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Amphenol Corporation reported third quarter 2022 results.
“We are pleased to have closed the third quarter of 2022 with record sales and Adjusted Diluted EPS, both of which exceeded the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by a strong 17%, supported by robust growth across virtually all our end markets, as well as contributions from the Company’s acquisition program which were partially offset by the impact of the strengthening U.S. dollar. Despite the many challenges in the world economy, we again realized strong profitability, with Adjusted Operating Margin reaching 21.0% and Adjusted Diluted EPS growing by an impressive 23% from prior year. We are very proud of the Company’s outstanding performance in this challenging and dynamic quarter.”
“During the third quarter, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. To that end, the Company purchased 2.4 million shares of its common stock for $170 million and paid dividends of $119 million, resulting in total capital returned to shareholders of $289 million.”
“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification and an active and successful acquisition program. To that end, we are excited to have closed on the acquisition of Integrated Cable Assembly Holdings, Inc. (ICA) in September. With locations across North America and with annual sales of approximately $90 million, ICA manufactures a broad array of cable assemblies for a diversified range of applications, particularly in the industrial market. This acquisition further expands our offering of high-technology, value-added interconnect products in the diversified industrial market, while adding another talented management team to the Amphenol family.”
Increase in Quarterly Dividend
On October 25, 2022, the Company’s Board of Directors approved a 5% increase in the Company’s quarterly dividend, from $0.20 per share to $0.21 per share. The new dividend amount will be paid on January 11, 2023 to shareholders of record as of December 20, 2022.
Fourth Quarter and Full Year 2022 Outlook
The current economic environment remains uncertain and is increasingly dynamic. Assuming conditions do not meaningfully worsen and assuming constant exchange rates, for the fourth quarter of 2022, Amphenol expects sales to be in the range of $3.090 billion to $3.150 billion. This represents 2% to 4% growth over the fourth quarter of 2021 and includes a 5 percentage point negative currency impact. Adjusted Diluted EPS is expected to be in the range of $0.73 to $0.75, representing 4% to 7% growth over the fourth quarter of 2021. For the full year 2022, we expect sales to be in the range of $12.474 billion to $12.534 billion. This represents 15% growth over 2021 and includes a 3 percentage point negative currency impact. Adjusted Diluted EPS is expected to be in the range of $2.95 to $2.97, representing 19% to 20% growth over 2021.
“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s strong third quarter results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts in navigating the myriad of challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”