10-KPeriod: FY2016

TE Connectivity plc Annual Report, Year Ended Sep 30, 2016

Filed November 15, 2016For Securities:TEL

Summary

TE Connectivity Ltd. (TEL) demonstrated resilience in its fiscal year 2016, reporting flat net sales of $12.238 billion compared to the prior year, with organic sales growth of 1.5% signaling underlying business strength. The company's performance was driven by a balanced contribution across its segments, with Transportation Solutions and Industrial Solutions showing sales increases, partially offset by a decline in Communications Solutions. The fiscal year benefited from an extra week, adding $238 million to net sales. Notable events during the year included the acquisition of Creganna Medical and the divestiture of the Circuit Protection Devices (CPD) business, reflecting strategic portfolio management. The company also continued its commitment to shareholder returns through dividend payments and share repurchases, underscoring a focus on balancing growth initiatives with capital discipline.

Financial Highlights

55 data points
Beta

Revenue

$11.35B

33.7% Gross Margin

Net Income

$2.01B

17.7% Net Margin

EPS (Diluted)

$5.44

Total Assets

$17.61B

Cash & Equivalents

$647.00M

Free Cash Flow

$1.34B

Financial Statements
Beta
Revenue$11.35B
Cost of Revenue$7.53B
Gross Profit$3.83B
R&D Expenses$525.00M
SG&A Expenses$1.40B
Operating Income$1.81B
Interest Expense$127.00M
Net Income$2.01B
EPS (Basic)$5.49
EPS (Diluted)$5.44
Shares Outstanding (Basic)366.00M
Shares Outstanding (Diluted)369.00M

Key Highlights

  • 1Net sales remained flat at $12.238 billion for fiscal year 2016, with organic sales growth of 1.5%.
  • 2Transportation Solutions segment saw a 2.4% increase in net sales, driven by the automotive market.
  • 3Industrial Solutions segment's net sales increased by 1.1%, boosted by acquisitions and growth in industrial equipment.
  • 4Communications Solutions segment experienced a 6.8% decline in net sales, primarily due to market weakness in data and devices.
  • 5The company completed the acquisition of Creganna Medical and divested its Circuit Protection Devices (CPD) business.
  • 6Fiscal 2016 benefited from an additional week, contributing $238 million in net sales and $0.13 per diluted share.
  • 7Shareholders received dividends totaling $1.40 per share, and the company continued its share repurchase program with $1.1 billion in remaining authorization.

Frequently Asked Questions

In fiscal year 2016, TE Connectivity reported net sales of $12.238 billion, which were flat compared to the prior year. The company achieved 1.5% organic sales growth, indicating underlying strength in its operations. Net income attributable to TE Connectivity Ltd. was $2.009 billion, or $5.44 per diluted share.

The Transportation Solutions segment grew by 2.4% in net sales, primarily driven by the automotive market. The Industrial Solutions segment saw a 1.1% increase, boosted by acquisitions and strong performance in industrial equipment. The Communications Solutions segment experienced a 6.8% decline, mainly due to challenges in the data and devices market.

TE Connectivity made significant strategic moves in fiscal year 2016, notably acquiring Creganna Medical, a leader in medical devices, to strengthen its position in the healthcare sector. Additionally, the company divested its Circuit Protection Devices (CPD) business, allowing for a more focused portfolio and resource allocation.

The company generated strong cash flow from operations, with net cash provided by continuing operating activities at $2.019 billion, leading to free cash flow of $1.585 billion. TE Connectivity continued its commitment to shareholder returns by paying a total of $1.40 per share in dividends and actively repurchasing its own shares, with $1.1 billion remaining under its authorization at year-end.