8-K/AEarnings & ResultsFinancial Events

TE Connectivity plc 8-K/A Report, Financial Results (Apr 29, 2013)

Filed April 29, 2013For Securities:TEL

Summary

This 8-K/A filing from TE Connectivity plc (TEL) provides an update on its previously announced restructuring actions. The company is revising its expected net restructuring charges for fiscal year 2013 to approximately $275 million. Of this total, roughly $178 million had already been incurred in the first six months of fiscal 2013. These restructuring efforts, which involve headcount reductions and manufacturing site consolidations across all segments, are a response to a weaker-than-expected economic environment. Investors should note that the company anticipates total cash expenditures related to these restructuring activities to be around $180 million for fiscal 2013, primarily for employee termination benefits. This cash spending is expected to be funded through operating cash flow. The filing serves to amend prior disclosures regarding these restructuring plans and their associated financial impacts.

Key Highlights

  • 1TE Connectivity is amending prior disclosures on restructuring actions initiated in response to economic conditions.
  • 2The company now expects total net restructuring charges for fiscal 2013 to be approximately $275 million.
  • 3Approximately $178 million of these charges were incurred in the first six months of fiscal 2013.
  • 4Restructuring actions include headcount reductions and manufacturing site closures impacting all business segments.
  • 5Total cash spending for restructuring in fiscal 2013 is estimated to be around $180 million.
  • 6Cash spending will be funded from the company's operations and is primarily for employee termination benefits.
  • 7This filing updates the financial and operational implications of the previously announced restructuring plan.

Frequently Asked Questions

The primary purpose of this filing is to amend and update TE Connectivity's previous disclosures regarding its ongoing restructuring actions, specifically revising the expected financial impact of these initiatives for fiscal year 2013.

The company now expects to incur net restructuring charges of approximately $275 million for the full fiscal year 2013.

TE Connectivity anticipates total cash spending related to restructuring of approximately $180 million in fiscal 2013, which will be funded by cash from operations.

The restructuring plans involve consolidating manufacturing operations, reducing headcount, and closing manufacturing sites across all of the company's business segments. The cash spending is primarily for employee-related termination benefits.