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TE Connectivity announces first quarter results for fiscal year 2023

PRNewswire 25-Jan-2023 6:00 AM

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

SCHAFFHAUSEN, Switzerland, Jan. 25, 2023 /PRNewswire/ -- 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 Outlook
For 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 Webcast
The 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.

About TE Connectivity
TE Connectivity Ltd. (NYSE:TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions, proven in the harshest environments, enable advancements in transportation, industrial applications, medical technology, energy, data communications, and the home. With more than 85,000 employees, including over 8,000 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat and Twitter.

Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.

The following provides additional information regarding our non-GAAP financial measures:

  • Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management's control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.

  • Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.

  • Adjusted Other Income (Expense), Net – represents net other income (expense) (the most comparable GAAP financial measure) before special items including tax sharing income related to adjustments to prior period tax returns and other items, if any.

  • Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any.

  • Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.

  • Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, tax sharing income related to adjustments to prior period tax returns and other tax items, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.

  • Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including net payments related to pre-separation tax matters and cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management's and the Board of Directors' discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.

Forward-Looking Statements
This release contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words "anticipate," "believe," "expect," "estimate," "plan," and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results, and the impact on our operations resulting from the coronavirus disease 2019 ("COVID-19"). Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of COVID-19 negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict between Russia and Ukraine resulting from Russia's invasion of Ukraine or escalating tensions in surrounding countries; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation, including the effects of Swiss tax reform. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. Such developments may include the geographic spread of the virus, the severity of the virus, the duration of the outbreak, the impact on our suppliers' and customers' supply chains, the actions that may be taken by various governmental authorities in response to the outbreak in jurisdictions in which we operate, and the possible impact on the global economy and local economies in which we operate.  More detailed information about these and other factors is set forth in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended Sept 30, 2022, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)














For the Quarters Ended


December 30,


December 24,


2022


2021


(in millions, except per share data)

Net sales

$

3,841


$

3,818

Cost of sales 


2,654



2,588

Gross margin


1,187



1,230

Selling, general, and administrative expenses


392



363

Research, development, and engineering expenses


173



175

Acquisition and integration costs


9



8

Restructuring and other charges, net


111



12

Operating income


502



672

Interest income


9



2

Interest expense


(21)



(12)

Other income (expense), net


(5)



15

Income from continuing operations before income taxes 


485



677

Income tax expense


(87)



(110)

Income from continuing operations


398



567

Loss from discontinued operations, net of income taxes


(1)



(1)

Net income

$

397


$

566







Basic earnings per share:






Income from continuing operations

$

1.26


$

1.73

Income from discontinued operations




Net income


1.25



1.73







Diluted earnings per share:






Income from continuing operations

$

1.25


$

1.72

Income from discontinued operations




Net income


1.24



1.72







Weighted-average number of shares outstanding: 






Basic


317



327

Diluted


319



330

 

TE CONNECTIVITY LTD.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)














December 30,


September 30,


2022


2022


(in millions, except share data)

Assets






Current assets:






Cash and cash equivalents

$

793


$

1,088

Accounts receivable, net of allowance for doubtful accounts of $45


2,910



2,865

Inventories


2,927



2,676

Prepaid expenses and other current assets


688



639

Total current assets


7,318



7,268

Property, plant, and equipment, net


3,781



3,567

Goodwill


5,511



5,258

Intangible assets, net


1,357



1,288

Deferred income taxes


2,591



2,498

Other assets


795



903

Total assets

$

21,353


$

20,782

Liabilities, redeemable noncontrolling interests, and shareholders' equity






Current liabilities:






Short-term debt

$

820


$

914

Accounts payable


1,751



1,593

Accrued and other current liabilities


1,849



2,125

Total current liabilities


4,420



4,632

Long-term debt


3,398



3,292

Long-term pension and postretirement liabilities


728



695

Deferred income taxes


228



244

Income taxes


319



304

Other liabilities


792



718

Total liabilities


9,885



9,885

Commitments and contingencies






Redeemable noncontrolling interests


104



95

Shareholders' equity:






Common shares, CHF 0.57 par value, 330,830,781 shares authorized and issued


146



146

Accumulated earnings 


13,200



12,832

Treasury shares, at cost, 14,065,031 and 12,749,540 shares, respectively


(1,854)



(1,681)

Accumulated other comprehensive loss


(128)



(495)

Total shareholders' equity


11,364



10,802

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

$

21,353


$

20,782

 

TE CONNECTIVITY LTD.

 CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)














For the Quarters Ended


December 30,


December 24,


2022


2021


(in millions)

Cash flows from operating activities:






Net income

$

397


$

566

Loss from discontinued operations, net of income taxes


1



1

Income from continuing operations


398



567

Adjustments to reconcile income from continuing operations to net cash provided by
operating activities:






Depreciation and amortization


187



198

Deferred income taxes


(35)



4

Non-cash lease cost


34



31

Provision for losses on accounts receivable and inventories


51



33

Share-based compensation expense


32



32

Other 


49



(9)

Changes in assets and liabilities, net of the effects of acquisitions and divestitures:






Accounts receivable, net


(54)



148

Inventories


(324)



(264)

Prepaid expenses and other current assets


(86)



52

Accounts payable


149



15

Accrued and other current liabilities


(39)



(285)

Income taxes


25



34

Other


194



(24)

Net cash provided by operating activities


581



532

Cash flows from investing activities:






Capital expenditures


(183)



(172)

Proceeds from sale of property, plant, and equipment


1



54

Acquisition of businesses, net of cash acquired


(109)



(100)

Proceeds from divestiture of businesses, net of cash retained by businesses sold




16

Other


26



3

Net cash used in investing activities


(265)



(199)

Cash flows from financing activities:






Net increase (decrease) in commercial paper


(139)



479

Repayment of debt


(4)



(555)

Proceeds from exercise of share options


11



22

Repurchase of common shares


(287)



(304)

Payment of common share dividends to shareholders


(178)



(163)

Other


(24)



(31)

Net cash used in financing activities


(621)



(552)

Effect of currency translation on cash


10



(2)

Net decrease in cash, cash equivalents, and restricted cash


(295)



(221)

Cash, cash equivalents, and restricted cash at beginning of period


1,088



1,203

Cash, cash equivalents, and restricted cash at end of period

$

793


$

982







Supplemental cash flow information:






Interest paid on debt, net

$

12


$

12

Income taxes paid, net of refunds


98



71

 

TE CONNECTIVITY LTD.

RECONCILIATION OF FREE CASH FLOW (UNAUDITED)














For the Quarters Ended


December 30,


December 24,


2022


2021


(in millions)

Net cash provided by operating activities

$

581


$

532

Excluding:






Cash collected pursuant to collateral requirements related to cross-currency swap
contracts




(41)

Capital expenditures, net


(182)



(118)

Free cash flow (1)

$

399


$

373







(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.

CONSOLIDATED SEGMENT DATA (UNAUDITED)


























For the Quarters Ended



December 30,



December 24,



2022



2021



($ in millions)


Net Sales





Net Sales




Transportation Solutions

$

2,259





$

2,158




Industrial Solutions


1,060






1,052




Communications Solutions


522






608




Total

$

3,841





$

3,818





























Operating


Operating


Operating


Operating


Income


Margin


Income


Margin

Transportation Solutions

$

282


12.5

%


$

395


18.3

%

Industrial Solutions


156


14.7




120


11.4


Communications Solutions


64


12.3




157


25.8


Total

$

502


13.1

%


$

672


17.6

%


























Adjusted


Adjusted


Adjusted


Adjusted


Operating


Operating


Operating


Operating


Income (1)


Margin (1)


Income (1)


Margin (1)

Transportation Solutions

$

358


15.8

%


$

392


18.2

%

Industrial Solutions


175


16.5




154


14.6


Communications Solutions


89


17.0




166


27.3


Total

$

622


16.2

%


$

712


18.6

%













(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.

 

TE CONNECTIVITY LTD.

RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)






































Change in Net Sales for the Quarter Ended December 30, 2022


versus Net Sales for the Quarter Ended December 24, 2021


Net Sales



Organic Net Sales







Growth (Decline)



Growth (Decline) (1)



Translation (2)


Acquisitions


($ in millions)

Transportation Solutions (3):


















Automotive

$

129


8.5

%


$

294


19.6

%


$

(165)


$

Commercial transportation


(17)


(4.7)




9


2.6




(26)



Sensors


(11)


(4.0)




7


2.6




(18)



Total


101


4.7




310


14.4




(209)



Industrial Solutions (3):


















Industrial equipment


(21)


(4.6)




15


3.4




(36)



Aerospace, defense, and marine


22


9.1




34


14.3




(12)



Energy


1


0.5




15


8.0




(14)



Medical


6


3.6




8


4.8




(2)



Total


8


0.8




72


6.8




(64)



Communications Solutions (3):


















Data and devices


(27)


(7.6)




(22)


(6.3)




(14)



9

Appliances


(59)


(23.4)




(47)


(18.3)




(12)



Total


(86)


(14.1)




(69)


(11.4)




(26)



9

Total 

$

23


0.6

%


$

313


8.2

%


$

(299)


$

9



















(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.

(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.

(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems
necessary.

 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended December 30, 2022


(UNAUDITED)



































Adjustments









Acquisition-


Restructuring








Related


and Other


Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


(Non-GAAP) (2)



($ in millions, except per share data)


Operating income:














Transportation Solutions

$

282



$

2


$

74


$

358


Industrial Solutions


156




6



13



175


Communications Solutions


64




1



24



89


Total 

$

502



$

9


$

111


$

622
















Operating margin


13.1

%









16.2

%















Other expense, net

$

(5)



$


$


$

(5)
















Income tax expense

$

(87)



$

(2)


$

(29)


$

(118)
















Effective tax rate


17.9

%









19.5

%















Income from continuing operations

$

398



$

7


$

82


$

487
















Diluted earnings per share from continuing
operations

$

1.25



$

0.02


$

0.26


$

1.53
















(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.


(2) See description of non-GAAP financial measures.


 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended December 24, 2021


(UNAUDITED)









































Adjustments













Restructuring












Acquisition-


and Other












Related


Charges





Adjusted



U.S. GAAP



Charges (1)


(Credits), Net (1)(2)


Tax Items (3)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income:

















Transportation Solutions

$

395



$

3


$

(6)


$


$

392


Industrial Solutions


120




12



22





154


Communications Solutions


157




1



8





166


Total 

$

672



$

16


$

24


$


$

712



















Operating margin


17.6

%












18.6

%


















Other income, net

$

15



$


$


$

(11)


$

4



















Income tax expense

$

(110)



$

(3)


$

(7)


$

(5)


$

(125)



















Effective tax rate


16.2

%












17.7

%


















Income from continuing operations

$

567



$

13


$

17


$

(16)


$

581



















Diluted earnings per share from continuing operations

$

1.72



$

0.04


$

0.05


$

(0.05)


$

1.76



















(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in
effect for each such jurisdiction.


(2) Includes $12 million recorded in net restructuring and other charges and $12 million recorded in cost of sales.


(3) Includes a $17 million income tax benefit related to the tax impacts of an intercompany transaction and $12 million of income tax expense related to
an income tax audit of an acquired entity, as well as the related impact of $11 million to other income pursuant to the indemnification terms of the
purchase agreement.


(4) See description of non-GAAP financial measures.


 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Quarter Ended March 25, 2022


(UNAUDITED)









































Adjustments









Acquisition-


Restructuring










Related


and Other




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)


Tax Items (2)


(Non-GAAP) (3)



($ in millions, except per share data)


Operating income:

















Transportation Solutions

$

409



$

4


$

9


$


$

422


Industrial Solutions


145




6



10





161


Communications Solutions


151






2





153


Total 

$

705



$

10


$

21


$


$

736



















Operating margin


17.6

%












18.4

%


















Other income, net

$

5



$


$


$


$

5



















Income tax expense

$

(136)



$

(2)


$

(5)


$

8


$

(135)



















Effective tax rate


19.5

%












18.6

%


















Income from continuing operations

$

560



$

8


$

16


$

8


$

592



















Diluted earnings per share from continuing operations

$

1.71



$

0.02


$

0.05


$

0.02


$

1.81



















(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax
laws in effect for each such jurisdiction.


(2) Includes $27 million of income tax expense related to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in
the canton of Schaffhausen on December 27, 2021 and a $19 million income tax benefit related to the tax impacts of an intercompany transaction. 


(3) See description of non-GAAP financial measures.


 

TE CONNECTIVITY LTD.


RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES


For the Year Ended September 30, 2022


(UNAUDITED)









































Adjustments









Acquisition-


Restructuring










Related


and Other




Adjusted



U.S. GAAP



Charges (1)


Charges, Net (1)(2)


Tax Items (3)


(Non-GAAP) (4)



($ in millions, except per share data)


Operating income:

















Transportation Solutions

$

1,534



$

16


$

68


$


$

1,618


Industrial Solutions


607




32



66





705


Communications Solutions


615




5



23





643


Total 

$

2,756



$

53


$

157


$


$

2,966



















Operating margin


16.9

%












18.2

%


















Other income, net

$

28



$


$


$

(11)


$

17



















Income tax expense

$

(306)



$

(11)


$

(34)


$

(200)


$

(551)



















Effective tax rate


11.2

%












18.8

%


















Income from continuing operations

$

2,427



$

42


$

123


$

(211)


$

2,381



















Diluted earnings per share from continuing operations

$

7.47



$

0.13


$

0.38


$

(0.65)


$

7.33



















(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws
in effect for each such jurisdiction.


(2) Includes $141 million recorded in net restructuring and other charges and $16 million recorded in cost of sales.


(3) Includes a $124 million income tax benefit related to the tax impacts of certain intercompany transactions, a $64 million income tax benefit
related primarily to a lapse of a statute of limitation, and a $51 million income tax benefit related to the release of a valuation allowance associated
primarily with improved current and expected future operating profit and taxable income. Also includes $27 million of income tax expense related
to the write-down of certain deferred tax assets to the lower corporate tax rate enacted in the canton of Schaffhausen and $12 million of income
tax expense related to an income tax audit of an acquired entity, as well as the related impact of $11 million to other income pursuant to the terms
of the purchase agreement.


(4) See description of non-GAAP financial measures.


 

TE CONNECTIVITY LTD.

RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES

TO FORWARD-LOOKING GAAP FINANCIAL MEASURES

As of January 25, 2023

(UNAUDITED)





Outlook for



Quarter Ending



March 31,



2023


Diluted earnings per share from continuing operations

$

1.44


Restructuring and other charges, net


0.11


Acquisition-related charges


0.02


Adjusted diluted earnings per share from continuing operations (1) 

$

1.57




 . 






Net sales growth


(2.7)

%

Translation


4.2


(Acquisitions) divestitures, net


0.1


Organic net sales growth (1)


1.6

%





(1) See description of non-GAAP financial measures.

 

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SOURCE TE Connectivity Ltd.