Summary
Amphenol Corporation's third-quarter 2009 results show a significant year-over-year decline in net sales, reflecting the pervasive impact of the global economic crisis across its key end markets, including automotive, telecommunications, and data communications. Despite the revenue challenges, the company demonstrated effective cost management, leading to a stable gross profit margin and a reduction in selling, general, and administrative expenses as a percentage of sales. The company's financial position remains solid, with improved cash flow from operations compared to the prior year, driven by better working capital management. Amphenol continues to invest in strategic acquisitions, as evidenced by the increase in goodwill, indicating a focus on long-term growth despite the current economic headwinds. The company also maintained compliance with its debt covenants and has ample liquidity available through its revolving credit facility and internally generated cash.
Financial Highlights
47 data points| Revenue | $716.57M |
| Cost of Revenue | $492.18M |
| Gross Profit | $224.39M |
| SG&A Expenses | $100.10M |
| Operating Income | $124.29M |
| Interest Expense | $8.96M |
| Net Income | $80.92M |
| EPS (Basic) | $0.06 |
| EPS (Diluted) | $0.06 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net sales decreased by 17% in the third quarter and first nine months of 2009 compared to the same periods in 2008, attributed to the global economic crisis impacting automotive, telecommunications, and data/wireless communications markets.
- 2Gross profit margin remained stable at approximately 31.3% for the third quarter and nine months of 2009, compared to 32.6% in the prior year, showcasing cost control measures.
- 3Selling, general, and administrative expenses as a percentage of net sales decreased slightly, reflecting lower sales volume and cost reduction initiatives.
- 4Cash flow from operating activities significantly increased by $119.9 million for the first nine months of 2009 compared to 2008, driven by improved working capital management and higher non-cash expenses.
- 5Goodwill increased by $132.8 million primarily due to two acquisitions in the Interconnect Products and Assemblies segment during the nine-month period.
- 6The company remained compliant with all financial covenants under its $1 billion revolving credit facility, with $220 million in availability as of September 30, 2009.
- 7Inventories and accounts receivable were reduced, indicating efficient management of working capital in response to lower demand.