AMPHENOL CORP /DE/ Quarterly Report for Q1 Ended Mar 31, 2015

Summary

Amphenol Corporation reported strong first-quarter 2015 results, demonstrating robust growth and improved profitability. Net sales increased by 7% year-over-year to $1.33 billion, driven by broad-based strength in its Interconnect Products and Assemblies segment, particularly in automotive, industrial, IT, and mobile device markets. This growth was supported by both organic expansion and strategic acquisitions, although the Cable Products and Solutions segment experienced a slight decline. The company's operating income margin expanded to 19.6% from 18.6% in the prior year, reflecting enhanced gross profit margins due to higher volumes and cost efficiencies. Financially, Amphenol maintained a healthy liquidity position, with operating cash flow of $188.3 million. The company continued its capital allocation strategy through dividends and stock repurchases, including a new program authorized in January 2015 to buy back up to 10 million shares. Despite some working capital increases and the impact of foreign exchange rates, Amphenol's management expressed confidence in its ability to meet its financial commitments and fund ongoing operations and strategic initiatives.

Key Highlights

• 1Net sales for Q1 2015 increased 7% year-over-year to $1.33 billion, with local currency growth of 11%.
• 2Operating income margin improved to 19.6% in Q1 2015 from 18.6% in Q1 2014, driven by higher gross profit margins.
• 3The Interconnect Products and Assemblies segment, representing 94% of sales, saw a 7% increase in net sales.
• 4Cash flow from operating activities was $188.3 million for Q1 2015.
• 5The company repurchased 1.1 million shares of common stock for $62.2 million in Q1 2015 under a new buyback program.
• 6The quarterly dividend was increased to $0.125 per share.
• 7Goodwill remains substantial at $2.6 billion, reflecting the company's acquisitive growth strategy.

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