Summary
Amphenol Corporation's (APH) 2017 10-K filing indicates a strong year of growth and strategic expansion, despite a notable impact from the Tax Cuts and Jobs Act. Net sales increased by 12% to $7,011.3 million, driven by robust performance across key markets including automotive, industrial, and information technology/data communications. The Interconnect Products and Assemblies segment remained the dominant revenue contributor, accounting for 94% of sales. Acquisitions played a significant role in this growth, with the company investing approximately $266 million in five acquisitions during 2017. The company faced a significant, albeit one-time, impact from the Tax Cuts and Jobs Act, resulting in a provisional income tax charge of $398.5 million in 2017. Excluding this and other special items, adjusted net income grew by 15%, showcasing underlying operational strength. Amphenol also demonstrated a commitment to returning value to shareholders, with dividends declared increasing to $0.70 per share in 2017 and the company actively repurchasing its own stock, spending $618.0 million on buybacks in 2017.
Financial Highlights
56 data points| Revenue | $7.01B |
| Cost of Revenue | $4.70B |
| Gross Profit | $2.31B |
| R&D Expenses | $193.70M |
| SG&A Expenses | $878.30M |
| Operating Income | $1.43B |
| Interest Expense | $92.30M |
| Net Income | $650.50M |
| EPS (Basic) | $0.53 |
| EPS (Diluted) | $0.52 |
| Shares Outstanding (Basic) | 1.22B |
| Shares Outstanding (Diluted) | 1.27B |
Key Highlights
- 1Net sales grew 12% year-over-year to $7.01 billion, with the Interconnect Products and Assemblies segment driving 94% of total sales.
- 2The company made strategic acquisitions, investing $266 million in five businesses during 2017 to expand its product lines and geographic presence.
- 3The Tax Cuts and Jobs Act resulted in a significant provisional income tax charge of $398.5 million in 2017, impacting reported net income.
- 4Excluding special items like the Tax Act charge and acquisition-related expenses, adjusted net income increased by 15%, demonstrating solid operational performance.
- 5Amphenol returned capital to shareholders through increased dividends ($0.70 per share in 2017, up from $0.58 in 2016) and robust share repurchases totaling $618 million in 2017.
- 6Diversification across end markets remains a key strategy, with automotive and IT/data communications being significant contributors (19% and 20% of net sales, respectively) along with industrial (19%) and mobile devices (14%).
- 7The company maintained effective cost control measures and R&D investment, with R&D expenses increasing by 16% to $193.7 million in 2017.