* Profit of 76 cents a share beats estimates by 2 cents
* Demand slowing in Europe, China
* Sees $200 million in restructuring charges in fiscal 2013
* Shares up 1.5 percent
By Nick Zieminski
Nov 5 TE Connectivity Ltd reported a
higher-than-expected quarterly profit, but the maker of
electronic connectors used in cars and consumer devices gave a
forecast below Wall Street estimates, saying the economy was
weaker than expected.
The company also said on Monday it would take $200 million
in charges this fiscal year to restructure operations, including
closing some factories to cut capacity in its consumer and
TE Connectivity's consumer products go into mobile devices
and appliances; its network connectors include undersea
telecommunications and systems used by utilities and
"We saw our order rates slow, and this slowdown was pretty
much across the board in Europe and in our industrial business
in the U.S. and Asia," Chief Executive Officer Tom Lynch said.
Lynch said earnings would still increase this year if sales
are flat, because of a stock buyback and improved productivity.
If sales revive, profit could rise 15 percent.
TE Connectivity said it had earned a net $396 million, or 92
cents per share, in the fourth quarter ended Sept. 28, compared
with $326 million, or 75 cents per share, a year earlier.
Excluding tax items and restructuring and other charges,
earnings were 76 cents a share, 2 cents more than analysts had
expected, according to Thomson Reuters I/B/E/S.
Sales fell to $3.36 billion, slightly below estimates.
Lower sales to industrial and consumer electronics markets
offset higher revenue from auto, aerospace and other
transportation markets. Demand in Europe and China is slowing
and will hit first-quarter results, the company said.
TE Connectivity, formerly called Tyco Electronics, said it
expected a first-quarter profit of 62 cents to 66 cents a share,
excluding items, on sales of $3.15 billion to $3.25 billion.
Those ranges were below Wall Street forecasts for earnings
of 74 cents on sales of $3.39 billion.
TE Connectivity shares were up 1.5 percent at $32.87 in