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Amphenol Corporation has reported record diluted earnings per share (EPS) for the fourth quarter 2016 of $0.75 compared to $0.63 for the comparable 2015 period. Sales for the fourth quarter of 2016 were also a record $1.651 billion compared to $1.431 billion for the comparable 2015 period. Currency translation had the effect of decreasing sales by approximately $20 million in the fourth quarter of 2016 compared to the 2015 period.
For the twelve months ended December 31, 2016, GAAP Diluted EPS was $2.61, compared to $2.41 for the comparable 2015 period. The 2016 period included $37 million ($0.11 per share) of acquisition-related costs, mainly relating to the acquisition of FCI Asia Pte Ltd (FCI) on January 8, 2016. The acquisition-related costs included external transaction costs, amortization related to the value associated with acquired backlog and restructuring charges. GAAP Diluted EPS for the comparable 2015 period included a charge for acquisition-related transaction costs of $6 million ($0.02 per share).
Excluding the effect of these items, Adjusted Diluted EPS1 for the twelve months ended December 31, 2016 and 2015 were $2.72 and $2.43, respectively. Sales for the twelve months ended December 31, 2016 were $6.286 billion compared to $5.569 billion for the comparable 2015 period. Currency translation had the effect of decreasing sales by approximately $60 million for the full year 2016 compared to the comparable 2015 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “We are very pleased to close 2016 above the high end of our guidance with record sales and diluted EPS in the quarter of $1.651 billion and $0.75, respectively. We achieved these results despite the ongoing uncertainties in the global economy. Compared to the fourth quarter 2015, sales increased by 15%, with organic growth in all markets except mobile devices and commercial aerospace, together with contributions from the Company’s successful acquisition program. For the full year 2016, we grew sales and Adjusted Diluted EPS by 13% and 12%, respectively. This success was supported by our unique entrepreneurial culture, which continues to enable strong operating results, as demonstrated by the Company’s record operating margin of 20.5% in the fourth quarter 2016. This excellent profitability reflects a very successful first year for FCI, the largest acquisition in the Company’s history, and is a direct result of our entire management team’s ability to drive disciplined operational execution together with an unrelenting focus on all elements of cost. Operating cash flow in the quarter and for the full year was $349 million and $1,078 million, respectively, a clear confirmation of the quality of the Company’s earnings. I am very proud of our organization as we continue to execute extremely well.”
“We continue to expand our growth opportunities through a deep commitment to developing enabling technologies for customers in all of our end markets, an ongoing strategy of market and geographic diversification, as well as an active and successful acquisition program. As part of that program, in January 2017, the Company acquired Phitek Systems Limited (Phitek). Phitek, based in New Zealand, designs and supplies aircraft in-flight entertainment interconnect products for the commercial aerospace industry, and generates annual sales of approximately $20 million. This acquisition strengthens the Company’s global capabilities and enhances our product offering in this important end market.”
“In addition to our successful acquisition program, the Company continues to deploy its financial strength in a variety of ways to increase shareholder value. This includes the purchase, during the fourth quarter, of 1.5 million shares of the Company’s stock, completing the repurchase of all of the shares authorized under the Company’s 2015 Stock Repurchase Program. On January 24, 2017, the Company’s Board of Directors authorized a new two-year open market stock repurchase plan for the purchase of up to $1 billion of the Company’s common stock.”
“The current economic environment remains uncertain, including in particular the dynamics related to any potential government policy changes. Considering this uncertain environment and based on current currency exchange rates, we expect first quarter 2017 sales in the range of $1.495 billion to $1.535 billion and diluted EPS in the range of $0.65 to $0.67. For the full year 2017, we expect to achieve sales in the range of $6.340 billion to $6.500 billion, an increase over 2016 of 1% to 3% and diluted EPS of $2.84 to $2.92, an increase of 9% to 12% over 2016 GAAP Diluted EPS and an increase of 4% to 7% over 2016 Adjusted Diluted EPS.”
“The electronics revolution continues to create exciting, long-term growth opportunities for Amphenol. We remain very confident for the future, with new applications and higher performance requirements driving increased demand for our broadened range of high technology products across all of our diversified end markets. Our ongoing actions to strengthen our competitive advantages and build sustained financial strength, as well as our initiatives to expand our high technology product offering both organically and through our successful acquisition program, have created an excellent base for future performance. I am confident in the ability of our outstanding management team to dynamically adjust to the constantly changing environment, to continue to generate strong profitability and to further capitalize on the many opportunities to expand our market position.”
About Amphenol Corporation
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.