Summary
TE Connectivity Ltd. (TEL) reported strong performance for the fiscal year ended September 29, 2022, with net sales increasing 9.1% to $16.3 billion. This growth was primarily driven by organic net sales increases of 12.1%, reflecting strong demand across its key segments, particularly Communications Solutions and Industrial Solutions. The company highlighted its resilient business model, diversified customer base, and ability to navigate macroeconomic challenges, including inflationary pressures and supply chain disruptions, through strategic pricing actions and cost management. While foreign currency translation had a negative impact of $723 million on net sales, the company demonstrated effective operational execution, leading to a 16.9% operating margin. TE Connectivity continues to invest in innovation and strategic acquisitions to support its long-term growth objectives, with a focus on trends like transportation electrification, industrial automation, and data connectivity. The company's commitment to sustainability and robust human capital management further underscore its strategic positioning for future value creation.
Financial Highlights
54 data points| Revenue | $16.28B |
| Cost of Revenue | $11.04B |
| Gross Profit | $5.24B |
| R&D Expenses | $610.00M |
| SG&A Expenses | $1.58B |
| Operating Income | $2.76B |
| Interest Expense | $66.00M |
| Net Income | $2.43B |
| EPS (Basic) | $7.52 |
| EPS (Diluted) | $7.47 |
| Shares Outstanding (Basic) | 323.00M |
| Shares Outstanding (Diluted) | 325.00M |
Key Highlights
- 1Net sales increased by 9.1% to $16.3 billion in fiscal year 2022, driven by a 12.1% organic net sales growth.
- 2Operating income grew by 13.2% to $2.76 billion, resulting in an operating margin of 16.9%.
- 3The Transportation Solutions segment saw net sales increase by 2.7% to $9.2 billion, with strong organic growth in Automotive.
- 4The Industrial Solutions segment experienced robust growth, with net sales up 17.6% to $4.5 billion, driven by Industrial Equipment and Energy markets.
- 5The Communications Solutions segment reported the highest growth, with net sales increasing by 20.8% to $2.5 billion, primarily due to demand in Data and Devices.
- 6The company repurchased approximately 10 million shares for $1.4 billion in fiscal year 2022 and had $1.7 billion remaining under its share repurchase authorization.
- 7TE Connectivity is committed to sustainability, having reduced absolute energy usage by over 20%, water usage by over 25%, and greenhouse gas emissions by over 50% since fiscal 2010.