Schaffhausen, Switzerland – October 30, 2020 – TE Connectivity (“TE”) recently announced its fourth quarter and full year financial results ended September 25, 2020.
· Net sales were $3.26 billion, up 28% from the previous quarter and above company expectations. The company had expected growth of 10%. Sales were down 1% year over year from the prior fiscal year, a natural decline of 4%.
· All major solutions showed growth compared to the previous quarter. Among them, transportation solutions grew 49% compared to the previous quarter, driven by the automotive business.
· GAAP EPS from continuing operations was $0.69 and adjusted EPS was $1.16.
· Cash flow from continuing operations was $719 million and free cash flow was $648 million.
Fiscal Year Highlights
· Net sales of $12.2 billion decreased 10% from fiscal 2019 due to the impact of the novel coronavirus (COVID-19).
· GAAP loss per share from continuing operations was $0.78 and adjusted EPS was $4.26.
· Cash flow from continuing operations of $2.0 billion, free cash flow of $1.5 billion, and return to shareholders of $1.1 billion.
Terrence Curtin, CEO of TE Connectivity, said: “I am proud of our employees and pleased to see that the company’s fourth quarter results far exceeded expectations, with sales of all solutions compared to the previous quarter. growth. In particular, our transportation solutions grew by approximately 50% compared to the previous quarter. This was driven by the recovery in the automotive manufacturing segment, which was achieved by TE’s strong positioning in hybrid and electric vehicle platform technologies. Outperformed the market. In addition, with the company’s global manufacturing strategy and accelerated cost reduction measures, TE adheres to its commitment to customers to help customers actively respond to the impact of COVID-19. TE’s fiscal 2020 results show that the company’s cash Stream performance is strong and portfolio is well positioned. Despite many uncertainties in the market, we expect the company’s top line performance to return to pre-COVID-19 levels in the first quarter of fiscal 2021. We expect profitability to grow and Adjusted profit and EPS will also increase year-over-year.”
Fiscal 2021 First Quarter Results Outlook
For the first quarter of fiscal 2021, the company expects net sales of approximately $3.2 billion, an increase of 1% from the prior fiscal year and a natural decrease of 2%. GAAP EPS from continuing operations is expected to be approximately $0.83 and adjusted EPS is expected to be approximately $1.25.
Due to the unpredictability of future demand impacted by COVID-19, the company is not providing guidance for full-year fiscal 2021 results.