Summary
TE Connectivity plc (TEL) reported a net loss of $37 million, or $0.08 per diluted share, for the quarter ended December 26, 2008. This contrasts sharply with a net income of $949 million, or $1.90 per diluted share, in the same period of the prior year. The significant decline is primarily attributed to a substantial decrease in net sales, which fell by 21.1% to $2.81 billion, impacted by challenging global economic conditions and reduced demand, particularly in the Electronic Components segment. The company also incurred substantial charges, including a $111 million pre-tax charge related to the termination of its contract with the State of New York, which involved an impairment of network construction costs and a draw on a standby letter of credit. Additionally, the company recorded $77 million in restructuring and other charges, reflecting new cost-reduction initiatives. Despite these headwinds, the company continues to manage its liquidity, with net cash provided by continuing operating activities at $33 million, and maintains a significant backlog of unfilled orders.
Financial Highlights
29 data points| Revenue | $2.71B |
| Cost of Revenue | $1.99B |
| Gross Profit | $724.00M |
| SG&A Expenses | $411.00M |
| Operating Income | $83.00M |
| Interest Expense | $42.00M |
| Net Income | -$39.00M |
| EPS (Basic) | $-0.08 |
| EPS (Diluted) | $-0.08 |
| Shares Outstanding (Basic) | 459.00M |
| Shares Outstanding (Diluted) | 461.00M |
Key Highlights
- 1Net sales declined significantly by 21.1% to $2.81 billion compared to the prior year quarter, reflecting challenging global economic conditions and reduced demand.
- 2The company reported a net loss of $37 million ($0.08 per diluted share) for the quarter, a sharp reversal from a net income of $949 million ($1.90 per diluted share) in the prior year quarter.
- 3A significant $111 million pre-tax charge was recognized due to the termination of the State of New York wireless communications network contract, impacting cost of sales and SG&A.
- 4Restructuring and other charges amounted to $77 million, up from $21 million in the prior year, driven by new cost-reduction initiatives in response to market conditions.
- 5The Electronic Components segment, representing 71% of net sales, experienced a substantial 24.5% decline in sales, primarily impacting overall company performance.
- 6Despite the net loss, the company generated $33 million in net cash from continuing operating activities, demonstrating continued operational cash flow generation.
- 7TE Connectivity is proposing to change its place of incorporation from Bermuda to Switzerland, subject to shareholder approval.