01—Abstract
Summary
Summary of the 10-K filed February 24, 2012. Cited figures are marked; the original filing is the authoritative source.
Amphenol Corporation (APH) demonstrated robust performance in fiscal year 2011, a year marked by a 11% increase in net sales, reaching $3.94 billiona.
This growth was primarily driven by strength in the "Information Technology & Communications" segment, which accounted for 59%b 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%c 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.
02—Key points
Key Highlights
- Net sales for 2011 increased by 11% to $3.94 billion, demonstrating strong market demand.
- The "Information Technology & Communications" segment remains the largest revenue driver, contributing 59% of total sales.
- Operating 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.
- The company actively pursued its acquisition strategy, investing approximately $303 million in two automotive market acquisitions to broaden its product offerings.
- International sales constituted a significant portion of revenue (68%), highlighting Amphenol's global reach and reliance on diverse markets.
- Despite a flood at its Sidney, NY facility, the company managed the disruption, with the plant returning to full production by year-end.
- Amphenol repurchased approximately 13.4 million shares of common stock for $672.2 million under its authorized repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2011, Amphenol Corp kept $0.13.
- Revenue$3.94B100.0%
- Cost of revenue−$2.70B68.4%
- Gross profit$1.24B31.6%
- Operating costs−$492.0M12.5%
- Operating income$751.7M19.1%
- Interest, other & tax−$227.5M5.8%
- Net income$524.2M13.3%
04—Financials
Financial Highlights
Figures from 10-KFY2011filed February 24, 2012Financial Statements
FY2011 against FY2010
| Line item | FY2011FY2010 | Change |
|---|---|---|
| Revenue | $3.94B$3.55B | +10.9% |
| Cost of Revenue | $2.70B$2.40B | +12.5% |
| Gross Profit | $1.24B$1.16B | +7.4% |
| R&D Expenses | $88.88M$77.57M | +14.6% |
| SG&A Expenses | $486.32M$457.87M | +6.2% |
| Operating Income | $751.68M$700.36M | +7.3% |
| Interest Expense | $43.03M$40.74M | +5.6% |
| Net Income | $524.19M$496.40M | +5.6% |
| EPS (Basic) | $0.39$0.36 | +8.0% |
| EPS (Diluted) | $0.38$0.35 | +8.2% |
| Shares Outstanding (Basic) | 1.36B1.39B | −2.4% |
| Shares Outstanding (Diluted) | 1.37B1.41B | −2.6% |
05—Questions
Frequently Asked Questions
What were Amphenol's primary revenue drivers in 2011?
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.
How did Amphenol manage its growth and profitability?
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.
What is Amphenol's approach to mergers and acquisitions?
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.
How does Amphenol manage its international operations and associated risks?
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.
06—Continue