Recently, TE Connectivity (hereinafter referred to as "TE") released its second quarter financial report for fiscal year 2024 as of March 29, 2024.

Second fiscal quarter highlights

1. Net sales were US$3.97 billion, in line with expected targets, a year-on-year decrease of 5%, and a natural decrease of 3%. Sales increased by 4% month-on-month and 3% organically.

2. GAAP diluted earnings per share from continuing operations was $1.75. Adjusted earnings per share were $1.86, beating expectations and up 13% year over year.

3. The order volume was US$4 billion, a month-on-month increase of 6%, and the order volume of all solutions achieved month-on-month growth.

4. Operating profit margin was 17.4%, and adjusted operating profit margin was 18.5%, a year-on-year increase of 250 basis points, benefiting from strong operating performance.

5. Cash flow in the first half of the fiscal year was strong and hit a record high.

Cash flow from operations was US$1.4 billion, an increase of 18% year-over-year.

Free cash flow was $1.1 billion, an increase of 32% year-over-year.

6. A total of more than US$1.5 billion has been deployed so far this fiscal year, of which approximately US$1.2 billion has been returned to shareholders and approximately US$350 million has been used to strengthen the acquisition of Schaffner.

7. TE’s “Connecting Our World” annual corporate responsibility report (click to jump to learn more) shows: In the past three years, “Scope 1” and “Scope 2” greenhouse gas emissions have been reduced by 72%; set Scope 3 greenhouse gas emission reduction targets in line with the Science-Based Targets Initiative (SBTi) standards.

This quarter, in a continuously dynamic market environment, the TE team achieved higher-than-expected earnings per share and double-digit revenue growth; this was driven by improved profit margins across our three major solutions. I am very pleased that the order volume of each TE solution has achieved month-on-month growth. TE's free cash flow in the first half of the fiscal year was strong, up 32% year-over-year, a company record, driven by our cash generation model.

Based on this quarter's performance, we expect strong revenue growth and margin improvement in the third quarter and full fiscal year. We will continue to invest in key trends including hybrid and electric vehicles, renewable energy and artificial intelligence. Our global position and industry-leading innovation in these areas are empowering our customers' technological advancements and driving our own long-term profitable growth.

Results Outlook for the Third Quarter of Fiscal Year 2024

For the third quarter of fiscal 2024, the company expects net sales to be approximately $4 billion. GAAP earnings per share from continuing operations are expected to be approximately $1.71, an increase of 2% year-over-year; adjusted earnings per share are expected to be approximately $1.85, an increase of 5% year-over-year. Third quarter guidance (earnings per share) is $0.15 affected by unfavorable tax and exchange rate changes.