Summary
TE Connectivity Ltd. (TEL) reported its fiscal third quarter and nine-month results for the period ending June 29, 2012. The company experienced a slight decrease in net sales year-over-year for both the quarter and the nine-month period, primarily driven by softness in the Communications and Industrial Solutions and Network Solutions segments, partially offset by growth in Transportation Solutions. A significant event during the period was the acquisition of Deutsch Group SAS in April 2012, which expanded TE Connectivity's product portfolio and market reach, particularly in harsh environment applications within the Transportation Solutions segment. The company also continued its efforts to streamline operations, including ongoing restructuring and manufacturing simplification initiatives. Financially, the company navigated a complex environment marked by global economic uncertainties and foreign currency fluctuations, which negatively impacted reported sales. Despite these headwinds, TE Connectivity demonstrated resilience, with improvements in certain operational metrics and a focus on managing costs and capital resources. The company also completed the divestiture of its Touch Solutions and TE Professional Services businesses, classifying them as discontinued operations. Management provided an outlook for the fourth quarter and full fiscal year 2012, anticipating continued challenges in some segments but expecting benefits from the Deutsch acquisition.
Financial Highlights
57 data points| Revenue | $3.50B |
| Cost of Revenue | $2.48B |
| Gross Profit | $1.02B |
| SG&A Expenses | $423.00M |
| Operating Income | $371.00M |
| Interest Expense | $48.00M |
| Net Income | $199.00M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.46 |
| Shares Outstanding (Basic) | 428.00M |
| Shares Outstanding (Diluted) | 431.00M |
Key Highlights
- 1Net sales for the quarter ended June 29, 2012 decreased by 2.2% to $3,499 million compared to the prior year period, with organic net sales down 3.1%.
- 2Acquisition of Deutsch Group SAS completed on April 3, 2012, contributing $174 million in net sales for the quarter and significantly expanding the Transportation Solutions segment.
- 3Operating income for the quarter decreased to $371 million from $460 million in the prior year, impacted by acquisition-related charges (amortization of fair value adjustments, integration costs, and restructuring).
- 4The company divested its Touch Solutions and TE Professional Services businesses, classifying them as discontinued operations.
- 5For the first nine months of fiscal 2012, net sales decreased by 1.1% to $9,918 million, with organic net sales down 2.5%.
- 6Free cash flow for the first nine months of fiscal 2012 was $865 million, an increase from $802 million in the prior year period.
- 7The company provided an outlook for the fourth quarter of fiscal 2012, expecting net sales between $3.325 billion and $3.425 billion and diluted EPS between $0.64 and $0.68.