Summary
Amphenol Corporation reported a strong first quarter for 2011, with net sales increasing by 22% year-over-year to $940.6 million. This growth was primarily driven by the Interconnect Products and Assemblies segment, which saw a 25% sales increase, benefiting from broad market demand across various end markets including wireless devices, industrial, automotive, and aerospace. The company demonstrated robust operational performance, maintaining a gross profit margin of 32.3% and improving operating margins in its core segment due to higher volumes and effective cost management. Financially, Amphenol exhibited solid cash flow generation, with operating activities providing $107.7 million, a significant increase from the prior year. The company also initiated a substantial share repurchase program, buying back approximately 3.4 million shares for $188.5 million in the quarter, signaling confidence in its financial position and commitment to shareholder returns. While long-term debt increased due to a new revolving credit facility and accounting changes related to securitization, the company maintained compliance with financial covenants and reported sufficient liquidity for the next twelve months.
Financial Highlights
51 data points| Revenue | $940.59M |
| Cost of Revenue | $636.46M |
| Gross Profit | $304.12M |
| SG&A Expenses | $118.04M |
| Operating Income | $186.09M |
| Interest Expense | $10.02M |
| Net Income | $127.96M |
| EPS (Basic) | $0.09 |
| EPS (Diluted) | $0.09 |
| Shares Outstanding (Basic) | 1.40B |
| Shares Outstanding (Diluted) | 1.42B |
Key Highlights
- 1Net sales surged 22% to $940.6 million in Q1 2011 compared to Q1 2010, driven by strong performance in the Interconnect Products and Assemblies segment.
- 2Operating income grew significantly due to increased sales volume and effective cost management, particularly in the Interconnect Products and Assemblies segment.
- 3The company successfully maintained its gross profit margin at 32.3% for the quarter, indicating pricing power and efficient operations.
- 4Cash flow from operating activities more than tripled to $107.7 million, showcasing strong operational cash generation.
- 5Amphenol launched a new stock repurchase program in January 2011, buying back approximately $188.5 million worth of shares in the first quarter.
- 6The company refinanced its senior credit facility in August 2010, securing a $1 billion unsecured revolving credit facility maturing in August 2014, providing ample liquidity.
- 7The effective tax rate increased slightly to 27.5% in Q1 2011 from 26.1% in Q1 2010, partly due to the expiration of unrecognized tax benefits in the prior year.