PR Newswire
SCHAFFHAUSEN, Switzerland, Nov. 1, 2023
Q4 earnings per share exceed guidance;
Full year results reflect strong margin and EPS expansion from first half to second half;
Record cash generated for the quarter and the full year
SCHAFFHAUSEN, Switzerland, Nov. 1, 2023 /PRNewswire/ -- TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal fourth quarter and year ended Sept. 29, 2023.
Full Year Highlights
"I'm pleased with our strong finish to fiscal 2023, as we delivered earnings above guidance for the quarter along with record cash flow that resulted in over 100% free cash flow conversion," said TE Connectivity CEO Terrence Curtin. "For the full year, our teams delivered year-over-year organic sales growth in our Transportation and Industrial segments, as the strength and diversity of our portfolio allowed us to overcome cyclicality in some of our end markets and headwinds from currency exchange. In Transportation, we continued to capitalize on our leading global position in electric vehicles to drive sales growth and, importantly, expand margins in the second half. Our Industrial segment demonstrated continued growth momentum in renewable energy applications and benefited from ongoing recovery in the commercial air and medical markets. While our Communications segment declined in 2023 as expected, we are seeing positive momentum from artificial intelligence applications where our high-speed connectivity solutions and engineering expertise have resulted in key design wins with technology leaders.
"As we look to the year ahead, while we remain in a dynamic market environment, we are confident in our ability to drive profitable growth leveraging key trends including e-mobility, renewable energy and artificial intelligence, where our advanced technology and close customer partnerships are helping to create a safer, sustainable, productive and connected future."
First Quarter FY24 Outlook
For the first quarter of fiscal 2024, the company expects net sales of approximately $3.85 billion, flat on both a reported and organic basis year over year. GAAP EPS from continuing operations are expected to be approximately $1.59, up 27% year over year, with adjusted EPS of approximately $1.70, up more than 10% year over year, with strong margin expansion.
Information about TE Connectivity's use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:
About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. With more than 85,000 employees, including over 8,000 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Twitter.
Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.
The following provides additional information regarding our non-GAAP financial measures:
Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions, such as the coronavirus disease 2019 ("COVID-19") negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict between Russia and Ukraine resulting from Russia's invasion of Ukraine or escalating tensions in surrounding countries; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the effects of Swiss tax reform. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept 30, 2022, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
TE CONNECTIVITY LTD. | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | |||||||||||
| | | | | | | | | | | |
| | | | | | | | | | | |
| For the Quarters Ended | | For the Years Ended | ||||||||
| September 29, | | September 30, | | September 29, | | September 30, | ||||
| 2023 | | 2022 | | 2023 | | 2022 | ||||
| (in millions, except per share data) | ||||||||||
Net sales | $ | 4,035 | | $ | 4,359 | | $ | 16,034 | | $ | 16,281 |
Cost of sales | | 2,750 | | | 3,010 | | | 10,979 | | | 11,037 |
Gross margin | | 1,285 | | | 1,349 | | | 5,055 | | | 5,244 |
Selling, general, and administrative expenses | | 412 | | | 412 | | | 1,670 | | | 1,584 |
Research, development, and engineering expenses | | 174 | | | 179 | | | 708 | | | 718 |
Acquisition and integration costs | | 7 | | | 16 | | | 33 | | | 45 |
Restructuring and other charges, net | | 57 | | | 82 | | | 340 | | | 141 |
Operating income | | 635 | | | 660 | | | 2,304 | | | 2,756 |
Interest income | | 21 | | | 6 | | | 60 | | | 15 |
Interest expense | | (19) | | | (18) | | | (80) | | | (66) |
Other income (expense), net | | (3) | | | 4 | | | (16) | | | 28 |
Income from continuing operations before income taxes | | 634 | | | 652 | | | 2,268 | | | 2,733 |
Income tax (expense) benefit Werbung Mehr Nachrichten zur TE Connectivity Aktie kostenlos abonnieren
E-Mail-Adresse
Bitte überprüfe deine die E-Mail-Adresse.
Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. |