Summary
TE Connectivity plc (TEL) reported a net sales increase of 4.2% to $3.47 billion for the first quarter of fiscal year 2015, compared to the same period last year. This growth was primarily driven by the Transportation Solutions segment, bolstered by the recent acquisition of Measurement Specialties, Inc. for $1.7 billion. While overall net sales saw an increase, the Consumer Solutions segment experienced a notable decline. The company's profitability was impacted by acquisition and integration costs related to Measurement Specialties, as well as restructuring charges, particularly in the Consumer Solutions segment. Despite these impacts, diluted earnings per share increased to $1.14 from $0.84 in the prior year quarter. TE Connectivity also announced a significant strategic move: the planned divestiture of its Broadband Network Solutions (BNS) business for $3.0 billion, which is expected to close in 2015 and will be reported as a discontinued operation. Cash flow from operations decreased year-over-year, largely due to timing of tax payments and project activity. The company maintained its commitment to shareholder returns through dividend payments and share repurchases, with an additional $3.0 billion authorized for share repurchases. The outlook for the full fiscal year 2015 projects continued sales growth, albeit with a cautious view on foreign currency impacts and segment performance.
Financial Highlights
55 data points| Revenue | $3.05B |
| Cost of Revenue | $2.03B |
| Gross Profit | $1.02B |
| SG&A Expenses | $386.00M |
| Operating Income | $425.00M |
| Interest Expense | $34.00M |
| Net Income | $472.00M |
| EPS (Basic) | $1.16 |
| EPS (Diluted) | $1.14 |
| Shares Outstanding (Basic) | 407.00M |
| Shares Outstanding (Diluted) | 413.00M |
Key Highlights
- 1Net sales increased by 4.2% to $3.47 billion in Q1 FY2015, driven by the Transportation Solutions segment and the acquisition of Measurement Specialties.
- 2Acquisition of Measurement Specialties, Inc. for $1.7 billion closed in October 2014, contributing $125 million in net sales during the quarter.
- 3Diluted earnings per share rose to $1.14 from $0.84 in the prior year quarter, despite acquisition and restructuring costs.
- 4Announced the planned divestiture of the Broadband Network Solutions (BNS) business for $3.0 billion, expected to close in 2015.
- 5Restructuring charges of $27 million were recorded, primarily impacting the Consumer Solutions segment.
- 6Cash flow from operations decreased to $295 million from $385 million in the prior year quarter, impacted by tax payments and project timing.
- 7Share repurchase program increased by an additional $3.0 billion, demonstrating commitment to shareholder returns.