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Amphenol Corporation reported today third quarter 2015 diluted earnings per share of $0.65 compared to $0.58 excluding one-time items for the comparable 2014 period. On an as reported basis, diluted earnings per share for the third quarter of 2014 was $0.57. Such per share amount for the 2014 quarter included a charge for acquisition-related transaction costs of $3 million ($0.01 per share). Sales for the third quarter of 2015 were $1.460 billion compared to $1.359 billion for the 2014 period. Currency translation had the effect of decreasing sales by approximately $48 million in the third quarter of 2015 compared to the 2014 period.
For the nine months ended September 30, 2015, diluted earnings per share excluding one-time items was $1.80, compared to $1.62 for the comparable 2014 period. On an as reported basis diluted earnings per share for the nine months ended September 30, 2015 was $1.78, compared to $1.60 for the comparable 2014 period. The 2015 period includes a charge for acquisition-related transaction costs of $6 million ($0.02 per share). The 2014 period included the charge for acquisition-related transaction costs of $3 million ($0.01 per share) described above and a charge of $2 million ($0.01 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. Sales for the nine months ended September 30, 2015 were $4.138 billion compared to $3.919 billion for the 2014 period. Currency translation had the effect of decreasing sales by approximately $149 million for the first nine months of 2015 compared to the 2014 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “For the third quarter 2015, we are very pleased to report new records in sales and EPS of $1.460 billion and $0.65, respectively. Sales increased a strong 7% in US dollars and 11% in local currencies over the prior year, with robust growth in the Mobile Devices and Automotive markets. Our growth was driven both organically and through the Company’s successful acquisition program, and was partially offset by the negative impact of translation from the stronger dollar. EPS reached a new record of $0.65, growing 12%, excluding one-time items, over the comparable 2014 quarter. The Company’s unique entrepreneurial culture continues to drive strong operating leverage in the business, resulting in a 30 basis point year-over-year increase in operating margins, excluding one-time items, to 20.2% in the third quarter 2015. 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 continued to execute very well in the third quarter, despite a market environment which became more challenging as the quarter progressed.”
“The Company continues to expand its growth opportunities through an ongoing strategy of market and geographic diversification, a deep commitment to developing enabling technologies for customers in all markets, as well as an active acquisition program. 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 quarter, of 1.0 million shares of the Company’s stock pursuant to our stock repurchase plan.”
“Global markets have recently become more uncertain, as growing turbulence in certain economies has impacted global industrial demand. As a result, we have begun to see increased levels of caution, and thereby lower demand expectations, from customers in several of our end markets, in particular the Industrial, Automotive and Information Technology and Data Communications markets. Considering these dynamics, and based on current currency exchange rates, we expect fourth quarter 2015 sales in the range of $1.330 billion to $1.370 billion and diluted EPS (excluding one-time items) in the range of $0.58 to $0.60. For the full year 2015, we now expect to achieve sales in the range of $5.468 billion to $5.508 billion, an increase over 2014 in US dollars of 2% to 3%, in local currencies of 6% to 7% and organically (excluding the impact of currency translation and acquisitions) of 1% to 2%. We expect diluted EPS of $2.38 to $2.40 for the full year 2015, an increase of 6% to 7% over 2014 (excluding one-time items). This compares to our prior full year 2015 guidance of $5.540 billion to $5.620 billion in sales and $2.43 to $2.47 in EPS excluding one-time items.”
“Notwithstanding the heightened level of uncertainty in the global economy, 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 create a significant, long-term growth opportunity for Amphenol, with new applications and higher performance requirements driving increased demand for our high technology products across all of our end markets. 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 both organically and through our successful acquisition program, 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.”
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.