EPS above guidance with record first
quarter cash generation
GALWAY, Ireland, Jan. 22,
2025 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL)
today reported results for the fiscal first quarter ended
Dec. 27, 2024.
First Quarter Highlights
- Net sales were $3.84 billion,
flat year over year and as expected on an organic basis.
- Compared to guidance, sales were unfavorably impacted by
increased currency exchange headwinds.
- Earnings per share (EPS) above guidance, with GAAP diluted EPS
from continuing operations at $1.75.
Adjusted EPS was $1.95, up
approximately 6% year over year.
- Orders of $4.0 billion, up 6%
year over year and 4% sequentially, driven by the Industrial
segment, with increased momentum in artificial intelligence
programs.
- Operating margin was 18% and adjusted operating margin was a
quarterly record at 19.4%, driven by strong operational
execution.
- Record first quarter cash generation, including:
- Cash from operating activities of $878
million, up 22% year over year.
- Free cash flow of $674 million,
up 18% year over year.
- Returned approximately $500
million to shareholders and deployed $325 million for bolt-on acquisitions in the
Industrial segment.
- Named to Dow Jones Sustainability Index for the 13th
consecutive year.
"I'm pleased that our team began the fiscal year with a strong
operational performance, highlighted by adjusted EPS above guidance
and records in both adjusted operating margin and first quarter
free cash flow," said TE Connectivity CEO Terrence Curtin. "In our Transportation segment,
we continued to navigate an uneven global vehicle production
environment to deliver a strong result while continuing to innovate
with our global customers in growth trends such as electrification
and next-generation vehicle data connectivity. We delivered double
digit sales growth in our Industrial segment and expanded margins,
driven by momentum in AI programs across multiple customers, as
well as capitalizing on ongoing strength in our AD&M and Energy
businesses.
"As we continue our operational excellence and innovate with our
valued customers, we expect second quarter sales to be up
sequentially and adjusted EPS to be up year over year and compared
to the first quarter. We remain excited about capitalizing on
long-term growth opportunities, including our bolt-on acquisition
strategy and margin expansion plans, to keep delivering on our
value creation model."
Second Quarter FY25 Outlook
For the second quarter of
fiscal 2025, the company expects net sales of approximately
$3.95 billion. GAAP EPS from
continuing operations is expected to be approximately ($0.05), which includes a one-time non-cash tax
charge due to changes in tax law in the second quarter of 2025.
Adjusted EPS is expected to be approximately $1.96, up 5% year over year. Second quarter
guidance includes $0.06 of currency
exchange and tax headwinds compared to the prior year.
Beginning this fiscal year, the company has two reportable
segments – Transportation Solutions and Industrial Solutions –
resulting from a reorganization announced in the fourth quarter of
fiscal 2024. The company provided recast financial information in
an 8-K filing on Dec. 17, 2024.
Information about TE Connectivity's use of non-GAAP financial
measures is provided below. For reconciliations of these non-GAAP
financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a
conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed
in the following ways:
- At TE Connectivity's website: investors.te.com
- By telephone: For both "listen-only" participants and those
participants who wish to take part in the question-and-answer
portion of the call, the dial-in number in the United States is (800) 715-9871 and for
international callers, the dial-in number is (646) 307-1963.
- A replay of the conference call will be available on TE
Connectivity's investor website at investors.te.com at 11:30 a.m. ET on Jan.
22.
About TE Connectivity
TE Connectivity plc (NYSE:
TEL) is a global industrial technology leader creating a safer,
sustainable, productive, and connected future. Our broad range of
connectivity and sensor solutions enable the distribution of power,
signal and data to advance next-generation transportation,
renewable energy, automated factories, data centers, medical
technology and more. With more than 85,000 employees, including
9,000 engineers, working alongside customers in approximately 130
countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at
www.te.com and on LinkedIn, Facebook,
WeChat, Instagram and X (formerly Twitter).
Non-GAAP Financial Measures
We present non-GAAP
performance and liquidity measures as we believe it is appropriate
for investors to consider adjusted financial measures in addition
to results in accordance with accounting principles generally
accepted in the U.S. ("GAAP"). These non-GAAP financial measures
provide supplemental information and should not be considered
replacements for results in accordance with GAAP. Management uses
non-GAAP financial measures internally for planning and forecasting
purposes and in its decision-making processes related to the
operations of our company. We believe these measures provide
meaningful information to us and investors because they enhance the
understanding of our operating performance, ability to generate
cash, and the trends of our business. Additionally, we believe that
investors benefit from having access to the same financial measures
that management uses in evaluating our operations. The primary
limitation of these measures is that they exclude the financial
impact of items that would otherwise either increase or decrease
our reported results. This limitation is best addressed by using
these non-GAAP financial measures in combination with the most
directly comparable GAAP financial measures in order to better
understand the amounts, character, and impact of any increase or
decrease in reported amounts. These non-GAAP financial measures may
not be comparable to similarly-titled measures reported by other
companies.
The following provides additional information regarding our
non-GAAP financial measures:
- Organic Net Sales Growth (Decline) – represents net sales
growth (decline) (the most comparable GAAP financial measure)
excluding the impact of foreign currency exchange rates, and
acquisitions and divestitures that occurred in the preceding twelve
months, if any. Organic Net Sales Growth (Decline) is a useful
measure of our performance because it excludes items that are not
completely under management's control, such as the impact of
changes in foreign currency exchange rates, and items that do not
reflect the underlying growth of the company, such as acquisition
and divestiture activity. This measure is a significant component
in our incentive compensation plans.
- Adjusted Operating Income and Adjusted Operating Margin –
represent operating income and operating margin, respectively, (the
most comparable GAAP financial measures) before special items
including restructuring and other charges, acquisition-related
charges, impairment of goodwill, and other income or charges, if
any. We utilize these adjusted measures in combination with
operating income and operating margin to assess segment level
operating performance and to provide insight to management in
evaluating segment operating plan execution and market conditions.
Adjusted Operating Income is a significant component in our
incentive compensation plans.
- Adjusted Income Tax (Expense) Benefit and Adjusted Effective
Tax Rate – represent income tax (expense) benefit and effective tax
rate, respectively, (the most comparable GAAP financial measures)
after adjusting for the tax effect of special items including
restructuring and other charges, acquisition-related charges,
impairment of goodwill, other income or charges, and certain
significant tax items, if any.
- Adjusted Income from Continuing Operations – represents income
from continuing operations (the most comparable GAAP financial
measure) before special items including restructuring and other
charges, acquisition-related charges, impairment of goodwill, other
income or charges, and certain significant tax items, if any, and,
if applicable, the related tax effects.
- Adjusted Earnings Per Share – represents diluted earnings
(loss) per share from continuing operations (the most comparable
GAAP financial measure) before special items including
restructuring and other charges, acquisition-related charges,
impairment of goodwill, other income or charges, and certain
significant tax items, if any, and, if applicable, the related tax
effects. This measure is a significant component in our incentive
compensation plans.
- Free Cash Flow (FCF) – is a useful measure of our ability to
generate cash. The difference between net cash provided by
operating activities (the most comparable GAAP financial measure)
and Free Cash Flow consists mainly of significant cash outflows and
inflows that we believe are useful to identify. We believe Free
Cash Flow provides useful information to investors as it provides
insight into the primary cash flow metric used by management to
monitor and evaluate cash flows generated from our operations. Free
Cash Flow is defined as net cash provided by operating activities
excluding voluntary pension contributions and the cash impact of
special items, if any, minus net capital expenditures. Voluntary
pension contributions are excluded from the GAAP financial measure
because this activity is driven by economic financing decisions
rather than operating activity. Certain special items, including
cash paid (collected) pursuant to collateral requirements related
to cross-currency swap contracts, are also excluded by management
in evaluating Free Cash Flow. Net capital expenditures consist of
capital expenditures less proceeds from the sale of property,
plant, and equipment. These items are subtracted because they
represent long-term commitments. In the calculation of Free Cash
Flow, we subtract certain cash items that are ultimately within
management's and the Board of Directors' discretion to direct and
may imply that there is less or more cash available for our
programs than the most comparable GAAP financial measure indicates.
It should not be inferred that the entire Free Cash Flow amount is
available for future discretionary expenditures, as our definition
of Free Cash Flow does not consider certain non-discretionary
expenditures, such as debt payments. In addition, we may have other
discretionary expenditures, such as discretionary dividends, share
repurchases, and business acquisitions, that are not considered in
the calculation of Free Cash Flow.
Forward-Looking Statements
This release contains
certain "forward-looking statements" within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. These statements
are based on management's current expectations and are subject to
risks, uncertainty and changes in circumstances, which may cause
actual results, performance, financial condition or achievements to
differ materially from anticipated results, performance, financial
condition or achievements. All statements contained herein that are
not clearly historical in nature are forward-looking and the words
"anticipate," "believe," "expect," "estimate," "plan," and similar
expressions are generally intended to identify forward-looking
statements. We have no intention and are under no obligation to
update or alter (and expressly disclaim any such intention or
obligation to do so) our forward-looking statements whether as a
result of new information, future events or otherwise, except to
the extent required by law. The forward-looking statements in this
release include statements addressing our future financial
condition and operating results. Examples of factors that could
cause actual results to differ materially from those described in
the forward-looking statements include, among others, the extent,
severity and duration of business interruptions negatively
affecting our business operations; business, economic, competitive
and regulatory risks, such as conditions affecting demand for
products in the automotive and other industries we serve;
competition and pricing pressure; fluctuations in foreign currency
exchange rates and commodity prices; natural disasters and
political, economic and military instability in countries in which
we operate, including continuing military conflict in certain parts
of the world; developments in the credit markets; future goodwill
impairment; compliance with current and future environmental and
other laws and regulations; and the possible effects on us of
changes in tax laws, tax treaties and other legislation. In
addition, our change of incorporation from Switzerland to Ireland is subject to risks, such as the risk
that the anticipated advantages might not materialize, as well as
the risks that the price of our stock could decline and our
position on stock exchanges and indices could change, and Irish
corporate governance and regulatory schemes could prove different
or more challenging than currently expected. More detailed
information about these and other factors is set forth in TE
Connectivity plc's Annual Report on Form 10-K for the fiscal year
ended Sept 27, 2024, as well as in
our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and
other reports filed by us with the U.S. Securities and Exchange
Commission.
|
TE CONNECTIVITY
PLC
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
|
|
For the Quarters
Ended
|
|
December 27,
|
|
December 29,
|
|
2024
|
|
2023
|
|
(in millions, except
per share data)
|
|
Net
sales
|
$
|
3,836
|
|
$
|
3,831
|
|
Cost of
sales
|
|
2,476
|
|
|
2,507
|
|
Gross
margin
|
|
1,360
|
|
|
1,324
|
|
Selling, general, and
administrative expenses
|
|
427
|
|
|
424
|
|
Research, development,
and engineering expenses
|
|
188
|
|
|
173
|
|
Acquisition and
integration costs
|
|
5
|
|
|
8
|
|
Restructuring and other
charges, net
|
|
50
|
|
|
21
|
|
Operating
income
|
|
690
|
|
|
698
|
|
Interest
income
|
|
23
|
|
|
22
|
|
Interest
expense
|
|
(6)
|
|
|
(18)
|
|
Other expense,
net
|
|
(1)
|
|
|
(3)
|
|
Income from
continuing operations before income taxes
|
|
706
|
|
|
699
|
|
Income tax (expense)
benefit
|
|
(178)
|
|
|
1,105
|
|
Income from
continuing operations
|
|
528
|
|
|
1,804
|
|
Loss from discontinued
operations, net of income taxes
|
|
—
|
|
|
(1)
|
|
Net
income
|
$
|
528
|
|
$
|
1,803
|
|
|
|
|
|
|
|
Basic earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.77
|
|
$
|
5.80
|
|
Net income
|
|
1.77
|
|
|
5.80
|
|
|
|
|
|
|
|
Diluted earnings per
share:
|
|
|
|
|
|
|
Income from continuing
operations
|
$
|
1.75
|
|
$
|
5.76
|
|
Net income
|
|
1.75
|
|
|
5.76
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
299
|
|
|
311
|
|
Diluted
|
|
301
|
|
|
313
|
|
TE CONNECTIVITY
PLC
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
|
December 27,
|
|
September 27,
|
|
2024
|
|
2024
|
|
(in millions, except
share data)
|
|
Assets
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
1,254
|
|
$
|
1,319
|
|
Accounts receivable,
net of allowance for doubtful accounts of $34 and $32,
respectively
|
|
2,912
|
|
|
3,055
|
|
Inventories
|
|
2,619
|
|
|
2,517
|
|
Prepaid expenses and
other current assets
|
|
734
|
|
|
740
|
|
Total current
assets
|
|
7,519
|
|
|
7,631
|
|
Property, plant, and
equipment, net
|
|
3,759
|
|
|
3,903
|
|
Goodwill
|
|
5,835
|
|
|
5,801
|
|
Intangible assets,
net
|
|
1,177
|
|
|
1,174
|
|
Deferred income
taxes
|
|
3,270
|
|
|
3,497
|
|
Other assets
|
|
881
|
|
|
848
|
|
Total
assets
|
$
|
22,441
|
|
$
|
22,854
|
|
Liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Short-term
debt
|
$
|
920
|
|
$
|
871
|
|
Accounts
payable
|
|
1,859
|
|
|
1,728
|
|
Accrued and other
current liabilities
|
|
1,694
|
|
|
2,147
|
|
Total current
liabilities
|
|
4,473
|
|
|
4,746
|
|
Long-term
debt
|
|
3,285
|
|
|
3,332
|
|
Long-term pension and
postretirement liabilities
|
|
778
|
|
|
810
|
|
Deferred income
taxes
|
|
203
|
|
|
199
|
|
Income taxes
|
|
396
|
|
|
411
|
|
Other
liabilities
|
|
773
|
|
|
870
|
|
Total
liabilities
|
|
9,908
|
|
|
10,368
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
124
|
|
|
131
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
Preferred shares, $1.00
par value, 2 shares authorized, none outstanding as of December 27,
2024
|
|
—
|
|
|
—
|
|
Ordinary class A
shares, €1.00 par value, 25,000 shares authorized, none
outstanding as of
December 27, 2024
|
|
—
|
|
|
—
|
|
Ordinary shares, $0.01
par value, 1,500,000,000 shares authorized, 300,840,538 shares
issued
and common shares, CHF 0.57 par value, 316,574,781 shares
authorized and issued, respectively
|
|
3
|
|
|
139
|
|
Accumulated
earnings
|
|
12,933
|
|
|
14,533
|
|
Ordinary shares and
common shares held in treasury, at cost, 2,074,979 and 16,656,681
shares,
respectively
|
|
(310)
|
|
|
(2,322)
|
|
Accumulated other
comprehensive income (loss)
|
|
(217)
|
|
|
5
|
|
Total shareholders'
equity
|
|
12,409
|
|
|
12,355
|
|
Total liabilities,
redeemable noncontrolling interests, and shareholders'
equity
|
$
|
22,441
|
|
$
|
22,854
|
|
TE CONNECTIVITY
PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
For the Quarters
Ended
|
|
December 27,
|
|
December 29,
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
Net income
|
$
|
528
|
|
$
|
1,803
|
|
Loss from discontinued
operations, net of income taxes
|
|
—
|
|
|
1
|
|
Income from continuing
operations
|
|
528
|
|
|
1,804
|
|
Adjustments to
reconcile income from continuing operations to net cash provided by
operating
activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
186
|
|
|
194
|
|
Deferred income
taxes
|
|
98
|
|
|
(1,217)
|
|
Non-cash lease
cost
|
|
34
|
|
|
34
|
|
Provision for losses on
accounts receivable and inventories
|
|
41
|
|
|
42
|
|
Share-based
compensation expense
|
|
35
|
|
|
34
|
|
Other
|
|
12
|
|
|
40
|
|
Changes in assets and
liabilities, net of the effects of acquisitions and
divestitures:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
146
|
|
|
127
|
|
Inventories
|
|
(118)
|
|
|
(282)
|
|
Prepaid expenses and
other current assets
|
|
68
|
|
|
(48)
|
|
Accounts
payable
|
|
150
|
|
|
128
|
|
Accrued and other
current liabilities
|
|
(295)
|
|
|
(239)
|
|
Income taxes
|
|
30
|
|
|
12
|
|
Other
|
|
(37)
|
|
|
90
|
|
Net cash provided by
operating activities
|
|
878
|
|
|
719
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Capital
expenditures
|
|
(205)
|
|
|
(151)
|
|
Proceeds from sale of
property, plant, and equipment
|
|
1
|
|
|
2
|
|
Acquisition of
businesses, net of cash acquired
|
|
(325)
|
|
|
(349)
|
|
Proceeds from
divestiture of business, net of cash retained by business
sold
|
|
—
|
|
|
38
|
|
Other
|
|
(8)
|
|
|
(8)
|
|
Net cash used in
investing activities
|
|
(537)
|
|
|
(468)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Net increase (decrease)
in commercial paper
|
|
90
|
|
|
(69)
|
|
Repayment of
debt
|
|
—
|
|
|
(1)
|
|
Proceeds from exercise
of share options
|
|
34
|
|
|
11
|
|
Repurchase of
ordinary/common shares
|
|
(303)
|
|
|
(476)
|
|
Payment of
ordinary/common share dividends to shareholders
|
|
(189)
|
|
|
(183)
|
|
Other
|
|
(27)
|
|
|
(27)
|
|
Net cash used in
financing activities
|
|
(395)
|
|
|
(745)
|
|
Effect of currency
translation on cash
|
|
(11)
|
|
|
3
|
|
Net decrease in
cash, cash equivalents, and restricted cash
|
|
(65)
|
|
|
(491)
|
|
Cash, cash
equivalents, and restricted cash at beginning of
period
|
|
1,319
|
|
|
1,661
|
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
1,254
|
|
$
|
1,170
|
|
|
|
|
|
|
|
Supplemental cash
flow information:
|
|
|
|
|
|
|
Income taxes paid, net
of refunds
|
|
49
|
|
|
100
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
|
|
|
For the Quarters
Ended
|
|
December 27,
|
|
December 29,
|
|
2024
|
|
2023
|
|
(in
millions)
|
|
Net cash provided by
operating activities
|
$
|
878
|
|
$
|
719
|
|
Capital expenditures,
net
|
|
(204)
|
|
|
(149)
|
|
Free cash flow
(1)
|
$
|
674
|
|
$
|
570
|
|
|
(1) Free
cash flow is a non-GAAP financial measure. See description of
non-GAAP financial measures.
|
|
TE CONNECTIVITY
PLC
SEGMENT DATA (UNAUDITED)
|
|
|
For the Quarters
Ended
|
|
|
December 27,
|
|
|
December 29,
|
|
|
2024
|
|
|
2023
|
|
|
($ in
millions)
|
|
Net
Sales
|
|
|
|
|
Net
Sales
|
|
|
|
|
Transportation
Solutions
|
$
|
2,243
|
|
|
|
|
$
|
2,393
|
|
|
|
|
Industrial
Solutions
|
|
1,593
|
|
|
|
|
|
1,438
|
|
|
|
|
Total
|
$
|
3,836
|
|
|
|
|
$
|
3,831
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Income
|
|
Margin
|
|
|
Income
|
|
Margin
|
|
|
Transportation
Solutions
|
$
|
446
|
|
19.9
|
%
|
|
$
|
487
|
|
20.4
|
%
|
|
Industrial
Solutions
|
|
244
|
|
15.3
|
|
|
|
211
|
|
14.7
|
|
|
Total
|
$
|
690
|
|
18.0
|
%
|
|
$
|
698
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Adjusted
|
|
Adjusted
|
|
|
Operating
|
|
Operating
|
|
|
Operating
|
|
Operating
|
|
|
Income
(1)
|
|
Margin
(1)
|
|
|
Income
(1)
|
|
Margin
(1)
|
|
|
Transportation
Solutions
|
$
|
478
|
|
21.3
|
%
|
|
$
|
504
|
|
21.1
|
%
|
|
Industrial
Solutions
|
|
267
|
|
16.8
|
|
|
|
227
|
|
15.8
|
|
|
Total
|
$
|
745
|
|
19.4
|
%
|
|
$
|
731
|
|
19.1
|
%
|
|
|
(1) Adjusted
operating income and adjusted operating margin are non-GAAP
financial measures. See description of non-GAAP financial
measures.
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF NET SALES GROWTH (DECLINE)
(UNAUDITED)
|
|
|
Change in Net Sales
for the Quarter Ended December 27, 2024
|
|
versus Net Sales for
the Quarter Ended December 29, 2023
|
|
Net
Sales
|
|
|
Organic Net
Sales
|
|
|
|
|
Acquisitions/
|
|
Growth
(Decline)
|
|
|
Growth (Decline)
(1)
|
|
|
Translation
(2)
|
|
(Divestiture)
|
|
($ in
millions)
|
|
Transportation
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automotive
|
$
|
(74)
|
|
(4.1)
|
%
|
|
$
|
(55)
|
|
(3.0)
|
%
|
|
$
|
(7)
|
|
$
|
(12)
|
|
Commercial
transportation
|
|
(44)
|
|
(12.4)
|
|
|
|
(41)
|
|
(11.6)
|
|
|
|
(3)
|
|
|
—
|
|
Sensors
|
|
(32)
|
|
(13.3)
|
|
|
|
(30)
|
|
(12.6)
|
|
|
|
(2)
|
|
|
—
|
|
Total Transportation
Solutions
|
|
(150)
|
|
(6.3)
|
|
|
|
(126)
|
|
(5.2)
|
|
|
|
(12)
|
|
|
(12)
|
|
Industrial
Solutions (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Automation and
connected living
|
|
15
|
|
3.2
|
|
|
|
(21)
|
|
(4.5)
|
|
|
|
(2)
|
|
|
38
|
|
Aerospace, defense, and
marine
|
|
44
|
|
15.2
|
|
|
|
45
|
|
15.4
|
|
|
|
(1)
|
|
|
—
|
|
Digital data
networks
|
|
134
|
|
48.0
|
|
|
|
134
|
|
48.0
|
|
|
|
—
|
|
|
—
|
|
Energy
|
|
11
|
|
5.4
|
|
|
|
14
|
|
6.8
|
|
|
|
(3)
|
|
|
—
|
|
Medical
|
|
(49)
|
|
(24.5)
|
|
|
|
(49)
|
|
(24.5)
|
|
|
|
—
|
|
|
—
|
|
Total Industrial
Solutions
|
|
155
|
|
10.8
|
|
|
|
123
|
|
8.6
|
|
|
|
(6)
|
|
|
38
|
|
Total
|
$
|
5
|
|
0.1
|
%
|
|
$
|
(3)
|
|
—
|
%
|
|
$
|
(18)
|
|
$
|
26
|
|
|
(1) Organic
net sales growth (decline) is a non-GAAP financial measure. See
description of non-GAAP financial measures.
|
|
(2)
Represents the change in net sales resulting from changes in
foreign currency exchange rates.
|
|
(3) Industry
end market information is presented consistently with our internal
management reporting and may be periodically revised as management
deems necessary.
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Quarter Ended December 27, 2024
(UNAUDITED)
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
446
|
|
|
$
|
—
|
|
$
|
32
|
|
$
|
—
|
|
$
|
478
|
|
|
Industrial
Solutions
|
|
244
|
|
|
|
5
|
|
|
18
|
|
|
—
|
|
|
267
|
|
|
Total
|
$
|
690
|
|
|
$
|
5
|
|
$
|
50
|
|
$
|
—
|
|
$
|
745
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
18.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(178)
|
|
|
$
|
(1)
|
|
$
|
(9)
|
|
$
|
13
|
|
$
|
(175)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
23.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
528
|
|
|
$
|
4
|
|
$
|
41
|
|
$
|
13
|
|
$
|
586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from
continuing operations
|
$
|
1.75
|
|
|
$
|
0.01
|
|
$
|
0.14
|
|
$
|
0.04
|
|
$
|
1.95
|
|
|
|
(1) The tax
effect of each non-GAAP adjustment is calculated based on the
jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.
|
|
(2)
Represents income tax expense related to the revaluation of
deferred tax assets as a result of a decrease in the corporate tax
rate in a non-U.S. jurisdiction.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Quarter Ended December 29, 2023
(UNAUDITED)
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
487
|
|
|
$
|
—
|
|
$
|
14
|
|
$
|
3
|
|
$
|
504
|
|
|
Industrial
Solutions
|
|
211
|
|
|
|
8
|
|
|
7
|
|
|
1
|
|
|
227
|
|
|
Total
|
$
|
698
|
|
|
$
|
8
|
|
$
|
21
|
|
$
|
4
|
|
$
|
731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
18.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
$
|
1,105
|
|
|
$
|
(1)
|
|
$
|
(5)
|
|
$
|
(1,254)
|
|
$
|
(155)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(158.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
21.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
1,804
|
|
|
$
|
7
|
|
$
|
16
|
|
$
|
(1,250)
|
|
$
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from
continuing operations
|
$
|
5.76
|
|
|
$
|
0.02
|
|
$
|
0.05
|
|
$
|
(3.99)
|
|
$
|
1.84
|
|
|
|
(1) The tax
effect of each non-GAAP adjustment is calculated based on the
jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.
|
|
(2) Includes
an $874 million net income tax benefit associated with a ten-year
tax credit obtained by a Swiss subsidiary and a $262 million income
tax benefit related to the revaluation of deferred tax assets as a
result of a corporate tax rate increase in Switzerland. Also
includes a $118 million income tax benefit associated with the tax
impacts of a legal entity restructuring with related costs of $4
million recorded in selling, general, and administrative expenses
for other non-income taxes.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Quarter Ended March 29, 2024
(UNAUDITED)
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
(Non-GAAP)
(2)
|
|
|
($ in millions,
except per share data)
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
477
|
|
|
$
|
—
|
|
$
|
19
|
|
$
|
496
|
|
|
Industrial
Solutions
|
|
215
|
|
|
|
3
|
|
|
21
|
|
|
239
|
|
|
Total
|
$
|
692
|
|
|
$
|
3
|
|
$
|
40
|
|
$
|
735
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
17.4
|
%
|
|
|
|
|
|
|
|
|
18.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
$
|
(146)
|
|
|
$
|
(1)
|
|
$
|
(6)
|
|
$
|
(153)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
21.3
|
%
|
|
|
|
|
|
|
|
|
21.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
541
|
|
|
$
|
2
|
|
$
|
34
|
|
$
|
577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from continuing operations
|
$
|
1.75
|
|
|
$
|
0.01
|
|
$
|
0.11
|
|
$
|
1.86
|
|
|
|
(1) The tax
effect of each non-GAAP adjustment is calculated based on the
jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.
|
|
(2) See
description of non-GAAP financial measures
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
MEASURES
For the Year Ended September 27, 2024
(UNAUDITED)
|
|
|
|
|
|
|
Adjustments
|
|
|
|
|
|
|
|
|
Acquisition-
|
|
Restructuring
|
|
|
|
|
|
|
|
|
|
Related
|
|
and
Other
|
|
|
|
Adjusted
|
|
|
U.S.
GAAP
|
|
|
Charges
(1)
|
|
Charges, Net
(1)
|
|
Tax Items
(2)
|
|
(Non-GAAP)
(3)
|
|
|
($ in millions,
except per share data)
|
|
|
Operating
income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transportation
Solutions
|
$
|
1,880
|
|
|
$
|
—
|
|
$
|
67
|
|
$
|
3
|
|
$
|
1,950
|
|
|
Industrial
Solutions
|
|
916
|
|
|
|
21
|
|
|
99
|
|
|
1
|
|
|
1,037
|
|
|
Total
|
$
|
2,796
|
|
|
$
|
21
|
|
$
|
166
|
|
$
|
4
|
|
$
|
2,987
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
17.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
18.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense)
benefit
|
$
|
397
|
|
|
$
|
(3)
|
|
$
|
(29)
|
|
$
|
(1,016)
|
|
$
|
(651)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
(14.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
21.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$
|
3,194
|
|
|
$
|
18
|
|
$
|
137
|
|
$
|
(1,012)
|
|
$
|
2,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share from
continuing operations
|
$
|
10.34
|
|
|
$
|
0.06
|
|
$
|
0.44
|
|
$
|
(3.28)
|
|
$
|
7.56
|
|
|
|
(1) The tax
effect of each non-GAAP adjustment is calculated based on the
jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.
|
|
(2) Includes
a $636 million net income tax benefit associated with a $972
million ten-year tax credit obtained by a Swiss subsidiary reduced
by a $336 million valuation allowance related to the amount of the
tax credit not expected to be realized. Also includes a $262
million income tax benefit related to the revaluation of deferred
tax assets as a result of a corporate tax rate increase in
Switzerland and a $118 million income tax benefit associated with
the tax impacts of a legal entity restructuring with related costs
of $4 million recorded in selling, general, and administrative
expenses for other non-income taxes.
|
|
(3) See
description of non-GAAP financial measures.
|
|
TE CONNECTIVITY
PLC
RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
TO FORWARD-LOOKING GAAP FINANCIAL MEASURES
As of January 22, 2025
(UNAUDITED)
|
|
|
Outlook
for
|
|
|
Quarter
Ending
|
|
|
March
28,
|
|
|
2025
|
|
|
Diluted loss per
share from continuing operations
|
$
|
(0.05)
|
|
|
Restructuring and other
charges, net
|
|
0.13
|
|
|
Acquisition-related
charges
|
|
0.01
|
|
|
Tax items
|
|
1.87
|
|
|
Adjusted diluted
earnings per share from continuing operations
(1)
|
$
|
1.96
|
|
|
|
|
|
|
|
|
|
|
Net sales growth
(decline)
|
|
(0.4)
|
%
|
|
Translation
|
|
2.8
|
|
|
(Acquisitions)
divestitures, net
|
|
(1.1)
|
|
|
Organic net sales
growth (1)
|
|
1.3
|
%
|
|
|
(1) See
description of non-GAAP financial measures.
|
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SOURCE TE Connectivity plc