Summary
Amphenol Corporation's Q3 2011 report shows robust top-line growth, with net sales increasing by 9% year-over-year to $1.03 billion for the quarter and 15% for the nine-month period. This growth was primarily driven by strong demand in the wireless devices market, along with contributions from the automotive and commercial aerospace sectors. Despite overall positive sales trends, the company experienced a slight decline in gross profit margin due to increased material costs and severance expenses, as well as a one-time flood-related charge impacting the third quarter results. The company demonstrated strong operational cash flow generation, a significant increase from the prior year, bolstering its liquidity position. Amphenol also actively managed its capital structure, amending its revolving credit facility to extend maturity and reduce costs, and continuing its share repurchase program. Management expressed confidence in the company's ability to meet its obligations for the next twelve months, supported by solid cash flow, available credit facilities, and cash reserves.
Financial Highlights
51 data points| Revenue | $1.03B |
| Cost of Revenue | $709.28M |
| Gross Profit | $323.48M |
| SG&A Expenses | $124.59M |
| Operating Income | $186.06M |
| Interest Expense | $10.50M |
| Net Income | $134.62M |
| EPS (Basic) | $0.10 |
| EPS (Diluted) | $0.10 |
| Shares Outstanding (Basic) | 1.34B |
| Shares Outstanding (Diluted) | 1.36B |
Key Highlights
- 1Net sales increased by 9% to $1.03 billion for the third quarter of 2011 and by 15% to $2.99 billion for the first nine months, demonstrating strong revenue growth.
- 2The 'Interconnect Products and Assemblies' segment, representing 93% of sales, saw a 9% increase in Q3 sales driven by the wireless devices market and also showed strength in automotive and commercial aerospace.
- 3Operating cash flow significantly improved, reaching $396.6 million for the first nine months of 2011, up from $264.2 million in the prior year period.
- 4Amphenol amended its $1 billion unsecured credit facility in June 2011, extending its maturity to July 2016 and reducing borrowing costs.
- 5The company repurchased approximately 10.4 million shares for $534.0 million during the first nine months of 2011 as part of its authorized stock repurchase program.
- 6A flood event in September 2011 at the Sidney, New York facility resulted in a $12.8 million charge for property damage and cleanup, with an additional $7 million expected in Q4.
- 7The company's effective tax rate for the first nine months of 2011 was 26.3%, influenced by certain one-time tax benefits and costs related to flood damage and acquisition obligation adjustments.