Summary
TE Connectivity Ltd. (TEL) reported for the fiscal year ending September 26, 2019, a year that saw a slight decrease in net sales compared to the prior year, primarily driven by challenges in the Communications Solutions and Transportation Solutions segments. Despite these headwinds, the company maintained a strong market position across its three core segments: Transportation, Industrial, and Communications Solutions. The company's diversified customer base and global operational footprint provided resilience, though foreign currency fluctuations presented a notable headwind. Investments in acquisitions, particularly within the Transportation Solutions segment, and a focus on operational efficiency through restructuring initiatives were key strategic elements during the year. TEL continues to emphasize its role as a global industrial technology leader, providing essential connectivity and sensor solutions for a wide range of growing end markets.
Financial Highlights
54 data points| Revenue | $13.45B |
| Cost of Revenue | $9.05B |
| Gross Profit | $4.39B |
| R&D Expenses | $572.00M |
| SG&A Expenses | $1.49B |
| Operating Income | $1.98B |
| Interest Expense | $68.00M |
| Net Income | $1.84B |
| EPS (Basic) | $5.46 |
| EPS (Diluted) | $5.42 |
| Shares Outstanding (Basic) | 338.00M |
| Shares Outstanding (Diluted) | 340.00M |
Key Highlights
- 1Net sales decreased by 3.9% to $13.45 billion in fiscal 2019 compared to $13.99 billion in fiscal 2018, with organic net sales declining by 1.7%.
- 2The Transportation Solutions segment, the largest contributor at 58% of net sales, saw a 5.7% decrease, primarily due to a slowdown in the automotive end market.
- 3The Industrial Solutions segment showed resilience with a 2.5% increase in net sales, driven by growth in the aerospace, defense, oil, and gas end markets.
- 4The Communications Solutions segment experienced a significant 9.2% decline in net sales, affected by market weakness in both data and devices and appliance end markets.
- 5The company completed three acquisitions for a combined $296 million in fiscal 2019, primarily in the Transportation Solutions segment, and announced a pending acquisition of First Sensor AG.
- 6The company generated $2.45 billion in net cash from operating activities, demonstrating solid cash flow generation despite top-line pressures.
- 7TE Connectivity continues to return capital to shareholders, repurchasing approximately $1.01 billion of its common shares and paying $608 million in dividends in fiscal 2019.