TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended Sep. 2018

Financial Overview

(in million USD)
  FY ended
Sep. 30,
2018
FY ended
Sep. 30,
2017
Rate of
change (%)
Overall
Net Sales 13,988 12,185 14.8
Operating Income 2,331 1,876 24.3
Transportation Solutions Segment
Net Sales 8,290 7,039 17.8
Operating Income 1,578 1,294 21.9


 

Outlook for FY ending Sep. 2019

-For FY 2019, the Company expects net sales to be between USD 13.9 billion and USD 14.3 billion with moderate growth.
-The Company expects its net sales increases in the sensors end market to be largely offset by sales declines in the commercial transportation end market. Fiscal 2019 global automotive production is expected to be consistent with fiscal 2018 levels.

 

R&D Expenditure

(in million USD)
  FY ended Sep. 30,
2018
FY ended Sep. 30,
2017
FY ended Sep. 30,
2016
Overall 606 548 525


-In fiscal 2018, research and development expenses increased due to costs related to growth initiatives, primarily in the Transportation Solutions segment.

 

Product Development

-The Company announced the launch of its next generation of charging cables and inlets for hybrid and electric vehicles. The new charging cables are specifically designed to meet DIN EN 61851. Type 2 vehicle connector additionally meets IEC 62196. These standards define several types of on-board vehicle interfaces: type 1 for North America and Japan and type 2 for Europe with two charging modes at a wall power outlet or on high-performance charging stations. The Company’s latest generation of AMP+ charging components enables significantly faster charging of hybrid and electric vehicles. In compliance with the latest international charging standard IEC 62572, this AC charging solution can be plugged into any home power outlet with no specific charging infrastructure. The advanced integrated printed circuit boards monitor charging temperatures, while embedded Human Machine Interface (HMI) indicates fault and status. (From a press release on May 3, 2018)
 

Capital Expenditure

(in million USD)
  FY ended Sep. 30,
2018
FY ended Sep. 30,
2017
FY ended Sep. 30,
2016
Overall 935 679 603
-Transportation Solutions 711 473 432

Investment Outside Switzerland

<China>
-In May 2018, the Company officially opened the second phase NEPZ plant. The NEPZ second-phase plant develops and produces parts and components for new energy vehicles and connected cars including connectors, wire harnesses, sensor electric boxes, and sensors. The construction of the NEPZ second-phase plant began at the end of December 2016 with a total investment of nearly USD 100 million. Currently, the company's production facility in Suzhou is 950,000 square meters in total in size. The company also owns two plants and rent one in China. The first two are located in the industrial park in Suzhou, one in EPZ and the other in NEPZ plant. The first-phase zone of the EPZ plant completed in 2006, the second-phase in 2012 and the third-phase in 2017. In total, the plant now occupies 36,500 square meters. The NEPZ plant was built in 2007 and moved to the current location in 2013. As the second phase completed, the facility now expanded to cover 45,000 square meters. The rent plant is located outside the bonded zone of the industrial park, and its operation began in October 2016. (From some releases on May 25, 2018)