TE Connectivity has recently reported results for the fiscal fourth quarter and year ended September 27, 2019.
Fourth Quarter Highlights
- Net sales were $3.3 billion, down 6% as reported and 5% organically over the fourth quarter of 2018.
- Diluted earnings per share (EPS) from continuing operating operations were $1.11, and adjusted EPS were $1.33, both exceeding the mid-point of the company’s guidance.
- Cash flow from continuing operating activities was $879 million and free cash flow was $688 million, with $332 million returned to shareholders.
Full Year Highlights
- Net sales were $13.4 billion, down 4% as reported and 2% organically from fiscal year 2018.
- Diluted EPS from continuing operations were $5.72, and adjusted EPS were $5.55, down 1% versus the prior year.
- Cash flow from continuing operations was $2.5 billion and free cash flow was $1.6 billion, up 15% year over year.
- Deployed approximately $300 million on acquisitions and announced intent to acquire First Sensor
Fourth Quarter Results
For the fourth quarter, the company reported net sales of $3.3 billion, with diluted EPS from continuing operations of $1.11. Adjusted EPS were $1.33, exceeding the mid-point of the company’s guidance. Cash flow from continuing operating activities was $879 million, and free cash flow was $688 million. Total orders were $3.2 billion, down 3% sequentially.
Full Year Results
For the full year, the company reported net sales of $13.4 billion and diluted EPS from continuing operations of $5.72. Adjusted EPS were $5.55, cash flow from continuing operating activities was $2.5 billion and free cash flow was $1.6 billion, up 15% from fiscal year 2018.
“Our results through the fourth quarter of fiscal 2019 reflect the ability of our teams to execute in what continues to be a challenging market environment. I’m pleased that we quickly responded to market weakness and demonstrated earnings resiliency despite a decline in revenue. Our Industrial segment continued to show top-line organic growth and margin expansion, led by strength in our aerospace, defense and medical businesses, while our Transportation segment outperformed auto production declines through product content gains and our strong global position,” said TE Connectivity CEO Terrence Curtin.
“I want to thank our employees for their solid execution of our strategy and their commitment to our customers and our purpose, which once again helped TE achieve external recognition, including being named by Fortune as a World’s Most Admired Company for the second consecutive year.”
“We continue to see a challenging and uncertain global market environment in fiscal 2020 and remain confident in the ability of our teams to adjust to changing dynamics and deliver strong performance for our owners and customers,” said Curtin. “We will continue to execute cost reduction plans to preserve operating resiliency and generate strong cash flow, while maintaining our strategy of expanding content with our highly engineered solutions. At the same time, we will continue to invest in long-term global growth trends where our innovative technologies create a safer, sustainable, productive and connected future.”
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