TE Connectivity Announces Financial Report for the Second Quarter of 2024

Updated on: April 26, 2024

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Recently, TE Connectivity (hereinafter referred to as "TE") released its financial report for the second quarter of fiscal year 2024 as of March 29, 2024.

Highlights of the second fiscal quarter

one

The net sales volume was 3.97 billion US dollars, which was in line with the expected goal, down 5% year on year and down 3% naturally. The sales increased by 4% month on month and naturally by 3%.

two

Diluted GAAP earnings per share from continuing operations were $1.75. Adjusted earnings per share was $1.86, higher than expected, up 13% year on year.

three

The order amount was US $4 billion, up 6% month on month. The order amount of all solutions achieved month on month growth.

four

The operating profit margin was 17.4%, and the adjusted operating profit margin was 18.5%, a year-on-year increase of 250 basis points, thanks to strong operating performance.

five

Cash flow in the first half of the fiscal year was strong, hitting a record high.

Cash flow from operating business was $1.4 billion, up 18% year on year.
Free cash flow was US $1.1 billion, up 32% year on year.

six

So far in this fiscal year, more than $1.5 billion has been allocated, of which about $1.2 billion has been returned to shareholders, and about $350 million has been used to strengthen the acquisition of Schaffner.

seven

TE "Connecting Our World" Annual Corporate Responsibility Report (Click jump to learn more) In the past three years, the greenhouse gas emissions of "Scope 1" and "Scope 2" have decreased by 72%; It has set a "Scope 3" greenhouse gas emission reduction target that meets the standards of the "Scientific Carbon Target Initiative (SBTi)".

In this quarter, in the continuously dynamic market environment, TE team achieved higher than expected earnings per share, with double-digit growth in earnings; This is due to the increased profit margin of our three solutions. I am very glad that TE's orders for various solutions have achieved a month on month growth. TE's free cash flow in the first half of the fiscal year was strong, with a year-on-year growth of 32%, hitting a new high for the company, which benefited from our cash generation model.

Based on the performance of this quarter, we expect strong earnings growth and profit margin improvement in the third quarter and throughout the fiscal year. We will continue to invest in Hybrid electric vehicle And key trends such as electric vehicles, renewable energy and artificial intelligence. Our global position in these fields and industry-leading innovation are helping our customers achieve technological development and driving our own long-term profit growth.

Q3 FY2024 performance outlook

In the third quarter of fiscal year 2024, the company expects net sales of about $4 billion. GAAP earnings per share from continuing operations are expected to be about US $1.71, up 2% year on year; Adjusted earnings per share is expected to be about $1.85, up 5% year on year. The third quarter performance expectation (earnings per share) was 0.15 dollars, which was affected by adverse tax and exchange rate changes.

For information on TE Connectivity's use of non GAAP financial measures (referred to as non GAAP financial measures), please refer to "Reading the Original Text".

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