TE Connectivity Q3 Profit Surges, Tops Estimates; Lifts Forecast

(RTTNews) - Switzerland-based diversified electronics maker TE Connectivity Ltd. (TEL) reported Wednesday a surge in third-quarter profit, above Street view, despite a decline in sales. Further, the company lifted its fiscal 2013 earnings view on strong order growth.

For the third quarter, net income attributable to the company climbed to $335 million or $0.80 per share from last year's $199 million or $0.46 per share. Income from continuing operations improved to $0.79 from $0.60 last year. The latest quarterly results included $0.11 per share of restructuring and other charges and $0.02 of income related to tax items.

Adjusted earnings per share were $0.88, 11 percent higher than last year's $0.79. On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.83 per share for the quarter. Such estimates typically exclude special items.

The company reported net sales of $3.45 billion, compared to prior year sales of $3.50 billion. Analysts expected sales of $3.39 billion.

Company orders, excluding the Subsea Communications business, were $3.41 billion in the third quarter and the book-to-bill ratio was 1.02.

The company noted that its orders increased over the prior year in most of the businesses and that it expects another strong quarter in the fourth quarter, in line with prior guidance.

Looking ahead for the fourth quarter, TE Connectivity expects earnings per share of $0.82 to $0.86, adjusted earnings per share of $0.88 to $0.92 and net sales of $3.35 billion to $3.45 billion. Analysts expect earnings of $0.91 per share on sales of $3.46 billion.

For the full year, the company raised its annual earnings per share guidance, and now expects earnings per share of $2.92 to $2.96 and adjusted earnings per share of $3.18 to $3.22. The company's previous forecast was earnings per share of $2.80 - $2.92, and adjusted earnings per share of $3.10 - $3.22.

Sales are now expected t be $13.2 billion to $13.3 billion, compared to previous view of $13.075 billion - $13.375 billion. Analysts expect earnings of $3.15 per share on sales of $13.28 billion.