Summary
Amphenol Corporation reported strong top-line growth in the second quarter and first half of 2016, with net sales increasing by 15% and 12% respectively compared to the prior year periods. This growth was significantly driven by the acquisition of FCI in January 2016, which contributed substantially to the Interconnect Products and Assemblies segment. Excluding the impact of acquisitions and foreign currency fluctuations, organic sales showed modest growth of 4% for the quarter and 1% for the year-to-date period. The company demonstrated solid operational execution, with operating income margin remaining robust. Despite increased SG&A expenses related to the FCI integration and higher interest expenses due to increased debt levels, Amphenol managed its costs effectively. The company maintained a strong liquidity position, with substantial cash flow from operations and an expanded revolving credit facility, enabling continued investment in growth initiatives, share repurchases, and dividend payments.
Financial Highlights
50 data points| Revenue | $1.55B |
| Cost of Revenue | $1.05B |
| Gross Profit | $497.30M |
| SG&A Expenses | $197.00M |
| Operating Income | $300.30M |
| Interest Expense | $18.00M |
| Net Income | $206.50M |
| EPS (Basic) | $0.17 |
| EPS (Diluted) | $0.16 |
| Shares Outstanding (Basic) | 1.23B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Net sales increased by 15% year-over-year to $1.55 billion for the second quarter of 2016 and by 12% to $3.00 billion for the first six months of 2016.
- 2The acquisition of FCI in January 2016 significantly contributed to the growth, particularly in the Interconnect Products and Assemblies segment.
- 3Organic sales growth was 4% for the quarter and 1% year-to-date, excluding currency impacts and acquisitions.
- 4Operating income for the first six months was $539.8 million, with an operating margin of 18.0%.
- 5Cash flow from operating activities remained strong, totaling $437.8 million for the first six months of 2016.
- 6The company expanded its revolving credit facility to $2.0 billion and had no borrowings outstanding as of June 30, 2016.
- 7Amphenol repurchased 2.0 million shares of common stock for $108.4 million during the first six months of 2016 and continued its share repurchase program.