Technology
TE Connectivity announces third quarter results for fiscal year 2024
Published
2 years agoon
By
Delivered EPS above guidance driven by strong margin expansion; Record year-to-date cash flow
SCHAFFHAUSEN, Switzerland, July 24, 2024 /PRNewswire/ — TE Connectivity Ltd. (NYSE: TEL) today reported results for the fiscal third quarter ended June 28, 2024.
Third Quarter Highlights
Net sales were $4.0 billion, in line with guidance, down 1% on a reported basis year over year and up 2% organically.GAAP diluted earnings per share (EPS) from continuing operations were $1.86, up 11% year over year. Adjusted EPS exceeded guidance at $1.91, a quarterly record and up 8% year over year.Orders were $4.1 billion, up 4% year over year and 3% sequentially, driven by momentum in artificial intelligence programs.Operating margins were 19% and adjusted operating margins were 19.3%, up 200 basis points year over year and a quarterly record, driven by strong operational performance.Generated record cash flow year to date, including:Cash from operating activities of $2.4 billion, up 22% year over year.Free cash flow of approximately $2.0 billion, up 36% year over year.Deployed over $2.2 billion of capital year to date, with $1.8 billion returned to shareholders
“I’m pleased that our team continued to navigate a dynamic market environment to deliver another strong quarter of performance, highlighted by operating margin expansion of 200 basis points, delivering EPS above guidance and record cash flow generation,” said TE Connectivity CEO Terrence Curtin. “In our Transportation Segment, our automotive business grew 4% organically despite a decline in auto production, and three out of four businesses in our Industrial segment continued their growth trajectories. In our Communications segment, we achieved sales growth of more than 20% along with record orders, driven by momentum in artificial intelligence programs where we are well positioned with multiple customers. We expect to deliver year-over-year earnings growth and margin expansion in the fourth quarter as well as double-digit earnings growth for the full year. As we look to the future, we continue to invest in key long-term growth trends to innovate alongside our valued customers around the world.”
Fourth Quarter FY24 Outlook
For the fourth quarter of fiscal 2024, the company expects net sales of approximately $4.0 billion. GAAP EPS from continuing operations is expected to be approximately $1.80, up 3% year over year, with adjusted EPS of approximately $1.94, up 9% year over year. Fourth quarter guidance includes a $0.10 year-over-year headwind from tax and currency exchange rates.
Information about TE Connectivity’s use of non-GAAP financial measures is provided below. For reconciliations of these non-GAAP financial measures, see the attached tables.
Conference Call and Webcast
The company will hold a conference call for investors today beginning at 8:30 a.m. ET. The conference call may be accessed in the following ways:
At TE Connectivity’s website: investors.te.comBy telephone: For both “listen-only” participants and those participants who wish to take part in the question-and-answer portion of the call, the dial-in number in the United States is (800) 715-9871 and for international callers, the dial-in number is (646) 307-1963.A replay of the conference call will be available on TE Connectivity’s investor website at investors.te.com at 11:30 a.m. ET on July 24, 2024.
About TE Connectivity
TE Connectivity Ltd. (NYSE: TEL) is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Our broad range of connectivity and sensor solutions enable the distribution of power, signal and data to advance next-generation transportation, renewable energy, automated factories, data centers, medical technology and more. With more than 85,000 employees, including 8,000 engineers, working alongside customers in approximately 140 countries, TE ensures that EVERY CONNECTION COUNTS. Learn more at www.te.com and on LinkedIn, Facebook, WeChat, Instagram and X (formerly Twitter).
Non-GAAP Financial Measures
We present non-GAAP performance and liquidity measures as we believe it is appropriate for investors to consider adjusted financial measures in addition to results in accordance with accounting principles generally accepted in the U.S. (“GAAP”). These non-GAAP financial measures provide supplemental information and should not be considered replacements for results in accordance with GAAP. Management uses non-GAAP financial measures internally for planning and forecasting purposes and in its decision-making processes related to the operations of our company. We believe these measures provide meaningful information to us and investors because they enhance the understanding of our operating performance, ability to generate cash, and the trends of our business. Additionally, we believe that investors benefit from having access to the same financial measures that management uses in evaluating our operations. The primary limitation of these measures is that they exclude the financial impact of items that would otherwise either increase or decrease our reported results. This limitation is best addressed by using these non-GAAP financial measures in combination with the most directly comparable GAAP financial measures in order to better understand the amounts, character, and impact of any increase or decrease in reported amounts. These non-GAAP financial measures may not be comparable to similarly-titled measures reported by other companies.
The following provides additional information regarding our non-GAAP financial measures:
Organic Net Sales Growth (Decline) – represents net sales growth (decline) (the most comparable GAAP financial measure) excluding the impact of foreign currency exchange rates, and acquisitions and divestitures that occurred in the preceding twelve months, if any. Organic Net Sales Growth (Decline) is a useful measure of our performance because it excludes items that are not completely under management’s control, such as the impact of changes in foreign currency exchange rates, and items that do not reflect the underlying growth of the company, such as acquisition and divestiture activity. This measure is a significant component in our incentive compensation plans.Adjusted Operating Income and Adjusted Operating Margin – represent operating income and operating margin, respectively, (the most comparable GAAP financial measures) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, and other income or charges, if any. We utilize these adjusted measures in combination with operating income and operating margin to assess segment level operating performance and to provide insight to management in evaluating segment operating plan execution and market conditions. Adjusted Operating Income is a significant component in our incentive compensation plans.Adjusted Income Tax (Expense) Benefit and Adjusted Effective Tax Rate – represent income tax (expense) benefit and effective tax rate, respectively, (the most comparable GAAP financial measures) after adjusting for the tax effect of special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any.Adjusted Income from Continuing Operations – represents income from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects.Adjusted Earnings Per Share – represents diluted earnings per share from continuing operations (the most comparable GAAP financial measure) before special items including restructuring and other charges, acquisition-related charges, impairment of goodwill, other income or charges, and certain significant tax items, if any, and, if applicable, the related tax effects. This measure is a significant component in our incentive compensation plans.Free Cash Flow (FCF) – is a useful measure of our ability to generate cash. The difference between net cash provided by operating activities (the most comparable GAAP financial measure) and Free Cash Flow consists mainly of significant cash outflows and inflows that we believe are useful to identify. We believe Free Cash Flow provides useful information to investors as it provides insight into the primary cash flow metric used by management to monitor and evaluate cash flows generated from our operations. Free Cash Flow is defined as net cash provided by operating activities excluding voluntary pension contributions and the cash impact of special items, if any, minus net capital expenditures. Voluntary pension contributions are excluded from the GAAP financial measure because this activity is driven by economic financing decisions rather than operating activity. Certain special items, including cash paid (collected) pursuant to collateral requirements related to cross-currency swap contracts, are also excluded by management in evaluating Free Cash Flow. Net capital expenditures consist of capital expenditures less proceeds from the sale of property, plant, and equipment. These items are subtracted because they represent long-term commitments. In the calculation of Free Cash Flow, we subtract certain cash items that are ultimately within management’s and the Board of Directors’ discretion to direct and may imply that there is less or more cash available for our programs than the most comparable GAAP financial measure indicates. It should not be inferred that the entire Free Cash Flow amount is available for future discretionary expenditures, as our definition of Free Cash Flow does not consider certain non-discretionary expenditures, such as debt payments. In addition, we may have other discretionary expenditures, such as discretionary dividends, share repurchases, and business acquisitions, that are not considered in the calculation of Free Cash Flow.
Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from anticipated results, performance, financial condition or achievements. All statements contained herein that are not clearly historical in nature are forward-looking and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward-looking statements. We have no intention and are under no obligation to update or alter (and expressly disclaim any such intention or obligation to do so) our forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by law. The forward-looking statements in this release include statements addressing our future financial condition and operating results. In addition, our proposed change of incorporation from Switzerland to Ireland is subject to risks, such as the risk that the change of place of incorporation might not be completed or, if completed, that the anticipated advantages might not materialize, as well as the risks that the price of our stock could decline and our position on stock exchanges and indices could change, and Irish corporate governance and regulatory schemes could prove different or more challenging than currently expected. Examples of factors that could cause actual results to differ materially from those described in the forward-looking statements include, among others, the extent, severity and duration of business interruptions, such as the coronavirus disease 2019 (“COVID-19”) negatively affecting our business operations; business, economic, competitive and regulatory risks, such as conditions affecting demand for products in the automotive and other industries we serve; competition and pricing pressure; fluctuations in foreign currency exchange rates and commodity prices; natural disasters and political, economic and military instability in countries in which we operate, including continuing military conflict in certain parts of the world; developments in the credit markets; future goodwill impairment; compliance with current and future environmental and other laws and regulations; and the possible effects on us of changes in tax laws, tax treaties and other legislation. In addition, the extent to which COVID-19 will impact our business and our financial results will depend on future developments, which are highly uncertain and cannot be predicted. More detailed information about these and other factors is set forth in TE Connectivity Ltd.’s Annual Report on Form 10-K for the fiscal year ended Sept 29, 2023, as well as in our Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other reports filed by us with the U.S. Securities and Exchange Commission.
TE CONNECTIVITY LTD.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
For the Quarters Ended
For the Nine Months Ended
June 28,
June 30,
June 28,
June 30,
2024
2023
2024
2023
(in millions, except per share data)
Net sales
$
3,979
$
3,998
$
11,777
$
11,999
Cost of sales
2,593
2,699
7,704
8,229
Gross margin
1,386
1,299
4,073
3,770
Selling, general, and administrative expenses
431
431
1,299
1,258
Research, development, and engineering expenses
189
176
546
534
Acquisition and integration costs
5
9
16
26
Restructuring and other charges, net
6
53
67
283
Operating income
755
630
2,145
1,669
Interest income
20
18
61
39
Interest expense
(18)
(20)
(55)
(61)
Other expense, net
(3)
(4)
(11)
(13)
Income from continuing operations before income taxes
754
624
2,140
1,634
Income tax (expense) benefit
(181)
(96)
778
(283)
Income from continuing operations
573
528
2,918
1,351
Income (loss) from discontinued operations, net of income taxes
—
—
(1)
7
Net income
$
573
$
528
$
2,917
$
1,358
Basic earnings per share:
Income from continuing operations
$
1.87
$
1.68
$
9.47
$
4.28
Income (loss) from discontinued operations
—
—
—
0.02
Net income
1.87
1.68
9.47
4.30
Diluted earnings per share:
Income from continuing operations
$
1.86
$
1.67
$
9.41
$
4.25
Income (loss) from discontinued operations
—
—
—
0.02
Net income
1.86
1.67
9.41
4.27
Weighted-average number of shares outstanding:
Basic
306
315
308
316
Diluted
308
317
310
318
TE CONNECTIVITY LTD.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 28,
September 29,
2024
2023
(in millions, except share data)
Assets
Current assets:
Cash and cash equivalents
$
1,469
$
1,661
Accounts receivable, net of allowance for doubtful accounts of $37 and $30, respectively
2,889
2,967
Inventories
2,669
2,552
Prepaid expenses and other current assets
686
712
Total current assets
7,713
7,892
Property, plant, and equipment, net
3,758
3,754
Goodwill
5,664
5,463
Intangible assets, net
1,177
1,175
Deferred income taxes
3,768
2,600
Other assets
818
828
Total assets
$
22,898
$
21,712
Liabilities, redeemable noncontrolling interests, and shareholders’ equity
Current liabilities:
Short-term debt
$
1,249
$
682
Accounts payable
1,662
1,563
Accrued and other current liabilities
2,206
2,218
Total current liabilities
5,117
4,463
Long-term debt
2,953
3,529
Long-term pension and postretirement liabilities
720
728
Deferred income taxes
186
185
Income taxes
386
365
Other liabilities
781
787
Total liabilities
10,143
10,057
Commitments and contingencies
Redeemable noncontrolling interests
123
104
Shareholders’ equity:
Common shares, CHF 0.57 par value, 316,574,781 shares authorized and issued, and 322,470,281 shares authorized and issued, respectively
139
142
Accumulated earnings
14,253
12,947
Treasury shares, at cost, 12,129,385 and 10,487,742 shares, respectively
(1,647)
(1,380)
Accumulated other comprehensive loss
(113)
(158)
Total shareholders’ equity
12,632
11,551
Total liabilities, redeemable noncontrolling interests, and shareholders’ equity
$
22,898
$
21,712
TE CONNECTIVITY LTD.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
For the Quarters Ended
For the Nine Months Ended
June 28,
June 30,
June 28,
June 30,
2024
2023
2024
2023
(in millions)
Cash flows from operating activities:
Net income
$
573
$
528
$
2,917
$
1,358
(Income) loss from discontinued operations, net of income taxes
—
—
1
(7)
Income from continuing operations
573
528
2,918
1,351
Adjustments to reconcile income from continuing operations to net cash provided by operating activities:
Depreciation and amortization
208
200
594
594
Deferred income taxes
22
(51)
(1,190)
(121)
Non-cash lease cost
33
36
100
106
Provision for losses on accounts receivable and inventories
15
13
70
82
Share-based compensation expense
31
32
100
95
Impairment of held for sale business
—
—
—
67
Other
(11)
17
53
85
Changes in assets and liabilities, net of the effects of acquisitions and divestitures:
Accounts receivable, net
10
22
82
(202)
Inventories
114
(50)
(127)
(323)
Prepaid expenses and other current assets
13
(5)
12
(30)
Accounts payable
44
(36)
99
68
Accrued and other current liabilities
(37)
69
(324)
(14)
Income taxes
13
16
28
51
Other
(22)
(12)
20
185
Net cash provided by operating activities
1,006
779
2,435
1,994
Cash flows from investing activities:
Capital expenditures
(149)
(166)
(467)
(538)
Proceeds from sale of property, plant, and equipment
10
1
12
3
Acquisition of businesses, net of cash acquired
—
—
(339)
(108)
Proceeds from divestiture of businesses, net of cash retained by businesses sold
21
(3)
59
48
Other
1
(1)
(9)
22
Net cash used in investing activities
(117)
(169)
(744)
(573)
Cash flows from financing activities:
Net increase (decrease) in commercial paper
18
3
(21)
(82)
Proceeds from issuance of debt
—
—
—
499
Repayment of debt
(1)
—
(2)
(591)
Proceeds from exercise of share options
19
13
52
33
Repurchase of common shares
(416)
(208)
(1,301)
(674)
Payment of common share dividends to shareholders
(199)
(186)
(564)
(541)
Other
(12)
(2)
(39)
(30)
Net cash used in financing activities
(591)
(380)
(1,875)
(1,386)
Effect of currency translation on cash
(5)
(4)
(8)
8
Net increase (decrease) in cash, cash equivalents, and restricted cash
293
226
(192)
43
Cash, cash equivalents, and restricted cash at beginning of period
1,176
905
1,661
1,088
Cash, cash equivalents, and restricted cash at end of period
$
1,469
$
1,131
$
1,469
$
1,131
Supplemental cash flow information:
Interest paid on debt, net
$
6
$
9
$
38
$
48
Income taxes paid, net of refunds
146
131
384
354
TE CONNECTIVITY LTD.
RECONCILIATION OF FREE CASH FLOW (UNAUDITED)
For the Quarters Ended
For the Nine Months Ended
June 28,
June 30,
June 28,
June 30,
2024
2023
2024
2023
(in millions)
Net cash provided by operating activities
$
1,006
$
779
$
2,435
$
1,994
Capital expenditures, net
(139)
(165)
(455)
(535)
Free cash flow (1)
$
867
$
614
$
1,980
$
1,459
(1) Free cash flow is a non-GAAP financial measure. See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
CONSOLIDATED SEGMENT DATA (UNAUDITED)
For the Quarters Ended
For the Nine Months Ended
June 28,
June 30,
June 28,
June 30,
2024
2023
2024
2023
($ in millions)
Net Sales
Net Sales
Net Sales
Net Sales
Transportation Solutions
$
2,330
$
2,433
$
7,087
$
7,175
Industrial Solutions
1,133
1,141
3,301
3,392
Communications Solutions
516
424
1,389
1,432
Total
$
3,979
$
3,998
$
11,777
$
11,999
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Income
Margin
Income
Margin
Income
Margin
Income
Margin
Transportation Solutions
$
498
21.4
%
$
425
17.5
%
$
1,443
20.4
%
$
1,040
14.5
%
Industrial Solutions
153
13.5
150
13.1
451
13.7
440
13.0
Communications Solutions
104
20.2
55
13.0
251
18.1
189
13.2
Total
$
755
19.0
%
$
630
15.8
%
$
2,145
18.2
%
$
1,669
13.9
%
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Income (1)
Margin (1)
Income (1)
Margin (1)
Income (1)
Margin (1)
Income (1)
Margin (1)
Transportation Solutions
$
490
21.0
%
$
452
18.6
%
$
1,471
20.8
%
$
1,221
17.0
%
Industrial Solutions
171
15.1
180
15.8
499
15.1
529
15.6
Communications Solutions
105
20.3
60
14.2
262
18.9
228
15.9
Total
$
766
19.3
%
$
692
17.3
%
$
2,232
19.0
%
$
1,978
16.5
%
(1) Adjusted operating income and adjusted operating margin are non-GAAP financial measures. See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NET SALES GROWTH (DECLINE) (UNAUDITED)
Change in Net Sales for the Quarter Ended June 28, 2024
versus Net Sales for the Quarter Ended June 30, 2023
Net Sales
Organic Net Sales
Acquisition/
Growth (Decline)
Growth (Decline) (1)
Translation (2)
(Divestiture)
($ in millions)
Transportation Solutions (3):
Automotive
$
(20)
(1.1)
%
$
63
3.6
%
$
(39)
$
(44)
Commercial transportation
(40)
(9.9)
(34)
(8.4)
(6)
—
Sensors
(43)
(15.2)
(37)
(13.1)
(6)
—
Total
(103)
(4.2)
(8)
(0.3)
(51)
(44)
Industrial Solutions (3):
Industrial equipment
(70)
(16.5)
(98)
(23.6)
(8)
36
Aerospace, defense, and marine
52
17.7
53
18.7
(1)
—
Energy
(4)
(1.7)
8
3.4
(12)
—
Medical
14
7.2
14
7.2
—
—
Total
(8)
(0.7)
(23)
(2.1)
(21)
36
Communications Solutions (3):
Data and devices
77
30.6
80
31.8
(3)
—
Appliances
15
8.7
20
11.7
(5)
—
Total
92
21.7
100
23.7
(8)
—
Total
$
(19)
(0.5)
%
$
69
1.7
%
$
(80)
$
(8)
Change in Net Sales for the Nine Months Ended June 28, 2024
versus Net Sales for the Nine Months Ended June 30, 2023
Net Sales
Organic Net Sales
Acquisitions/
Growth (Decline)
Growth (Decline) (1)
Translation (2)
(Divestitures)
($ in millions)
Transportation Solutions (3):
Automotive
$
61
1.2
%
$
220
4.2
%
$
(46)
$
(113)
Commercial transportation
(53)
(4.6)
(49)
(4.2)
(4)
—
Sensors
(96)
(11.6)
(90)
(10.9)
(6)
—
Total
(88)
(1.2)
81
1.1
(56)
(113)
Industrial Solutions (3):
Industrial equipment
(279)
(21.2)
(344)
(26.2)
—
65
Aerospace, defense, and marine
122
14.3
137
16.2
3
(18)
Energy
13
2.0
12
1.8
(19)
20
Medical
53
9.3
53
9.3
—
—
Total
(91)
(2.7)
(142)
(4.2)
(16)
67
Communications Solutions (3):
Data and devices
12
1.4
17
2.0
(5)
—
Appliances
(55)
(9.8)
(46)
(8.2)
(9)
—
Total
(43)
(3.0)
(29)
(2.0)
(14)
—
Total
$
(222)
(1.9)
%
$
(90)
(0.7)
%
$
(86)
$
(46)
(1) Organic net sales growth (decline) is a non-GAAP financial measure. See description of non-GAAP financial measures.
(2) Represents the change in net sales resulting from changes in foreign currency exchange rates.
(3) Industry end market information is presented consistently with our internal management reporting and may be periodically revised as management deems necessary.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 28, 2024
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
(Non-GAAP) (2)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
498
$
—
$
(8)
$
490
Industrial Solutions
153
5
13
171
Communications Solutions
104
—
1
105
Total
$
755
$
5
$
6
$
766
Operating margin
19.0
%
19.3
%
Income tax expense
$
(181)
$
—
$
4
$
(177)
Effective tax rate
24.0
%
23.1
%
Income from continuing operations
$
573
$
5
$
10
$
588
Diluted earnings per share from continuing operations
$
1.86
$
0.02
$
0.03
$
1.91
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended June 30, 2023
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
(Non-GAAP) (2)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
425
$
—
$
27
$
452
Industrial Solutions
150
8
22
180
Communications Solutions
55
1
4
60
Total
$
630
$
9
$
53
$
692
Operating margin
15.8
%
17.3
%
Income tax expense
$
(96)
$
(2)
$
(27)
$
(125)
Effective tax rate
15.4
%
18.2
%
Income from continuing operations
$
528
$
7
$
26
$
561
Diluted earnings per share from continuing operations
$
1.67
$
0.02
$
0.08
$
1.77
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Nine Months Ended June 28, 2024
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
1,443
$
—
$
25
$
3
$
1,471
Industrial Solutions
451
15
32
1
499
Communications Solutions
251
1
10
—
262
Total
$
2,145
$
16
$
67
$
4
$
2,232
Operating margin
18.2
%
19.0
%
Income tax (expense) benefit
$
778
$
(2)
$
(7)
$
(1,254)
$
(485)
Effective tax rate
(36.4)
%
21.8
%
Income from continuing operations
$
2,918
$
14
$
60
$
(1,250)
$
1,742
Diluted earnings per share from continuing operations
$
9.41
$
0.05
$
0.19
$
(4.03)
$
5.62
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Includes an $874 million net income tax benefit associated with a ten-year tax credit obtained by a Swiss subsidiary and a $262 million income tax benefit related to the revaluation of deferred tax assets as a result of a corporate tax rate increase in Switzerland. Also includes a $118 million income tax benefit associated with the tax impacts of a legal entity restructuring with related costs of $4 million recorded in selling, general, and administrative expenses for other non-income taxes.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Nine Months Ended June 30, 2023
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
(Non-GAAP) (2)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
1,040
$
2
$
179
$
1,221
Industrial Solutions
440
21
68
529
Communications Solutions
189
3
36
228
Total
$
1,669
$
26
$
283
$
1,978
Operating margin
13.9
%
16.5
%
Income tax expense
$
(283)
$
(5)
$
(82)
$
(370)
Effective tax rate
17.3
%
19.0
%
Income from continuing operations
$
1,351
$
21
$
201
$
1,573
Diluted earnings per share from continuing operations
$
4.25
$
0.07
$
0.63
$
4.95
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Quarter Ended September 29, 2023
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
411
$
1
$
32
$
—
$
444
Industrial Solutions
162
6
16
—
184
Communications Solutions
62
—
9
—
71
Total
$
635
$
7
$
57
$
—
$
699
Operating margin
15.7
%
17.3
%
Income tax expense
$
(81)
$
(1)
$
(3)
$
(49)
$
(134)
Effective tax rate
12.8
%
19.2
%
Income from continuing operations
$
553
$
6
$
54
$
(49)
$
564
Diluted earnings per share from continuing operations
$
1.75
$
0.02
$
0.17
$
(0.16)
$
1.78
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES
For the Year Ended September 29, 2023
(UNAUDITED)
Adjustments
Acquisition-
Restructuring
Related
and Other
Adjusted
U.S. GAAP
Charges (1)
Charges, Net (1)
Tax Items (2)
(Non-GAAP) (3)
($ in millions, except per share data)
Operating income:
Transportation Solutions
$
1,451
$
3
$
211
$
—
$
1,665
Industrial Solutions
602
27
84
—
713
Communications Solutions
251
3
45
—
299
Total
$
2,304
$
33
$
340
$
—
$
2,677
Operating margin
14.4
%
16.7
%
Income tax expense
$
(364)
$
(6)
$
(85)
$
(49)
$
(504)
Effective tax rate
16.0
%
19.1
%
Income from continuing operations
$
1,904
$
27
$
255
$
(49)
$
2,137
Diluted earnings per share from continuing operations
$
6.01
$
0.09
$
0.80
$
(0.15)
$
6.74
(1) The tax effect of each non-GAAP adjustment is calculated based on the jurisdictions in which the expense (income) is incurred and the tax laws in effect for each such jurisdiction.
(2) Represents income tax benefits associated with a decrease in the valuation allowance for certain tax loss and credit carryforwards.
(3) See description of non-GAAP financial measures.
TE CONNECTIVITY LTD.
RECONCILIATION OF FORWARD-LOOKING NON-GAAP FINANCIAL MEASURES
TO FORWARD-LOOKING GAAP FINANCIAL MEASURES
As of July 24, 2024
(UNAUDITED)
Outlook for
Quarter Ending
September 27,
2024
Diluted earnings per share from continuing operations
$
1.80
Restructuring and other charges, net
0.12
Acquisition-related charges
0.02
Adjusted diluted earnings per share from continuing operations (1)
$
1.94
Net sales growth (decline)
(0.9)
%
Translation
1.4
(Acquisitions) divestitures, net
0.2
Organic net sales growth (1)
0.7
%
(1) See description of non-GAAP financial measures.
View original content to download multimedia:https://www.prnewswire.com/news-releases/te-connectivity-announces-third-quarter-results-for-fiscal-year-2024-302204263.html
SOURCE TE Connectivity, LTD
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Technology
China’s invention patents highlighted at Beijing conference
Published
2 minutes agoon
September 10, 2026By
BEIJING, Sept. 10, 2026 /PRNewswire/ — A news report from China Daily:
China currently holds over 5.39 million valid domestic invention patents and 50.82 million valid domestic registered trademarks, according to the nation’s top intellectual property regulator.
The figures were announced by the China National Intellectual Property Administration at this year’s China Intellectual Property Annual Conference, taking place in Beijing from Tuesday to Wednesday.
The administration said China has led the world in Patent Cooperation Treaty (PCT) applications for seven consecutive years. Additionally, the country ranks among the top globally for filings of industrial designs under the Hague System and international trademarks under the Madrid System.
With the theme of promoting high-quality IP development during the 15th Five-Year Plan period (2026-30), the annual conference will include one main forum, 13 sub-forums, and over 20 activities focused on topics such as artificial intelligence, patent services, and the newly revised Trademark Law.
Since its launch in 2010, the conference has become one of Asia’s largest and most influential IP events. It serves as a platform to showcase China’s achievements in the IP sector, foster forward-looking discussions, connect service providers with innovators, and enhance China’s international role in IP governance.
View original content:https://www.prnewswire.com/news-releases/chinas-invention-patents-highlighted-at-beijing-conference-302874850.html
SOURCE China Daily
Technology
baraka launches investments on DFM and ADX for UAE investors
Published
2 minutes agoon
September 10, 2026By
Eligible customers can invest in companies listed on Dubai Financial Market and Abu Dhabi Securities Exchange through baraka, with local investments funded in AED.More than 70% of baraka investors are under 35, highlighting the growing participation of younger investors in regional capital markets.UAE-listed companies join nearly 10,000 local and global assets available through one baraka account.Investor Number issuance is supported through baraka’s onboarding flow, removing the need for a separate application outside the platform.The launch forms part of baraka’s evolution into a broader investment platform spanning local and international securities, Shariah-compliant investment choices and precious metals.
DUBAI, UAE, Sept. 10, 2026 /PRNewswire/ — baraka (www.getbaraka.com), the DIFC-based investment platform regulated by the Dubai Financial Services Authority, today announced that eligible customers can now invest in companies listed on Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) directly through the baraka app. baraka’s customers from more than 100 nationalities will be able to fund local investments in AED.
The launch marks the latest stage in baraka’s evolution into a comprehensive investment platform spanning UAE and US securities, options trading, Sharia-compliant investment choices and precious metals (Gold, Silver), including physical delivery, giving customers access to nearly 10,000 assets across local and global markets through one account.
Local-market access has consistently been one of the most requested features among baraka customers, reflecting demand to invest in the UAE enterprises they interact with every day. By August, the number of customers investing in UAE stocks through baraka had increased more than 25x from an initial pre-launch pilot.
The UAE stocks that have attracted the most interest from baraka customers include Emaar Properties, ADNOC Gas, ADNOC Distribution, Abu Dhabi Islamic Bank and Salik, spanning real estate, energy, banking and infrastructure.
The launch comes as activity across the UAE’s domestic capital markets continues to deepen. DFM ended June 2026 with a market capitalization of AED 981.6 billion after total traded value rose 40.4% year on year to AED 119.5 billion during the first half of the year. Average daily traded value reached more than AED 1 billion. DFM also added 42,864 investors during H1, with international investors accounting for 71.4% of new registrations.
ADX had a market capitalisation of AED 2.8 trillion at the end of June 2026, with H1 trading value of AED 171 billion and total trading volume of 50.3 billion shares. The exchange added more than 30,000 investors during the period, of whom 77% were foreign.
The expansion of the UAE’s listed markets has been accompanied by a broader drive to increase capital formation and investor participation. Dubai’s Financial Sector Strategy includes initiatives to encourage more family businesses and start-ups to list, while Abu Dhabi’s AED 5 billion IPO Fund was established to support private-sector businesses through the listing process and deepen the emirate’s capital markets.
Feras Jalbout, Founder and CEO of baraka, said: “The opportunity set in the UAE has expanded dramatically, with the businesses shaping the country’s growth now accessible through its public markets. For Emiratis and residents, this is an opportunity to own a stake in the economy and build their future through equity investments. Bringing DFM and ADX stocks to baraka means our customers can build portfolios that reflect both global opportunities and the economic champions of the place they call home.”
Among customers who joined baraka in 2026, 42% selected long-term investing as their objective. Around two thirds of baraka’s funded customers had never invested before joining the platform, making baraka the starting point for a significant share of its investor base.
Since the availability of local investing, 87% of UAE-stock orders placed through baraka have been purchase orders, an early indication that customers are building long-term positions in UAE companies. The median annual amount deposited by an active baraka investor has roughly tripled since over the past four years.
Khalifa Rabba, Chief Operating Officer, Dubai Financial Market (DFM), said: “Expanding access to DFM-listed securities through regulated digital investment platforms supports our ongoing efforts to broaden market participation and enhance investor accessibility. The integration with baraka enables investors to incorporate local stocks more seamlessly into diversified portfolios alongside other asset classes, supporting easier access to market opportunities and enhanced investor experience.”
Omar Alserkal, Director – Product & Market Development at Abu Dhabi Securities Exchange (ADX), said: Brokerage and investment platforms, like Baraka, are playing an increasingly important role in capital markets and enhancing the investor experience. This new access to ADX-listed securities via the Baraka platform bolsters our commitment to making Abu Dhabi’s capital market more accessible, connected, and responsive to the evolving needs of investors. This collaboration enables a broader investor base to participate in the growth of leading UAE companies, while reinforcing ADX’s role in advancing market depth, innovation, and long-term investment opportunities.”
Local stocks are funded in AED and are held in the names of baraka customers. Investors purchase whole shares, with UAE securities held under the custodianship of Emirates NBD. Eligible investors may also receive dividends paid by UAE-listed companies, providing opportunities to generate income alongside potential long-term capital growth.
In July 2026, Baraka Financial Limited received approval from the DFSA on their Islamic Window application which now allows the company to offer both Conventional and Shariah Compliant Assets. baraka enables customers to invest in accordance with Sharia principles through its Sharia Screener, which covers eligible stocks and ETFs across both the US and UAE markets and plans to roll out more Shariah Compliant products in the coming few months. Around 58% of funded baraka customers have used the screener, demonstrating strong demand for Sharia-compliant investing.
Residents and citizens aged 18 and above across the GCC can access the baraka app through the Apple App Store and Google Play. The addition of ADX and DFM stocks onto the baraka platform is facilitated by Arqaam Capital through Direct Market Access facility.
Note to editors
baraka is always written in lowercase. We kindly request the use of a do-follow link to www.getbaraka.com when referencing baraka in online coverage.
About baraka
Founded in 2021, baraka is a UAE-based investment platform that gives people across the UAE and GCC access to local and global investment opportunities through one account.
Investors can access nearly 10,000 assets across UAE and US markets, including local stocks, US stocks and ETFs, options trading, Sharia-compliant investment choices and precious metals, subject to eligibility and product availability.
Through its app, investment academy and financial education content, baraka helps users build their knowledge, follow the markets and manage their investments.
baraka Financial Limited is registered in the Dubai International Financial Centre and regulated by the Dubai Financial Services Authority.
For more information, visit www.getbaraka.com.
baraka is an investment platform. Capital at risk. Nothing in this document constitutes investment advice. Do your own research before investing.
About Dubai Financial Market:
Dubai Financial Market (DFM) was established as a public institution with its own independent corporate body. DFM operates as a secondary market for the trading of securities issued by public shareholding companies, bonds issued by the Federal Government or any of the local Governments and public institutions in the country, units of investment funds and any other financial instruments, local or foreign, which are accepted by the market. The DFM commenced operations on March 26, 2000 and became the first Islamic Shari’a-compliant exchange globally since 2007. Following its initial public offering in November 2006, when DFM offered 1.6 billion shares, representing 20 per cent of its paid-up capital of AED 8 billion, DFM became a public joint stock company, and its shares were listed on 7 March 2007 with the trading symbol (DFM). Following the IPO, the Government of Dubai retained the remaining 80 per cent of DFM Company through Borse Dubai Limited. www.dfm.ae
About Abu Dhabi Securities Exchange (ADX)
The Abu Dhabi Securities Exchange (ADX) was established on 15 November 2000 pursuant to Local Law No. (3) of 2000, which granted the exchange legal rights with independent financial and administrative status, as well as the necessary supervisory and executive powers necessary to carry out its functions. On 17 March 2020, the ADX was converted from a public entity into a Public Joint Stock Company (PJSC) in accordance with Law No. (8) of 2020.
The ADX Group, a market infrastructure group comprising the exchange (ADX) and its post-trade ecosystem, including its wholly owned subsidiaries AD Depository and AD Clear, was established. Through its integrated and globally aligned business structure, the ADX Group supports efficient, transparent, and resilient capital markets across trading, clearing, settlement, and custody.
The Group provides an efficient and regulated marketplace for the trading of securities, including equities issued by public joint-stock companies, bonds issued by governments and corporations, exchange-traded funds (ETFs), and other financial instruments approved by the UAE Capital Market Authority.
The ADX is the second-largest exchange in the Arab region by market capitalization. Its strategy of delivering stable financial performance through diversified revenue streams is aligned with the UAE’s national development agenda, “Towards the Next 50”, which aims to build a sustainable, diversified, and high-value-added economy.
Photo – https://mma.prnewswire.com/media/3008972/baraka_DFM.jpg
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Technology
AI isn’t saving teachers time – it’s another thing to mark according to research by Up Learn
Published
2 minutes agoon
September 10, 2026By
Almost three quarters of teachers rank accuracy as their top AI concern, and more than half say checking its outputs outweighs the time saved.
LONDON, Sept. 10, 2026 /PRNewswire/ — The debate around AI in schools has largely centred on plagiarism and cheating, yet new research, from online learning platform Up Learn, shows students and teachers are more concerned about accuracy and whether AI can be trusted to get things right.
In a survey of over 2,800 students and teachers, accuracy or reliability of outputs ranked as the single biggest concern for teachers using AI, cited by 73%. More than half (56%) of teachers surveyed said the checking required means it may not save them time at all, and a similar proportion (54%) doubted the quality would match their own teaching standards.
Beyond accuracy, nearly half (48%) flagged misalignment with exam boards and specifications and a third (33%) cited privacy and safeguarding concerns.
Yet both groups keep using AI at scale. More than two thirds of teachers leverage the technology in their day-to-day work – most often on at least a weekly basis. Only 8% reported no concerns at all, with the remainder pointing to concerns such as lack of guidance or training (19%), safeguarding issues (33%), and overreliance (40%).
Students report the same doubts. Accuracy topped their list too, at 74%, making it a rare point of agreement across the classroom. Cheating was cited by only one in four students, well behind fears of becoming too reliant on AI (65%) and losing the ability to think for themselves (47%).
How students say they use it explains the gap. They were far more likely to turn to AI to explain difficult concepts (80%) and create summaries (61%) than for essay-writing support (40%).
If students are turning to AI to be taught rather than to cheat, the question is not about discipline but the tool’s fitness for purpose.
Guy Riese, CEO and founder of Up Learn, says: “AI is solving an education gap. Students are using it to understand things they’ve been taught but haven’t grasped and they are rightly sceptical about the answers they get. This is where we need to support students – by helping them turn that scepticism into a skill: knowing when AI has got it right, and when to look again. AI is part of the new normal, students need to be equipped with tools and techniques that enable them to use it with trust.”
Riese suggests three questions teachers can apply to any AI-generated resource before it reaches a classroom, and teach students to apply themselves:
Can it be checked? Before using any resource for their learning, ask where did the answer come from, and was it built by subject experts?
Is it aligned to the specification? General knowledge about a subject is not the same as being prepared for a specific exam board. General-purpose AI will only return what a student thinks to ask about, which leaves gaps that only surface in the exam hall. Anything set as independent work should be built to the specification being taught.
Who is doing the thinking? Learning should feel hard. This is known as ‘desirable difficulty’ and it’s how you know it’s working. Watching a model produce a worked answer is not the same as producing one. Independent work needs to require retrieval, not recognition, if it’s going to hold until results day.
Notes to editors
Methodology
Research was conducted by Up Learn via an online UK survey of 2,591 students and 248 teachers in its contact base between 1 May and 17 August 2026.
About Up Learn
Up Learn is an adaptive attainment platform for GCSE and A Level, built by teachers and educational scientists. It combines expert teaching, adaptive learning and cognitive science, with AI supporting rather than replacing learning. It is trusted by 685+ schools and used by 1 in 3 A Level students in the UK.
View original content to download multimedia:https://www.prnewswire.co.uk/news-releases/ai-isnt-saving-teachers-time–its-another-thing-to-mark-according-to-research-by-up-learn-302874129.html
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