TE Connectivity announces second quarter financial results for fiscal year 2023

Sales beat expectations, driven by strong year-over-year growth in Transportation Solutions and Industrial Solutions

Schaffhausen, Switzerland - April 28, 2023 - Recently, TE Connectivity (hereinafter referred to as "TE") released its financial report for the second quarter of fiscal year 2023 as of March 31, 2023. 

Second fiscal quarter highlights

• Net sales were $4.16 billion, up 4% year over year from fiscal 2022 and up 8% on an organic basis.

o Sales of transportation solutions increased naturally by 12%, and sales of industrial solutions increased by 15%; sales of communication electronic solutions fell by 20%, which was within the expected range, partially offsetting the growth achieved by transportation and industrial solutions.

o Currency had a negative impact on sales of $155 million.

• GAAP diluted earnings per share from continuing operations were $1.34; adjusted earnings per share were $1.65, exceeding expectations.

o GAAP and adjusted earnings per share were impacted by currency and tax headwinds of $0.17.

• Order volume increased to US$4 billion sequentially.

• Strong cash flow from operating operations was approximately US$635 million, free cash flow was approximately US$445 million, and approximately US$375 million was returned to shareholders.

• The company was named to Fortune's World's Most Admired Companies list for the sixth consecutive year.

Mr. Terrence Curtin, CEO of TE Connectivity, said: "In the changing macro environment, TE's second quarter sales and earnings were higher than expected and achieved very strong cash flow. This is due to the continued performance of our global team With strong execution and the strategic positioning of our business portfolio, we continue to see strong demand patterns across all of TE's Transportation Solutions and Industrial Solutions divisions. . It is worth mentioning that thanks to our global leadership in electric vehicles, TE's automotive business continues to outperform the flat automotive market. Our customers continue to look to TE for relevant technologies to help an increasingly electrified world. In TE Industrial Solutions, our Medical Division achieved a new quarterly sales high, and we also continued to capture growth momentum in renewable energy applications, although Communications Electronics Solutions was, as expected, affected by softer end markets. As well as the impact of supply chain issues, our team is still winning projects in the data center and artificial intelligence application areas, which will drive TE's future growth as this market recovers."

Mr. Terrence Curtin, CEO of TE Connectivity , also said: "We maintain our expectation to achieve profit growth at the corporate level in the second half of this year, driven by further growth in profits from TE Transportation Solutions as we continue to take steps to navigate the market. Volatility. We continue to believe we are well positioned for long-term growth and profitability.”

Results Outlook for the Third Quarter of Fiscal Year 2023

For the third quarter of fiscal 2023, the company expects net sales to be approximately $4 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.56 and adjusted earnings per share are expected to be approximately $1.65.