What is the primary driver of Amphenol's revenue growth in this period?

The primary driver of Amphenol's revenue growth is the significant increase in net sales, particularly within its Interconnect Products and Assemblies segment. This growth is attributed to a broad strengthening of demand across its key end markets, including communications, aerospace, industrial, and automotive, recovering from weaker economic conditions experienced in the prior year.

How has Amphenol's profitability changed compared to the previous year?

Amphenol has shown substantial improvement in profitability. Net income attributable to shareholders increased significantly in both the third quarter and year-to-date periods. This is supported by higher gross profit margins, achieved through a combination of increased sales volume and effective cost management, as well as improved operating income in its core segments.

What is the company's financial health and liquidity situation?

Amphenol demonstrates a strong liquidity position with $587.8 million in cash, cash equivalents, and short-term investments as of September 30, 2010. The company also has a $1 billion revolving credit facility, which was recently refinanced, providing ample financial flexibility to meet its obligations and fund operations, capital expenditures, and potential acquisitions.

Has Amphenol made any significant acquisitions or strategic investments recently?

Yes, the company has made acquisitions that contributed to the increase in goodwill and other long-term assets. Specifically, two acquisitions in the Interconnect Products and Assemblies segment during the first nine months of 2010 are noted, with associated contingent consideration payments scheduled for 2011 and 2012.

APH 10-Q Quarterly Report Q3 FY2010 — Revenue, Net Income, EPS

Summary

Amphenol Corporation's third quarter and year-to-date 2010 results show a strong rebound from the previous year, driven by significant increases in net sales across its Interconnect Products and Assemblies segment, which constitutes the majority of its revenue. The company reported a 32% increase in net sales for the third quarter and a 26% increase for the first nine months of 2010 compared to the same periods in 2009, indicating robust demand across its key markets, particularly in communications, aerospace, industrial, and automotive sectors. Profitability also saw substantial improvement, with operating income and net income growing considerably. The company's focus on cost management, combined with higher sales volumes, contributed to improved gross profit margins. Amphenol also successfully refinanced its credit facilities and maintained a healthy cash position, demonstrating strong financial management. Investors can note the company's continued strategic investments through acquisitions and its commitment to returning value through dividends.

Financial Highlights

50 data points

Beta

Revenue

$948.46M

0.3% Gross Margin

Net Income

$137.27M

0.1% Net Margin

EPS (Diluted)

$0.10

Total Assets

$3.97B

Cash & Equivalents

$480.53M

Free Cash Flow

$98.06M

Financial Statements

Beta

Revenue	$948.46M
Cost of Revenue	$638.75M
Gross Profit	$309.72M
SG&A Expenses	$120.58M
Operating Income	$189.13M
Interest Expense	$10.57M
Net Income	$137.27M
EPS (Basic)	$0.10
EPS (Diluted)	$0.10
Shares Outstanding (Basic)	1.39B
Shares Outstanding (Diluted)	1.41B

Key Highlights

1Net sales increased by 32% in Q3 2010 and 26% year-to-date compared to the prior year, indicating a strong recovery and growth trajectory.
2The Interconnect Products and Assemblies segment, accounting for approximately 93% of sales, experienced significant growth, up 36% in Q3 and 28% year-to-date, driven by broad market strengthening.
3Net income attributable to Amphenol Corporation shareholders rose by approximately 69% in Q3 2010 and 59% year-to-date, reflecting improved operational performance.
4Gross profit margin improved to 32.7% in Q3 2010 and 32.6% year-to-date, up from 31.3% in the comparable periods of 2009, showcasing better cost management and pricing power.
5The company successfully refinanced its senior credit facility in August 2010, establishing a new $1 billion unsecured Revolving Credit Facility maturing in 2014, enhancing financial flexibility.
6Cash and cash equivalents, along with short-term investments, increased to $587.8 million as of September 30, 2010, indicating a strong liquidity position.
7The company declared and paid a quarterly dividend of $0.015 per share, continuing its practice of returning capital to shareholders.

AMPHENOL CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2010

Summary

Financial Highlights

Key Highlights

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