategically deployed capital through acquisitions and substantial share repurchases, investing $356.5 million in acquisitions and returning $306.5 million to shareholders via stock buybacks in the first nine months of 2015. AMETEK maintains a healthy financial position with a debt-to-capital ratio of 36.6%, indicating prudent financial management.

Financial Statements
Beta
Revenue$998.53M
SG&A Expenses$112.12M
Operating Expenses$760.91M
Operating Income$237.62M
Interest Expense$23.68M
Net Income$156.40M
EPS (Basic)$0.65
EPS (Diluted)$0.65
Shares Outstanding (Basic)239.96M
Shares Outstanding (Diluted)241.24M

Key Highlights

  • 1Net sales for the nine months ended September 30, 2015, were $2,986.3 million, a slight decrease of 0.4% compared to $2,997.8 million in the prior year, primarily impacted by foreign currency headwinds.
  • 2Net income increased by 5.0% to $454.0 million for the nine months ended September 30, 2015, from $432.5 million in the prior year.
  • 3Diluted earnings per share (EPS) rose by 6.9% to $1.87 for the nine months ended September 30, 2015, from $1.75 in the prior year, showcasing improved profitability.
  • 4The company completed two significant acquisitions in 2015: Global Tubes and Surface Vision, investing $356.5 million, which contributed to revenue and expanded its product offerings.
  • 5Cash provided by operating activities was $473.1 million for the nine months ended September 30, 2015, a decrease of 7.7%, largely due to increased pension plan contributions.
  • 6AMETEK repurchased approximately $306.5 million of its common stock during the first nine months of 2015, demonstrating a commitment to returning capital to shareholders.
  • 7Segment operating income increased by 3.9% to $735.7 million for the first nine months of 2015, driven by Operational Excellence initiatives and acquisitions, despite restructuring charges.

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