TE Connectivity Withdraws FY20 Outlook Due To Covid-19

(RTTNews) - Industrial technology company TE Connectivity Ltd. (TEL), while reporting second-quarter loss and weak sales, said it is withdrawing its full year 2020 guidance due to limited visibility of COVID-19 impact on future demand.

For the fiscal third quarter of 2020, the company expects net sales to be down approximately 25% sequentially due to weak demand, especially in the transportation and commercial aerospace markets.

TE Connectivity Chief Executive Officer Terrence Curtin said, "Despite the impact of COVID-19, we were able to maintain adjusted operating margins above 16%... We expect to see COVID-related demand impacts in the second half of the year particularly in the transportation and commercial aerospace markets, but our strong free cash flow and liquidity allows us to continue to invest in long-term global growth trends and position us for further content growth when demand returns."