TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal first quarter ended December 27, 2013.
First Quarter Highlights
- Net sales increased to $3.33 billion, up six percent versus the prior year
- Adjusted Earnings Per Share reached a first quarter record of $0.82, up 26 percent versus the prior year
- Diluted Earnings Per Share from Continuing Operations (GAAP EPS) were $0.85, up 31 percent versus the prior year
- Free Cash Flow was $266 million; returned $315 million to shareholders through share repurchases and dividends
- Board of Directors recommended a 16 percent increase to the quarterly dividend subject to shareholder approval in March 2014
"We had a strong first quarter with sales up six percent and EPS above the high end of our guidance range," said Tom Lynch, TE Connectivity Chairman and Chief Executive Officer. "Sales were up in all regions led by continued momentum in our Transportation and Industrial segments. This was another quarter of strong execution with adjusted operating income up 25 percent due to sales growth and the impact of our TEOA program."
"Orders were up eight percent in the first quarter, the third consecutive quarter of organic growth, and our book to bill was 1.03, excluding Subsea Communications. We are encouraged by the continued strength in the global automotive market, improvements in our industrial end markets and increased demand in the fiber portion of the broadband network, all markets in which we have a leadership position. As a result, we are raising the midpoint of our sales and earnings guidance for the fiscal year. At the midpoint, we anticipate sales to be $14 billion, an improvement of five percent organically over the prior year and adjusted EPS to be $3.75, up 16 percent versus the prior year."
FISCAL FIRST QUARTER RESULTS
The company reported net sales of $3.33 billion, compared to prior year sales of $3.13 billion. Adjusted EPS were $0.82, compared to $0.65 in the prior year. GAAP EPS were $0.85 for the quarter, compared to $0.65 in the prior year. Free cash flow was $266 million for the quarter.
GAAP EPS includes $0.01 of restructuring and other charges and $0.04 of income related to tax items.
Excluding Subsea Communications, total company orders were $3.32 billion in the first quarter, up eight percent, and the book-to-bill ratio was 1.03.
For the second quarter, the company expects net sales of $3.4 to $3.5 billion and adjusted EPS of $0.88 to $0.92. GAAP EPS are expected to be $0.86 to $0.90, including restructuring charges of $0.02.
For the full year, the company expects net sales of $13.8 to $14.2 billion and adjusted EPS of $3.65 to $3.85. GAAP EPS are expected to be $3.60 to $3.80, including restructuring charges of $0.09 and income from tax-related items of $0.04.
This outlook assumes foreign exchange and commodity rates that are consistent with current levels.
Information about TE Connectivity's use of non-GAAP financial measures is described at the end of this press release. For a reconciliation of these non-GAAP financial measures, see the attached tables.
ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a $13 billion world leader in connectivity. The company designs and manufactures products at the heart of electronic connections for the world's leading industries including automotive, energy and industrial, broadband communications, consumer devices, healthcare, and aerospace and defense. TE Connectivity's long-standing commitment to innovation and engineering excellence helps its customers solve the need for more energy efficiency, always-on communications and ever-increasing productivity. With nearly 90,000 employees in over 50 countries, TE Connectivity makes connections the world relies on to work flawlessly every day. To connect with the company, visit: www.TE.com.