WALLINGFORD, CT – Amphenol Corp. reported second quarter record sales of $2.7 billion, up 33.5% year-over-year and 22% organically.
Net income from continuing operations for the quarter was $369 million, an increase of 41.7% compared to the second quarter of 2020.
Operating income was $476.2 million, up 33.2% year-over-year.
In the second quarter, operating and free cash flow were $411 million and $307 million, respectively.
“We are pleased to have closed the second quarter with sales and adjusted diluted EPS exceeding the high end of our guidance,” said Amphenol president and CEO R. Adam Norwitt. “Sales increased by a strong 34% in the quarter, with growth driven in particular by the automotive, industrial, military and broadband markets, as well as contributions from the company’s acquisition program.
“During the second quarter, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. To that end, the company purchased 2.5 million shares of its common stock for $167 million. The company also paid dividends of $87 million, resulting in total capital returned to shareholders during the second quarter of $254 million.
“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification and an active and successful acquisition program. To that end, we are excited to have closed on the acquisition of Unlimited Services of Wisconsin at the end of April. Based in Oconto, Wisconsin, and with annual sales of approximately $50 million, Unlimited Services is a manufacturer of cable assemblies for industrial applications with a particular focus on heavy vehicles. The acquisition further strengthens our capabilities and enhances our product offerings in the industrial market, while adding a talented management team to the Amphenol family.”
For the six months ended June 30, net sales were $5 billion, an increase of 30.7% year-over-year. Net income was $700.7 million, up 39.1% compared to the same period in 2020. Operating income was $941 million, growth of 39.6%.
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 third quarter Amphenol expects sales from continuing operations to be in the range of $2.64 billion to $2.7 billion, representing 14% to 16% growth over the third quarter of 2020.
“Despite the ongoing challenges and uncertainties that continue to arise from the Covid-19 pandemic, we are encouraged by the platform of strength that has been created by the company’s performance. The revolution in electronics is accelerating, thereby creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. We believe these opportunities will enable a further long-term increase in the demand for our ever-expanding range of high-technology interconnect, sensor and antenna products. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the company’s future performance. I am 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 in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world throughout the ongoing pandemic, all while continuing to strongly support our customers and drive outstanding operating performance.”
