Summary
TE Connectivity Ltd. reported strong performance for the fiscal year ended September 26, 2014, with net sales increasing by 4.8% to $13.9 billion, driven primarily by growth in its Transportation Solutions segment. The company highlighted its competitive strengths, including a diverse product portfolio, strong customer relationships, and a global presence. Management expressed optimism for fiscal year 2015, forecasting net sales between $14.7 billion and $15.3 billion, supported by anticipated growth in automotive production and contributions from acquisitions. The company's financial health remains robust, with significant cash flow generation and a manageable debt level, although it continues to navigate economic uncertainties and foreign currency fluctuations. Key investments in research and development and strategic acquisitions underscore its commitment to innovation and market expansion.
Financial Highlights
57 data points| Revenue | $11.97B |
| Cost of Revenue | $8.00B |
| Gross Profit | $3.97B |
| R&D Expenses | $484.00M |
| SG&A Expenses | $1.53B |
| Operating Income | $1.80B |
| Interest Expense | $127.00M |
| Net Income | $1.78B |
| EPS (Basic) | $4.34 |
| EPS (Diluted) | $4.27 |
| Shares Outstanding (Basic) | 410.00M |
| Shares Outstanding (Diluted) | 417.00M |
Key Highlights
- 1Net sales increased by 4.8% to $13.9 billion in fiscal year 2014, primarily driven by a 11.0% increase in the Transportation Solutions segment.
- 2The company completed the acquisition of Measurement Specialties for approximately $1.7 billion in October 2014, expanding its sensor capabilities.
- 3Organic net sales grew by 4.6% in fiscal 2014, indicating underlying business strength beyond currency impacts and acquisitions.
- 4Operating income increased to $2.05 billion in fiscal 2014, reflecting improved gross margins and operational efficiencies.
- 5Free cash flow remained strong, totaling $1.73 billion in fiscal 2014, enabling robust capital allocation for share repurchases and strategic investments.
- 6The company repurchased approximately $604 million of its common shares in fiscal 2014, demonstrating a commitment to returning value to shareholders.
- 7Fiscal 2014 results included a significant income tax benefit of $282 million related to a reduction in the valuation allowance for certain tax loss carryforwards.