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Third Quarter 2012 Record Results Reported by Amphenol Corporation



  Third Quarter 2012 Record Results Reported by Amphenol Corporation

Business Wire

WALLINGFORD, Conn. -- October 17, 2012

Amphenol Corporation (NYSE-APH) reported today third quarter 2012 record
diluted earnings per share of $.90 compared to $.79 per share for the
comparable 2011 period. Such per share amount for the 2011 quarter includes
the effect of a $13 million ($8 million after tax), or $.05 per share one-time
charge relating to flood damage at the Company’s Sidney, New York facility and
a $4 million, or $.03 per share, net benefit relating to a reduction in tax
expense due primarily to the completion of prior year audits. Excluding these
effects, diluted earnings per share was $.81 for the 2011 period. Sales for
the third quarter 2012 were a record $1.103 billion compared to $1.033 billion
for the 2011 period. Currency translation had the effect of decreasing sales
by approximately $19 million in the third quarter 2012 compared to the 2011
period.

For the nine months ended September 30, 2012, diluted earnings per share were
$2.53 compared to $2.36 for the 2011 period on an as reported basis and $2.32
for the 2011 period excluding one-time items. One–time items in the 2011
period of $.04 include the $.02 net third quarter charge described above and a
$.06 per share gain related to the adjustment of a contingent purchase price
obligation for a 2010 acquisition. Sales for the nine months ended September
30, 2012 were $3.146 billion compared to $2.991 billion for the 2011 period.
Currency translation had the effect of decreasing sales by approximately $42
million for the nine month 2012 period compared to the 2011 period.

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We
are pleased to report new records of performance in the third quarter of 2012
with sales and EPS of $1.103 billion and $.90, respectively. Sales increased
by approximately 7% year-over-year and 4% sequentially. On a year-over-year
basis, we experienced strength in the automotive, industrial, commercial
aerospace and telecommunications and data communications equipment markets. On
a sequential basis the Company saw strong growth in mobile devices primarily
related to ramp ups of new mobile computing devices. Our strong growth is once
again confirmation of the significant benefits of the Company’s diversity,
especially given the increasing level of uncertainty in many of the world’s
economies. In addition, it is extremely rewarding that the Company’s unique
entrepreneurial culture continues to drive an unwavering focus on
profitability and cash flow, resulting in another sequential operating margin
improvement to 19.5% and strong operating cash flow in the quarter of $176
million. I am very proud of our organization as we continue to execute well.”

“Our ongoing strategy of market and geographic diversification combined with
our strong commitment to developing enabling technologies for our customers in
all markets, both through organic product development and through our
acquisition program, continues to expand the Company’s growth opportunities.
Consistent with this strategy, in the third quarter, the Company completed the
acquisitions of Holland Electronics, a leading U.S. supplier of interconnect
products for the broadband and satellite communications markets with annual
sales of approximately $60 million, and Griffith Enterprises, a U.S.
manufacturer of high-technology, value-added assemblies, primarily for
commercial aerospace applications, with annual sales of approximately $15
million. These acquisitions significantly enhance the Company’s product
portfolio in two important end markets providing new highly-engineered
interconnect solutions to complement our broadband cable offering and
expanding our value-add solutions for the fast growing commercial air market.
In addition to our successful acquisition program, the Company continues to
deploy its financial strength in a variety of other ways to increase
shareholder value. These include the purchase in this quarter of .5 million
shares of the Company’s stock pursuant to our stock repurchase plan as well as
the previously announced increase in the quarterly dividend to $.105 per share
effective for dividends paid after March 2012.”

“In recent months there has been an increasing level of market uncertainty
related to a range of fiscal and budgetary issues. Based on these
considerations and assuming current currency exchange rates we expect fourth
quarter 2012 revenues in the range of $1.095 billion to $1.115 billion and
diluted EPS in the range of $.88 to $.91 For the full year 2012, we now expect
to achieve revenues and diluted EPS in the range of $4.241 billion to $4.261
billion and $3.41 to $3.44, respectively, an increase in revenues of 8% and in
diluted EPS (excluding one-time items), of 12% to 13% over 2011. This compares
to prior full year 2012 guidance for revenues and diluted EPS in the range of
$4.210 billion to $4.250 billion and $3.38 to $3.44, respectively. Despite the
many uncertainties in the global marketplace, we believe we can perform well
in the dynamic electronics market due to our leading technology, increasing
positions with our customers in diverse markets, worldwide presence, lean cost
structure, and agile, experienced and entrepreneurial management team.”

“The electronics revolution continues to accelerate, with new applications and
higher performance requirements driving increased demand for our leading
interconnect technologies in all of our end markets. This creates a
significant, long-term growth opportunity for Amphenol.  Importantly, our
ongoing actions to enhance our competitive advantages and build sustained
financial strength have created a solid base for future performance. I am 
confident in the ability of our outstanding management team to dynamically
adjust to a constantly changing market environment, to continue to generate
strong profitability and to further capitalize on the many opportunities to
expand our market position.”

The Company will host a conference call to discuss its third quarter results
at 1:00 PM (EST) October 17, 2012. The toll free dial-in number to participate
in this call is 888-395-9624; International dial-in number is 517-623-4547;
Passcode: Reardon. There will be a replay available until 11:59 P.M. (EST) on
Friday, October 19, 2012. The replay numbers are toll free 800-839-2290;
International toll number is 203-369-3607; Passcode: 5137.

A live broadcast as well as a replay will also be available on the Internet at
http://www.amphenol.com/investors/webcasts.php.

Amphenol Corporation is one of the world’s leading producers of electronic and
fiber optic connectors, cable and interconnect systems. Amphenol products are
engineered and manufactured in the Americas, Europe, Asia and Africa and sold
by a worldwide sales and marketing organization. Amphenol has a diversified
presence as a leader in high growth areas of the interconnect market
including: Military, Commercial Aerospace, Automotive, Broadband
Communications, Industrial, Telecommunications and Data Communications,
Wireless Devices and Wireless Infrastructure.

Statements in this press release which are other than historical facts are
intended to be “forward-looking statements” within the meaning of the
Securities Exchange Act of 1934, the Private Securities Litigation Reform Act
of 1995 and other related laws. While the Company believes such statements are
reasonable, the actual results and effects could differ materially from those
currently anticipated. Please refer to [Part I, Item 1A]  of the Company’s
Form 10-K for the year ended December 31, 2011, for some factors that could
cause the actual results to differ from estimates. In providing
forward-looking statements, the Company is not undertaking any duty or
obligation to update these statements publicly as a result of new information,
future events or otherwise.

 
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(dollars in thousands, except per share data)
                                                                              
                                                                                
                                                                                
                   Three Months Ended                      Nine Months Ended
                   September 30,                           September 30,
                   2012                2011                2012                2011
                                                                                
Net sales          $ 1,103,376         $ 1,032,754         $ 3,146,087         $ 2,991,077
                                                                                
Cost of sales        759,047             709,277             2,158,326           2,042,254    
                                                                                
Gross profit         344,329             323,477             987,761             948,823
                                                                                
Casualty loss
related to           -                   12,831              -                   12,831
flood
                                                                                
Change in
contingent
acquisition          -                   -                   -                   (17,813     )
related
obligations
                                                                                
Selling,
general and
administrative
expense              128,659             124,587             380,636             366,787      
                                                                                
Operating            215,670             186,059             607,125             587,018
income
                                                                                
Interest             (15,166     )       (10,498     )       (44,014     )       (31,885     )
expense
Other income,        2,636               2,255               7,457               6,089        
net
                                                                                
Income before        203,140             177,816             570,568             561,222
income taxes
                                                                                
Provision for        (54,340     )       (41,758     )       (152,627    )       (147,385    )
income taxes
                                                                                
Net income           148,800             136,058             417,941             413,837
Less: Net
income
attributable         (1,350      )       (1,435      )       (2,986      )       (3,505      )
to
noncontrolling
interests
                                                                                
Net income
attributable       $ 147,450           $ 134,623           $ 414,955           $ 410,332      
to Amphenol
Corporation
                                                                                
                                                                                
Net income per
common share -     $ 0.91              $ 0.80              $ 2.56              $ 2.39         
Basic
                                                                                
Weighted
average common
shares               161,349,493         167,951,866         161,905,598         171,411,779  
outstanding -
Basic
                                                                                
Net income per
common share -     $ 0.90              $ 0.79              $ 2.53              $ 2.36         
Diluted (1)
                                                                                
Weighted
average common
shares               163,780,171         169,835,067         164,333,598         173,728,409  
outstanding -
Diluted
                                                                                
Dividends
declared per       $ 0.105             $ 0.015             $ 0.315             $ 0.045        
common share
                                                                                  

         Earnings per share for the third quarter of 2011 includes a $12.8
         million charge ($8.1 million after tax), or ($.05) per share,
         casualty loss related to flood and a $4.5 million, or $.03 per share,
         net tax benefit relating to a reduction in international tax expense
         due primarily to the favorable settlement of certain tax positions
Note 1   and the completion of prior year audits. Earnings per share for the
         nine months ended September 30, 2011 also includes a $17.8 million
         ($11.2 million after tax) gain, or $.06 per share, related to the
         adjustment of a contingent purchase price obligation for a 2010
         acquisition. Excluding these effects, diluted earnings per share was
         $.81 and $2.32 for the three months and nine months ended September
         30, 2011, respectively.
          

 
AMPHENOL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(dollars in thousands)
                                                                
                                                                  
                                                                  
                                               September 30,     December 31,
                                               2012              2011
ASSETS
                                                                  
Current Assets:
Cash and cash equivalents                      $ 725,546         $ 515,086
Short-term investments                           167,345           133,848    
Total cash, cash equivalents and                 892,891           648,934
short-term investments
Accounts receivable, less allowance
for doubtful accounts of $11,085
and $11,113, respectively                        903,344           767,181
Inventories, net                                 712,189           649,862
Other current assets                             132,557           115,260    
                                                                  
Total current assets                             2,640,981         2,181,237
                                                                  
Land and depreciable assets, less
accumulated depreciation of
$701,032 and $655,869, respectively              407,587           380,501
Goodwill                                         1,876,539         1,746,113
Other long-term assets                           145,858           137,374    
                                                                  
                                               $ 5,070,965       $ 4,445,225  
                                                                  
LIABILITIES & EQUITY
                                                                  
Current Liabilities:
Accounts payable                               $ 478,100         $ 377,867
Accrued salaries, wages and employee             86,014            83,810
benefits
Accrued income taxes                             78,956            87,315
Other accrued expenses                           127,425           93,125
Short-term debt                                  94,093            298        
                                                                  
Total current liabilities                        864,588           642,415
                                                                  
Long-term debt                                   1,511,297         1,376,831
Accrued pension and post employment
benefit obligations                              205,922           207,049
Other long-term liabilities                      50,940            34,144
                                                                  
Equity:
Common stock                                     162               163
Additional paid-in capital                       302,547           189,166
Accumulated earnings                             2,237,109         2,102,497
Accumulated other comprehensive loss             (112,977  )       (120,057  )
                                                                  
Total shareholders' equity attributable to       2,426,841         2,171,769
Amphenol Corporation
                                                                  
Noncontrolling interests                         11,377            13,017     
                                                                  
Total equity                                     2,438,218         2,184,786  
                                                                  
                                               $ 5,070,965       $ 4,445,225  
                                                                    

 
  AMPHENOL CORPORATION
  CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
  (Unaudited)
  (dollars in thousands)
                                                                 
                                                                   
                                                 Nine months ended
                                                 September 30,
                                                 2012             2011
                                                                   
  Cash flow from operating activities:
  Net income                                     $ 417,941        $ 413,837
  Adjustments for cash flow from operating
  activities:
  Depreciation and amortization                    89,339           88,197
  Stock-based compensation expense                 23,167           21,011
  Non-cash casualty loss related to flood          -                12,400
  Change in contingent acquisition related         -                (17,813  )
  obligations
  Excess tax benefits from stock-based             (17,805  )       (5,624   )
  compensation payment arrangements
  Net change in components of working              (44,789  )       (125,644 )
  capital
  Net change in other long-term assets and         (250     )       10,225    
  liabilities
                                                                   
  Cash flow provided by operating activities       467,603          396,589   
                                                                   
  Cash flow from investing activities:
  Additions to property, plant and equipment       (96,489  )       (72,048  )
  Proceeds from disposals of fixed assets          4,174            7,134
  Purchases of short-term investments              (220,330 )       (93,833  )
  Sales and maturities of short-term               186,833          101,444
  investments
  Acquisitions, net of cash acquired               (179,597 )       (52,993  )
                                                                   
  Cash flow used in investing activities           (305,409 )       (110,296 )
                                                                   
  Cash flow from financing activities:
  Borrowings under senior notes                    498,730          -
  Borrowings under credit facilities               606,600          675,100
  Repayments under credit facilities               (876,960 )       (215,598 )
  Payment of fees and expenses related to          (4,318   )       (2,125   )
  debt financing
  Proceeds from exercise of stock options          73,450           24,255
  Excess tax benefits from stock-based             17,805           5,624
  compensation payment arrangements
  Payment of contingent acquisition related        -                (40,000  )
  obligations
  Payments to shareholders of noncontrolling       (4,713   )       (28,689  )
  interests
  Purchase and retirement of treasury stock        (229,442 )       (534,000 )
  Dividend payments                                (36,385  )       (7,788   )
                                                                   
  Cash flow provided by (used in) financing        44,767           (123,221 )
  activities
                                                                   
  Effect of exchange rate changes on cash          3,499            1,219
  and cash equivalents
                                                                   
  Net change in cash and cash
  equivalents                                      210,460          164,291
  Cash and cash equivalents
  balance, beginning of period                     515,086          525,888   
                                                                   
  Cash and cash equivalents
  balance, end of period                         $ 725,546        $ 690,179   
                                                                     

 
AMPHENOL CORPORATION
SEGMENT INFORMATION
(dollars in thousands)
(Unaudited)
                                                                              
                                                                                
                                                                                
                     Three months ended                      Nine months ended
                     September 30,                           September 30,
                     2012              2011                  2012              2011
                                                                                
Trade Sales:
Interconnect         $ 1,033,309       $ 957,153             $ 2,926,834       $ 2,778,418
Products
Cable                  70,067            75,601                219,253           212,659    
Products
Consolidated         $ 1,103,376       $ 1,032,754           $ 3,146,087       $ 2,991,077  
                                                                                
                                                                                
Operating
income:
Interconnect         $ 224,517         $ 205,611             $ 627,962         $ 603,103
Products
Cable                  8,697             9,874                 29,831            26,833
Products
Stock-based
compensation           (8,066    )       (7,630    )           (23,167   )       (21,011   )
expense
Change in
contingent
acquisition            -                 -                     -                 17,813
related
obligations
Casualty
loss related           -                 (12,831   )           -                 (12,831   )
to flood
Other
operating              (9,478    )       (8,965    )           (27,501   )       (26,889   )
expenses
Consolidated         $ 215,670         $ 186,059             $ 607,125         $ 587,018    
                                                                                
                                                                                
ROS%:
Interconnect           21.7      %       21.5      %           21.5      %       21.7      %
Products
Cable                  12.4      %       13.1      %           13.6      %       12.6      %
Products
Corporate -
stock-based            -0.7      %       -0.7      %           -0.7      %       -0.7      %
compensation
Change in
contingent
acquisition            0.0       %       0.0       %           0.0       %       0.6       %
related
obligations
Casualty
loss related           0.0       %       -1.3      %           0.0       %       -0.4      %
to flood
Corporate -            -0.9      %       -0.9      %           -0.9      %       -0.9      %
all other
                                                                                
Consolidated           19.5      %       18.0      %           19.3      %       19.6      %
                                                                                

Contact:

Amphenol Corporation
Diana G. Reardon, 203-265-8630
Executive Vice President and Chief Financial Officer
www.amphenol.com
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