10-QPeriod: Q1 FY2001

AMPHENOL CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2001

Filed May 14, 2001For Securities:APH

Summary

Amphenol Corporation reported a solid first quarter for 2001, demonstrating revenue growth and improved profitability. Net sales increased by 6% year-over-year to $316.7 million, driven primarily by strong performance in interconnect products for communications, aerospace, industrial, and automotive sectors. The company also achieved a notable improvement in gross profit margin, rising to 34% from 32% in the prior year, attributed to effective cost controls and a favorable product mix. Profitability saw a significant boost, with net income rising 41% to $28.5 million, translating to a substantial increase in earnings per share. The company's financial position remains robust, supported by strong operating cash flow. Amphenol continues to manage its debt effectively, with a decrease in interest expense due to lower average debt levels. The company remains focused on its core business, with no change in its policy of not paying dividends, expecting to fund future growth through internal cash flow and available credit facilities.

Key Highlights

  • 1Net sales increased 6% to $316.7 million for the three months ended March 31, 2001, compared to $300.0 million in the prior year period.
  • 2Gross profit margin improved to 34% from 32% year-over-year, driven by cost control measures and a favorable product mix.
  • 3Net income surged 41% to $28.5 million from $20.3 million in the same period last year.
  • 4Basic earnings per share (EPS) increased to $0.68 from $0.49, and diluted EPS rose to $0.67 from $0.48.
  • 5Operating income grew by approximately 21.4% to $61.5 million.
  • 6The company repaid $22.4 million in net bank debt during the quarter.
  • 7The 'Cable Products' segment experienced a sales decline, partially offset by growth in 'Interconnect Products and Assemblies'.

Frequently Asked Questions

Revenue growth was primarily driven by increased sales of interconnect products for communications, aerospace, industrial, and automotive applications. This was partially offset by a decline in sales of coaxial cable products.

Profitability saw a significant improvement. Net income increased by 41% to $28.5 million, and the gross profit margin improved to 34% from 32% due to effective cost control and a favorable product mix.

Amphenol has not paid, and has no present intention to pay, cash dividends on its common stock. The company expects to fund its ongoing requirements for debt service, capital expenditures, product development, and potential future acquisitions through internally-generated cash flow and its revolving credit facility.

The company is involved in various legal proceedings and claims, and is jointly and severally liable with Allied Signal Corporation for environmental cleanup sites. However, management does not expect these matters, nor the costs associated with their resolution, to have a material adverse effect on the company's financial condition or results of operations.