Summary
TE Connectivity plc (TEL) reported its financial results for the fiscal quarter and nine months ended June 26, 2015. The company demonstrated modest net sales growth, driven by its Transportation Solutions and Communications Solutions segments, while Industrial Solutions faced headwinds. A significant event during the period was the acquisition of Measurement Specialties, Inc. for approximately $1.7 billion, which is expected to enhance TE's sensor offerings. Operationally, the company is managing costs effectively, with selling, general, and administrative expenses remaining largely flat year-over-year. However, research, development, and engineering expenses saw an increase due to acquisitions and growth initiatives. Investors should note the ongoing restructuring efforts aimed at improving efficiency, as well as the ongoing divestiture of the Broadband Network Solutions (BNS) business, which is expected to close in calendar 2015. The company also continues its share repurchase program and dividend payments, reflecting a commitment to returning value to shareholders.
Financial Highlights
56 data points| Revenue | $3.12B |
| Cost of Revenue | $2.07B |
| Gross Profit | $1.05B |
| SG&A Expenses | $393.00M |
| Operating Income | $469.00M |
| Interest Expense | $33.00M |
| Net Income | $309.00M |
| EPS (Basic) | $0.76 |
| EPS (Diluted) | $0.75 |
| Shares Outstanding (Basic) | 406.00M |
| Shares Outstanding (Diluted) | 412.00M |
Key Highlights
- 1Net sales for the quarter increased by 1.4% to $3.12 billion, driven by strength in Transportation and Communications Solutions.
- 2The company acquired Measurement Specialties, Inc. for approximately $1.7 billion, enhancing its sensor capabilities, primarily within the Transportation Solutions segment.
- 3Organic net sales growth was positive at 4.2% for the quarter, indicating underlying business expansion excluding currency and acquisition impacts.
- 4Operating income for the quarter was $469 million, largely consistent with the prior year's $464 million, showing stable profitability despite some segment pressures.
- 5The company continues to actively repurchase shares, with $3.3 billion remaining under its authorization, and paid a quarterly dividend of $0.33 per share.
- 6TE Connectivity is in the process of divesting its Broadband Network Solutions (BNS) business, which is expected to close in calendar 2015.