Summary
TE Connectivity Ltd. reported net sales of $3.998 billion for the third quarter of fiscal year 2023, a slight decrease of 2.4% compared to the prior year quarter. This decline was primarily driven by a significant drop in the Communications Solutions segment, which fell 36.8%, while the Transportation Solutions segment showed resilience with a 5.8% increase. For the first nine months of fiscal 2023, net sales grew 0.6% year-over-year to $11.999 billion, with Transportation and Industrial Solutions segments showing growth, while Communications Solutions continued to decline. Despite the overall modest sales performance, the company's operating income for the quarter was $630 million, a decrease from $719 million in the prior year. Diluted earnings per share from continuing operations were $1.67 for the quarter. The company's balance sheet remains solid with total assets of $21.7 billion. TE Connectivity also continues to actively manage its capital structure, with significant share repurchases and dividend payments, underscoring a commitment to shareholder returns.
Financial Highlights
52 data points| Revenue | $4.00B |
| Cost of Revenue | $2.70B |
| Gross Profit | $1.30B |
| SG&A Expenses | $431.00M |
| Operating Income | $630.00M |
| Interest Expense | $20.00M |
| Net Income | $528.00M |
| EPS (Basic) | $1.68 |
| EPS (Diluted) | $1.67 |
| Shares Outstanding (Basic) | 315.00M |
| Shares Outstanding (Diluted) | 317.00M |
Key Highlights
- 1Net sales for Q3 FY2023 were $3.998 billion, down 2.4% year-over-year, impacted by a significant decline in the Communications Solutions segment.
- 2Transportation Solutions segment demonstrated strength with a 5.8% increase in net sales for Q3 FY2023, primarily driven by the automotive market.
- 3For the nine months ended June 30, 2023, net sales increased by 0.6% to $11.999 billion, with organic net sales growth of 4.6%.
- 4Operating income decreased to $630 million in Q3 FY2023 from $719 million in Q3 FY2022, reflecting lower sales volumes and increased costs.
- 5Diluted earnings per share from continuing operations were $1.67 for Q3 FY2023, down from $1.83 in the prior year quarter.
- 6The company repurchased approximately $621 million of common shares in the first nine months of fiscal 2023 and has $1.1 billion remaining under its share repurchase authorization.
- 7Restructuring and other charges increased significantly to $283 million in the first nine months of fiscal 2023, primarily related to cost structure improvements across segments.