The proliferation of electronics in all types of devices has spurred Amphenol Corp. to a quarterly sales record, the company reported this week. Sales for the third quarter 2013 reached $1.153 billion, compared with $1.103 billion for the 2012 period.
“The electronics revolution continues to accelerate, with new applications and higher performance requirements driving increased demand for our leading interconnect technologies in all of our end markets,” said Amphenol President and Chief Executive Officer R. Adam Norwitt in a release. “This creates a significant, long-term growth opportunity for Amphenol. Importantly, our ongoing actions to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance.”
Amphenol has been expanding geographically and though acquisition, Norwitt said. In October, the company completed the acquisition of Ionix Aerospace Ltd, a U.K.-based high technology cable assembly company focused primarily on the commercial aerospace market with annual sales of approximately $35 million. “In addition to our successful acquisition program, the company continues to deploy its financial strength in a variety of ways to increase shareholder value, including, in this quarter, the purchase of 1.5 million shares of the company’s stock pursuant to our stock repurchase plan,” Norwitt said.
Amphenol’s Q3 diluted earnings per share reached $.98, compared with diluted earnings per share of $.90 for the comparable 2012 period. Sales for the nine months ended September 30, 2013 were $3.369 billion compared with $3.146 billion for the 2012 period. Segment-wise, Amphenol’s growth was driven by strong performance in the commercial aerospace, automotive, broadband, industrial and information technology and data communications markets, Norwitt said.
Looking forward, Norwitt said the global economy continues to be volatile. “In particular, growing levels of uncertainty are being driven by increasing political and fiscal constraints both in the U.S. and abroad,” he said. “Accordingly, and assuming current currency exchange rates, we expect fourth quarter 2013 revenues in the range of $1.146 billion to $1.171 billion and diluted EPS in the range of $.96 to $.99. For the year 2013, we now expect to achieve revenues and diluted EPS in the range of $4.515 billion to $4.540 billion and $3.76 to $3.79 (excluding one-time items), respectively, an increase of 5% to 6% over 2012 revenues and 8% to 9% over 2012 diluted EPS (excluding one-time items). This compares to prior full year 2013 guidance for revenues and diluted EPS in the range of $4.490 billion to $4.540 billion and $3.73 to $3.79 (excluding one-time items), respectively.
“Despite the many uncertainties in the global economy,” Norwitt concluded, “we believe we can perform well in the dynamic electronics marketplace due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and agile, experienced and entrepreneurial management team.”