TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY2011
Business Highlights
Financial Overview |
(in million USD) |
FY2011 | FY2010 | Rate of change (%) |
Factors | |
Overall | ||||
Net sales | 14,312 | 12,070 | 18.6 | - |
Operating income | 1,741 | 1,516 | 14.8 | - |
Transportation Solutions Segment | ||||
Net sales | 5,629 | 4,799 | 17.3 | 1) |
Operating income | 848 | 515 | 64.7 | - |
Factors
1)
Transportation Solutions
-In the automotive end market, the Company's organic net sales growth was 13.5% in fiscal 2011 as compared to fiscal 2010. The increase was attributable to growth of 17.9% in the EMEA region, 14.4% in the Americas region, and 7.7% in the Asia-Pacific region. Growth in the EMEA and Americas regions resulted from higher automotive production and increased content per vehicle. Growth in the Asia-Pacific region was negatively impacted by the earthquake in Japan. The Company estimated that the earthquake in Japan negatively impacted its sales in the automotive end market by 38 million dollars in fiscal 2011.
-The Company expects global automotive production in fiscal 2012 to increase to approximately 6% over fiscal 2011 levels.
Acquisitions
-The Company announced that it has entered into exclusive negotiations with the Wendel Group, a French investment company, and has made a binding offer to acquire Deutsch Group SAS, a France-based manufacturer of connectors, in a transaction valued at 1.55 billion euros (approximately 2.06 billion dollars). Deutsch has 3,600 employees in more than 25 countries and anticipates sales of approximately 670 million USD for 2011. The potential acquisition is expected to close by the third fiscal quarter ended June 29, 2012. (From a press release on November 29, 2011)R&D
R&D Structure
-The Company employs approx. 7,500 engineers dedicated to product research, development, and engineering.
R&D Expenditure |
(in million USD) |
FY2011 | FY2010 | FY2009 | |
Overall | 624 | 482 | 439 |
-Transportation Solution | 217 | 187 | 172 |
-It's new products, including product extensions, introduced during the previous three years comprised approximately 25% of the Company's net sales for fiscal 2011.
Investment Activities
Capital Expenditure |
(in million USD) |
FY2011 | FY2010 | FY2009 | |
Overall | 581 | 385 | 328 |