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TE Connectivity announces first quarter financial results for fiscal year 2024

Latest update time:2024-01-26
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Recently, TE Connectivity (hereinafter referred to as "TE") released its first quarter financial report for fiscal year 2024 as of December 29, 2023.


Highlights from the fiscal first quarter

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Net sales were $3.83 billion, in line with expectations and essentially flat compared to sales in the first quarter of fiscal 2023, down 1% on an organic basis.

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GAAP diluted earnings per share from continuing operations were $5.76, including one-time tax-related gains. Adjusted earnings per share were $1.84, a year-over-year increase of 20%.

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Order volume was US$3.8 billion, a year-on-year increase of 4%, and all solution order volumes achieved year-on-year growth.

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Operating profit margin was 18.2%, and adjusted operating profit margin was 19.1%, a year-on-year increase of 290 basis points.

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Cash flow from operations was US$719 million and free cash flow was US$570 million, both setting first-quarter records.

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Approximately $1 billion of capital was deployed during the quarter, of which approximately $600 million was returned to shareholders and approximately $350 million was used to acquire Schaffner.

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TE has been selected into the "Dow Jones Sustainability Index" for the twelfth consecutive year.



I'm pleased that TE delivered such a strong performance in the first quarter. In a continuously dynamic market environment, the TE team delivered above-expected earnings, driven by significant margin growth and record free cash flow.


TE's innovative technology and global position in automotive connectivity, including a strong presence in Asia, once again enabled us to outperform the market and achieve year-over-year growth in transportation solutions. In the industrial solutions segment, TE continues to benefit from growth in renewable energy, commercial aviation and medical applications. TE Communications Electronic Solutions' profit margin reaches nearly 20%, and we expect to achieve revenue growth in artificial intelligence applications this year. We expect the company to achieve strong margin performance throughout fiscal 2024 as we continue to leverage our operational strengths and benefit from a diverse portfolio of businesses and positioning built around key long-term growth trends .



Second Quarter Fiscal Year 2024 Results Outlook

For the second quarter of fiscal 2024, the company expects net sales to be approximately $3.95 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.75, an increase of 31% compared to the prior fiscal year. Adjusted earnings per share are expected to be approximately $1.82, a year-over-year increase of 10%.


For information about TE Connectivity's use of non-GAAP Financial Measures (referred to as non-GAAP measures), please refer to "Read the original text".


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