TE Connectivity announces first quarter results for fiscal year 2023

Sales above guidance driven by year-over-year growth in Transportation and Industrial segments.

TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 30, 2022.

First Quarter Highlights

  • Net sales were $3.8 billion, up 1% on a reported basis and 8% organically year over year.
    • Organic growth of 14% in the Transportation Solutions segment and 7% in the Industrial Solutions segment, partially offset by a decline of 11% in the Communications Solutions segment
    • Currency negatively impacted sales by approximately $300 million
  • GAAP diluted earnings per share (EPS) from continuing operations were $1.25, and adjusted EPS exceeded guidance at $1.53.
  • Adjusted EPS impacted by $0.25 of currency and tax headwinds year over year
  • Order levels were $3.6 billion with a continued strong backlog position.
  • Strong cash flow from operating activities of $581 million and free cash flow of approximately $400 million, with approximately $410 million returned to shareholders
  • Company named to the Dow Jones Sustainability Index for the 11th consecutive year.

“We delivered sales and adjusted EPS above guidance in the first quarter as our global teams continued to execute in a dynamic macro environment,” said TE Connectivity CEO Terrence Curtin. “Our Transportation segment outperformed the market due to our global leading position in electric vehicles, and our Industrial segment demonstrated organic growth across all businesses. We continue to see solid demand and backlog trends in both of those segments. In our Communications segment, we saw incremental weakness in our end markets, which drove lower volumes as our customers consumed excess inventory across the supply chain. While we cannot control the demand environment, we are continuing to take actions to drive margin improvements as we move through the year. We remain confident that we are well positioned for long-term growth and profitability as our customers continue to rely on our technology to advance important trends including e-mobility, renewable energy, factory automation and cloud computing, which are creating a safer, sustainable, productive and connected future.”

Second Quarter FY23 OutlookFor the second quarter of fiscal 2023, the company expects net sales of approximately $3.9 billion, reflecting a decrease of 3% on a reported basis and an increase of 2% on an organic basis year over year. GAAP EPS from continuing operations are expected to be approximately $1.44, with adjusted EPS of approximately $1.57.

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 WebcastThe 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: 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 (888) 330-3417 and for international callers, the dial-in number is (646) 960-0804.
  • A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on Jan. 25, 2023.


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