[Gen-AI Analysis] TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended 2012 - MarkLines Automotive Information & Gen-AI Platform

TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended Sep. 2012

Business Highlights

Financial Overview

(in million USD)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	Rate of change (%)	Factors
Overall
Net sales	13,282	13,778	(3.6)	-
Operating income	1,518	1,687	(10.0)	-
Transportation Solutions Segment
Net sales	6,007	5,629	6.7	1)
Operating income	847	848	(0.1)	-

Factors
1) Transportation Solutions
-In the automotive end market, the Company's organic net sales increased 6.5% in fiscal 2012 as compared to fiscal 2011. The increase was due primarily to growth of 15.1% in the Asia-Pacific region and 11.1% in the Americas region, while being partially offset by declines of 1.2% in the EMEA region. Growth in the Asia-Pacific region resulted from higher automotive production and continued recovery following the earthquake in Japan. The Company estimated that the earthquake in Japan negatively impacted its sales in the automotive end market by USD 38 million in fiscal 2011. In the Americas region, growth resulted from increased production in North America, and was partially offset by weakness in South America. In the EMEA region, production levels decreased as a result of financial uncertainty in Europe.

Acquisitions

-The Company announced the completion of the acquisition of Deutsch Group SAS, a France-based manufacturer of connectors. The transaction is valued at EUR 1.55 billion (approximately USD 2.05 billion). The acquisition of Deutsch will enable the Company to better serve customers in the industrial and commercial transportation, aerospace and defense, and rail markets. Deutsch will be included as part of the Company's Transportation Solutions segment. (From a press release on April 3, 2012)

Divestitures

-During fiscal 2012, the Company sold both its Touch Solutions business and its TE Professional Services business for net cash proceeds of USD 380 million and USD 28 million respectively.

R&D

R&D Structure

-The Company employs approximately 7,400 engineers dedicated to product research, development, and engineering.

R&D Expenditure

(in million USD)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	FY ended Sep. 30, 2010
Overall	595	593	461
-Transportation Solutions	233	217	187

-The Company's new products, including product extensions, introduced during the previous three years comprised approximately 24% of its net sales for fiscal 2012.

Investment Activities

Capital Expenditure

(in million USD)

	FY ended Sep. 30, 2012	FY ended Sep. 30, 2011	FY ended Sep. 30, 2010
Overall	533	574	380
-Transportation Solutions	317	295	206

Investment Outside USA

<Japan>
-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, 2011. 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 Electronics Japan GK 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.