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Record 2010 Fourth Quarter and Full Year Results Reported by Amphenol Corporation

^{Published on 2011-01-19 05:05:39 - Market Wire}
 

WALLINGFORD, Conn.--([ BUSINESS WIRE ])--Amphenol Corporation (NYSE-APH) reported today fourth quarter 2010 diluted earnings per share of $.74 compared to $.50 per share for the comparable 2009 period. Such per share amount for the 2009 period included a one-time charge of $.02 per share relating to the termination of certain interest rate swap agreements as part of the refinancing associated with the Companya™s $600 million senior note issuance in November of 2009. Excluding this effect, diluted earnings per share was $.52 for the fourth quarter of 2009. Sales for the fourth quarter 2010 were $949.9 million compared to $758.3 million for the 2009 period. Currency translation had the effect of decreasing sales by approximately $4.2 million in the fourth quarter 2010 compared to the 2009 period.

For the full year ended December 31, 2010, diluted earnings per share, was $2.82 compared to $1.83 for 2009. 2010 diluted earnings per share included a net benefit of approximately $.12 per share ($20.7 million), relating primarily to a reduction in international tax expense due to reserve adjustments and refunds from the favorable settlement of certain tax positions. 2009 diluted earnings per share included offsetting adjustments of $.02 each, relating to a favorable tax adjustment and the one-time charge relating to the refinancing referenced above. Excluding the effects of these items, diluted earnings per share was $2.70 and $1.83 for the full year periods ended December 31, 2010 and 2009, respectively. Sales for the full year ended December 31, 2010 were $3,554.1 million compared to $2,820.1 million for 2009. Currency translation had the effect of increasing sales by approximately $1.1 million for the full year 2010 period when compared to 2009.

Amphenol President and Chief Executive Officer R. Adam Norwitt stated aWe are pleased to close 2010 with strong fourth quarter results with sales up 25% and EPS up 42% over the comparable 2009 quarter. Sales and EPS exceeded the high end of the Companya™s guidance and reached record levels of $950 million and $.74, respectively. The 25% sales increase was driven by stronger demand in nearly all of our served markets, led by Industrial, Mobile Devices and Military Aerospace. It is especially rewarding that these results reflect a significant enhancement of our market position in essentially all of our served markets in 2010. Our ongoing strategy of market and geographic diversification combined with our strong commitment to developing enabling technologies for our customers in all markets, both through organic product development and through our acquisition program, continues to expand the Companya™s growth opportunities. In addition, the Companya™s unique entrepreneurial culture drives an unwavering focus on profitability and cash flow, producing excellent operating leverage and a high quality of earnings. Operating margins in the quarter were a record 20.1%, up 180 basis points from 18.3% last year; for the full year operating margins were 19.7%, up 240 basis points from 17.3% last year. I am especially proud of this excellent accomplishment of our management team, particularly given the current challenging cost environment.

aDuring the last several quarters we have seen an improvement in global demand levels as well as a stabilization of demand patterns in all of our major served markets. As such, in 2011, we expect to see a return to more traditional seasonality. Accordingly, based on constant currency exchange rates, we expect Q1 2011 revenues in the range of $925 million to $940 million and EPS in the range of $.70 to $.72. For the year 2011, we expect to achieve revenues and EPS in the range of $3,885 million to $3,960 million and $3.00 to $3.10, respectively, an increase of 9% to 11% and 11% to 15% over 2010 revenues and EPS (excluding one-time tax items), respectively. We believe we can perform well in the dynamic electronics market due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and agile, experienced and entrepreneurial management team.a

aWe continue to be excited about the future.The accelerating proliferation of new electronics in all of our end markets presents a unique expansion opportunity for Amphenol.Our significant actions to enhance our competitive advantages and build sustained financial strength have created a solid base for future performance. I amconfident in the ability of our outstanding management team to dynamically adjust to the continued changing market environment, to generate strong profitability and to capitalize on opportunities to expand our market position.a

The Company will host a conference call to discuss its fourth quarter results at 1:00 PM (ET) January 19, 2011. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number is 517-623-4547; Passcode: Reardon. There will be a replay available until 11:00 P.M. (ET) on Friday, January 21, 2011. The replay numbers are as follows: toll free dial-in number is 866-383-2973 and International dial-in number is 203-369-0375; Passcode: 5137.

A live broadcast as well as a replay will also be available on the Internet at [ http://www.amphenol.com/investors/webcasts.php ].

Amphenol Corporation is one of the worlda™s leading producers of electronic and fiber optic connectors, cable and interconnect systems. Amphenol products are engineered and manufactured in the Americas, Europe, Asia and Africa and sold by a worldwide sales and marketing organization. Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including: Military, Commercial Aerospace, Automotive, Broadband Communication, Industrial, Information Technology and Data Communications Equipment, Mobile Devices and Wireless Infrastructure.

Statements in this press release which are other than historical facts are intended to be aforward-looking statementsa within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and other related laws. While the Company believes such statements are reasonable, the actual results and effects could differ materially from those currently anticipated. Please refer to [Part I, Item 1A]of the Companya™s Form 10-K for the year ended December 31, 2009, for some factors that could cause the actual results to differ from estimates. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise.