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Amphenol Corporation reported today record GAAP and Adjusted Diluted Earnings Per Share1 (EPS) for the third quarter 2017 of $0.88. This compares to GAAP Diluted EPS of $0.71 for the comparable 2016 period. GAAP Diluted EPS for the third quarter 2016 included a charge for acquisition-related transaction costs of $6 million ($0.02 per share). Excluding the effect of this item, Adjusted Diluted EPS for the third quarter 2016 was $0.73. Sales for the third quarter of 2017 were a record $1.841 billion compared to $1.636 billion for the comparable 2016 period. Currency translation had the effect of increasing sales by approximately $13 million in the third quarter of 2017 compared to the 2016 period.
For the nine months ended September 30, 2017, GAAP Diluted EPS was $2.39, compared to $1.86 for the comparable 2016 period. The 2017 and 2016 periods include charges for acquisition-related costs of approximately $4 million ($0.01 per share) and $37 million ($0.11 per share), respectively. Excluding the effect of these items, Adjusted Diluted EPS for the nine months ended September 30, 2017 and 2016 was $2.40 and $1.97, respectively. Sales for the nine months ended September 30, 2017 were $5.067 billion compared to $4.635 billion for the 2016 period. Currency translation had the effect of decreasing sales by approximately $23 million for the first nine months of 2017 compared to the 2016 period.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “We are extremely pleased to close the third quarter 2017 well above the high end of our guidance, with record sales as well as record GAAP and Adjusted Diluted EPS in the quarter of $1.841 billion and $0.88, respectively. We achieved these record results amidst an environment of continued geopolitical and economic policy uncertainty. Compared to the third quarter 2016, sales increased a strong 13%, reflecting diversified growth across the Company’s markets including industrial, automotive, mobile devices, military, broadband, commercial air, as well as IT and data communications. Our excellent performance was driven by organic growth as well as through the Company’s successful acquisition program. GAAP and Adjusted Diluted EPS grew by 24% and 21%, respectively, in the quarter compared to the third quarter of 2016. This earnings growth was driven by our strong operating results, as reflected in the Company’s achievement of an Operating Margin of 20.5% in the third quarter 2017, as well as a lower than expected effective tax rate due to the tax benefit from the Company’s stock compensation program. I am very proud of our organization as we continue to execute extremely well.”
In addition to the strong operating results, the Company continues to deploy its financial strength in a variety of ways to increase shareholder value. This includes the purchase during the third quarter of 2.0 million shares of the Company’s stock under our $1 billion two-year open market stock repurchase plan, bringing total repurchases under the plan to approximately 7.7 million shares, or $556 million.”
“There remains uncertainty related to potential government policy changes as well as the overall geopolitical climate. Considering this environment and based on current currency exchange rates, we expect fourth quarter 2017 sales in the range of $1.760 billion to $1.800 billion and GAAP and Adjusted Diluted EPS in the range of $0.79 to $0.81. For the full year 2017, we now expect to achieve sales in the range of $6.828 billion to $6.868 billion, an increase over 2016 of 9%. We also expect GAAP Diluted EPS of $3.18 to $3.20, an increase of 22% to 23% over 2016 and an Adjusted Diluted EPS of $3.19 to $3.21, an increase of 17% to 18% over 2016. Our current full year guidance now reflects an effective tax rate of approximately 23%. This compares to our prior full year 2017 guidance of $6.620 billion to $6.700 billion in sales and GAAP Diluted EPS of $3.05 to $3.09 and Adjusted Diluted EPS of $3.06 to $3.10, which reflected a full year effective tax rate of approximately 23% to 24%.”
“The electronics revolution continues to create exciting, long-term growth opportunities for Amphenol. We remain very confident for the future, with new applications and higher performance requirements driving increased demand for our broadened range of high technology products across all of our diversified end markets. Our ongoing actions to strengthen our competitive advantages and build sustained financial strength, as well as our initiatives to expand our high technology product offering both organically and through our successful acquisition program, have created an excellent base for future performance. I am confident in the ability of our outstanding management team to dynamically adjust to the constantly changing environment, to continue to generate strong profitability and to further capitalize on the many opportunities to expand our market position.”
About Amphenol Corporation
Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors. Amphenol has a diversified presence as a leader in high growth areas of the interconnect market including: Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks.