By RTT News, October 30, 2013, 07:52:00 AM EDT
(RTTNews.com) - Switzerland-based diversified electronics maker TE Connectivity Ltd. ( TEL ) Wednesday reported a decline in fourth-quarter profit, reflecting income tax expenses, despite higher sales. Adjusted earnings topped analysts' expectations, while revenues met view. The company also forecast first-quarter earnings below estimates.
Looking ahead, Chairman and Chief Executive Officer Tom Lynch said, "I am encouraged by the current trends in our business and expect sales and adjusted EPS in the first quarter and for the full year to be up solidly versus the prior year."
In the fourth quarter, net income attributable to the company declined to $387 million from $396 million in the previous year. Earnings per share were $0.92, unchanged from last year. The latest-quarter earnings per share included $0.13 per share of restructuring and other charges and $0.12 of income related to tax items.
Adjusted earnings per share for the recent quarter were $0.93, while the company posted $0.76 per share last year. On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.90 per share for the quarter. Analysts' estimates typically exclude special items.
For the fourth quarter of fiscal 2013, the company recorded income tax expense totaling $63 million, compared to a benefit of $18 million a year ago.
Quarterly net sales rose 2 percent to $3.43 billion from $3.36 billion in the preceding year. Sales were up 3 percent organically. Ten analysts estimated revenues of $3.42 billion for the quarter. The company said its total orders increased 6 percent to $3.25 billion.
For the first quarter, the company expects earnings per share to be in the range of $0.71 to $0.75, including restructuring charges of $0.03. Adjusted earnings are expected to be in the range of $0.74 to $0.78 per share.
The company anticipates first-quarter net sales to be between $3.225 billion and $3.325 billion. Analysts expect the company to report earnings of $0.82 per share, on revenues of $3.30 billion for the first-quarter.
For fiscal year 2014, the firm sees earnings per share to be $3.41 to $3.71, including restructuring charges of $0.09. It forecast adjusted earnings per share of $3.50 to $3.80.
The company expects net sales of $13.65 billion to $14.15 billion for the fiscal year. Analysts are looking for earnings of $3.65 per share, on revenues of $13.99 billion for the full year.
The board also authorized an additional $1 billion in share repurchase.
TEL closed Tuesday's regular trading at $52.99 on the NYSE.
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