Advertisement

News Wire

Amphenol Reports Q3 Results

WALLINGFORD, Conn. — Amphenol Corporation (NYSE-APH) reported today third quarter 2011 diluted earnings per share of $.79 compared to $.78 per share for the comparable 2010 period. Such per share amount for the 2011 quarter includes the effect of a $13 million ($8 million after tax), or $.05 per share one-time charge relating to the previously announced flood damage at the Company’s Sidney, New York facility. In addition, the 2011 quarter and the 2010 quarter per share amounts include $4 million, or $.03 per share and $8 million, or $.05 per share, of net benefits relating to a reduction in tax expense due primarily to the favorable settlement of certain international tax positions and the completion of prior year audits.

Excluding these effects, diluted earnings per share were a record $.81 for the quarter ended September 30, 2011 compared to $.73 for the 2010 period. Sales for the third quarter 2011 were a record $1.033 billion compared to $948 million for the 2010 period. Currency translation had the effect of increasing sales by approximately $23 million in the third quarter 2011 compared to the 2010 period.

For the nine months ended September 30th, diluted earnings per share were $2.36 and $2.08, on an as reported basis and $2.32 and $1.96 excluding one-time items for the 2011 and 2010 periods, respectively. One–time items in the 2011 period of $.04 include the $.02 net third quarter charge described above and a $.06 per share gain related to the adjustment of a contingent purchase price obligation for a 2010 acquisition. One-time items in the 2010 period of $.12 per share relate to the net tax benefit from a reduction in international tax expense due primarily to the favorable settlement of certain tax positions and the completion of prior year audits.

Sales for the nine months ended September 30, 2011 were $2.991 billion compared to $2.604 billion for the 2010 period. Currency translation had the effect of increasing sales by approximately $58 million for the nine month 2011 period compared to the 2010 period.

As previously announced last month, the Company incurred damage at its Sidney, New York manufacturing facility as a result of severe and sudden flooding in New York State during the period September 7 through September 9, 2011. In the third quarter the Company has recorded a charge of $13 million or $.05 per share for property-related damage, as well as cleanup and repair efforts, net of expected insurance recoveries. This charge includes the Company’s best estimate of the loss related to inventory and machinery and equipment. In the fourth quarter, the Company expects to record an additional charge of approximately $7 million or $.03 per share for one-time expenses related to remaining cleanup and repair efforts.

In addition, the Sidney facility had limited manufacturing and sales activity in September and is ramping up to full production levels during October. This reduced sales by approximately $11 million in the third quarter and is expected to reduce sales by approximately $7 million in the fourth quarter.

Amphenol President and Chief Executive Officer R. Adam Norwitt stated “The third quarter results established new records of performance for Amphenol with sales of $1.033 billion and EPS of $.81 (excluding one-time items). Sales growth of 9% over last year was driven primarily by strength in our Mobile Devices and Automotive markets. Demand in the Mobile Devices market was particularly strong, and we believe included some pulling forward by customers of deliveries previously planned for the fourth quarter. We are encouraged by the Company’s strong performance despite growing economic uncertainties, a confirmation of the strength of our leading technology, broad and increasing positions with our customers across all of our diverse markets, worldwide presence and lean cost structure. In addition, despite what continues to be an extremely challenging environment, our entrepreneurial management team executed well in the quarter, achieving industry-leading operating margins of 19.3%, net income margins of 13.4% (both excluding one-time items) and strong operating cash flow of $184 million.”

“Our ongoing strategy of market and geographic diversification combined with a steadfast commitment to developing enabling technologies for our customers in all markets, both through organic product development and through our acquisition program, continues to expand the Company’s opportunities for growth. In addition, the Company continues to deploy its financial strength in a variety of ways to increase shareholder value including, in this quarter, the purchase of 3.8 million shares of the Company’s stock pursuant to our stock repurchase plan.”

“I am particularly proud of the efforts of our Sidney, New York team, whose heroic recovery efforts following the flood have allowed us to make significant strides in the resumption of production in satisfaction of our customers’ needs. We are especially pleased that the Sidney plant is expected to be substantially back to full production this month. This team is a tremendous example of Amphenol’s outstanding organization.”

“In the past month, global markets have been impacted by a higher level of uncertainty surrounding fiscal and budgetary issues in most developed economies. As a result, we have begun to see increased levels of caution from many of our customers, translating into lower demand in most markets. In addition, we do not expect a continuation in the fourth quarter of the increased demand levels in the Mobile Devices market that we experienced in the third quarter. In consideration of this and based on the assumption of constant currency exchange rates including a relatively weaker euro, we expect fourth quarter 2011 revenues in the range of $920 million to $940 million and EPS (excluding one-time items) in the range of $.69 to $.71. For the full year 2011, we expect to achieve revenues and EPS in the range of $3.912 billion to $3.932 billion and $3.02 to $3.04 as reported ($3.01 to $3.03 excluding one-time items), respectively, an increase over the prior year of 10% to 11% in revenues and 11% to 12% in EPS (excluding one-time items), respectively. This compares to prior guidance of $3.975 billion to $4.005 billion in sales and $3.07 to $3.11 in EPS excluding one-time items.”

“Despite the increased level of economic uncertainty, we continue to be extremely excited about the future. The electronics revolution continues unabated in all of our end markets, with new applications and higher performance requirements driving accelerated demand for our leading interconnect technologies. This creates a significant, long-term growth opportunity for Amphenol. Importantly, our ongoing actions to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance. I am confident in the ability of our outstanding management team to dynamically adjust to the constantly changing market environment, to continue to generate strong profitability and to further capitalize on opportunities to expand our market position.”

The Company will host a conference call to discuss its third quarter results at 1:00 PM (ET) October 19, 2011. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number is 517-623-4547; Passcode: Reardon. There will be a replay available until 11:59 P.M. (ET) on Friday, October 21, 2011. The replay numbers are as follows: toll free dial-in number is 888-568-0671 and international dial-in number is 402-530-7729; Passcode: 5137.

A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/investors/webcasts.php.

{complink 304|Amphenol Corp.}

0 comments on “Amphenol Reports Q3 Results

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.