Summary
Amphenol Corporation's Q2 2009 filing reveals a notable decrease in net sales compared to the prior year, primarily attributed to the global economic crisis impacting key markets such as automotive, telecommunications, and data communications. Despite the revenue decline, the company demonstrated effective cost control measures, which helped to mitigate the impact on profitability. The company also saw an increase in its goodwill balance due to recent acquisitions, signaling a strategy of growth through consolidation even amidst economic headwinds. Cash flow from operations improved significantly year-over-year, driven by effective working capital management, particularly reductions in accounts receivable and inventory. Amphenol maintained a solid liquidity position with available credit facilities and a consistent dividend payout, indicating financial resilience. The company's strategic focus appears to be on navigating the challenging economic environment through operational efficiency and targeted acquisitions, while also returning value to shareholders.
Financial Highlights
47 data points| Revenue | $685.18M |
| Cost of Revenue | $471.03M |
| Gross Profit | $214.15M |
| SG&A Expenses | $98.67M |
| Operating Income | $115.48M |
| Interest Expense | $9.13M |
| Net Income | $74.87M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.05 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net sales decreased by 19% in the second quarter of 2009 compared to the same period in 2008, largely due to the global economic crisis impacting key markets.
- 2Gross profit margin remained strong at 31.3% for the quarter, reflecting effective cost control despite lower sales volumes.
- 3Operating margins in the Interconnect Products and Assemblies segment decreased, while the Cable Products segment saw an improvement due to cost reductions and lower material costs.
- 4Selling, general, and administrative expenses decreased as a percentage of net sales, demonstrating good expense management.
- 5Cash flow provided by operations significantly increased to $284.6 million for the first six months of 2009, up from $205.8 million in the prior year, driven by working capital improvements.
- 6Goodwill increased by $117.4 million in the first six months of 2009, primarily due to two acquisitions in the Interconnect Products and Assemblies segment.
- 7The company maintained its quarterly dividend of $0.015 per share and has an ongoing stock repurchase program, signaling confidence in its financial stability and commitment to shareholder returns.