10-KPeriod: FY2011

AMPHENOL CORP /DE/ Annual Report, Year Ended Dec 31, 2011

Filed February 24, 2012For Securities:APH

Summary

Amphenol Corporation (APH) demonstrated robust performance in fiscal year 2011, a year marked by a 11% increase in net sales, reaching $3.94 billion. This growth was primarily driven by strength in the "Information Technology & Communications" segment, which accounted for 59% of sales, and further bolstered by significant contributions from the "Industrial/Automotive" and "Commercial Aerospace & Military" sectors. The company's strategic focus on design capabilities, a broad product portfolio, and global presence, coupled with a disciplined approach to cost control and opportunistic acquisitions, continues to yield positive results. Profitability also saw an increase, with operating income rising by 7% and net income by 6% year-over-year. Amphenol's strong cash generation and effective management of working capital underscore its financial resilience and capacity for continued investment in growth and shareholder returns.

Financial Highlights

53 data points
Beta

Revenue

$3.94B

31.6% Gross Margin

Net Income

$524.19M

13.3% Net Margin

EPS (Diluted)

$0.38

Total Assets

$4.45B

Cash & Equivalents

$515.10M

Free Cash Flow

$464.99M

Financial Statements
Beta
Revenue$3.94B
Cost of Revenue$2.70B
Gross Profit$1.24B
R&D Expenses$88.88M
SG&A Expenses$486.32M
Operating Income$751.68M
Interest Expense$43.03M
Net Income$524.19M
EPS (Basic)$0.39
EPS (Diluted)$0.38
Shares Outstanding (Basic)1.36B
Shares Outstanding (Diluted)1.37B

Key Highlights

  • 1Net sales for 2011 increased by 11% to $3.94 billion, demonstrating strong market demand.
  • 2The "Information Technology & Communications" segment remains the largest revenue driver, contributing 59% of total sales.
  • 3Operating income grew by 7% to $751.7 million, and net income attributable to Amphenol Corporation increased by 6% to $524.2 million, indicating healthy profitability.
  • 4The company actively pursued its acquisition strategy, investing approximately $303 million in two automotive market acquisitions to broaden its product offerings.
  • 5International sales constituted a significant portion of revenue (68%), highlighting Amphenol's global reach and reliance on diverse markets.
  • 6Despite a flood at its Sidney, NY facility, the company managed the disruption, with the plant returning to full production by year-end.
  • 7Amphenol repurchased approximately 13.4 million shares of common stock for $672.2 million under its authorized repurchase program.

Frequently Asked Questions

Amphenol's primary revenue drivers in 2011 were its "Information Technology & Communications" segment (59% of sales), followed by the "Industrial/Automotive" (21%) and "Commercial Aerospace & Military" (20%) segments. Growth was particularly strong in wireless devices, automotive applications, and commercial aerospace.

Amphenol pursued a strategy focused on customer needs, innovative product development, a strong global presence, cost control, and strategic acquisitions. The company reported an 11% increase in net sales and a 6% increase in net income, indicating successful execution of its strategy.

Amphenol targets acquisitions in high-growth segments that offer complementary capabilities in products, customers, or geography. The company aims for acquisitions to be accretive to performance within the first year. In 2011, they invested approximately $303 million in two automotive acquisitions.

Approximately 68% of Amphenol's sales in 2011 were international, with 48% from Asia. The company has manufacturing facilities across multiple continents to serve global customers. However, it acknowledges risks associated with political, economic, and military instability in non-U.S. markets, as well as foreign currency exchange rate fluctuations.