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Amphenol Corporation reported fourth quarter and full year 2022 results.
“We are pleased to have closed 2022 with fourth quarter sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 7%, supported by robust growth in our broadband communications, commercial air, automotive and military markets and moderate growth in our industrial market, as well as contributions from the Company’s acquisition program, which were partially offset by the impact of the strengthening U.S. dollar. For the full year, sales increased 16% compared to 2021, driven by strong growth across virtually all of our end markets, along with contributions from the Company’s acquisition program, which were partially offset by the impact of the strengthening U.S. dollar. Despite facing inflationary and supply chain challenges throughout the year, we again realized strong profitability in 2022, with Adjusted Diluted EPS growing an impressive 21%. We are very proud of the Company’s outstanding performance in this dynamic year.”
“During the fourth quarter and throughout 2022, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. During the fourth quarter, the Company purchased 2.3 million shares of its common stock for $170 million and paid dividends of $119 million, resulting in total capital returned to shareholders in 2022 of more than $1.2 billion.”
“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification and an active and successful acquisition program. In addition to our previously announced 2022 acquisitions, we are excited to have closed on the acquisition of Control Measure Regulation Group (CMR) in January 2023. Based in France and with manufacturing locations in Tunisia, China and India, CMR manufactures cable assemblies and complex interconnect assemblies for the industrial market, particularly for heavy vehicle engine applications, and has annual sales of approximately $75 million. This acquisition further expands our offering of high-technology, value-added interconnect products in the diversified industrial market, while adding another talented management team to the Amphenol family.”
“We are also excited to announce that at the end of December 2022, we signed an agreement to acquire the North American cable and global base station antenna businesses of RFS. Based in Meriden, Connecticut, RFS designs and manufactures radio frequency and hybrid power and fiber optic cable for North American customers, as well as base station antennas for global customers in the mobile networks markets. We anticipate that the acquired businesses will generate full year 2023 sales of approximately $100 million and we expect to close the transaction by the end of the second quarter of 2023, subject to satisfying certain standard closing conditions.”
First Quarter 2023 Outlook
The current economic environment remains uncertain. In addition, as we discussed last quarter, we have seen some continued moderation in demand in the communications-related markets. Assuming market conditions do not meaningfully worsen as well as constant exchange rates, for the first quarter of 2023, Amphenol expects sales to be in the range of $2.840 billion to $2.900 billion. This represents a 2% to 4% decline over the first quarter of 2022 and includes a two percentage point negative currency impact. Adjusted Diluted EPS is expected to be in the range of $0.65 to $0.67, representing a 3% decline to flat over the first quarter of 2022.
“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s strong fourth quarter and full year 2022 results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts in navigating the myriad of challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”