Summary
Amphenol Corporation reported first-quarter 2009 results showing a significant year-over-year decline in net sales, down 14% to $660.0 million. This decrease was primarily driven by weak end-market demand across automotive, telecommunications, data communications, and industrial sectors due to the global economic crisis. While sales in the military aerospace market remained relatively flat, and wireless communications saw growth, overall performance was impacted by the challenging macroeconomic environment and a strong U.S. dollar. Despite the sales decline, Amphenol demonstrated effective cost management, with selling, general, and administrative expenses decreasing as a percentage of sales. Net income attributable to Amphenol Corporation declined to $74.4 million from $97.5 million in the prior year period. The company also engaged in strategic acquisitions during the quarter, contributing to an increase in goodwill. Amphenol maintained compliance with its debt covenants and continues to focus on inventory reduction to navigate the current economic conditions.
Financial Highlights
28 data points| Revenue | $660.01M |
| Cost of Revenue | $453.63M |
| Gross Profit | $206.38M |
| SG&A Expenses | $95.69M |
| Operating Income | $110.69M |
| Interest Expense | $9.00M |
| Net Income | $74.41M |
| EPS (Basic) | $0.05 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.38B |
Key Highlights
- 1Net sales decreased by 14% to $660.0 million for the first quarter of 2009, compared to $770.7 million in the same period of 2008, reflecting broad-based market weakness.
- 2Net income attributable to Amphenol Corporation declined to $74.4 million ($0.43 per diluted share) from $97.5 million ($0.54 per diluted share) in the prior year's first quarter.
- 3The company completed two acquisitions in the Interconnect Products and Assemblies segment, contributing to a $102.6 million increase in goodwill.
- 4Gross profit margin slightly decreased to 31.3% from 32.6% year-over-year, impacted by reduced sales volume.
- 5Selling, general, and administrative expenses were reduced as a percentage of net sales to 14.5% from 13.1%, indicating successful cost control measures.
- 6Cash flow provided by operations increased to $142.8 million from $109.6 million, largely due to favorable changes in working capital components.
- 7Amphenol maintained compliance with all financial covenants under its revolving credit facility, with credit ratings of BBB- from Standard & Poor's and Baa3 from Moody's as of March 31, 2009.