TE Connectivity Ltd. said profits fell slightly in the fiscal fourth quarter that recently ended with sales largely unchanged from the prior year. Profits for the quarter were impacted by a sharp increase in restructuring costs and income tax expenses.
The company reported sales of $3.43 billion for the three months that ended Sept. 27, compared with sales of $3.36 billion in the fourth quarter of fiscal 2012. Sales for fiscal 2013 and fiscal 2012 were largely unchanged. It posted net income of $387 million, or 92 cents per share, compared with profits of $396 million, or 93 cents per share, in the year-ago quarter. Analysts were on average expecting the company to report 90 cents per share in earnings and revenue of $3.42 billion.
"I am pleased with our fourth quarter results and the strong finish to our fiscal year," said Tom Lynch, TE Connectivity’s chairman and CEO, in a statement. "Our Transportation segment continued to perform extremely well and demand in our Telecom Networks and Industrial businesses strengthened. Adjusted EPS of $0.93 was a record for the Company and adjusted operating margin was very strong at 15.7 percent. During the year we returned $1.2 billion to shareholders through dividends and share repurchases. This is our sixth consecutive year with a free cash flow-to-sales ratio of 10 percent or greater.”
TE said fiscal 2014 first quarter revenue would be between $3.23 billion and $3.3 billion with sales for the entire year at $13.65 billion to $14.15 billion. CEO Lynch said he expects sales and earnings before charges in fiscal 2014 “to be up solidly versus the prior year.” Analysts currently estimate the company’s fiscal 2014 revenue would be approximately $14 billion.