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| 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.