Fiscal second quarter highlights

Net sales were $4.16 billion, up 4% year-over-year from fiscal 2022 and up 8% naturally.
Natural growth of 12 percent for transportation solutions and 15 percent for industrial solutions; Communications electronics solutions sales declined 20%, which was within the expected range, partially offsetting the growth achieved by both transportation and industrial solutions.

o Foreign exchange rates negatively impacted sales by $155 million.

GAAP diluted earnings per share from continuing operations of $1.34; Adjusted earnings per share were $1.65, beating estimates.
o GAAP and adjusted earnings per share of $0.17 were impacted by currency and tax headwinds.

Orders rose to $4 billion quarter-on-quarter.
Strong cash flow from operating operations was approximately $635 million, free cash flow was approximately $445 million, and approximately $375 million was returned to shareholders.
For the sixth year in a row, the company was named to Fortune’s “World’s Most Admired Companies” list.
Mr. Terrence Curtin, Chief Executive Officer of TE Connectivity, said, “In a volatile macro environment, TE’s second quarter sales and earnings were above expectations and we achieved very strong cash flow. This is driven by the continued strong execution demonstrated by our global team and the strategic positioning of our business portfolio. All segments of TE Transportation Solutions and Industrial Solutions experienced natural growth. In both solution areas, we continue to see strong demand patterns. Thanks to our global leadership in electric vehicles, TE Automotive continues to outperform a flat automotive market. Our customers continue to look to TE for technology to help power an increasingly electrified world. In TE Industrial Solutions, our Healthcare division achieved record quarterly sales, while we continued to gain momentum in renewable energy applications. While the communications electronics solutions segment was impacted as expected by weaker end markets and supply chain issues, our team continued to win projects in the data center and artificial intelligence applications, which will drive TE’s future growth as this market recovers.”

Mr. Terrence Curtin, Chief Executive Officer of TE Connectivity, added, “Driven by further profit growth at TE Transportation Solutions, we maintain our expectation of profit growth at the company level in the second half of the fiscal year, as we continue to take steps to navigate market volatility. We continue to believe that we are well positioned for long-term growth and profitability.”

Fiscal year 2023 third quarter results Outlook

For the third quarter of fiscal 2023, the Company expects net sales of approximately $4 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.56 and adjusted earnings per share to be approximately $1.65.