TE Connectivity Hikes Sales, Posts Q1 Loss on Tax Charge
TE Connectivity has reported net sales of $3.5 billion, with diluted EPS from continuing operations a loss of $0.11 for the fiscal first quarter, which ended December 29, 2017.
The loss from continuing operations reflects a one-time charge associated with new U.S. tax regulations, while adjusted EPS were $1.40.
Cash flow from continuing operating activities was $350 million and free cash flow was a $127 million.
Excluding Subsea Communications (SubCom), total orders were $3.5 billion, up 11 percent organically over the first quarter of 2017, and the book-to-bill ratio was 1.06.
For the fiscal year to date, the company’s SubCom business has been awarded nearly $400 million in new subsea cable programs, bringing the backlog for that business to more than $1 billion.
“Sales increased 14 percent year-over-year, driven by our Transportation and Industrial Solutions segments, and orders grew double-digits across all segments,” said TE Connectivity chief executive officer Terrence Curtin. “Our operational performance and our higher guidance for the year are a testament to the strength and consistent execution of our business model.”
For the fiscal second quarter of 2018, the company expects net sales of $3.55 billion to $3.65 billion, reflecting an increase of 12 percent on an actual basis and 6 percent on an organic basis year over year at the mid-point. Diluted EPS from continuing operations are expected to be $1.18 to $1.22, including net restructuring, acquisition-related and other charges of $0.15. The company expects adjusted EPS of $1.33 to $1.37 which represents a 13 percent improvement at the mid-point versus the second quarter of 2017.
For the full year, the company expects net sales of $14.1 to $14.3 billion, reflecting 8 percent actual and 5 percent organic growth at the mid-point versus the prior year. Diluted EPS from continuing operations are expected to be $3.61 to $3.71, including net restructuring, acquisition-related and other charges of $0.37, and a tax-related charge of $1.42. The company expects adjusted EPS of $5.40 to $5.50, reflecting 13 percent growth at the mid-point compared to fiscal year 2017.