AMPHENOL CORP /DE/ Quarterly Report for Q3 Ended Sep 30, 2015

Summary

Amphenol Corporation's third quarter and first nine months of 2015 results demonstrate continued revenue growth, driven primarily by its Interconnect Products and Assemblies segment. Net sales increased by 7% in the quarter and 6% year-to-date in U.S. dollars, with strong performance in mobile devices, automotive, and data communications markets. The company also highlighted increased operating income margins, particularly in its core segment, and improved cash flow from operations. Looking ahead, Amphenol announced its agreement to acquire FCI Asia Pte Ltd for $1.275 billion, a strategic move expected to close by year-end 2015 and be financed through a combination of cash and debt. This acquisition, alongside ongoing stock repurchase programs and dividend increases, signals a continued focus on shareholder returns and strategic expansion. Despite some headwinds in specific markets like commercial aerospace and military, and a slowdown in the broadband communications market impacting the Cable Products and Solutions segment, the overall financial health and growth trajectory appear positive.

Key Highlights

• 1Revenue increased by 7% in Q3 2015 and 6% for the first nine months of 2015 compared to the prior year periods.
• 2Operating income margin improved in the Interconnect Products and Assemblies segment due to higher gross profit margins and better SG&A leverage.
• 3The company announced a significant acquisition of FCI Asia Pte Ltd for $1.275 billion, expected to close by year-end 2015.
• 4Cash flow from operating activities significantly increased by approximately 17% for the first nine months of 2015 compared to the same period in 2014.
• 5Amphenol continued its commitment to shareholder returns with increased quarterly dividends and a stock repurchase program.
• 6The company maintained strong liquidity with a robust cash and cash equivalents balance and availability under its credit facilities.

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