Summary
TE Connectivity plc (formerly Tyco Electronics Ltd.) filed its 2009 10-K report, detailing a challenging fiscal year marked by a significant revenue decline and substantial goodwill impairment charges, primarily driven by the global economic downturn. The company experienced a 28.6% decrease in net sales to $10.3 billion, largely due to weakness across its key segments, particularly Electronic Components, which saw a 35.7% decline. This economic pressure led to a substantial goodwill impairment charge of $3.5 billion recognized in the second quarter of fiscal 2009, primarily impacting the Automotive and Communications and Industrial Solutions reporting units. The company also undertook significant restructuring and cost-reduction initiatives, including workforce reductions and manufacturing footprint simplification. Despite the headwinds, TE Connectivity maintained its focus on strategic priorities, including new product development and market share expansion in attractive industries. The company also completed the divestiture of its Wireless Systems business, a move intended to further streamline its portfolio. The report highlights the company's reliance on the automotive and telecommunications sectors, both of which were significantly impacted by the economic climate.
Financial Highlights
57 data points| Revenue | $10.26B |
| Cost of Revenue | $7.72B |
| Gross Profit | $2.54B |
| R&D Expenses | $439.00M |
| SG&A Expenses | $1.41B |
| Operating Income | -$3.47B |
| Interest Expense | $165.00M |
| Net Income | -$3.27B |
| EPS (Basic) | $-7.11 |
| EPS (Diluted) | $-7.11 |
| Shares Outstanding (Basic) | 459.00M |
| Shares Outstanding (Diluted) | 459.00M |
Key Highlights
- 1Significant revenue decline of 28.6% to $10.3 billion in fiscal 2009, attributed to the global economic downturn impacting key end markets.
- 2Substantial goodwill impairment charge of $3.5 billion recognized in fiscal 2009, primarily affecting the Electronic Components segment due to declining sales and profitability in its Automotive and Communications and Industrial Solutions reporting units.
- 3Continued strategic focus on market leadership, emerging markets, and new product development, alongside operational improvements and cost reduction initiatives.
- 4Divestiture of the Wireless Systems business was completed in fiscal 2009, marking a significant step in portfolio streamlining.
- 5Company relocated its legal domicile from Bermuda to Switzerland, effective June 25, 2009.
- 6A substantial portion of the company's manufacturing operations are located in lower-cost countries, with approximately 60% of employees based in these regions.
- 7The company highlighted ongoing litigation related to pre-Separation matters from its former parent, Tyco International, with its share of liabilities being managed under a Separation and Distribution Agreement.