Amphenol : Third Quarter 2014 Record Results Reported by Amphenol Corporation

Amphenol Corporation (NYSE:APH) reported today third quarter 2014 diluted earnings per share excluding one-time items of $0.58 compared to $0.49 for the comparable 2013 period. On an as reported basis, diluted earnings per share were $0.57 and $0.50 for the third quarter of 2014 and 2013, respectively. Such per share amount for the 2014 quarter includes a charge for acquisition-related transaction costs of $2.5 million ($.01 per share). The 2013 period included a net benefit of $.01 per share relating to a $3.6 million reduction in tax expense due primarily to the completion of prior year audits partially offset by a charge for acquisition-related transaction costs of $2.5 million. (All per share and share amounts included herein have been adjusted to reflect the Company’s 2-for-1 stock split effective October 9, 2014.) Sales for the third quarter of 2014 were a record $1.359 billion compared to $1.153 billion for the 2013 period. Currency translation had the effect of increasing sales by approximately $2 million in the third quarter of 2014 compared to the 2013 period.

For the nine months ended September 30, 2014, diluted earnings per share was $1.60 on an as reported basis and $1.62 excluding one-time items, compared to $1.44 on an as reported basis and $1.40 excluding one-time items for the comparable 2013 period. The 2014 period includes one-time items of $.02 per share, including the $.01 per share item noted above and a one-time charge of $2 million ($.01 per share) related to the amortization of the value associated with acquired backlog relating to an acquisition completed by the Company in the fourth quarter of 2013. The 2013 period includes one-time items totaling $.04 per share, including the $.01 per share net benefit in the third quarter described above and a one-time tax benefit of $11 million ($.03 per share) related to the January 2, 2013 reinstatement of certain federal income tax provisions with retroactive effect to 2012 which under U.S. GAAP was recorded as a one-time benefit in the first quarter of 2013 at the date of reinstatement.

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “We are pleased to report new records in the third quarter 2014, with sales and EPS of $1.359 billion and $0.58, both up a strong 18% over the prior year. The Company achieved double digit year-over-year growth in most of our end markets, including the automotive, commercial air, industrial, mobile networks and mobile devices markets. This growth was driven both organically and through the Company’s successful acquisition program. In addition, sales grew 3% sequentially. We continue to expand the Company’s growth opportunities through our ongoing strategy of market and geographic diversification, our strong commitment to developing enabling technologies for customers in all markets, as well as our successful acquisition program.”

“The Company’s unique entrepreneurial culture continues to drive strong operating leverage in the business, resulting in a 40 basis point sequential increase and a 20 basis point year-over-year increase in operating margins to 19.9% (excluding one-time items) in the third quarter 2014. This excellent performance is a direct result of our dynamic management team’s ability to drive margin expansion through outstanding operational execution and an unrelenting focus on all elements of cost. I am very proud of our organization as we continue to execute well.”

“The Company achieved strong operating cash flow in the quarter of $224 million. The Company continues to deploy its financial strength in a variety of ways to increase shareholder value, including the previously announced acquisition of the Casco Automotive Group for $449 million which closed at the end of the quarter, and the purchase, during the quarter, of 3.0 million shares of the Company’s stock pursuant to our stock repurchase plan.”

“In recent months there has been an increase in geopolitical and market uncertainties around the world. Considering these uncertainties as well as current currency exchange rates including relatively weaker overseas currencies, we expect fourth quarter 2014 sales in the range of $1.341 billion to $1.381 billion and diluted EPS in the range of $0.58 to $0.60 (excluding one-time items). For the year 2014, we expect to achieve sales in the range of $5.260 billion to $5.300 billion, an increase of 14% to 15% over 2013 and diluted EPS of $2.20 to $2.22 (excluding one-time items), an increase of 14% to 15% over 2013. This compares to prior full year 2014 guidance for sales and diluted EPS of $5.210 billion to $5.270 billion and $2.17 to $2.20 (excluding one-time items), respectively. Notwithstanding the many uncertainties around the world, we believe we can perform well in the dynamic electronics marketplace due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and agile, experienced and entrepreneurial management team.”

“The electronics revolution continues to accelerate, with new applications and higher performance requirements driving increased demand for our high technology products across all of our end markets. This creates a significant, long-term growth opportunity for Amphenol. Our ongoing actions to enhance our competitive advantages and build sustained financial strength, as well as our initiatives to broaden and diversify our high technology product offering, have created a solid base for future performance. I am confident in the ability of our outstanding management team to dynamically adjust to the constantly changing market environment, to continue to generate strong profitability and to further capitalize on the many opportunities to expand our market position.”

The Company will host a conference call to discuss its third quarter results at 1:00 PM (EDT) October 22, 2014. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number is 517-623-4547; Passcode: REARDON. There will be a replay available until 10:59 P.M. (EST) on Saturday, November 22, 2014. The replay numbers are toll free 888-395-9153; International toll number is 203-369-0496; Passcode: 7183.

A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/investors/webcasts.php.

Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors. Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including: Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks.

Statements in this press release which are other than historical facts are intended to be “forward-looking statements” within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and other related laws. While the Company believes such statements are reasonable, the actual results and effects could differ materially from those currently anticipated. Please refer to Part I, Item 1A of the Company’s Form 10-K for the year ended December 31, 2013, for some factors that could cause the actual results to differ from estimates. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise.