Summary
TE Connectivity plc (TEL) reported strong financial performance for the fiscal year ended September 23, 2021, demonstrating significant recovery and growth following the impacts of the COVID-19 pandemic. Net sales increased by 22.6% to $14.92 billion, driven by robust organic growth of 18.2% and a positive foreign currency translation impact. The company's three core segments—Transportation Solutions, Industrial Solutions, and Communications Solutions—all experienced sales growth, with Transportation Solutions showing particular strength, increasing by 31.1%. This performance reflects successful navigation of supply chain challenges and growing demand across key end markets, including automotive, industrial equipment, and data/devices. The company also highlighted its focus on operational efficiency and cost management, which contributed to a substantial increase in gross margin to 32.7% and operating income to $2.43 billion. TE Connectivity continues to invest in its business, evidenced by capital expenditures and strategic acquisitions, while also returning capital to shareholders through dividends and share repurchases. The company's outlook for fiscal 2022 indicates continued sales growth, albeit with some expected moderation in the automotive sector due to production declines, balanced by strength in industrial and communications markets.
Financial Highlights
54 data points| Revenue | $14.92B |
| Cost of Revenue | $10.04B |
| Gross Profit | $4.89B |
| R&D Expenses | $612.00M |
| SG&A Expenses | $1.51B |
| Operating Income | $2.43B |
| Interest Expense | $56.00M |
| Net Income | $2.26B |
| EPS (Basic) | $6.85 |
| EPS (Diluted) | $6.79 |
| Shares Outstanding (Basic) | 330.00M |
| Shares Outstanding (Diluted) | 333.00M |
Key Highlights
- 1Net sales increased by 22.6% to $14.92 billion in fiscal 2021, with organic net sales growing by 18.2%.
- 2All three reportable segments—Transportation Solutions, Industrial Solutions, and Communications Solutions—experienced net sales growth.
- 3Transportation Solutions saw a significant 31.1% increase in net sales, driven by automotive, commercial transportation, and sensor markets.
- 4Gross margin improved to 32.7% from 30.7% in the prior year, reflecting higher volume and manufacturing productivity.
- 5Operating income surged to $2.43 billion, a substantial increase from $0.54 billion in fiscal 2020, which included a goodwill impairment charge.
- 6The company returned $647 million to shareholders through dividends and repurchased approximately 7 million shares for $904 million in fiscal 2021.
- 7TE Connectivity acquired four businesses in fiscal 2021 for $422 million, integrating them into its Industrial Solutions segment.