10-KPeriod: FY2013

TE Connectivity plc Annual Report, Year Ended Sep 27, 2013

Filed November 15, 2013For Securities:TEL

Summary

TE Connectivity Ltd. (TEL) reported fiscal year 2013 results marked by stable net sales of $13.28 billion, consistent with the prior year. The company experienced organic sales growth in its Transportation Solutions segment, driven by the automotive market, but this was offset by declines in its Network Solutions, Industrial Solutions, and Consumer Solutions segments. TE Connectivity continues to focus on operational efficiency, including restructuring initiatives aimed at simplifying its manufacturing footprint and migrating operations to lower-cost countries, incurring $311 million in net restructuring and other charges in fiscal 2013. The company's financial position remained solid, with net income attributable to TE Connectivity Ltd. of $1.28 billion. Despite pressures from price erosion and fluctuations in raw material costs, TE Connectivity emphasized its competitive strengths, including a diverse product portfolio, strong customer relationships, and a global presence. The company also highlighted its commitment to returning capital to shareholders through dividends and share repurchases, with $384 million distributed in dividends and $829 million spent on share repurchases in fiscal 2013.

Financial Highlights

56 data points
Beta

Revenue

$11.39B

32.1% Gross Margin

Net Income

$1.28B

11.2% Net Margin

EPS (Diluted)

$3.02

Total Assets

$18.46B

Cash & Equivalents

$1.40B

Free Cash Flow

$1.47B

Financial Statements
Beta
Revenue$11.39B
Cost of Revenue$7.74B
Gross Profit$3.65B
R&D Expenses$494.00M
SG&A Expenses$1.44B
Operating Income$1.39B
Interest Expense$139.00M
Net Income$1.28B
EPS (Basic)$3.05
EPS (Diluted)$3.02
Shares Outstanding (Basic)418.00M
Shares Outstanding (Diluted)423.00M

Key Highlights

  • 1Net sales remained stable at $13.28 billion for fiscal year 2013.
  • 2Transportation Solutions segment showed organic sales growth driven by the automotive market.
  • 3Network Solutions, Industrial Solutions, and Consumer Solutions segments experienced organic sales declines.
  • 4Restructuring charges of $311 million were incurred in fiscal 2013 to improve operational efficiency and cost structure.
  • 5Net income attributable to TE Connectivity Ltd. was $1.28 billion.
  • 6The company maintained a strong global presence and diverse customer base.
  • 7Shareholder returns included $384 million in dividends and $829 million in share repurchases during fiscal 2013.

Frequently Asked Questions

TE Connectivity's Transportation Solutions segment saw organic sales growth, primarily due to increased demand in the automotive market. However, this growth was counteracted by declines in the Network Solutions, Industrial Solutions, and Consumer Solutions segments, which were impacted by weaker demand in their respective end markets.

TE Connectivity is actively engaged in restructuring initiatives to simplify its global manufacturing footprint. These efforts include migrating facilities to lower-cost countries, consolidating operations, and transferring product lines. In fiscal year 2013, the company incurred $311 million in net restructuring and other charges related to these initiatives, which are aimed at improving competitiveness and positioning the company for future growth.

In fiscal year 2013, TE Connectivity reported net income attributable to TE Connectivity Ltd. of $1.28 billion. The company maintained a strong financial position and continued its strategy of returning capital to shareholders. This included distributing $384 million in dividends and repurchasing approximately $829 million of its common shares during the fiscal year.

TE Connectivity highlighted several key risks, including dependence on the automotive and other cyclical industries, intense competition and pricing pressure, the need for continuous product innovation, raw material availability and cost fluctuations, foreign currency exchange rate volatility, and potential disruptions from global economic or geopolitical instability.