Page 4 - 2017 AMETEK Annual Report (Interactive) Updated mobile
P. 4
Letter to Shareholders
“Our businesses performed exceptionally well in 2017,
and our outlook for the year ahead is positive. We
have high confidence in our business model and are
committed to achieving our strategic vision and goals.”
2017 Stock Price Performance model, those investments will
60% focus on our sales, research
49.1% and development activities. The
40% top priority for our strong free
cash flow remains strategic
19.3% 19.4% acquisitions.
20%
We will continue to make
0% opportunistic share repurchases
Russell 1000 Index S&P 500 Index AMETEK, Inc.
and pay a modest dividend, as we
have done in the past. Reflecting
2018 Outlook our confidence in the underlying
As we look ahead, we are strength of the cash flow from our
confident we can deliver businesses, we announced a 56%
increase in our quarterly dividend
We Had a Record Year strong performance in 2018. for 2018.
Our businesses are well
AMETEK had a great year in positioned in highly attractive
2017. We delivered excellent market segments, each with Strategic Vision and Goal
growth across all key financial compelling growth characteristics. Our goal is to deliver double-digit
metrics, while continuing to invest growth in sales and earnings
strategically in our businesses. We expect our businesses to over the business cycle. With
continue to successfully execute our strong and proven business
We generated record sales, with each of our growth strategies model, we are confident we
broad-based organic growth and deliver excellent results in can achieve that goal. Guiding
across our businesses. We the short term by providing our our efforts is a commitment to
produced record orders, providing customers with differentiated our Four Growth Strategies:
us with a solid outlook entering technology solutions. And, we will Operational Excellence, Strategic
2018. We had record-level cash continue to invest strategically to Acquisitions, New Products,
flow and diluted earnings per capitalize on growth opportunities. and Global & Market Expansion.
share, reflecting the underlying Those strategies work in concert
strength of our business model. Recent US tax reform legislation to leverage the strength of our
is a positive for AMETEK. We will
Our sales in 2017 were $4.3 billion, see a lower effective tax rate and businesses and are scalable to
up 12% from 2016. We had have more efficient access to our create additional value for our
operating income of $937 million, cash outside the United States, shareholders.
up 11% over 2016, and an operating which will provide us with even
margin of 21.8%. Fully diluted greater financial flexibility. The Operational Excellence
earnings per share were $2.61, up benefits of tax reform, however, Operational Excellence is
13% from $2.30 per diluted share do not change our fundamental AMETEK’s cornerstone strategy.
in 2016. Operating cash flow, approach to investment and It is well engrained within our
excluding a discretionary pension capital allocation. culture. Operational Excellence
contribution during the year, was encompasses a broad set of
$883 million, up 17% from 2016. We will continue to invest systems, processes and tools
appropriately in our businesses used to support each of our other
Simply put, the AMETEK to support their growth initiatives.
operating model is working. Given our asset-light business growth strategies. We use it to
improve production efficiencies,
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