TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended Sep. 2013
Business Highlights
Financial Overview |
(in million USD) |
FY ended Sep. 30, 2013 | FY ended Sep. 30, 2012 | Rate of change (%) |
Factors | |
Overall | ||||
Net sales | 13,280 | 13,282 | (0.0) | 1) |
Operating income | 1,556 | 1,518 | 2.5 | - |
Transportation Solutions Segment | ||||
Net sales | 5,485 | 5,128 | 7.0 | 2) |
Operating income | 972 | 754 | 28.9 | - |
Factors
1) Overall
-The Company's net sales in the fiscal year ending September 30, 2013 remained flat from the previous year, dropping only USD 2 million to USD 13,280 million. Gains made in the Transportation Solutions segment were offset by decreases in the Network Solutions, Industrial Solutions, and Consumer Solutions segments.
2) Transportation Solutions
-Net sales in the Transportation Solutions segment grew 7.0% in the fiscal year ending September 30, 2013 to USD 5,485 million. This growth was primarily due to strong demand in the Americas region and in China. Furthermore, increased sales in the EMEA region came from increased exports to other regions while demand was weak.
Recent Developments
-The Company has a 40% market share in connectors for the automotive industry. (As of Sep., 2013)Recent Developments Outside Switzerland
<Japan>-Tyco Electronics Japan G.K., a subsidiary of the Company, will tap into the secondary battery parts business, which includes lithium-ion batteries for hybrid and electric vehicles. By using its expertise in developing and producing high voltage connectors, the company aims to engineer components to optimally connect cells and modules in batteries. The technology will help battery manufacturers and automakers produce smaller and lighter battery packs for automobiles. The Company launched full-scale sales activities targeting automakers during the fiscal year that started on April 2012. It will work on meeting technical needs of car manufacturers in the secondary battery field, aiming to bring its technologies to the market by 2015 or 2016. (From an article in the Nikkan Jidosha Shimbun on Oct. 16, 2012)
Outlook for FY ending Sep. 30, 2014
-The Company expects its sales for fiscal 2014 to be between USD 13.65 billion and 14.15 billion, based on sales increases in the Transportation Solutions, Industrial Solutions, and to a lesser degree, the Consumer Solutions segment. In particular, the Company expects sales in its Transportation Solutions segment to outpace the anticipated increase of 4% in global automotive production compared to the previous fiscal year.R&D
R&D Structure
-The Company has approximately 6,900 engineers working in product research, development, and engineering in 21 design centers located around the world.-In the fiscal year ending September 30, 2013, the Company derived approximately 24% of its sales from products and product extensions that were introduced within the previous three fiscal years.
R&D Expenditure |
(in million USD) |
FY ended Sep. 30, 2013 | FY ended Sep. 30, 2012 | FY ended Sep. 30, 2011 | |
Overall | 576 | 595 | 593 |
-Transportation Solutions | 193 | 185 | 180 |
Patents
-As of September 30, 2013, the Company has 18,000 patents that have been granted or are currently pending.Investment Activities
Capital Expenditure |
(in million USD) |
FY ended Sep. 30, 2013 | FY ended Sep. 30, 2012 | FY ended Sep. 30, 2011 | |
Overall | 615 | 533 | 574 |
-Transportation Solutions | 325 | 288 | 264 |
Investment Outside Switzerland
<Japan>-Tyco Electronics Japan G.K., a subsidiary of the Company, announced it completed construction of a new plant in Kakegawa City, Shizuoka Prefecture and started production there on May 8. The facility produces high-quality electronic components for hybrids and other green vehicles, while taking over part of the designing and testing operations from the Company's existing plants. After transferring manufacturing equipment from the two plants that are also located in Shizuoka, the company will commence full-scale operations in March 2014. (From an article in the Nikkan Jidosha Shimbun on May 9, 2013)