| April 26
April 26 TE Connectivity Ltd, a
Switzerland-based manufacturer of electronics and sensors,
reported a higher-than-expected increase in second-quarter
revenue, driven by demand in China, Japan and South Korea.
The company, which makes products including wheel speed
sensors, USB connectors, and guidewires for medical procedures,
also raised its full-year sales and profit forecast for the
TE Connectivity said a rise in automobile production and an
increase in electrification of vehicles in China were among the
main drivers of its sales growth in the quarter.
But vehicle sales in China are expected to slow this year as
a tax cut on small-engine cars is reduced.
However, that would be more than offset by the growth in
TE's industrial solutions and communications solutions
businesses, Chief Executive Terrence Curtin told Reuters.
"Our trends, outside of auto in China, for the rest of the
year continue to remain strong based on the order patterns that
we are seeing," Curtin said.
TE Connectivity is seeing a return in demand for its
applications that are used in factory automation in China,
The company is also seeing an improvement in demand for its
products that serve the home appliances and telecommunications
infrastructure sectors in China.
Total orders, on an organic basis, rose 20 percent to $3.4
billion in the quarter ended March 31, the company said.
TE Connectivity's net sales rose about 9 percent to $3.23
billion in the quarter, and it earned $1.19 per share on an
Analysts on average were expecting quarterly revenue of
$3.09 billion, and earnings of $1.08 per share, according to
Thomson Reuters I/B/E/S.
About 32 percent of TE's 2016 sales were from the
Asia-Pacific region, with China alone contributing about 20
TE's transportation solutions business accounted for a
little more than half of total sales last year, with a roughly
equal contribution from its industrial solutions and
communications solutions businesses.
TE said it expects organic growth in all its three
businesses in fiscal 2017 and raised its forecasts for the
The company raised its net sales forecast to $12.6-$12.8
billion from $12.2-$12.6 billion, and adjusted profit forecast
to $4.58-$4.66 per share from $4.30-$4.50.
Analysts on average were expecting full-year revenue of
$12.51 billion, and profit of $4.43 per share.
(Reporting by Ankit Ajmera, Rachit Vats and Laharee Chatterjee
in Bengaluru; Editing by Savio D'Souza)