Summary
Amphenol Corporation reported strong top-line growth in the second quarter and first six months of 2011, with net sales increasing by 15% and 18% respectively compared to the prior year periods. This growth was primarily driven by the Interconnect Products and Assemblies segment, which benefited from robust demand in the wireless device, industrial, automotive, and commercial aerospace markets. The company also saw positive impacts from acquisitions and favorable foreign currency exchange rates. Net income also saw a significant increase, up 14% for the quarter and 19% year-to-date, reflecting the strong sales performance and a notable gain from the adjustment of a contingent acquisition-related obligation. Operationally, while gross profit margin saw a slight decrease due to rising material costs, the company managed SG&A expenses effectively as a percentage of sales, even with increased R&D spending. Cash flow from operations significantly improved year-over-year, supported by strong earnings and effective working capital management, although an increase in inventory was noted. The company also actively managed its capital structure, amending its revolving credit facility to extend its maturity and reduce costs, and continued its share repurchase program. Overall, Amphenol demonstrated solid financial performance characterized by healthy revenue growth and improved profitability.
Financial Highlights
51 data points| Revenue | $1.02B |
| Cost of Revenue | $696.52M |
| Gross Profit | $321.22M |
| SG&A Expenses | $124.16M |
| Operating Income | $214.87M |
| Interest Expense | $11.37M |
| Net Income | $147.75M |
| EPS (Basic) | $0.11 |
| EPS (Diluted) | $0.11 |
| Shares Outstanding (Basic) | 1.37B |
| Shares Outstanding (Diluted) | 1.39B |
Key Highlights
- 1Net sales grew by 15% to $1,017.7 million in Q2 2011 and by 18% to $1,958.3 million in the first six months of 2011 compared to the prior year periods.
- 2Net income attributable to Amphenol Corporation increased by 14% to $147.8 million for Q2 2011 and by 19% to $275.7 million for the first six months of 2011.
- 3A significant gain of $17.8 million related to the adjustment of a contingent acquisition-related obligation positively impacted operating income and net income in Q2 2011.
- 4Cash flow from operating activities increased substantially by 49% to $212.3 million in the first six months of 2011 compared to the prior year.
- 5The company amended its $1,000 million unsecured credit facility in June 2011, extending the maturity to July 2016 and reducing borrowing costs.
- 6Amphenol repurchased approximately 6.6 million shares of its common stock for $361.0 million during the first six months of 2011 as part of its authorized stock repurchase program.
- 7Goodwill increased by $43.7 million to $1,577.0 million, primarily due to an acquisition and currency translation.