[Gen-AI Analysis] TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY2011 - MarkLines Automotive Information & Gen-AI Platform

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

Investment Outside USA

-Tyco Electronics Japan GK based in Kawasaki held a ground-breaking ceremony at a construction site of a new plant in Kakegawa, Shizuoka Prefecture on December 1. The event was attended by about 60 people, including not only the company's corporate executives headed by the president, but also local community representatives like the mayor of Kakegawa. A new plant slated to go into operation in January 2013 will conduct a comprehensive process from development to production of such parts as connectors used in hybrids and EVs. Tyco is aiming not only to perform environmentally low loaded and highly efficient operations at the new facility, but to position it as a joint development base with customers in an attempt to accelerate development activities. (From an article in the Nikkan Jidosha Shimbun on December 2, 2011)