TE Connectivity plc Quarterly Report for Q2 Ended Mar 27, 2015

Summary

TE Connectivity Ltd. (TEL) reported its financial results for the quarter ended March 27, 2015. The company saw an increase in net sales to $3.08 billion, up 4.0% from the prior year, driven by growth across all segments and notably the acquisition of Measurement Specialties. However, operating income decreased slightly to $448 million, impacted by acquisition-related charges and restructuring costs. The company's balance sheet remained largely stable, with total assets at $20.24 billion. A significant development was the agreement to sell its Broadband Network Solutions (BNS) business for $3.0 billion, which is expected to close in calendar year 2015. This divestiture, along with the acquisition of Measurement Specialties, reflects ongoing strategic portfolio management. Investors should note the company's continued focus on operational efficiency and strategic acquisitions/divestitures.

Key Highlights

• 1Net sales increased by 4.0% to $3.08 billion for the quarter, with organic net sales up 6.2%.
• 2Operating income for the quarter was $448 million, a decrease from $471 million in the prior year, due to higher acquisition and restructuring costs.
• 3The company agreed to sell its Broadband Network Solutions (BNS) business for $3.0 billion, which is classified as held for sale and discontinued operations.
• 4Acquisition of Measurement Specialties for approximately $1.7 billion (net of cash acquired) was completed in October 2014, contributing to sales.
• 5Diluted earnings per share from continuing operations were $0.77, down from $0.82 in the prior year's quarter.
• 6Cash and cash equivalents decreased significantly to $697 million from $2,457 million at the end of the prior fiscal year, primarily due to investing activities.
• 7The company announced a quarterly dividend of $0.33 per share.

Frequently Asked Questions