TE Connectivity Reports Fourth Quarter and Full Year Results

         TE Connectivity Reports Fourth Quarter and Full Year Results

PR Newswire

SCHAFFHAUSEN, Switzerland, Nov. 5, 2012

SCHAFFHAUSEN, Switzerland, Nov. 5, 2012 /PRNewswire/ -- TE Connectivity Ltd.
(NYSE: TEL) today reported results for the fiscal fourth quarter ended
September 28, 2012.

(Logo: http://photos.prnewswire.com/prnh/20110310/PH62357LOGO )

Fourth Quarter Highlights

  oSales, Adjusted Earnings Per Share (EPS), and Free Cash Flow in line with
    guidance
  oNet sales were $3.36 billion
  oAdjusted EPS were $0.76
  oDiluted Earnings Per Share from Continuing Operations (GAAP EPS) were
    $0.93
  oFree Cash Flow was $569 million
  oReturned $283 million to shareholders through share repurchases and
    dividends

Full Year Highlights

  oNet sales were $13.3 billion
  oAdjusted EPS were $2.86
  oDiluted Earnings Per Share from Continuing Operations (GAAP EPS) were
    $2.70
  oFree Cash Flow exceeded $1.4 billion
  oStrengthened market position with the successful integration of Deutsch

"We had a solid fourth quarter with sales and EPS in line with our guidance
despite an increasingly uncertain economic environment," said TE Connectivity
Chief Executive Officer Tom Lynch. "We delivered another strong year of free
cash flow and resumed our share repurchase program in the fourth quarter.
During the year, we continued to strengthen and focus the Company with the
acquisition of Deutsch and the divestitures of Touch and Professional
Services.

"We expect sales and adjusted EPS in the first quarter to be up slightly from
the prior year due to the addition of Deutsch more than offsetting slower
end-market demand, particularly in Europe and China."

FISCAL FOURTH QUARTER RESULTS
The Company reported net sales of $3.36 billion compared to prior year sales
of $3.75 billion. Adjusted EPS were $0.76, compared to $0.87 in the prior year
($0.79 on a comparative 13-week basis). GAAP EPS were $0.93 for the quarter.
Free cash flow was $569 million for the quarter.

GAAP EPS included $0.03 per share of acquisition-related charges, $0.07 per
share of restructuring and other charges and $0.27 of income related to tax
items.

Total Company orders were $3.19 billion in the fourth quarter and the
book-to-bill ratio was 0.95.

OUTLOOK
For the first quarter, the Company expects net sales of $3.150 to $3.250
billion and adjusted EPS of $0.62 to $0.66. GAAP EPS are expected to be $0.43
to $0.47, including restructuring and acquisition-related charges of $0.19.

For the full year, the Company expects net sales of $13.4 to $14.0 billion and
adjusted EPS of $3.00 to $3.30. GAAP EPS are expected to be $2.61 to $2.91,
including restructuring and acquisition-related charges of $0.39.

In light of the weaker than expected economic environment, the Company is
expanding its restructuring effort to generate approximately $75 million of
additional annualized cost savings. The Company expects to incur approximately
$200 million in charges during fiscal year 2013, of which approximately $100
million is expected to be incurred in the current quarter.

This outlook assumes current foreign exchange and commodity rates.

Information about TE Connectivity's use of non-GAAP financial measures is
described at the end of this press release. For a reconciliation of these
non-GAAP financial measures, see the attached tables.

ABOUT TE CONNECTIVITY
TE Connectivity (NYSE: TEL) is a global, $13 billion company that designs and
manufactures approximately 500,000 products that connect and protect the flow
of power and data inside the products that touch every aspect of our lives.
Our nearly 90,000 employees partner with customers in virtually every
industry—from consumer electronics, energy and healthcare, to automotive,
aerospace and communication networks—enabling smarter, faster, better
technologies to connect products to possibilities. More information on TE
Connectivity can be found at http://www.te.com.

CONFERENCE CALL AND WEBCAST

  oThe Company will hold a conference call for investors today beginning at
    8:30 a.m. EST.
  oInternet users will be able to access the Company's earnings webcast,
    including slide materials, at the "Investors" section of TE Connectivity's
    website: http://investors.te.com.
  oFor both "listen-only" participants and those participants who wish to
    take part in the question-and-answer portion of the call, the telephone
    dial-in number in the United States is (800) 230-1059. The telephone
    dial-in number for participants outside the United States is (612)
    234-9960.
  oAn audio replay of the conference call will be available beginning at
    10:30 a.m. on November 5, 2012 and ending at 11:59 p.m. on November 12,
    2012. The dial-in number for participants in the United States is (800)
    475-6701. For participants outside the United States, the replay dial-in
    number is (320) 365-3844. The replay access code for all callers is
    267199.

NON-GAAP MEASURES
"Organic Sales Growth," "Adjusted Operating Income," "Adjusted Operating
Margin," "Adjusted Other Income, Net," "Adjusted Income Tax Expense,"
"Adjusted Income from Continuing Operations," "Adjusted Earnings Per Share,"
and "Free Cash Flow" (FCF) are non-GAAP measures and should not be considered
replacements for GAAP results.

"Organic Sales Growth" is a useful measure used by us to measure the
underlying results and trends in the business. The difference between reported
net sales growth (the most comparable GAAP measure) and Organic Sales Growth
(the non-GAAP measure) consists of the impact from foreign currency exchange
rates, acquisitions and divestitures, if any, and an additional week in the
fourth quarter of the fiscal year for fiscal years which are 53 weeks in
length. Organic Sales Growth is a useful measure of our performance because it
excludes items that: i) are not completely under management's control, such as
the impact of changes in foreign currency exchange rates; or ii) do not
reflect the underlying growth of the company, such as acquisition and
divestiture activity and the impact of an additional week in the fourth
quarter of the fiscal year for fiscal years which are 53 weeks in length. The
limitation of this measure is that it excludes items that have an impact on
our sales. This limitation is best addressed by using organic sales growth in
combination with the GAAP results.

We present operating income before special items including charges or income
related to legal settlements and reserves, restructuring and other charges,
acquisition related charges, impairment charges, and other income or charges,
if any ("Adjusted Operating Income"). We utilize Adjusted Operating Income to
assess segment level core operating performance and to provide insight to
management in evaluating segment operating plan execution and underlying
market conditions. It also is a significant component in our incentive
compensation plans. Adjusted Operating Income is a useful measure for
investors because it provides insight into our underlying operating results,
trends, and the comparability of these results between periods. The difference
between Adjusted Operating Income and operating income (the most comparable
GAAP measure) consists of the impact of charges or income related to legal
settlements and reserves, restructuring and other charges, acquisition related
charges, impairment charges, and other income or charges, if any, that may
mask the underlying operating results and/or business trends. The limitation
of this measure is that it excludes the financial impact of items that would
otherwise either increase or decrease our reported operating income. This
limitation is best addressed by using Adjusted Operating Income in combination
with operating income (the most comparable GAAP measure) in order to better
understand the amounts, character and impact of any increase or decrease on
reported results.

We present operating margin before special items including charges or income
related to legal settlements and reserves, restructuring and other charges,
acquisition related charges, impairment charges, and other income or charges,
if any ("Adjusted Operating Margin"). We present Adjusted Operating Margin
before special items to give investors a perspective on the underlying
business results. It also is a significant component in our incentive
compensation plans. This measure should be considered in conjunction with
operating margin calculated using our GAAP results in order to understand the
amounts, character and impact of adjustments to operating margin.

We present other income, net before special items including tax sharing income
related to certain proposed adjustments to prior period tax returns and other
tax items, if any ("Adjusted Other Income, Net"). We present Adjusted Other
Income, Net as we believe that it is appropriate for investors to consider
results excluding these items in addition to results in accordance with GAAP.
The difference between Adjusted Other Income, Net and other income, net (the
most comparable GAAP measure) consists of tax sharing income related to
certain proposed adjustments to prior period tax returns and other tax items,
if any. The limitation of this measure is that it excludes the financial
impact of items that would otherwise either increase or decrease other income,
net. This limitation is best addressed by using Adjusted Other Income, Net in
combination with other income, net (the most comparable GAAP measure) in order
to better understand the amounts, character and impact of any increase or
decrease in reported amounts.

We present income tax expense after adjusting for the tax effect of special
items including charges related to restructuring and other charges,
acquisition related charges, impairment charges, other income or charges, and
certain significant special tax items, if any ("Adjusted Income Tax Expense").
We present Adjusted Income Tax Expense to provide investors further
information regarding the tax effects of adjustments used in determining the
non-GAAP financial measure Adjusted Income from Continuing Operations (as
defined below). The difference between Adjusted Income Tax Expense and income
tax expense (the most comparable GAAP measure) is the tax effect of adjusting
items and certain significant special tax items, if any. The limitation of
this measure is that it excludes the financial impact of items that would
otherwise either increase or decrease income tax expense. This limitation is
best addressed by using Adjusted Income Tax Expense in combination with income
tax expense (the most comparable GAAP measure) in order to better understand
the amounts, character and impact of any increase or decrease in reported
amounts.

We present income from continuing operations attributable to TE Connectivity
Ltd. before special items including charges or income related to legal
settlements and reserves, restructuring and other charges, acquisition related
charges, impairment charges, tax sharing income related to certain proposed
adjustments to prior period tax returns and other tax items, certain
significant special tax items, other income or charges, if any, and, if
applicable, related tax effects ("Adjusted Income from Continuing
Operations"). We present Adjusted Income from Continuing Operations as we
believe that it is appropriate for investors to consider results excluding
these items in addition to results in accordance with GAAP. Adjusted Income
from Continuing Operations provides additional information regarding our
underlying operating results, trends and the comparability of these results
between periods. The difference between Adjusted Income from Continuing
Operations and income from continuing operations attributable to TE
Connectivity Ltd. (the most comparable GAAP measure) consists of the impact of
charges or income related to legal settlements and reserves, restructuring and
other charges, acquisition related charges, impairment charges, tax sharing
income related to certain proposed adjustments to prior period tax returns and
other tax items, certain significant special tax items, other income or
charges, if any, and, if applicable, related tax effects. The limitation of
this measure is that it excludes the financial impact of items that would
otherwise either increase or decrease our reported results. This limitation is
best addressed by using Adjusted Income from Continuing Operations in
combination with income from continuing operations attributable to TE
Connectivity Ltd. (the most comparable GAAP measure) in order to better
understand the amounts, character and impact of any increase or decrease in
reported amounts.

We present diluted earnings per share from continuing operations attributable
to TE Connectivity Ltd. before special items, including charges or income
related to legal settlements and reserves, restructuring and other charges,
acquisition related charges, impairment charges, tax sharing income related to
certain proposed adjustments to prior period tax returns and other tax items,
certain significant special tax items, other income or charges, if any, and,
if applicable, related tax effects ("Adjusted Earnings Per Share"). We present
Adjusted Earnings Per Share because we believe that it is appropriate for
investors to consider results excluding these items in addition to results in
accordance with GAAP. We believe such a measure provides a picture of our
results that is more comparable among periods since it excludes the impact of
special items, which may recur, but tend to be irregular as to timing, thereby
making comparisons between periods more difficult. It also is a significant
component in our incentive compensation plans. The limitation of this measure
is that it excludes the financial impact of items that would otherwise either
increase or decrease our reported results. This limitation is best addressed
by using Adjusted Earnings Per Share in combination with diluted earnings per
share from continuing operations attributable to TE Connectivity Ltd. (the
most comparable GAAP measure) in order to better understand the amounts,
character and impact of any increase or decrease on reported results.

"Free Cash Flow" (FCF) is a useful measure of our performance and ability to
generate cash. It also is a significant component in our incentive
compensation plans. The difference between net cash provided by continuing
operating activities (the most comparable GAAP measure) and FCF (the non-GAAP
measure) consists mainly of significant cash outflows and inflows that we
believe are useful to identify. We believe free cash flow provides useful
information to investors as it provides insight into the primary cash flow
metric used by management to monitor and evaluate cash flows generated from
our operations. The difference reflects the impact from net capital
expenditures, voluntary pension contributions, and special items, if any.

Net capital expenditures are subtracted because they represent long-term
commitments. Voluntary pension contributions are subtracted from the GAAP
measure because this activity is driven by economic financing decisions rather
than operating activity. Certain special items, including net payments related
to pre-separation tax matters, also are considered by management in evaluating
free cash flow. We believe investors should consider these items in evaluating
our free cash flow. We forecast our cash flow results excluding any voluntary
pension contributions because we have not yet made a determination about the
amount and timing of any such future contributions. In addition, our forecast
excludes the cash impact of special items because we cannot predict the amount
and timing of such items.

FCF as presented herein may not be comparable to similarly-titled measures
reported by other companies. The primary limitation of this measure is that it
excludes items that have an impact on our GAAP cash flow. Also, it subtracts
certain cash items that are ultimately within management's and the Board of
Directors' discretion to direct and may imply that there is less or more cash
available for our programs than the most comparable GAAP measure indicates.
This limitation is best addressed by using FCF in combination with the GAAP
cash flow results. It should not be inferred that the entire free cash flow
amount is available for future discretionary expenditures, as our definition
of free cash flow does not consider certain non-discretionary expenditures,
such as debt payments. In addition, we may have other discretionary
expenditures, such as discretionary dividends, share repurchases, and business
acquisitions, that are not considered in the calculation of free cash flow.

Because we do not predict the amount and timing of special items that might
occur in the future, and our forecasts are developed at a level of detail
different than that used to prepare GAAP-based financial measures, we do not
provide reconciliations to GAAP of our forward-looking financial measures.

FORWARD-LOOKING STATEMENTS
This release contains certain "forward-looking statements" within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995. These statements
are based on management's current expectations and are subject to risks,
uncertainty and changes in circumstances, which may cause actual results,
performance, financial condition or achievements to differ materially from
anticipated results, performance, financial condition or achievements. All
statements contained herein that are not clearly historical in nature are
forward-looking and the words "anticipate," "believe," "expect," "estimate,"
"plan," and similar expressions are generally intended to identify
forward-looking statements. We have no intention and are under no obligation
to update or alter (and expressly disclaim any such intention or obligation to
do so) our forward-looking statements whether as a result of new information,
future events or otherwise, except to the extent required by law. The
forward-looking statements in this release include statements addressing our
future financial condition and operating results. Examples of factors that
could cause actual results to differ materially from those described in the
forward-looking statements include, among others, business, economic,
competitive and regulatory risks, such as conditions affecting demand for
products, particularly in the automotive industry and the telecommunications,
computer and consumer electronics industries; competition and pricing
pressure; fluctuations in foreign currency exchange rates and commodity
prices; natural disasters and political, economic and military instability in
countries in which we operate; developments in the credit markets; future
goodwill impairment; compliance with current and future environmental and
other laws and regulations; the possible effects on us of changes in tax laws,
tax treaties and other legislation; the risk that Deutsch's operations will
not be successfully integrated into ours; and the risk that revenue
opportunities, cost savings and other anticipated synergies from the Deutsch
acquisition may not be fully realized or may take longer to realize than
expected. More detailed information about these and other factors is set forth
in TE Connectivity Ltd.'s Annual Report on Form 10-K for the fiscal year ended
Sept. 30, 2011 as well as in our Quarterly Reports on Form 10-Q for the fiscal
quarters ended Dec. 30, 2011, March 30, 2012, and June 29, 2012, Current
Reports on Form 8-K and other reports filed by us with the U.S. Securities and
Exchange Commission.



TE CONNECTIVITY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                  For the Quarters Ended  For the Years Ended
                                  September    September  September  September
                                  28,          30,        28,        30,
                                  2012         2011       2012       2011
                                  (in millions, except per share data)
Net sales                         $3,364       $3,753     $13,282    $13,778
Cost of sales                    2,300        2,569      9,236      9,507
Gross margin                      1,064        1,184      4,046      4,271
Selling, general, and             452          467        1,685      1,728
administrative expenses
Research, development, and        165          194        688        701
engineering expenses
Acquisition and integration costs 4            -          27         19
Restructuring and other charges,  42           78         128        136
net
 Operating income             401          445        1,518      1,687
Interest income                   5            6          23         22
Interest expense                  (45)         (44)       (176)      (161)
Other income, net                 19           14         50         27
 Income from continuing         380          421        1,415      1,575
operations before income taxes
Income tax (expense) benefit      18           (100)      (249)      (347)
 Income from continuing         398          321        1,166      1,228
operations
Income (loss) from discontinued   (2)          6          (51)       22
operations, net of income taxes
 Net income                   396          327        1,115      1,250
Less: net income attributable to  -            (1)        (3)        (5)
noncontrolling interests
Net income attributable to TE     $396         $326       $1,112     $1,245
Connectivity Ltd.
Amounts attributable to TE
Connectivity Ltd.:
Income from continuing operations $398         $320       $1,163     $1,223
Income (loss) from discontinued   (2)          6          (51)       22
operations
Net income                      $396         $326       $1,112     $1,245
Basic earnings (loss) per share
attributable to TE Connectivity
Ltd.:
 Income from continuing         $0.93        $0.75      $2.73      $2.79
operations
 Income (loss) from             -            0.01       (0.12)     0.05
discontinued operations
 Net income                   $0.93        $0.76      $2.61      $2.84
Diluted earnings (loss) per share
attributable to TE Connectivity
Ltd.:
 Income from continuing         $0.93        $0.74      $2.70      $2.76
operations
 Income (loss) from             (0.01)       0.01       (0.11)     0.05
discontinued operations
 Net income                   $0.92        $0.75      $2.59      $2.81
Dividends and cash distributions
paid per common share of TE       $0.21        $0.18      $0.78      $0.68
Connectivity Ltd.
Weighted-average number of shares
outstanding:
 Basic                          426          429        426        438
 Diluted                        429          433        430        443



TE CONNECTIVITY LTD.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
                                              September 28,    September 30,
                                              2012             2011
                                              (in millions, except share data)
Assets
Current Assets:
Cash and cash equivalents                     $1,589           $1,218
Accounts receivable, net of allowance for
doubtful accounts of $41 and $38,             2,343            2,341
respectively
Inventories                                   1,808            1,878
Prepaid expenses and other current assets     474              634
Deferred income taxes                         289              402
Assets held for sale                          -                508
 Total current assets                        6,503            6,981
Property, plant, and equipment, net           3,213            3,140
Goodwill                                      4,308            3,288
Intangible assets, net                        1,352            631
Deferred income taxes                         2,460            2,364
Receivable from Tyco International Ltd. and   1,180            1,066
Covidien plc
Other assets                                  290              253
Total Assets                                  $19,306          $17,723
Liabilities and Equity
Current Liabilities:
Current maturities of long-term debt          $1,015           $ -
Accounts payable                              1,292            1,454
Accrued and other current liabilities         1,576            1,733
Deferred revenue                              121              143
Liabilities held for sale                     -                80
Total current liabilities                     4,004            3,410
Long-term debt                                2,696            2,667
Long-term pension and postretirement          1,353            1,202
liabilities
Deferred income taxes                         448              333
Income taxes                                  2,311            2,122
Other liabilities                             517              505
Total Liabilities                             11,329           10,239
Commitments and contingencies
Equity:
TE Connectivity Ltd. Shareholders' Equity:
Common shares, 439,092,124 shares authorized
and issued, CHF 0.97 par value,
and463,080,684 shares authorized and issued, 193              593
CHF 1.37 par value, respectively
Contributed surplus                           6,837            7,604
Accumulated earnings                         1,196            84
Treasury shares, at cost, 16,408,049 and      (484)            (1,235)
39,303,550 shares, respectively
Accumulated other comprehensive income        229              428
Total TE Connectivity Ltd. shareholders'      7,971            7,474
equity
Noncontrolling interests                      6                10
Total Equity                                  7,977            7,484
Total Liabilities and Equity                  $19,306          $17,723



TE CONNECTIVITY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
                                  For the Quarters Ended  For the Years Ended
                                  September    September  September  September
                                  28,          30,        28,        30,
                                  2012         2011       2012       2011
                                  (in millions)
Cash Flows From Operating
Activities:
Net income                       $396         $327       $1,115     $1,250
 (Income) loss from
discontinued operations, net of   2            (6)        51         (22)
income taxes
Income from continuing operations 398          321        1,166      1,228
Adjustments to reconcile income
from continuing operations to net
cash provided by operating
activities:
Depreciation and amortization     156          145        609        564
Deferred income taxes             (148)        -          (48)       103
Provision for losses on accounts  14           (2)        58         18
receivable and inventories
Tax sharing income                (20)         (14)       (52)       (27)
Share-based compensation expense  16           13         68         71
Other                            15           3          64         (3)
Changes in assets and
liabilities, net of the effects
of acquisitions and divestitures:
Accounts receivable, net          43           148        17         26
Inventories                       92           (4)        116        (239)
Inventoried costs on long-term    (2)          15         7          31
contracts
Prepaid expenses and other        17           96         103        190
current assets
Accounts payable                  (98)         (122)      (189)      (38)
Accrued and other current         103          26         (92)       (225)
liabilities
Income taxes                      81           (76)       7          (54)
Deferred revenue                  21           39         (31)       (27)
Long-term pension and             10           22         43         75
postretirement liabilities
Other                             16           (2)        42         29
Net cash provided by continuing   714          608        1,888      1,722
operating activities
Net cash provided by (used in)    (1)          22         59         57
discontinued operating activities
Net cash provided by operating    713          630        1,947      1,779
activities
Cash Flows From Investing
Activities:
Capital expenditures              (148)        (204)      (533)      (574)
Proceeds from sale of property,   10           7          23         65
plant, and equipment
Proceeds from sale of intangible  -            -          -          68
assets
Proceeds from sale of short-term  -            -          -          155
investments
Acquisition of businesses, net of -            -          (1,384)    (731)
cash acquired
Proceeds from divestiture of
discontinued operations, net of   -            -          394        -
cash retained by sold operations
Other                             (2)          2          (9)        (8)
Net cash used in continuing       (140)        (195)      (1,509)    (1,025)
investing activities
Net cash used in discontinued     -            (13)       (1)        (18)
investing activities
Net cash used in investing        (140)        (208)      (1,510)    (1,043)
activities
Cash Flows From Financing
Activities:
Net increase (decrease) in        (50)         -          300        (100)
commercial paper
Proceeds from long-term debt      -            -          748        249
Repayment of long-term debt       -            -          (642)      (565)
Proceeds from exercise of share   8            6          60         80
options
Repurchase of common shares       (168)        (325)      (185)      (865)
Payment of common share dividends
and cash distributions to         (89)         (76)       (332)      (296)
shareholders
Other                             (1)          6          44         23
Net cash used in continuing       (300)        (389)      (7)        (1,474)
financing activities
Net cash provided by (used in)    1            (8)        (58)       (38)
discontinued financing activities
Net cash used in financing        (299)        (397)      (65)       (1,512)
activities
Effect of currency translation on 13           (18)       (1)        5
cash
Net increase (decrease) in cash   287          7          371        (771)
and cash equivalents
Less: net increase in cash and
cash equivalents related to       -            (1)        -          (1)
discontinued operations
Cash and cash equivalents at      1,302        1,212      1,218      1,990
beginning of period
Cash and cash equivalents at end  $1,589       $1,218     $1,589     $1,218
of period
Supplemental Cash Flow
Information:
Interest paid                     $25          $17        $181       $162
Income taxes paid, net of refunds 50           172        290        299
Reconciliation to Free Cash Flow:
Net cash provided by continuing   $714         $608       $1,888     $1,722
operating activities
Capital expenditures, net         (138)        (197)      (510)      (509)
Payments related to               (7)          129        19         129
pre-separation tax matters, net
Payments related to accrued
interest on debt assumed in the   -            -          17         -
acquisition of Deutsch
Payments to settle
acquisition-related foreign       -            -          20         -
currency derivative contracts
Free cash flow^(1)                $569         $540       $1,434     $1,342
^(1) Free cash flow is a non-GAAP measure. See description of non-GAAP
measures contained in this release.



TE CONNECTIVITY LTD.
CONSOLIDATED SEGMENT DATA (UNAUDITED)
               For the Quarters Ended         For the Years Ended
               September       September       September       September
               28,             30,             28,             30,
               2012            2011            2012            2011
                               ($ in millions)
Net Sales:
Transportation $1,538          $1,535          $6,007          $5,629
Solutions
Communications
and Industrial 996             1,225           3,990           4,658
Solutions
Network        830             993             3,285           3,491
Solutions
Total          $3,364          $3,753          $13,282         $13,778
Operating
Income:
Transportation $214      13.9% $237      15.4% $847      14.1% $848      15.1%
Solutions
Communications
and Industrial 105       10.5% 89        7.3%  337       8.4%  515       11.1%
Solutions
Network        82        9.9%  119       12.0% 334       10.2% 324       9.3%
Solutions
Total          $401      11.9% $445      11.9% $1,518    11.4% $1,687    12.2%



TE CONNECTIVITY LTD.
NET SALES GROWTH RECONCILIATION (UNAUDITED)
                                                                                      Percentage
                                                                                      of
                                                                                      Segment's
                                                                                      Total
               Change in Net Sales for the Quarter Ended September 28, 2012           Net Sales
                                                                                      for the
               versus Net Sales for the Quarter Ended September 30, 2011             Quarter
                                                                                      Ended
                                              Impact
                                              of                                      September
               Organic ^(1)     Translation          Acquisition   Total             28,
                                 ^(2)         14th
                                              Week                                    2012
                                              ^(3)
               ($ in millions)
Transportation
Solutions^(4):
Automotive     $54     4.0    %  $(88)        $(102)  $78           $(58)   (4.3)  %  83     %
Aerospace,
Defense, and   4       1.9       (8)          (10)    75            61      31.1      17
Marine
Total          58      3.7       (96)         (112)   153           3       0.2       100    %
Communications
and Industrial
Solutions
^(4):
Industrial     (72)    (17.1)    (5)          (30)    -             (107)   (25.8)    31
Consumer       (8)     (2.5)     (4)          (23)    -             (35)    (10.5)    30
Devices
Data           (27)    (10.1)    (5)          (16)    -             (48)    (17.7)    22
Communications
Appliance      (19)    (9.3)     (6)          (14)    -             (39)    (18.8)    17
Total          (126)   (10.3)    (20)         (83)    -             (229)   (18.7)    100    %
Network
Solutions
^(4):
Telecom        (25)    (6.2)     (15)         (32)    -             (72)    (17.6)    41
Networks
Energy         (4)     (1.6)     (15)         (14)    -             (33)    (13.4)    26
Enterprise     (1)     (0.1)     (11)         (16)    -             (28)    (14.2)    20
Networks
Subsea         (22)    (15.4)    2            (10)    -             (30)    (21.3)    13
Communications
Total          (52)    (5.2)     (39)         (72)    -             (163)   (16.4)    100    %
 Total      $(120)  (3.2)  %  $(155)       $(267)  $153          $(389)  (10.4) %
                                                                                      Percentage
                                                                                      of
                                                                                      Segment's
                                                                                      Total
               Change in Net Sales for the Year Ended September 28, 2012              Net Sales
                                                                                      for the
               versus Net Sales for the Year Ended September 30, 2011                Year Ended
                                              Impact
                                              of                                      September
               Organic ^(1)     Translation          Acquisitions  Total             28,
                                 ^(2)         53rd
                                              Week                                    2012
                                              ^(3)
               ($ in millions)
Transportation
Solutions^(4):
Automotive     $320    6.5    %  $(181)       $(102)  $174          $211    4.3    %  86     %
Aerospace,
Defense, and   40      5.6       (16)         (10)    153           167     23.8      14
Marine
Total          360     6.4       (197)        (112)   327           378     6.7       100    %
Communications
and Industrial
Solutions
^(4):
Industrial     (232)   (14.9)    (16)         (30)    -             (278)   (17.9)    32
Consumer       (79)    (6.5)     (1)          (23)    -             (103)   (8.4)     28
Devices
Data           (169)   (15.9)    (7)          (16)    -             (192)   (18.0)    22
Communications
Appliance      (65)    (8.1)     (16)         (14)    -             (95)    (11.8)    18
Total          (545)   (11.7)    (40)         (83)    -             (668)   (14.3)    100    %
Network
Solutions
^(4):
Telecom        (110)   (8.2)     (37)         (32)    117           (62)    (4.6)     39
Networks
Energy         14      1.5       (37)         (14)    -             (37)    (4.2)     25
Enterprise     -       -         (29)         (16)    37            (8)     (1.2)     21
Networks
Subsea         (91)    (15.8)    2            (10)    -             (99)    (17.1)    15
Communications
Total          (187)   (5.4)     (101)        (72)    154           (206)   (5.9)     100    %
 Total      $(372)  (2.7)  %  $(338)       $(267)  $481          $(496)  (3.6)  %
^(1) Represents the change in net sales resulting from volume and price changes, before
consideration of acquisitions, divestitures, the impact of changes in foreign currency exchange
rates, and the impact of an additional week in the fourth quarter of fiscal 2011. Organic net
sales growth is a non-GAAP measure. See description of non-GAAP measures contained in this
release.
^(2) Represents the change in net sales resulting from changes in foreign currency exchange
rates.
^(3) Represents the impact of an additional week in the fourth quarter of fiscal 2011. The
impact of the additional week was estimated using an average weekly sales figure for the last
month of the fiscal year.
^(4) Industry end market information about net sales is presented consistently with our internal
management reporting and may be periodically revised as management deems necessary.



TE CONNECTIVITY LTD.
NET SALES GROWTH RECONCILIATION (UNAUDITED)
                                                                    Percentage
                                                                    of
                                                                    Segment's
                  Change in Net Sales for the Quarter Ended         Total
                  September 28, 2012
                                                                    Net Sales
                                                                    for the
                  versus Net Sales for the Quarter Ended June 29,  Quarter
                  2012                                              Ended
                                                                    September
                  Organic ^(1)      Translation  Total             28,
                                     ^(2)
                                                                    2012
                  ($ in millions)
Transportation
Solutions^(3):
Automotive        $(40)    (2.7)  %  $(26)        $(66)   (4.9)  %  83     %
Aerospace,
Defense, and      2        1.3       (5)          (3)     (1.2)     17
Marine
Total             (38)     (2.3)     (31)         (69)    (4.3)     100    %
Communications
and Industrial
Solutions ^(3):
Industrial        (29)     (8.3)     -            (29)    (8.6)     31
Consumer Devices  11       4.0       1            12      4.2       30
Data              (5)      (2.1)     (1)          (6)     (2.6)     22
Communications
Appliance         (26)     (13.1)    -            (26)    (13.3)    17
Total             (49)     (4.7)     -            (49)    (4.7)     100    %
Network Solutions
^(3):
Telecom Networks  (2)      (0.4)     (3)          (5)     (1.5)     41
Energy            (2)      (0.9)     (2)          (4)     (1.8)     26
Enterprise        (1)      (0.7)     (2)          (3)     (1.7)     20
Networks
Subsea            (6)      (4.9)     1            (5)     (4.3)     13
Communications
Total             (11)     (1.3)     (6)          (17)    (2.0)     100    %
 Total         $(98)    (2.8)  %  $(37)        $(135)  (3.9)  %
^(1) Represents the change in net sales resulting from volume and price
changes, before consideration of acquisitions, divestitures, and the
impact of changes in foreign currency exchange rates. Organic net sales
growth is a non-GAAP measure. See description of non-GAAP measures
contained in this release.
^(2) Represents the change in net sales resulting from changes in foreign
currency exchange rates.
^(3) Industry end market information about net sales is presented
consistently with our internal management reporting and may be
periodically revised as management deems necessary.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 28, 2012
(UNAUDITED)
                            Adjustments
                            Acquisition   Restructuring
                            Related       and Other      Tax        Adjusted
                   U.S.     Charges^(1)   Charges, Net  Items^(2)  (Non-GAAP)
                   GAAP                                             ^(3)
                   ($ in millions, except per share data)
Operating Income:
Transportation     $214     $14           $15            $ -        $243
Solutions
Communications and
Industrial         105      -             7              -          112
Solutions
Network Solutions  82       -             17             -          99
 Total         $401     $14           $39            $ -        $454
Operating Margin   11.9%                                            13.5%
Other Income, Net  $19      $ -           $ -            $(7)       $12
Income Tax         $18      $(1)          $(10)          $(107)     $(100)
(Expense) Benefit
Income from
Continuing
Operations
Attributable to TE $398     $13           $29            $(114)     $326
Connectivity Ltd.
Diluted Earnings
per Share from
Continuing
Operations
Attributableto TE $0.93    $0.03         $0.07          $(0.27)    $0.76
Connectivity Ltd.
^(1) Includes $7 million of non-cash amortization associated with
acquisition-related adjustments recorded in cost of sales, $4 million of
acquisition and integration costs, and $3 million of restructuring costs.
^(2) Other income adjustment relates to reimbursements by Tyco International
and Covidien in connection with pre-separation tax matters. Income tax expense
adjustment includes income tax benefits recognized in connection with a
reduction in the valuation allowance associated with certain tax loss
carryforwards.
^(3) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 30, 2011
(UNAUDITED)
                                   Adjustments
                                   Acquisition   Restructuring
                                   Related       and Other      Adjusted
                           U.S.    Charges ^(1)  Charges, Net  (Non-GAAP)^(2)
                           GAAP
                           ($ in millions, except per share data)
Operating Income:
Transportation Solutions   $237    $ -           $ 4            $241
Communications and         89      -             51             140
Industrial Solutions
Network Solutions          119     23            1              143
 Total                 $445    $23           $56            $524
Operating Margin           11.9%                                14.0%
Other Income, Net          $14     $ -           $ -            $14
Income Tax Expense         $(100)  $(7)          $(17)          $(124)
Income from Continuing
OperationsAttributable to $320    $16           $39            $375
TE Connectivity Ltd.
Diluted Earnings per Share
fromContinuing Operations
Attributableto TE         $0.74   $0.04         $0.09          $0.87
Connectivity Ltd.
^(1) Includes $22 million of restructuring charges and $1 million of non-cash
amortization associated with acquisition-related adjustments recorded in cost
of sales.
^(2) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 28, 2012
(UNAUDITED)
                             Adjustments
                             Acquisition  Restructuring
                             Related      and Other      Tax        Adjusted
                   U.S.      Charges^(1)  Charges, Net  Items^(2)  (Non-GAAP)
                   GAAP                                             ^(3)
                   ($ in millions, except per share data)
Operating Income:
Transportation     $847      $116         $16            $ -        $979
Solutions
Communications and
Industrial         337       -            58             -          395
Solutions
Network Solutions  334       -            40             -          374
 Total         $1,518    $116         $114           $ -        $1,748
Operating Margin   11.4%                                            13.2%
Other Income, Net  $50       $ -          $ -            $(17)      $33
Income Tax Expense $(249)    $(24)        $(33)          $(90)      $(396)
Income from
Continuing
Operations
Attributable to TE $1,163    $92          $81            $(107)     $1,229
Connectivity Ltd.
Diluted Earnings
per Share from
Continuing
Operations
Attributableto TE $2.70     $0.21        $0.19          $(0.25)    $2.86
Connectivity Ltd.
^(1) Includes $75 million of non-cash amortization associated with fair value
adjustments primarily related to acquired inventories and customer order
backlog recorded in cost of sales, $27 million of acquisition and integration
costs, and $14 million of restructuring costs.
^(2) Other income adjustment relates to reimbursements by Tyco International
and Covidien in connection with pre-separation tax matters. Income tax expense
adjustments include income tax benefits recognized in connection with a
reduction in the valuation allowance associated with certain tax loss
carryforwards and income tax expense associated with certain non-U.S tax rate
changes.
^(3) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 30, 2011
(UNAUDITED)
                         Adjustments
                         Acquisition  Restructuring
                         Related      and Other      Tax        Adjusted
                 U.S.    Charges      Charges, Net  Items^(2)  (Non-GAAP)^(3)
                 GAAP    ^(1)
                 ($ in millions, except per share data)
Operating
Income:
Transportation   $848    $ -          $(14)          $ -       $834
Solutions
Communications
and Industrial   515     -            65             -          580
Solutions
Network          324     138          5              -          467
Solutions
Total            $1,687  $138         $56            $ -        $1,881
Operating Margin 12.2%                                          13.7%
Other Income,    $27     $ -          $ -            $14        $41
Net
Income Tax       $(347)  $(35)        $(18)          $(35)      $(435)
Expense
Income from
Continuing
Operations
Attributable to
TE Connectivity  $1,223  $103         $38            $(21)      $1,343
Ltd.
Diluted Earnings
per Share from
Continuing
Operations
Attributable to
TE Connectivity  $2.76   $0.23        $0.09          $(0.05)    $3.03
Ltd.
^(1) Includes $80 million of restructuring charges, $39 million of non-cash
amortization associated with fair value adjustments primarily related to
acquired inventories and customer order backlog recorded in cost of sales, and
$19 million of acquisition and integration costs.
^(2) Includes income tax benefits associated with the settlement of certain
tax matters related to an audit of prior year tax returns. Also includes the
related impact to other income pursuant to the Tax Sharing Agreement with Tyco
International and Covidien.
^(3) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended December 30, 2011
(UNAUDITED)
                               
                               Adjustments
                               Acquisition     Restructuring
                               Related         and Other       Tax        Adjusted
                        U.S.   Charges         Charges, Net   Items^(1)  (Non-GAAP)
                        GAAP                                              ^(2)
                        ($ in millions, except per share data)
Operating Income:
Transportation          $223   $4              $(4)            $ -        $223
Solutions
Communications and      61     -               17              -          78
Industrial Solutions
Network Solutions       77     -               5               -          82
 Total              $361   $ 4             $18             $ -        $383
Operating Margin        11.4%                                             12.1%
Other Income, Net       $ 1    $ -             $ -             $ -        $ 1
Income Tax Expense      $(88)  $ -             $(8)            $17        $(79)
Income from Continuing
OperationsAttributable $238   $ 4             $10             $17        $269
to TE Connectivity Ltd.
Diluted Earnings per
Share from Continuing
Operations
Attributableto TE      $0.55  $0.01           $0.02           $0.04      $0.63
Connectivity Ltd.
^(1) Primarily relates to income tax expense associated with certain non-U.S tax
rate changes.
^(2) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 29, 2012
(UNAUDITED)
                            Adjustments
                            Acquisition   Restructuring
                            Related       and Other      Tax        Adjusted
                   U.S.     Charges^(1)   Charges, Net  Items^(2)  (Non-GAAP)
                   GAAP                                             ^(3)
                   ($ in millions, except per share data)
Operating Income:
Transportation     $183     $94           $ 3            $ -        $280
Solutions
Communications and
Industrial         96       -             16             -          112
Solutions
Network Solutions  92       -             6              -          98
 Total         $371     $94           $25            $ -        $490
Operating Margin   10.6%                                            14.0%
Other Income, Net  $19      $ -           $ -           $(10)      $ 9
Income Tax Expense $(88)    $(23)         $(6)           $ -        $(117)
Income from
Continuing
Operations
Attributable to TE $260     $71           $19            $(10)      $340
Connectivity Ltd.
Diluted Earnings
per Share
fromContinuing
Operations
Attributableto TE $0.60    $0.16         $0.04          $(0.02)    $0.79
Connectivity Ltd.
^(1) Includes $68 million of non-cash amortization associated with fair value
adjustments primarily related to acquired inventories and customer order
backlog recorded in cost of sales, $15 million of acquisition and integration
costs, and $11 million of restructuring costs.
^(2) Relates to reimbursements by Tyco International and Covidien in
connection with pre-separation tax matters.
^(3) See description of non-GAAP measures contained in this release.



TE CONNECTIVITY LTD.
IMPACT OF ADDITIONAL WEEK (UNAUDITED)
                       For the Quarter Ended September 30,
                       2011
                        Adjustments                                        Adjustment
                        Acquisition  Restructuring             14 Weeks                13 Weeks
                14      Related      and Other                 Adjusted    Impact of   Adjusted
                Weeks
                U.S.    Charges      Charges, Net  Tax Items  (Non-GAAP)  14th Week   (Non-GAAP)
                GAAP    ^(1)                                   ^(2)        ^(3)        ^(4)
                ($ in millions, except per share data)
Operating       $445    $23          $56            $ -        $524        $(52)       $472
Income
Operating       11.9%                                          14.0%                   13.5%
Margin
Diluted
Earnings per
Share
fromContinuing
Operations
Attributableto
TE Connectivity $0.74   $0.04        $0.09          $ -        $ 0.87      $(0.08)     $0.79
Ltd.
^(1) Includes $22 million of restructuring charges and $1 million of non-cash amortization
associated with acquisition accounting-related adjustments recorded in cost of sales.
^(2) See description of non-GAAP measures contained in this
release.
^(3) Estimated impact of the 14th week using an average
weekly sales figure for the last month of the fiscal year.
^(4) Excludes the impact of an additional week in the fourth
quarter of fiscal 2011.
                       For the Year Ended September 30, 2011
                        Adjustments                                        Adjustment
                        Acquisition  Restructuring             53 Weeks                52 Weeks
                53      Related      and Other                 Adjusted    Impact of   Adjusted
                Weeks
                U.S.    Charges      Charges, Net  Tax        (Non-GAAP)  53rd        (Non-GAAP)
                GAAP    ^(1)                        Items^(2)  ^(3)        Week^(4)    ^(5)
                ($ in millions, except per share data)
Operating       $1,687  $138         $56            $ -        $1,881      $(52)       $1,829
Income
Operating       12.2%                                          13.7%                   13.5%
Margin
Diluted
Earnings per
Share
fromContinuing
Operations
Attributableto
TE Connectivity $2.76   $0.23        $0.09          $(0.05)    $3.03       $(0.08)     $2.95
Ltd.
^(1) Includes $80 million of restructuring charges, $39 million of non-cash amortization
associated with fair value adjustments primarily related to acquired inventories and customer
order backlog recorded in cost of sales, and $19 million of acquisition and integration costs.
^(2) Includes income tax benefits associated with the settlement of certain tax matters related
to an audit of prior year tax returns. Also includes the related impact to other income pursuant
to the Tax Sharing Agreement with Tyco International and Covidien.
^(3) See description of non-GAAP measures contained in this release.
^(4) Estimated impact of the 53rd week using an average
weekly sales figure for the last month of the fiscal year.
^(5) Excludes the impact of an additional week in the fourth
quarter of fiscal 2011.



SOURCE TE Connectivity Ltd.

Website: http://www.te.com
Contact: Media Relations: Amy Shah, +1-610-893-9555 Office, amy.shah@te.com,
or Brian Schaffer, +1-212-279-3115 Office, bschaffer@prosek.com; Investor
Relations: Keith Kolstrom, +1-610-893-9551 Office, keith.kolstrom@te.com, or
Will Ruthrauff, +1-610-893-9565 Office, will.ruthrauff@te.com
 
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