Summary
Amphenol Corporation reported a significant increase in net sales for the second quarter and first six months of 2010 compared to the same periods in 2009, driven primarily by the Interconnect Products and Assemblies segment. This growth reflects a broad strengthening across key markets including telecommunications, data communications, industrial, automotive, and wireless communications, indicating a recovery from the weaker demand experienced in 2009 due to the global economic crisis. Profitability also improved, with higher gross profit margins and operating income, particularly in the Interconnect Products and Assemblies segment. The company's financial condition remains robust, supported by strong operating cash flow, a substantial cash position, and available credit facilities. Management is confident in its ability to meet its obligations for the next twelve months. The company also reported a notable increase in goodwill, primarily due to an acquisition in the Interconnect Products and Assemblies segment.
Financial Highlights
49 data points| Revenue | $884.80M |
| Cost of Revenue | $595.50M |
| Gross Profit | $289.30M |
| SG&A Expenses | $113.67M |
| Operating Income | $175.63M |
| Interest Expense | $9.97M |
| Net Income | $129.67M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.39B |
| Shares Outstanding (Diluted) | 1.41B |
Key Highlights
- 1Net sales increased by 29% in Q2 2010 and 23% for the first six months of 2010 compared to the prior year, signaling a strong market recovery.
- 2The Interconnect Products and Assemblies segment was the primary driver of sales growth, accounting for approximately 92% of total sales.
- 3Gross profit margin improved to 32.7% in Q2 2010 and 32.5% for the first six months of 2010, up from 31.3% in the prior year periods.
- 4Operating income saw a substantial increase, reflecting higher volumes and effective cost management, particularly in the Interconnect segment.
- 5The company adopted ASU 2009-16, impacting the accounting for its Receivables Securitization Facility, which reclassified $82 million of receivables from a sale to debt, affecting cash flow from operations.
- 6Cash flow from operating activities, excluding the impact of the ASU adoption, was $217.9 million for the first six months of 2010, demonstrating continued operational strength.
- 7Goodwill increased by $13.7 million to $1,382.4 million, mainly due to an acquisition, indicating strategic growth initiatives.