TE Connectivity announces results for first quarter of fiscal year 2018

TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal first quarter, which ended December 29, 2017. First Quarter Highlights Net sales were $3.5 billion, up 14 percent as reported and 8 percent organically over the first quarter of 2017 Diluted earnings per share (EPS) from continuing operations were a loss of $0.11, reflecting a one-time charge associated …

TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal first quarter, which ended December 29, 2017.

TE Connectivity Ltd. Logo. (PRNewsFoto/TE Connectivity Ltd.)

First Quarter Highlights

  • Net sales were $3.5 billion, up 14 percent as reported and 8 percent organically over the first quarter of 2017
  • Diluted earnings per share (EPS) from continuing operations were a loss of $0.11, reflecting a one-time charge associated with new U.S. tax regulations, and adjusted EPS were $1.40
  • Cash flow from continuing operating activities was $350 million and free cash flow was $127 million, with $355 million returned to shareholders
  • Orders, excluding SubCom, were $3.5 billion in the quarter, up 11 percent organically from the first quarter of 2017

First Quarter Results

For the first quarter, the company reported net sales of $3.5 billion, with diluted EPS from continuing operations a loss of $0.11, reflecting a one-time charge associated with new U.S. tax regulations, and adjusted EPS were $1.40. Cash flow from continuing operating activities was $350 million and free cash flow was a $127 million. Excluding SubCom, total orders were $3.5 billion, up 11 percent organically over the first quarter of 2017, and the book-to-bill ratio was 1.06. For the fiscal year to date, the company’s SubCom business has been awarded nearly $400 million in new subsea cable programs, bringing the backlog for that business to more than $1 billion.

“Our employees around the globe continue to fulfill our purpose of creating a safer, sustainable, productive and connected future with our customers, and delivered significant growth in sales and adjusted EPS in the first quarter. Sales increased 14 percent year-over-year, driven by our Transportation and Industrial Solutions segments, and orders grew double-digits across all segments,” said TE Connectivity Chief Executive Officer Terrence Curtin. “Our operational performance and our higher guidance for the year are a testament to the strength and consistent execution of our business model.”

2018 Outlook

For the fiscal second quarter of 2018, the company expects net sales of $3.55 billion to $3.65 billion, reflecting an increase of 12 percent on an actual basis and 6 percent on an organic basis year over year at the mid-point. Diluted EPS from continuing operations are expected to be $1.18 to $1.22, including net restructuring, acquisition-related and other charges of $0.15. The company expects adjusted EPS of $1.33 to $1.37 which represents a 13 percent improvement at the mid-point versus the second quarter of 2017.

For the full year, the company expects net sales of $14.1 to $14.3 billion, reflecting 8 percent actual and 5 percent organic growth at the mid-point versus the prior year. Diluted EPS from continuing operations are expected to be $3.61 to $3.71, including net restructuring, acquisition-related and other charges of $0.37, and a tax-related charge of $1.42. The company expects adjusted EPS of $5.40 to $5.50, reflecting 13 percent growth at the mid-point compared to fiscal year 2017.

Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.

Conference Call and Webcast

The company will hold a conference call today beginning at 8:30 a.m. ET. The dial-in information is provided here:

  • At TE Connectivity’s website: http://investors.te.com.
  • By telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 230-1059, and for international callers, the dial-in number is (612) 234-9960.
  • An audio replay of the conference call will be available beginning at 10:30 a.m. ET on January 24, 2018, and ending at 11:59 p.m. ET on February 7, 2018. The dial-in number for participants in the United States is (800) 475-6701. For participants outside the United States, the dial-in number is (320) 365-3844. The replay access code for all callers is 441428.

About TE Connectivity

TE Connectivity Ltd. (NYSE: TEL) is a $13 billion global technology and manufacturing leader creating a safer, sustainable, productive, and connected future. For more than 75 years, our connectivity and sensor solutions, proven in the harshest environments, have enabled advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. With 78,000 employees, including more than 7,000 engineers, working alongside customers in nearly 150 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedInFacebookWeChat and Twitter.

Non-GAAP Financial Measures

We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

  • Organic Net Sales Growth – represents net sales growth (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.
  • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition related charges, and other income or charges, if any. We utilize these measures to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.
  • Adjusted Other Income (Expense), Net – represents net other income (expense) (the most comparable GAAP financial measure) before special items including tax sharing income related to adjustments to prior period tax returns and other items, if any.
  • Adjusted Income Tax Expense and Adjusted Effective Tax Rate – represent income tax expense and effective tax rate, respectively (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition related charges, other income or charges, and certain significant tax items, if any.
  • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.
  • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition related charges, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.
  • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by continuing operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations.

    Free Cash Flow is defined as net cash provided by continuing operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre-separation tax matters and cash paid (collected) pursuant to collateral requirements related to cross currency swaps, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments.

    In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, business, economic, competitive and regulatory risks, such as conditions affecting demand for products, particularly in the automotive and data and devices industries; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the effects of the U.S. Tax Cuts and Jobs Act. More detailed information about these and other factors is set forth in TE Connectivity Ltd.’s Annual Report on Form 10-K for the fiscal year ended Sept. 29, 2017 as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

For the Quarters Ended

December 29,

December 30,

2017

2016

(in millions, except per share data)

Net sales

$            3,480

$            3,063

Cost of sales 

2,303

1,996

Gross margin

1,177

1,067

Selling, general, and administrative expenses

383

367

Research, development, and engineering expenses

176

156

Acquisition and integration costs

2

2

Restructuring and other charges, net

35

47

   Operating income  

581

495

Interest income

4

5

Interest expense

(26)

(31)

Other income (expense), net

2

(9)

   Income from continuing operations before income taxes

561

460

Income tax expense

(600)

(54)

   Income (loss) from continuing operations

(39)

406

Income (loss) from discontinued operations, net of income taxes

(1)

3

Net income (loss)

$                (40)

$               409

Basic earnings (loss) per share:

   Income (loss) from continuing operations

$             (0.11)

$              1.14

   Income (loss) from discontinued operations

0.01

   Net income (loss)

(0.11)

1.15

Diluted earnings (loss) per share:

   Income (loss) from continuing operations

$             (0.11)

$              1.13

   Income (loss) from discontinued operations

0.01

   Net income (loss)

(0.11)

1.14

Dividends paid per common share

$              0.40

$              0.33

Weighted-average number of shares outstanding: 

   Basic

352

356

   Diluted

352

359

 

 

TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

December 29,

September 29,

2017

2017

(in millions, except share data)

Assets

Current assets:

Cash and cash equivalents

$               704

$            1,218

Accounts receivable, net of allowance for doubtful accounts of $21

2,378

2,290

Inventories

1,984

1,813

Prepaid expenses and other current assets

667

605

  Total current assets

5,733

5,926

Property, plant, and equipment, net

3,527

3,400

Goodwill

5,672

5,651

Intangible assets, net

1,806

1,841

Deferred income taxes

1,615

2,141

Other assets

458

444

Total Assets

$          18,811

$          19,403

Liabilities and Shareholders’ Equity

Current liabilities:

Short-term debt

$               688

$               710

Accounts payable

1,556

1,436

Accrued and other current liabilities

1,264

1,626

Deferred revenue

127

75

Total current liabilities

3,635

3,847

Long-term debt

3,317

3,634

Long-term pension and postretirement liabilities

1,150

1,160

Deferred income taxes

238

236

Income taxes

303

293

Other liabilities

537

482

Total Liabilities

9,180

9,652

Commitments and contingencies

Shareholders’ equity:

Common shares, CHF 0.57 par value, 357,069,981 shares authorized and issued

157

157

Accumulated earnings 

10,047

10,175

Treasury shares, at cost, 5,679,926and 5,356,369 shares, respectively

(489)

(421)

Accumulated other comprehensive loss

(84)

(160)

Total Shareholders’ Equity

9,631

9,751

Total Liabilities and Shareholders’ Equity

$          18,811

$          19,403

 

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Quarters Ended

December 29,

December 30,

2017

2016

(in millions)

Cash Flows From Operating Activities:

Net income (loss)

$                (40)

$               409

(Income) loss from discontinued operations, net of income taxes

1

(3)

Income (loss) from continuing operations

(39)

406

Adjustments to reconcile income (loss) from continuing operations to net cash provided by operating activities:

Depreciation and amortization

168

160

Deferred income taxes

511

(69)

Provision for losses on accounts receivable and inventories

15

4

Share-based compensation expense

29

24

Other 

(6)

4

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:

Accounts receivable, net

(89)

(30)

Inventories

(185)

(59)

Prepaid expenses and other current assets

(43)

31

Accounts payable

149

64

Accrued and other current liabilities

(250)

(70)

Deferred revenue

52

(59)

Income taxes

7

28

Other

31

(30)

Net cash provided by operating activities

350

404

Cash Flows From Investing Activities:

Capital expenditures

(241)

(130)

Proceeds from sale of property, plant, and equipment

4

Other

(28)

Net cash used in investing activities

(241)

(154)

Cash Flows From Financing Activities:

Net increase in commercial paper

241

10

Proceeds from the issuance of debt

119

Repayment of debt

(708)

Proceeds from exercise of share options

54

25

Repurchase of common shares

(167)

(93)

Payment of common share dividends to shareholders

(141)

(132)

Other

(32)

(19)

Net cash used in financing activities

(634)

(209)

Effect of currency translation on cash

11

(23)

Net increase (decrease) in cash and cash equivalents

(514)

18

Cash and cash equivalents at beginning of period

1,218

647

Cash and cash equivalents at end of period

$               704

$               665

Supplemental Cash Flow Information:

Interest paid

$                 41

$                 40

Income taxes paid, net of refunds

82

96

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)

For the Quarters Ended

December 29,

December 30,

2017

2016

(in millions)

Net cash provided by continuing operating activities

$               350

$               404

Excluding:

Cash paid (collected) pursuant to collateral requirements related

to cross currency swaps

18

(60)

Capital expenditures, net

(241)

(126)

Free cash flow (1)

$               127

$               218

(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

CONSOLIDATED SEGMENT DATA (UNAUDITED)

For the Quarters Ended 

December 29,

December 30,

2017

2016

($ in millions)

Net Sales

Net Sales

Transportation Solutions

$            2,032

$            1,675

Industrial Solutions

882

795

Communications Solutions

566

593

Total

$            3,480

$            3,063

Operating

Operating

Operating

Operating

Income

Margin

Income

Margin

Transportation Solutions

$               420

20.7%

$               348

20.8%

Industrial Solutions

102

11.6

70

8.8

Communications Solutions

59

10.4

77

13.0

Total

$               581

16.7%

$               495

16.2%

Adjusted

Adjusted

Adjusted

Adjusted

Operating

Operating

Operating

Operating

Income (1)

Margin (1)

Income (1)

Margin (1)

Transportation Solutions

$               429

21.1%

$               373

22.3%

Industrial Solutions

127

14.4

93

11.7

Communications Solutions

67

11.8

79

13.3

Total

$               623

17.9%

$               545

17.8%

(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (UNAUDITED)

Change in Net Sales for the Quarter Ended December 29, 2017

 versus Net Sales for the Quarter Ended December 30, 2016

Net

Organic Net

Sales Growth

Sales Growth (1)

Translation (2)

Acquisitions

($ in millions)

Transportation Solutions (3):

Automotive

$               242

19.0%

$               131

10.2%

$                 57

$                 54

Commercial transportation

87

40.8

73

34.2

14

Sensors

28

15.0

20

10.6

8

Total

357

21.3

224

13.4

79

54

Industrial Solutions (3):

Industrial equipment

88

23.0

66

16.9

14

8

Aerospace, defense, oil, and gas

2

0.8

(6)

(2.2)

8

Energy

(3)

(1.9)

(10)

(6.1)

7

Total

87

10.9

50

6.3

29

8

Communications Solutions (3):

Data and devices

8

3.5

4

1.9

4

Subsea communications

(71)

(33.2)

(71)

(33.2)

Appliances

36

24.3

33

21.7

3

Total

(27)

(4.6)

(34)

(5.7)

7

Total 

$               417

13.6%

$               240

7.9%

$               115

$                 62

(1) Organic net sales growth is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 29, 2017

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               420

$                   5

$                   4

$                    –

$               429

Industrial Solutions

102

2

23

127

Communications Solutions

59

8

67

    Total 

$               581

$                   7

$                 35

$                    –

$               623

Operating Margin

16.7%

17.9%

Other Income, Net

$                   2

$                    –

$                    –

$                  (1)

$                   1

Income Tax Expense

$              (600)

$                  (2)

$                  (8)

$               506

$             (104)

Effective Tax Rate

107.0%

17.3%

Income (Loss) from Continuing 

Operations 

$                (39)

$                   5

$                 27

$               505

$               498

Diluted Earnings (Loss) per Share from 

   Continuing Operations 

$             (0.11)

$              0.01

$              0.08

$              1.42

$              1.40

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes $567 million of income tax expense related to the tax impacts of the Tax Cuts and Jobs Act and a $61 million income tax benefit related to certain legal entity restructurings.

(3) See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended December 30, 2016

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               348

$                   1

$                 24

$                    –

$               373

Industrial Solutions

70

2

21

93

Communications Solutions

77

2

79

    Total 

$               495

$                   3

$                 47

$                    –

$               545

Operating Margin

16.2%

17.8%

Other Expense, Net

$                  (9)

$                    –

$                    –

$                    –

$                  (9)

Income Tax Expense

$                (54)

$                 (1)

$               (13)

$               (30)

$                (98)

Effective Tax Rate

11.7%

19.2%

Income from Continuing Operations 

$               406

$                   2

$                 34

$                (30)

$               412

Diluted Earnings per Share from 

   Continuing Operations 

$              1.13

$              0.01

$              0.09

$             (0.08)

$              1.15

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Income tax benefits associated with the tax impacts of certain intercompany restructurings and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards.

(3) See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Quarter Ended March 31, 2017

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$               305

$                    –

$                 33

$                    –

$               338

Industrial Solutions

88

3

19

110

Communications Solutions

88

7

95

    Total 

$               481

$                   3

$                 59

$                    –

$               543

Operating Margin

14.9%

16.8%

Other Expense, Net

$                (10)

$                    –

$                    –

$                    –

$                (10)

Income Tax Expense

$                (39)

$                    –

$               (17)

$               (22)

$                (78)

Effective Tax Rate

8.8%

15.4%

Income from Continuing Operations 

$               406

$                   3

$                 42

$                (22)

$               429

Diluted Earnings per Share from 

   Continuing Operations 

$              1.13

$              0.01

$              0.12

$             (0.06)

$              1.19

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Income tax benefits associated with the tax impacts of certain intercompany transactions.

(3) See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES

For the Year Ended September 29, 2017

(UNAUDITED)

Adjustments

Acquisition

Restructuring

Related

and Other

Tax

Adjusted

U.S. GAAP

Charges (1)

Charges, Net (1)

Items (2)

(Non-GAAP) (3)

($ in millions, except per share data)

Operating Income:

Transportation Solutions

$            1,307

$                   3

$                 67

$                    –

$            1,377

Industrial Solutions

369

8

73

450

Communications Solutions

385

8

393

    Total 

$            2,061

$                 11

$               148

$                    –

$            2,220

Operating Margin

15.7%

16.9%

Other Expense, Net

$                (23)

$                    –

$                    –

$                   7

$                (16)

Income Tax Expense

$              (255)

$                 (3)

$               (40)

$               (66)

$              (364)

Effective Tax Rate

13.2%

17.4%

Income from Continuing Operations 

$            1,673

$                   8

$               108

$                (59)

$            1,730

Diluted Earnings per Share from 

   Continuing Operations

$              4.67

$              0.02

$              0.30

$             (0.16)

$              4.83

(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.

(2) Includes income tax benefits associated with the tax impacts of certain intercompany transactions and the corresponding reduction in the valuation allowance for U.S. tax loss carryforwards. Also includes income tax benefits associated with pre-separation tax matters and the related impact to other expense pursuant to the tax sharing agreement with Tyco International and Covidien.

(3) See description of non-GAAP financial measures.

 

 

TE CONNECTIVITY LTD.

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of January 24, 2018

(UNAUDITED)

Outlook for

Quarter Ending

March 30,

Outlook for

2018

Fiscal 2018

Diluted earnings per share from continuing operations (GAAP)

 $1.18 – $1.22 

 $3.61 – $3.71 

Restructuring and other charges, net

0.14

0.32

Acquisition related charges

0.01

0.05

Tax Items

1.42

Adjusted diluted earnings per share from continuing operations (non-GAAP) (1)

 $1.33 – $1.37 

 $5.40 – $5.50 

Net sales growth (GAAP)

10% – 13%

8% – 9%

Translation

(4)

(2)

(Acquisitions) divestitures, net

(1)

(1)

Organic net sales growth (non-GAAP) (1)

5% – 8%

5% – 6%

(1) See description of non-GAAP financial measures.

 

 

 


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