TE Connectivity (” TE “) today announced its financial results for the second quarter of fiscal year 2024 ended March 29, 2024.

Fiscal second quarter highlights
Net sales of $3.97 billion were on target, down 5% year-over-year and down 3% naturally. Sales increased 4% sequentially and 3% naturally.
DYTP600A GAAP diluted earnings per share from continuing operations were $1.75. Adjusted earnings per share were $1.86, beating expectations and up 13% from a year earlier.
Orders were $4 billion, up 6% sequentially, with all solutions up sequentially.
• Operating margin was 17.4% and adjusted operating margin was 18.5%, an increase of 250 basis points due to strong operating results.
• Strong cash flow in the first half of the fiscal year, a record high. Cash flow from operations was $1.4 billion, an increase of 18% over the same period last year.
Free cash flow was $1.1 billion, up 32% year-over-year.

• More than $1.5 billion has been deployed so far this fiscal year, of which approximately $1.2 billion has been returned to shareholders and approximately $350 million has been used to bolster the Schaffner acquisition.

DYTP600A

TE’s “Connecting Our World” annual Corporate Responsibility report shows that Scope 1 and Scope 2 greenhouse gas emissions have been reduced by 72% over the past three years. A “Scope 3” GHG reduction target has been set in line with the Science-based Carbon Target Initiative (SBTi) standards.

Mr. Terrence Curtin, Chief Executive Officer of TE Connectivity, said, “During the quarter, the TE team delivered higher than expected earnings per share and double-digit earnings growth in a continuously dynamic market environment. This was driven by improved margins across our three major solutions. I am pleased with the sequential increase in TE’s order book across all solutions. TE’s strong free cash flow in the first half DYTP600A of the fiscal year, up 32% year-over-year, was a company record, driven by our cash generation model. Based on this quarter’s performance, we expect strong earnings growth and margin improvement for the third quarter and the full fiscal year. We will continue to invest in key trends including hybrid and electric vehicles, renewable energy and artificial intelligence. Our global position and industry-leading innovation in these areas are enabling our customers’ technological advancement and driving our own long-term profitable growth.”

Outlook for the third quarter of fiscal 2024

For the third quarter of fiscal 2024, the Company expects net sales of approximately $4 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.71, an increase of 2%. Adjusted earnings per share are expected to be approximately $1.85, an increase of 5% year-over-year. Third quarter results (earnings per share) are expected to be $0.15 due to tax adverse effects and currency changes.