Summary
TE Connectivity Ltd. (TEL) reported strong performance for the quarter ending March 26, 2021, with net sales increasing by 17.0% year-over-year to $3.74 billion. This growth was driven by robust demand in the Transportation Solutions and Communications Solutions segments, with notable organic sales increases of 15.3% and 28.7% respectively. The company also saw a significant rebound in operating income to $612 million, a substantial improvement from the $415 million loss in the prior year period, largely due to higher volumes and improved productivity, partially offset by restructuring charges. For the six months ended March 26, 2021, net sales rose 14.1% to $7.26 billion, and operating income surged to $1.06 billion from $56 million in the prior year. The company highlighted strong organic sales growth across its segments, with particular strength in Automotive and Data & Devices. Despite ongoing impacts from the COVID-19 pandemic, TE Connectivity demonstrated resilience and a clear recovery trajectory, supported by effective cost management and strategic acquisitions. The company also provided a positive outlook for the third quarter of fiscal 2021, expecting net sales of approximately $3.7 billion and diluted EPS of $1.51.
Financial Highlights
52 data points| Revenue | $3.74B |
| Cost of Revenue | $2.53B |
| Gross Profit | $1.21B |
| SG&A Expenses | $401.00M |
| Operating Income | $612.00M |
| Interest Expense | $13.00M |
| Net Income | $506.00M |
| EPS (Basic) | $1.53 |
| EPS (Diluted) | $1.51 |
| Shares Outstanding (Basic) | 331.00M |
| Shares Outstanding (Diluted) | 334.00M |
Key Highlights
- 1Net sales increased by 17.0% to $3.74 billion for the quarter ended March 26, 2021, compared to $3.20 billion in the prior year quarter.
- 2Operating income significantly improved to $612 million, a reversal from the $415 million operating loss in the same quarter last year.
- 3Transportation Solutions segment saw a 23.2% increase in net sales, driven by strong performance in Automotive and Commercial Transportation.
- 4Communications Solutions segment posted a robust 32.7% increase in net sales, primarily due to growth in Data & Devices and Appliances.
- 5For the six months ended March 26, 2021, net sales grew 14.1% to $7.26 billion, and operating income reached $1.06 billion, up from $56 million in the prior year period.
- 6The company reported $1.22 billion in net cash provided by operating activities for the first six months of fiscal 2021, up from $892 million in the prior year period.
- 7TE Connectivity provided a positive outlook for Q3 FY21, expecting net sales of approximately $3.7 billion and diluted EPS of $1.51 per share.