TE Connectivity Ltd. (Formerly Tyco Electronics Ltd.) Business Report FY ended Sep. 2019
Financial Overview |
(in million USD) |
| FY ended Sep. 30, 2019 |
FY ended Sep. 30, 2018 |
Rate of change (%) |
|
| Overall | |||
| Net Sales | 13,448 | 13,988 | (3.9) |
| Operating Income | 1,978 | 2,331 | (15.1) |
| Transportation Solutions Segment | |||
| Net Sales | 7,821 | 8,290 | (5.7) |
| Operating Income | 1,226 | 1,578 | (22.3) |
Acquisition
-The Company announced that its subsidiary TE Connectivity Sensors Germany Holding AG has decided to make a voluntary public tender offer for all outstanding shares of First Sensor AG. The Company has also entered into a business combination agreement with First Sensor which outlines the key parameters that will facilitate the combination of both companies. Upon completion, the transaction would bring together First Sensor’s solutions, including low-pressure sensing and photonics, with the Company's operational scale, customer base and existing sensors technologies into a more comprehensive global sensing solutions offering for customers. The Company expects to complete this acquisition which valued approximately EUR 307 million by mid 2020 at the latest. (From a press release on June 3, 2019)
-The Company signed a definitive agreement to acquire the Kissling Group of companies, a provider of high- power relays and ruggedized switches used in the commercial vehicle, transportation as well as other applications. The transaction is expected to close May 30, 2019, following the completion of customary regulatory approvals. With this acquisition, the Company further expands its portfolio of specialty relays and switches to support the needs of industrial and commercial transportation customers - truck, bus, construction and other specialized vehicle manufacturers. Headquartered in Wildberg, Germany, Kissling is a privately owned company that has about 450 employees at sites in Germany, Switzerland, Slovakia, Spain and the U.S. (From a press release on April 29, 2019)
R&D Expenditure |
(in million USD) |
| FY ended Sep. 30, 2019 |
FY ended Sep. 30, 2018 |
FY ended Sep. 30, 2017 |
|
| Overall | 572 | 606 | 548 |
Product Development
-Tyco Electronics Japan G.K. will step up efforts to meet demand for electrification. It will start the mass production of automotive charging connectors without a shield in 2019. As the company’s official says, “An original product that cannot be seen in competitors’ lineups,” the non-shield charging connector will contribute to cost and size reductions. The supplier will start expanding sales of the product primarily to electric vehicle manufacturers in China and Europe. (From an article in the Nikkan Jidosha Shimbun on May 25, 2019)
Capital Expenditure |
(in million USD) |
| FY ended Sep. 30, 2019 |
FY ended Sep. 30, 2018 |
FY ended Sep. 30, 2017 |
|
| Overall |
749
|
935 | 679 |
| -Transportation Solutions |
530
|
711 | 473 |
Investment Outside Switzerland
<USA>
-TE Connectivity announced that it is investing USD 15.7 million to expand its operations in Tullahoma, Tennessee. With this expansion, TE Connectivity will add new equipment to its operations as well as update the current facility in Tullahoma. The site expansion will add approximately 100 new jobs, including assembly and molding operators, maintenance technicians, engineers and supervisors. The Tullahoma site produces connectors that empower commercial vehicles, as well as heavy construction, mining and agriculture equipment. The company has operated in Tullahoma since 1997. (Tennessee Department of Economic and Community Development release on August 20, 2019)