WALLINGFORD, CT – Amphenol reported first quarter sales of $2.4 billion, up 28% year-over-year. Sales were up 23% organically compared to the first quarter of 2020.
Net income was $331.8 million, an increase of 36.4% compared to the first quarter of 2020. Operating income was $464.8 million, up 46.7%.
For the Interconnect Products and Assemblies segment, first quarter net sales were $2.28 billion, an increase of 28.2% year-over-year. Operating income was $489.4 million, up 44%.
For the first quarter, total operating cash flow was $321 million, and free cash flow was $243 million.
Two acquisitions were announced during the period: Euromicron and Cabelcon, and Amphenol closed on the acquisition of MTS Systems.
"I am very proud our team drove results that significantly exceeded our expectations in the first quarter 2021, while still prioritizing the safety and health of our employees worldwide amidst the ongoing Covid-19 pandemic," said Amphenol president and CEO R. Adam Norwitt.
"We are pleased to have closed the first quarter with sales and adjusted diluted EPS exceeding the high end of our guidance. Sales increased by a strong 28% in the quarter, with growth in nearly all markets, driven in particular by the automotive, mobile devices, industrial and IT datacom markets.
"Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value in the first quarter. To that end, the company purchased 2.4 million shares of its common stock for $153 million, bringing total share repurchases under the 2018 stock repurchase program to 40.3 million shares, or $1.95 billion. The company also paid dividends of $87 million, resulting in total capital returned to shareholders during the first quarter of $240 million.
"We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers in all markets, an ongoing strategy of market and geographic diversification and an active and successful acquisition program. To that end, and as previously announced on Apr. 7, 2021, we are excited to have closed the acquisition of MTS Systems Corp., and look forward to closing the sale of the MTS Test & Simulation business to Illinois Tool Works following the receipt of all required regulatory approvals and satisfaction of other customary closing conditions.
"In addition to the MTS acquisition, we are excited to have closed two new acquisitions since January, Euromicron and Cabelcon. In February, we closed on the acquisition of Euromicron Werkzeuge and its sister company LWL-Sachsenkabel (collectively, Euromicron) from the Gustav Zech Foundation. Based in Germany and with annual sales of approximately $25 million, Euromicron is a manufacturer of highly engineered fiberoptic interconnect solutions for the mobile networks and IT datacom markets. In March, we closed on the acquisition of the Cabelcon business of Corning Inc. Based in Denmark with annual sales of approximately $25 million, Cabelcon is a designer and manufacturer of high-technology connectors and interconnect assemblies primarily for the broadband market. The five acquisitions we have completed so far this year strengthen the company’s global capabilities and enhance our product offerings, while adding talented management teams to the Amphenol family. With our long-term, successful acquisition program, we look forward to creating more value in the future by bringing additional outstanding businesses into Amphenol."
During April, the company purchased the remaining authorized amount of common stock under its existing three-year $2 billion stock repurchase plan. As a result, on Apr. 27, the board of directors approved a new three-year $2 billion open market stock repurchase plan.
Given the current dynamic market environment and assuming no new material disruptions from the Covid-19 pandemic, as well as constant exchange rates, for the second quarter 2021, Amphenol expects sales to be in the range of $2.415 billion to $2.475 billion, representing 22% to 25% growth over the second quarter of 2020.
"Despite the ongoing challenges and uncertainties posed by the Covid-19 pandemic, we are encouraged by the platform of strength that has been created by the company’s performance. The electronics revolution continues to create exciting long-term growth opportunities for Amphenol across each of our diversified end markets, with customers driving their products and networks to achieve ever higher levels of performance. We believe these opportunities will enable a long-term increase in demand for our expanded range of high-technology interconnect, sensor and antenna products. Our ongoing actions to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our high-technology product offerings, both organically and through our acquisition program, have created an excellent base for the company’s future performance. I remain confident in the ability of our outstanding entrepreneurial management team to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise even in times of crisis and to continue to generate sustainable value for the long-term. Most important, I continue to be truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world, while continuing to strongly support our customers and drive outstanding operating performance."
