10-QPeriod: Q2 FY2013

AMPHENOL CORP /DE/ Quarterly Report for Q2 Ended Jun 30, 2013

Filed August 2, 2013For Securities:APH

Summary

Amphenol Corporation reported a solid second quarter and first half of 2013, demonstrating revenue growth driven by both organic expansion and strategic acquisitions. Net sales increased by 7% in Q2 2013 and 8% for the first six months of 2013 compared to the prior year periods, supported by strong performance in the Interconnect Products and Assemblies segment, particularly in the commercial aerospace, automotive, and mobile network markets. The company also saw growth in its Cable Products segment due to a 2012 acquisition. Profitability remained robust, with gross profit margins stable year-over-year. Operating income showed improvement, reflecting volume leverage and cost reduction initiatives. The company also executed a significant share repurchase program, returning capital to shareholders while maintaining a healthy cash flow from operations. Amphenol's liquidity position remains strong, with ample availability under its revolving credit facility, supporting ongoing operational needs, potential acquisitions, and shareholder returns.

Financial Statements
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Key Highlights

  • 1Net sales increased by 7% year-over-year to $1,136.1 million in Q2 2013 and by 8% for the first six months of 2013 to $2,215.9 million.
  • 2Interconnect Products and Assemblies segment, the largest revenue contributor, saw sales grow 6% in Q2 and 8% in the first six months, driven by commercial aerospace, automotive, and mobile network markets.
  • 3Gross profit margin remained strong at approximately 31.7% for Q2 2013 and 31.5% for the first six months, consistent with the prior year.
  • 4Operating income increased in the Interconnect Products and Assemblies segment due to higher volumes and cost controls.
  • 5The company repurchased approximately 2.5 million shares of common stock for $181.1 million during the first six months of 2013.
  • 6Cash flow from operations increased to $360.8 million for the first six months of 2013, up from $291.6 million in the prior year.
  • 7Amphenol's liquidity is supported by a $1,000.0 million unsecured credit facility, with $405.9 million available at the end of Q2 2013, which was subsequently increased and extended.

Frequently Asked Questions

Amphenol reported net sales of $1,136.1 million for the second quarter ended June 30, 2013, an increase of 7% compared to $1,061.1 million in the same period of 2012. This growth was driven by both organic expansion and acquisitions across key markets.

Gross profit margin remained stable at approximately 31.7% for Q2 2013. Selling, general, and administrative expenses as a percentage of sales slightly decreased due to cost control actions. Operating income for the Interconnect Products and Assemblies segment improved due to higher volumes and cost reductions.

Amphenol maintains a strong liquidity position. Cash flow from operating activities was robust at $360.8 million for the first six months of 2013. The company had $405.9 million available under its $1,000.0 million revolving credit facility at the end of the quarter, and subsequently increased this facility to $1,500.0 million, ensuring ample resources for operations, investments, and shareholder returns.

Yes, Amphenol actively returned capital to shareholders. During the first six months of 2013, the company repurchased approximately 2.5 million shares of its common stock for $181.1 million under its 2013 Stock Repurchase Program. Additionally, the company declared and paid dividends, and in July 2013, announced an increase in its quarterly dividend from $0.105 to $0.20 per share.