Schaffhausen, Switzerland – November 4, 2019 – TE Connectivity (“TE”), a global leader in connectivity and sensing, recently announced the fourth quarter ended September 27, 2019 and Annual financial report.
· Net sales of $3.3 billion decreased 6% year over year from the fourth quarter of fiscal 2018, and naturally decreased 5%.
Diluted earnings per share from continuing operations of $1.11 and adjusted earnings per share of $1.33 both exceeded the company’s median forecast;
Cash flow from continuing operations of $879 million, free cash flow of $688 million, and return to shareholders of $332 million;
Fiscal Year Highlights
Net sales reached $13.4 billion, down 4% year-on-year from fiscal 2018 and a natural decrease of 2%;
Diluted earnings per share from continuing operations were $5.72 and adjusted earnings per share were $5.55, a decrease of 1% year over year;
Cash flow from continuing operations was $2.5 billion and free cash flow was $1.6 billion, up 15% year-over-year;
Invested approximately $300 million in acquisitions and announced its intention to acquire First Sensor.
Fourth quarter results
During the quarter, the company had net sales of $3.3 billion and diluted earnings per share from continuing operations of $1.11. Adjusted earnings per share were $1.33, beating the company’s median estimate. Cash flow from continuing operations was $879 million and free cash flow was $688 million. The company’s total orders amounted to 3.2 billion US dollars, a decrease of 3% from the previous month.
In fiscal 2019, the company had net sales of $13.4 billion and diluted earnings per share from continuing operations of $5.72. Adjusted earnings per share were $5.55, full-year cash flow from continuing operations was $2.5 billion, and full-year free cash flow was $1.6 billion, up 15% year over year from fiscal 2018. The company continues to optimize its product portfolio in areas of growing market demand, completing the acquisitions of Kissling Group and Alpha Technics, as well as announcing the acquisitions of Silicon Microstructures Inc. (SMI) and First Sensor AG.
Terrence Curtin, Chief Executive Officer of TE Connectivity, said: “The results for the fourth quarter of fiscal 2019 reflect our team’s ability to execute efficiently in a continuing challenging market environment. The rapid response of the market, despite a slight decrease in the company’s revenue, reflects our resilience. TE Industrial Solutions, led by the aerospace, defense and medical businesses, continued to achieve organic revenue growth and profit improvement, while TE Transportation Solutions, on the other hand, has maintained its excellent performance despite the reduction in global vehicle production due to the increase in product proportion and strong global market position. I would like to thank our employees for their firm execution of the company’s strategy and commitment to realizing the company’s mission and customers. And the hard work has once again helped TE gain external recognition, including being named Fortune Magazine’s ‘World’s Most Admired Company’ for the second year in a row.”
Fiscal Year 2020 Performance Outlook
For the first quarter of fiscal 2020, the company expects net sales to be in the range of $3.0 billion to $3.2 billion, a 7% year-over-year decrease at the median and a 6% natural decrease. Diluted earnings per share from continuing operations are expected to be between $0.93 and $0.99, including restructuring, acquisition-related charges and other charges of $0.17. The company expects adjusted earnings per share in the range of $1.10 to $1.16.
The company expects full-year net sales to be in the range of $12.7 billion to $13.3 billion, with a median year-over-year decrease of 3% in real terms and a natural decrease of 2%. Diluted earnings per share from continuing operations are expected to be between $4.21 and $4.61, including restructuring, acquisition-related charges and other charges of $0.64. The company expects adjusted earnings per share in the range of $4.85 to $5.25.
Mr. Curtin said: “The global market environment will continue to be challenging and uncertain in fiscal 2020, but we believe that the team has the ability to adapt to the volatile market, achieve strong performance, and fulfill our commitments to shareholders and customers. We will continue to Execute cost-lean plans to maintain operational resilience and strong cash flow, and firmly execute our go-to-market strategy to increase product offerings with high-engineered solutions. At the same time, we will continue to invest in areas consistent with long-term growth trends in the global market , strengthen our technological innovation to create a safer, sustainable, efficient and connected future.”