Earlier, Amphenol Corporation (APH) reported sales of $758.3 million in the fourth quarter of 2009, roughly flat on a year-over-year basis but up 6% sequentially. The unfavorable movements in foreign currency exchange rates adversely impacted the top-line by approximately 2% in the fourth quarter.
The sequential growth was driven by strong demand in almost all markets that the company serves, including Information Technology and Data Communications Equipment, Military/Aerospace, Industrial, Wireless Infrastructure and Automotive.
Operating margin came in at 18.3%, up from 17.3% in the previous quarter. The sequential improvement was due to cost reduction actions undertaken by the management in the previous quarters.
Management is taking steps to improve operating performance amid challenging economic conditions. Amphenol earlier reduced its headcount by about 6000 or approximately 17% of its workforce.
Earnings per share (EPS) came in at 52 cents, easily beating the Zacks Consensus Estimate of 49 cents but were short of 53 cents reported in the year-ago quarter. This excludes a one-time charge of 2 cents per share relating to the termination of certain interest rate swap agreements as a part of the refinancing associated with the company’s $600 million senior note issuance in November.
For full year 2009, Amphenol reported sales of $2,820.1 million, down 12.9% from a year ago. Foreign currency exchange rate movements led to a decline of approximately $38.2 million in 2009 period. EPS came in at $1.85 compared to $2.34 in 2008.
Going forward, management stated that the economic conditions remain uncertain but with economy showing signs of recovery demand patterns seem to have stabilized in most markets.
Amphenol expects to report sales between $735 million and $750 million in the first quarter of 2010. EPS is projected between 49 cents and 51 cents.
Amphenol Corporation designs and manufactures connectors and interconnecting systems that are used primarily to conduct electrical and optical signals for a wide range of sophisticated electronic applications.
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