Tyco Electronics (TEL) has reported 15.86 percent rise in profit for the quarter ended Dec. 30, 2016. The company has earned $409 million, or $1.14 a share in the quarter, compared with $353 million, or $0.91 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $412 million, or $1.15 a share compared with $328 million or $0.84 a share, a year ago.
Revenue during the quarter grew 8.12 percent to $3,063 million from $2,833 million in the previous year period. Gross margin for the quarter expanded 141 basis points over the previous year period to 34.77 percent. Total expenses were 84.13 percent of quarterly revenues, down from 85.95 percent for the same period last year. This has led to an improvement of 182 basis points in operating margin to 15.87 percent.
Operating income for the quarter was $486 million, compared with $398 million in the previous year period.
However, the adjusted operating income for the quarter stood at $536 million compared to $444 million in the prior year period. At the same time, adjusted operating margin improved 183 basis points in the quarter to 17.50 percent from 15.67 percent in the last year period.
"We had a great start to the fiscal year," said TE Connectivity chairman and chief executive officer Tom Lynch. "Organically, sales grew 7 percent over the prior year driven by double digit growth in our Automotive, Commercial Transportation and Appliances business units; improvement in our Data and Devices business and strength in Asia. Our profitability reached a record in the quarter due to higher sales volume particularly in our harsh environment businesses, continued execution of the TE Operating Advantage and the benefit of previously enacted cost reductions.
For the second-quarter, Tyco Electronics projects revenue to be in the range of $3,025 million to $3,125 million. The company forecasts diluted earnings per share to be in the range of $0.97 to $1.01. On an adjusted basis, the company forecasts diluted earnings per share to be in the range of $1.05 to $1.09.
For financial year 2017, Tyco Electronics projects revenue to be in the range of $12,200 million to $12,600 million. The company forecasts diluted earnings per share to be in the range of $4.04 to $4.24, the company forecasts diluted earnings per share to be in the range of $4.30 to $4.50 on adjusted basis.
Operating cash flow improves marginallyTyco Electronics has generated cash of $404 million from operating activities during the quarter, up 3.59 percent or $14 million, when compared with the last year period. The company has spent $154 million cash to meet investing activities during the quarter as against cash outgo of $121 million in the last year period.
The company has spent $209 million cash to carry out financing activities during the quarter as against cash outgo of $1,370 million in the last year period.
Cash and cash equivalents stood at $665 million as on Dec. 30, 2016, down 70.09 percent or $1,558 million from $2,223 million on Dec. 25, 2015.
Working capital drops significantly
Tyco Electronics has witnessed a decline in the working capital over the last year. It stood at $1,296 million as at Dec. 30, 2016, down 59.99 percent or $1,943 million from $3,239 million on Dec. 25, 2015. Current ratio was at 1.37 as on Dec. 30, 2016, down from 1.99 on Dec. 25, 2015.
Cash conversion cycle (CCC) has decreased to 47 days for the quarter from 90 days for the last year period. Days sales outstanding went down to 62 days for the quarter compared with 64 days for the same period last year.
Days inventory outstanding has decreased to 37 days for the quarter compared with 80 days for the previous year period. At the same time, days payable outstanding went down to 52 days for the quarter from 54 for the same period last year.
Debt moves up marginallyTyco Electronics has witnessed an increase in total debt over the last one year. It stood at $4,028 million as on Dec. 30, 2016, up 4.08 percent or $158 million from $3,870 million on Dec. 25, 2015. Total debt was 22.87 percent of total assets as on Dec. 30, 2016, compared with 20.13 percent on Dec. 25, 2015. Debt to equity ratio was almost stable at 0.46 as on Dec. 30, 2016, when compared with the last year. Interest coverage ratio improved to 15.68 for the quarter from 13.27 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
