Summary
TE Connectivity Ltd. (TEL) reported strong performance in its fiscal year 2018, concluding on September 27, 2018. The company experienced a significant increase in net sales, up 14.8% year-over-year to $13.99 billion, driven by broad-based growth across all three segments: Transportation Solutions, Industrial Solutions, and Communications Solutions. Organic net sales, excluding currency fluctuations and acquisitions/divestitures, grew by a healthy 9.2%, indicating robust underlying business performance. The Transportation Solutions segment remains the largest contributor, with a 17.8% increase in net sales, largely fueled by the automotive market and content gains from acquisitions. The Industrial Solutions segment saw a 10.0% increase, supported by strong performance in industrial equipment and contributions from aerospace, defense, and energy markets. The Communications Solutions segment also posted solid growth of 12.4%, driven by demand in data and devices and appliances. The company also highlighted its commitment to shareholder returns, with increased dividend payments and an active share repurchase program. Looking ahead, TE Connectivity provided an outlook for fiscal year 2019 anticipating moderate growth, though acknowledging potential headwinds from foreign currency exchange rates and moderating automotive production. Overall, the 2018 report demonstrates a company with diversified revenue streams, a strong market position, and a focus on profitable growth.
Financial Highlights
54 data points| Revenue | $13.99B |
| Cost of Revenue | $9.24B |
| Gross Profit | $4.75B |
| R&D Expenses | $606.00M |
| SG&A Expenses | $1.59B |
| Operating Income | $2.33B |
| Interest Expense | $107.00M |
| Net Income | $2.56B |
| EPS (Basic) | $7.33 |
| EPS (Diluted) | $7.27 |
| Shares Outstanding (Basic) | 350.00M |
| Shares Outstanding (Diluted) | 353.00M |
Key Highlights
- 1Net sales increased by 14.8% to $13.99 billion in fiscal year 2018, driven by growth in all segments.
- 2Organic net sales grew by 9.2%, indicating strong underlying business performance across segments.
- 3Transportation Solutions segment was the largest contributor to net sales, increasing by 17.8%, with notable growth in automotive.
- 4Industrial Solutions segment saw a 10.0% net sales increase, driven by industrial equipment and aerospace/defense markets.
- 5Communications Solutions segment increased net sales by 12.4%, benefiting from data/devices and appliances markets.
- 6The company declared dividends of $1.76 per share for fiscal year 2018 and continued its share repurchase program.
- 7The company announced an agreement to sell its Subsea Communications (SubCom) business for $325 million.