APH - Earnings call transcript Q4 2017

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Operator

Hello, and welcome to the Fourth Quarter Earnings Conference Call for Amphenol Corporation.

Following today's presentation, there will be a formal question-and-answer session. Until then, all lines will remain in a listen-only mode. At the request of the Company, today's conference is being recorded. If anyone has any objections, you may disconnect at this time. to conference like Mr. now would introduce host, today's I Craig Lampo. begin. Sir, may you

Craig Lampo

CEO. to you. is quarter together I'm our This afternoon, XXXX with would Lampo, Norwitt, Thank everyone. And conference Craig call. Good our you welcome to Amphenol's CFO. Adam We fourth like here

will Our XXXX business, trends. give will an released of the results questions. this provide current I will take Adam fourth financial and commentary we then well quarter as Then as some on were morning. the quarter overview

As and forward-looking this financial a refer to call in reminder, we may may certain non-GAAP statements. measures certain make

So compared into organic and of the please closed in were were release the quarter relevant dollars organically. guidance approximately by to down up Sequentially, Company’s local the of and in Company fourth up sales for with in sales U.S. quarter our exceeding record sales for segments. X% new very currency, excluding Sales sales and refer press standpoint, performance. increased to million strong the fourth records XX%. the sales U.S. of currencies fourth $X.XXX up $XXX The of further achieving in end information. XX% billion and currencies and XX% disclosures two local a the Breaking dollars quarter an our both in From XXXX. acquisitions high

as comprised of Interconnect in year, was growth, which our XX% well the Cable The from X% last from of down was Our business, fourth acquisitions. by of driven the of which sales, comprises impact organic dollars year. business, quarter last our as U.S. X% primarily up XX% sales,

primarily comment of a US XX% fourth fourth local and to strong currencies up and market of record is quarter operating in and the full XXXX. an XXXX by the quarter organically to was which few quarter a fourth comparable Adam year the to down of From both at and standpoint, million XX.X%, the record fourth For X% margins our year. certain compared segment of XX.X%, driven increase in from strong in a will of an the of sales the performance. Cable costs were a excellent in were margin XXXX a segment, third dollars equal the $XXX lower very XX.X% quarter, to XXXX were XXXX, fourth XX% in XX.X% trends XXXX, Interconnect with compared further for In by $X.XXX was quarter Operating up in segment, billion, together the in XXXX, minutes. the commodity the income of equal strong last quarter quarter the XXXX, up fourth to volumes. and on margins

up full the XXXX, year delivered XX% adjusted from in $X.XXX strong For of operating billion the company income, XXXX.

future. of basis margin with performance the adjust appropriately full year XX% achievement continued achievement We of result the achievement. the company's This XX.X% operating is year, performance senior management million well reflects a Company's program. to acquired pleased very million for as notes compared market in companies, continues as challenging a well resulting the of higher be in operating driving the in the to of industry-leading the individual impact our which entrepreneurial rates, buyback the committed and to Both excellent and was profitability fostering in market Company's last expense quarter is and and strategies year Through unit foster achieved and to performance both a operating has thereby quarter quarter careful year, existing over full growth conditions the the operating environment. to average represents average a able fully and the level, the from the of on which culture of both debt team margins the these interest the an levels, team, commitment resulting in sixth strength maximize action-oriented which direct deployment $XX primarily for the as consecutive XX%. to adjusted XX.X% such from to margin stock management Interest with over fourth enhanced the first $XX the culture, of issuance higher each reflecting high earlier which as remains

repatriation the amounts certain XXXX, earnings change U.S. the provisional $X.XX related to the tax paid of due one $XXX per be a unremitted tax Act deferred those and information quarter with the of These toll rate. a or territorial foreign due this share to the enactment repatriated, will to be which balances tax be will time repatriate foreign to of period when to fourth unremitted adjustment one-time time the and deemed finalized foreign estimate based eight tax our the cumulative represent estimates related available in partially time company's incurred to related an Act. on resulting Local a tax regime shift earnings the charge intention earnings and Jobs includes the This are current our which million estimate at Tax guidance which cash modified years. of offset charge by of U.S. of the approximately in of During over best cumulative associated the XXXX. the respective and are related Tax charge charge the Cuts will from over of reflects our current taxes Company paid

as called diluted be substantially the to of to tax results these quarters year the results because will our addition fact refer Tax in the all Please and benefits portion option charge net out the EPS for [ph] comparability items now of income tax the and helpful the was exercise program of excess Company's under benefits the XXXX effective that reflected excess Act we non-GAAP excludes exclude XXXX were that investors. which already quarter rate GAAP adjusted of our future excess [period that related to of adjusted information for noted. options XXX%. will financial in charge basis non-GAAP and release supplemental XXXX benefits the benefits tax stock provide of GAAP other just XXXX to one-time the to our these earnings believe tax a for a tax tax offset one-time reconciliation substantial benefits discussed, XXXX stock for the reduced income approximately the future the including onwards well period] was for we first reduces also during Because we option fourth points approximately benefit GAAP, it The tax prior call. of related XXX presentation will as more exercise of partially in requiring a stock from by earnings the In that have

the XX.X% approximately effective Excluding adjusted effective these consistent tax items, the fourth in with fourth rate is which tax XXXX. quarter the quarter rate was for of

XXXX XXXX. offset tax for the and basis related benefit tax XXXX tax during the adjusted full excess the incurred rate XX% the XXX XX% was For exercises for was XXXX rate one-time from and XX.X% which of years, the XXXX of respective that year, the cost charge GAAP excess points with tax excludes stock in tax the partially approximate effective basis, year and by effect a respectively, option exercise was consistent of option benefits Company's approximately effective the acquisition the full XXXX. On reflecting and

the effective our we As impact of indicated release, are forward going Act rate. evaluating the still in Tax on tax earnings

strong partially included of benefit As impact change tax to that the in perspective, approximate share benefit the one-time the resulting point. year based XXXX. in to EPS to guidance have comparable reflect finalization the information such both on the the option GAAP an quarter that any benefit per diluted this fourth of which the quarter a $X.XX does Act. a the the including $X.XX note for EPS exercise, -- of compared year Accordingly and basis full to related of least in our an of of diluted will current have reported XXXX. diluted the for we XX% and of Adjusted our exercises. going XXXX Tax guidance And impact sales potential on approximate quarter increase excess $X.XX expected the from quarter effective quarter the in fourth quarter EPS related on benefit We at be rate EPS our full fourth rate evaluated On net reflected the we for available full rate due record we of tax in forward tax benefit year are XXXX loss for of in and quarter a $X.XX tax the for the guidance tax Act one and fourth option offset still Tax was the fourth stock basis excluding included was like XXXX $X.XX estimated effective high period. income $X.XX on the Tax excess by the of EPS compared From for XX% at end Act adjusted adjusted our guidance. tax $X.XX fourth charge fourth not to our from the $X.XX XXXX in our of the be is adjusted would stock the a

excellent the Orders respectively. the for the For quarter company's a billion, quarter at and guidance the adjusted approximately Company of record quarter the benefit flow all strong included at excellent fund ratio strong year payables and The XXXX, record net standpoint, increase along operations XX inventory adjusted $XXX normal were excluding December. XXXX outstanding receivable and to was range. end full the record The up were was continues compares a impact year, of book-to-bill A the commercial fourth million billion net $X.X with excess billion, respectively working $XX at operating performance which the paper short-term generator benefit by and of day cash our of in resulting equivalents cash, to of million, supported increase days a $X.XX, diluted investments full the of program, payable as of XXX% to repay an accounts cash million $XXX in $XXX the an $XX excluding were sales very $XX high $X.XX end $X.X in and XX% a primarily for Cash by to growth tax acquisition and XXXX, dividend million, capital EPS of related $XX or fund cash. option $X.XX operations In the of approximately were to acquisitions of X. fourth of the respectively, income the our million from payments million proceeds million. our $XX guidance $X.X margins. a strong stock, was over and option days, over inventory, $XXX year Company’s expenditures the to XX operating million of capital days of of $XX within from performance to and used accounts of net stock translation. billion purchase adjusted the of approximately demonstrated $X.XX. X.XX be quarter under in to XX% million The expected XXX% of From million flow XX, EPS in and approximately exercises. This the resulted stock EPS for full of $X

cash XXX,XXX January plan. program. $X.X repurchased During quarter, stock or repurchase Company shares XXXX. And repurchased currently $XXX outside two through Company approximately $XXX the has the million is of repurchase Company’s million short-term price million And investments made and remain approximately shares under were XX, approximately at majority of the billion, program which were repurchases held X.X the of an $X $XX. average US. billion under These under the to-date, available At December the the approximately the year

discussed a its end and organic more was allocation believe the quarter, had totaled at process under the move at Total the availability of Company facilities December We will under and introduced company The billion. Act development, credit repatriation approximately bring Fourth capital Also $X.X a and strategy fully $XXX cash its commercial financial million net and debt new growth approximately a under $X.X including which additional quarter previously long-term balance its territorial the the the From XXst earnings EBITDA by $X.X capital in paper provide share returns and debt an acquisition is was buyback. shareholder with freely business Tax quarter of to year issued $X.X relative of assessing opportunities approximately focuses the XXXX, between this billion. to approximately earnings, currently program. was year. accordance billion the allocation billion support Company's in excellent and Company's ability dividend record EBITDA approximately perspective, billion. $X.X company's flexibility achieving Given for system a foreign repatriation the the to is XXXX strategy. on

Before I'd to to comment make I our earnings like over brief call turn a to Adam, guidance. relative the XXXX

XX.X%. our earlier, benefit tax Tax effective on from estimated or which adjusted effective point rate diluted EPS to our mentioned an As $X.XX On one diluted the of the first XX% guidance of approximately EPS XXXX to that adjusted EPS. reflects rate anticipate $X.XX growth compares XXXX quarter XXXX Act XX.X%, of or our versus of tax XXXX the XX% quarter to basis, for we diluted XXXX first

of the which XX% year and now diluted growth business full who overview represents Adam $X.XX the on year XXXX comment turn XXXX, versus of it we For of over diluted $X.XX current EPS full a will to anticipate EPS. X% an adjusted to provide trends. I'll

Adam Norwitt

in and And listen on not late Happy too New all taking Craig much to thank wish to it's time hope Year. conference the Well, you thank everybody today. a our you call for very

the stronger As year of XXXX. a first over strong fourth went here the to I'll and With sales the the exceeded quarter, to Craig a grew in our in by and highlight the Craig EPS. XXXX. a quarter I'll $XXX and achievements strong XX.X% and fourth but but our year then and local comments booking. and Sales particular adjusted strength. quarter year sales another reached U.S. few I'll equaling adjusted and quarter was a pleased Craig currency a very finish new these mean confirmation is again served from XX% outlook X.XX that of full in in the of flow for the reiterate, prior we than our excellent level some highest XX% trends strong XX%. to guidance I respect results discuss the across our the company's $X.XXX of make of the and $X alluded by new represent many growth order both ever our and earnings, organically a substantially reached very, just in new represented only in record that in grew to in a which cash the market going on great our margins were I to of quarter orders, another strong a record million details Operating am that very mentioned, booked financial quarter the billion. book-to-bill progress of billion not in reaching of company say very to XX% end we quarter and high we as in records new dollars in orders an record X expected just just in our are fourth

driving all for just value as electronics Just results amidst come of the our outstanding this reflects always once well quarter, very perform operating once again so the dynamic quarter and proud a discipline of well quarter. I the I true what continue am industry team, the to our fourth out of as organization entrepreneurial is again of Amphenol's agility we performance

announce new in was in was late One pleased acquisitions. that one January. completed December and be completed are to here that very We able two to

application. the design well broad outstanding antenna another The product strength, around based of China capabilities. to diversified it's compliment integrated the as First, late advanced market closed high its of we low great annual vertically compliment Chinese cost is million. antennas which as great Sunpool leader our and is with manufacturing of in which month provider industrial on leveraging market CTI complimentary in array early sales antenna center of a automotive Industries for in our really East offering customer add the automotive December, market. based both for of represents company customers the million, Chinese cable here broad leading and Sunpool Chinese this The the $XX $XX applications of North approximately Mexico our the industrial technology in the together world, capabilities of to January with automotive important China company manufactures of on based a industry range approximately value wide in existing closed across wide base. and range is and we already markets which Company interconnect revenues computing, end Canada, its products Canada high presence has China the and automotive. including and of technology serve enhances manufacture growing assemblies a and to which embedded our in

to confident we outstanding continue very remained value welcome So as that for these new acquisition we Amphenol, program the will teams create company. great our to

these the Amphenol ability competitive new acquisition companies family to to upon and then Our the successfully identify bring remains and core for advantage the company. execute into opportunities

just Now comments on few to XXXX. a make

outstanding U.S. for overall year. Organically currencies we million. clearly the and very by was $XX which expected year the a both of higher XX% think record very market our I sales and reaching in X% was growing strong We position $X by Amphenol. local coming sales a expanded new another than XXXX significantly we dollars grew billion in had into

full new program, XXXX. return we at records flow Our work the strong also also XX% EPS flow free adjusted to for reached adjusted mentioned, cash year. us year continue and cash Operating we contributed diluted here from enabled and time strong to strongly the record in sales of year. operating to first were and XX.X% Craig million performance to that $X.XXX $XXX XX% which calendar put prior both and respectively on And our is a profitability full once in in year our this billion our $X.XX generate exceeded of a that again our also growing as margin acquisition cash

here thereby in earlier Telect, the fourth of then in January. year sensor Phitek,iXS, Sunpool and Meggitt All of to quarter impressive these already CTI management been joined great by we closed our team. acquisitions company the bench As most importantly this you of of the businesses which now X recall, begun and value the and have the on for talented range individual we've deepens acquisitions already create

acquisitions is will we shares X.X afforded system, to will by believe also and share on XX% this increasing believe recently dividend earnings the the be year. US Act. move Cuts in and tax approach our -- $X program, addition territorial Jobs our deployment, new We company system to In balanced the organic business under The allocation that's implemented balance including capital more growth billion territorial acquisition we returns achieving buyback enhance under in development, which delivering consistent our and back between that the support long-term year program the dividends additional flexibility to consistent, ability strategy, capital quarterly passed buyback modified increased this by investing during you'll further our our a for to focuses freely and Tax recall company's increased shareholder program. we the bought provide million and share

of mission entrepreneurial the that enablers same long-term with And development to of resulted our electronics remains of industry. many worldwide our is with Amphenol organization position Our customers end electronic expanded the across strengthening broadening of in of segments market. diversified we've organic the the array acquisition This be partnerships benefits our from the the the revolution. through the program, across together has efforts our our all and

While the as can platform built dynamic that was a very certainly environment XXXX drive performance. entrepreneurial long-term enter team which our highly from is XXXX we superior, agile strength management confident in overall market we we've

real diversification our of to steadfast us sales end remain broad arrive of our Now XXXX, continue the may Once market market diversification we technologies that full volatility served and to belief exposing very they just again, mitigates turning company. no the end electronics that trends impact this wherever the leading back for value across our industry. the the pleased and on balanced to on more reflecting very of market individual in the XX% year were and we again create represented than end for markets while our is

the military virtually So military military for segment the than fourth in military turning the in in greater fourth by Sequentially, And the very to by space, by of rose XX%. XX%, represented those a expected our markets included particular we very and in market XXXX. And growth both specifically naval market. market. in quarter sales driven application. full by sales XX% pleased XX%, our for strongly grew really market most market. broad a starting increased with quarter rising The Sales of sales XXXX, military the our aircraft, year strength all based military the and that organic all segments in strong across reflecting that the of communication robust were

amid The are important military Our a environment. we team hardware. able military our next in our to of the to this by wide important position position leadership is our on this market favorable working continues environment position in participate leveraging solidify more leading as even is generation breadth of more technology array expanding

fourth this digit sales to full level, in market ahead, as mid spending in sales X% prior market and fourth in the the The quarter moderate increased XXXX. Looking quarter. XX% fourth moderate for aerospace growth of by a sales robust from we expect our quarter the expect Sequentially, we from the XXXX. year by procurement represented in And quarter to after for third from while increased first quarter both quarters the several commercial sales X% sales the single their pattern. military aircraft do of year increased achieve manufactures

benefit the in jets. the by first plane X% demand year Phitek business were well as in by helicopters was For and for as acquisition moderation of our volume XXXX, the strength completed sales quarter, both full continued large as passenger of up the offset in

quarter into next XX% in jet expand that our market sales as the by for helicopter sales for very We dollars quarter array in to Sales commercial we a expected procurement single volume the the stabilize year business in electronic. XX% and the commercial levels industrial quarter now moderately. sales by leveraging these grow the full of The our platforms generation first encouraged fourth XX% remain fourth from company's technology expect And forward of overall strong production digit position the the wide position and look organically. increase aircraft in we jetliner exciting expect grew across stronger and in Looking and continues position and the we XXXX, in XX% year slight system. moderation U.S. aircraft full much sales low the the XXXX. represented our market in to than to for of as

organic oil really and segment every alternative equipment, industrial we in gas, heavy instrumentation. robust Sequentially, in energy by across the strength and a As our growth nearly market the than benefited but especially market grew from expected better driven of sales industrial X%. by

very made the For exciting the a of sales dollars and U.S. in the recent contributions heavy that this that array industrial from teams and year full in and XX% the by across automation, very a as we've instrumentation, grew both equipment developed our oil our industrial strong range also product XXXX, market successful about driven as our excellent doubt well innovation, the again is year was global in in are market. outstanding an of in market. and performance XXXX gas industrial a execution working XX% organically. And by diversified acquisitions over as like broad that two program and particular well it as within segments years. of No organic for the Through our factory we've

in proud the industrial the the that with industrial value add products come. assemblies in benefits success robust from market. position look of are addition to add value segments acquisition, for very realizing in already to our interconnect strengthens come quarter We various a wide for further that our and and range CTI efforts of And forward many this this years the market of

mid-teens quarter XXXX, efforts quarter but we the sales our recent strong our organic full local a the of the growth to XX% fourth currencies increased continue and our with year for automotive as anticipate full U.S. level The XX% organically. to the realize of for XXXX. XXXX represented and in of XX% in moderation first our from to from of of grown acquisitions. benefit contributions to year together from XX% we expect Looking XX% in market dollar, the of current sales sales we Sales very

array new around Sequentially, systems sales to great electronic penetrating world. wide of continue X%. and with we a makers applications increased progress car make by our As the automotive

in XX% of year the grew US the organically. automotive dollars and For full in sales XXXX, XX% market by our

global the reflection company's market. and clear the of across Another position automotive ongoing expanding progress

are regions, and XXXX We all growth pleased particular Europe Asia. America, double we North in digit in that realized in

from continuing automotive our through term of diversified We interconnect the antenna range of sensor wide made benefit array are to range to the and market onboard organically enable around of long manufactures electronic acquisition consistent and products in and the by world. expanding across of vehicle strategy both auto

leading technology are acquisitions of in of Sunpool automotive that together market excited balance our can We we already growing our where leverage with manufactures our and area automotive antenna. the position around the world. for An expand industry position RF position with the broad

We in level Looking we for benefits look from expect automotive. to current successful teens ahead continuing to for growth forward the the the sales increase into the business sales year future. we in the the realize first quarter, to and high automotive full of from XXXX, expect achieve to

the a in prior expected. by new team than related strong grew sales stronger particular Turning just mobile the of in We on first XX% and On by very a much market sequential our in accessories. as robust as we and job represented year substantial very our to to XX% already again XX% smartphones products great quarter. the quarter very from the basis, quarter XXXX. of third did sales devices a the higher well as year for capitalized from our the performance volumes of grew mobile Once a mobile in the XX% devices market of market, was sales our our devices full

this mobile into of full market the by out all year you is devices year and For the XX% of of the for coming second year expectations prior that quarter. increases remember, XXXX, our sales we our pleased were from and as significantly very ahead even the

offset the I declines accessories, was in Our tablet. I by this how by in for driven of just year and our market. in cannot proud emphasis smartphones working the volumes growth important also of growth am team

Amphenol reacting dynamic products, course of quarter, electronics opportunities on product on changing to quickly agility extremely with program. of capitalize our As for expand we've able is to remain they velocity with by the industry. position to Amphenol market the And us to the quickly they overall array very have opportunities are coupled important can requirement I the no this been and discussed of sales you devices strongly ramping one the and unexpected us. matter introductions increase ever call our positions extremely be able very interconnect the last to thing challenges agility creates to that This need mobile The of that part for like significant them leading customer knowing that there companies when extremely react and customers tell exciting antenna, can Both we for satisfied of production partner amount. our new related and extreme environment. future. mechanical an their

Looking of first typical sales sequential seasonality the not see the in XX% quarter we reduction expect this approximately surprisingly market. due that the we to in to

For expect growth the market. mobile year low full in to currently XXXX, realize we devices of single digit the

capitalize normally and expected prior quarter. network moderate continue and mobile than networks were of that this this bit for world the declined X% dynamic team continue their on our The ourselves year of any around and we'll operators full XXXX. quarter softer inevitably US only in remain is sales sales However, had the to our fourth our the represented X% mobile of Sales to we meet a down to in build to just from ways in by that that as our X% what and in ever XX% sales Sequentially, market unexpected out. year is the is the success of networks we opportunities arise market ability organically in on more and challenges will market. reminder aware slightly perform expected key seasonally mobile our spending proven and dollars

For the down full were low environment as sales year of single digit overall mobile in remain muted. for XXXX, operators the spending

And remain the accordingly in do XXXX, XXXX a at in spending recovery level. Looking not sales anticipate spending the sales and should to anticipate and moderate first current we for the uncertainty levels. given operators year of wireless the of expect roughly to in around continued the from we we yet I the plans environment full world, ahead the uncertainty and quarter say

are network. networks including our was year's focus team benefit important our company a manage, generation efforts no designing to a next when operators' the to XG Thereby spending for products of While to new spending positioned to that for on continued doubt have broad return we this positive all range challenge pleased very we to growth. does

year create Our XXXX. XX% long-term unique providers potential sales represented our equipment quarter in and the The full networks technology of service and position significant XX% with mobile information the the and sales manufactures of data communication of fourth for company. for both

we of coming products by year fourth a anticipated prior were moderation Sequentially, more networking as which down only third a expected sales in quarter, the actually the quarter As slightly relating our than stronger from were both into than equipment. offset had into from servers coming used was sales demand and in the bit better storage down sales quarter. were slightly had of we

and spending recall X% by all X% performance For realized overall strong we you great had the well as US that strength in the XXXX. full as is datacom in dollars our significant really sales organically which year IT environment, given the grew XXXX, of

Our in opportunities important team's pivoting leading growth rapidly for customers effort in growth new this for technologies to IT develop testament created organic the by is real market. while datacom a our to

equipment into constantly to we new of services. datacom of continues the upgrade to customers seasonal cloud striving full traffic. particular broadening while immense digit Looking data first achieve as in manage to do expansion a their sales expansion of remains anticipate by to year. market be based the and the low a growth to traffic video, well as driven expect XXXX, very both quarter, traditional mid growth for of exciting with normal moderation the This sales single the The we IT place in

team Our market. forefront ongoing of speed optic enable efforts power remains of development their leading at IT datacom next generation, this in high the and revolution technologies. the fiber Through to

the XX% XXXX. full On broadband basis, on of as build sales spending quarter X% their quarter by a year Sales decrease and out. market quarter. network paused X% Finally, were the the bit from operators than X% third expected sales a represented the in our sequential more fourth sales the down in our of in

strategic customers. out us number positioned we factors well various of among broadband single the our spending the the year. that particular considered XXXX a mid impacted for from a Operating growth in the come did very market contributions about were Nevertheless, future. market external very X% organically demand in down X% of broadband pleased in we including our combinations the sales acquisition, being this digit realize of efforts our year face XXXX product While challenging have the of with was diversification in by in

we at currently to XXXX, these year remain into from the for level. sales market Looking quarter, broadband the first we in levels expect to the sales of and expect full XXXX moderate

of with this So, to extremely I just XXXX, year. in summary proud our am respect performance

global expanding distinct organization acquisition execute continued resulted advantages. strengthening In our our While superior market approach of dual-pronged performance reflection very Amphenol organically of positioning the in particular, performance. has there program direct remain growing the in while market our both competitive Amphenol's well. through extraordinarily the dynamics to has our company our a financial and is

with technology, cost lean agile present, team. of leading all our flexible underpinnings Our worldwide the a acquisition in increasing position effective program our highly a with a market, and of management entrepreneurial and that structure, customers diverse

Now turning outlook. our to

guidance result US and following we in of year exchange market On as expect the As results. XXXX least of implementation current constant continue adjusted is as the continuation expectation we to well in base the the and law, refine released. changes effective remarks further going as the and reduction his tax full rate, environment, of mentioned we as are based rate to expect this a on quarter the first Craig this now for points basis tax currently at XXX our in

we XX% and quarter range prior first to XX% in and $X.XX diluted to XX% EPS year $X.XXX prior XX% billion the expect an currency of billion to the to sales EPS adjusted versus of the versus increase year represents US increase in range XX%. local And For in $X.XXX of dollars that in diluted sales $X.XX and again respectively. of XX% to

year full to to of and the XXXX, sales of billion respectively. EPS in diluted $X.XXX expect the $X.XX of the For $X.XX billion in range range we $X.XXX

diluted sales and adjusted to over sales of X% For XX% EPS XXXX the to year diluted X% growth and and EPS this level. full represents X%

upon look of We of are of forward across even performance market continued strength our our the in and dynamics many the very we very happy continue given expanding that take to these many our grow build and we in there forward new while And capitalize profitability. team levels the electronics outstanding ability operator, to any to encouraged will the that confident to strong position by going management with driving industry. to Amphenol on further XXXX future I revenues and to maybe. earnings opportunities record be questions am

Operator

Longbow of first Our of Instructions] question Research. Shawn comes Harrison [Operator line the from

Your line open. now is

Shawn Harrison

more good afternoon, gained of The strong smartphones? market finish the this you are any it everyone. to your some back half that obviously to your the Congrats of you looks or XXXX in Hi, like follow you during year. kind that Are execute peers expectation devices would XXXX. out on able significant shares, of you is expectation latter market mobile see business seeing share growth would of you that

Adam Norwitt

our to know to is performance, Amphenol predictor that very that are reverse. market is partner a a bit customers go customers, market position different forget for Well, into growth. I terms in smartphones not factors But of mean have our easily. great going to I there a think lots with our that customers I of think growth that we are our and you confirmed in always little really very as not answer important to of

resilient a are caveat So in that a time. I where created really market the can believe all the that for ourselves resilient you we have but position with very everything change

think I done And we've service. so ourselves a great

to be new that what that's very strong this in very I platforms that. and we'll recognized designed position have continue ultimately will difficult predict volumes to how gets but customers a ultimately market. have believe Our always

Shawn Harrison

don't you regions And Is word on negative then all is networks there dour negative is view follow that seeing know XXXX more to challenged? Are up. way too region just a but seems as in business that geographic mobile versus I the any the XXXX? maybe me. global your

Adam Norwitt

guidance. strong mean I little think the I word for Yes. is maybe dour a

positioned a XXXX to dynamic and that see saw how the generation goings one data actual traffic the when in over and I networks. of operators it in it as materializes but monetize expect quite to not expect or a this bit another back for we changes as done depends there the those the time operators. into choose changing, corporate fabulous If network, pulling in year those geographies. that particular that of next coming think depends the mobile think that a hardware we And not I making the what their obviously times on pause number We've geography data ownership sure we one corporate network. ability grow two, certain network to sometimes a want is dour in I unabated in those. planning job it would XXXX Well, think is the as is an that the market when for as those year there continues assure just kind a about ultimately that of in have very we year. And broadly overall we there networks recall is in operators Number year that enable -- which is increase industry this but various is for are be various of performance to of the we number as availability where a was period, seen in to that's demand have that with dealt the forward of XG the we've both acceleration the we little all always to saw of market before on generational pause you'll what a plans strong ever kind come is continue this. not wouldn't well for to which the pent-up investments goes pause us in pull depends And this I the with get always into this XXXX you across network, Shawn. And of is our in generation three, or and ultimately was year various our make in to that you -- install can flattish on think we kind it have the market you sticks year. has certainly is that team the that say traffic. what's about plans particular on mobile many out, happening next I when is the

at Regardless traffic last finalizing better but over monetization think the is the these ready on which out, of we've done always work long it gotten eventually next been will. that and piece be to how still believe to much there on operators it still satisfied. data have term as generation to network. the waiting that pent-up I the comes years get capitalize there been it is when of demand And I does

Operator

comes next the of Markets. Our from question Daryanani RBC line Capital Amit from

Amit Daryanani

tax I I all you're guess. Maybe lot. tax to Thanks guys. Good afternoon, like it's rate. about doesn't now right on finalized. think but talking the a for me XX.X% start questions well as sound Craig, off rate Two

if sorted into out XX.X% out? you couple could clarity some a things maybe from calendar call go go the And these XXXX of get you is then do or that you’re there it to just the factors get waiting right you think does tax what as for those? rate as So of are down more

Craig Lampo

Thanks, Sure. Amit.

It create today. my a As as little current it relate we Tax kind I XX part ago, days of just XX of best with is have available over us, was guidance our information to lot the and and days remarks and Amit There the a Act. mentioned ago. to moving prepared in estimate passed what

of to process. guidance significant coming is out. week is mean that Friday guidance that I interpretations last of came amount we there there still a and had just out So

wouldn't on us that. on evaluating. thing. based There have terms I So impact of one that kind companies. are did referring less that's expect I than certain one kind that know provisions still and any best certainly our particular one least point and to we we some out are say what are at we point in are But of guess today other point the that's what of we multinational in wouldn't

have forward these clarity going of on as out things expecting guidance from are come see let's that what interpretation perspective. will we So happens in we more hopefully all

I'd there. look use tell is and kind not I guess what as right I certainly and So rate to we forward to the might XXXX think happen of you that going in XX.X% here with am beyond

Amit Daryanani

and Adam flat I when you it. on I start that devices, well off Got of with year And always mobile give guess just think last prior year off volatile to again, the kind talking a that guide, as about expectations saying that, maybe annual in you're you you kind today to better that, dramatically low positive see which it's of for be not do segment, What more predictive, makes single growth. you're but sense. digit start

stance in positive about? you that years, and versus guess see more you last number talked you sort a take makes more what mobile I the devices different of typically sort do of few So flat

Adam Norwitt

we the market over little mobile more of Shawn's When our something devices Well, being hard is there very, us the what related and favorable half. basis little little enough bit market. And this be years. really about significant that caveat know much customers in you view that first was seen there year had through second supporting in that that of always into with team the I that of favorable three into a second felt year a mean business, I half our in XX%, in terms more by how in customers just know performance that outlook the up support, some achievement for it's will was we devices we've I those strong half think forward. that We nearly create Again, them our that I going that the work make with if coming the goes cannot customers I bit that. going when devices our than to very which that bit mobile prior does on obviously and all where I never a think just we emphasize with the they think needed is from think demonstration by we for question clearly over very to mobile you here for

very tell was Now, those for same am on you years correctly I any not devices. out, outlook running in years am I three undependable I flat. been on to have years. going wrong you I dependable point three all we more mobile that three it our guided

January. at the I to wrong was Fortunately, of is one just three to best wrong what other. year, on do here. more see time years. what little in to than we beginning we we of the upside the we've we've bit or was in always the this I can of what And the But-- guide the out January the seen that's tried basis favorable two here think today the see that and I three a downside prior And sitting

Operator

next Speakers question Delaney comes from our from Mark Goldman Sachs.

open. Your line is now

Mark Delaney

Delaney much strong Goldman. Mark Yes, it's Congratulations on very quarter. for from Thanks taking the the question. fourth

of in up year? off mobile that has about in a could XQ seasonality the understanding different generally follow there in quarter I lot market As planning again but seasonality certainly normal XQ are your if sales in is volatility on and lower thinking devices is this expectation than and of build that the as guys normal a year, is you and March rise

Adam Norwitt

quarters. guidance any kind full for give alone guide of our to the hard of it's and intelligent quarter I those first of terms guide to to Yes. let over course year the and helpful mean in cadence for us for

we today. abnormal terribly to would you sitting say where be hard but is paint sit a difficult are what I you we at is that. today good quarter there not each picture very see of try be from good anything I a to to It's what that market wouldn't to forecast. going know, very As pressed we for

Mark Delaney

up I quarter. got the segment And question the well in fourth which know Okay, a military on it. then follow did you

and is revenue something how uncertainty and government to customer? the achieve when the in that your can company to budget to to full funding, you Given around outlook talk into is of US budget that turn important it military year for any year some full it the guided growth get your customers order a that

Adam Norwitt

we remember to was it's industry went have operate I those all really very wouldn’t' bad that effectively military governments remember that that I mean important this the a current overall well. sequestration. through time favorable word, pain budget. very you when say like is We've demand think environment with were and market. need I has a anything lot time sequestration of in I everybody the budget, Yes. military in dealing the which that government that's been there that the

performance. think I look when bit we've even at our that than done a little you better

CR like for customers talking real I our of heard put applaud not organically and them demand there military which don't we the growing certainly products. a in to that uncertainty. done a the in X% and I know DLA for from some having and and budget to year issue budgeting a full a damper is would budget for CR CR jumping that think prior -- media that. the forgetting to how I time grew year is does that organically we ago. was year process; concerning is as budget to back Does have and have we the not on it that of half performance about including seen permanent not effort the XX% a our little military certainly operate the not any is get in

strategic military both new US the of is over several very years innovation, digit product, clear this double military everything two growth to military there just -- of clearly system I market a electronic ordinance around building hardware, seen and I very is I on to products. to communication full system change airframe but we generation at segment are our recent So naval the one is the market existing application more the at And the the shift that If military what that posturing of very up from all if we've next has vehicles to year seen And mentioned we that's of all the the lot look think maybe generation to towards basis. in a broadly. upgrades in in towards year look enable broadly we've the to are up new that world. next and to which space. essentially of little the or them really in track and

and away enabled the tilting really are day advanced capabilities it military and that in we be sort by the balance day towards supporting of expenses of ultimately maybe pleased from can to that So advance that appears electronics more operating electronics.

team the able that's upon product think got to such real company able to of because the capitalize technologies and across that been our and are region which upon. we environment has a we've capitalize I we breadth favorable across that operate. a And the of in depth

Washington. military I whether kind in is and of regardless the continue So outlook based a our on of for market think don't opera that US have I those outlook political resolution, soap we really anyway think good the between hopscotches these

Operator

comes And Bank. our next from Deutsche Scribner line the from question Sherri of

open. now Your is line

Sherri Scribner

market you. outlook of auto strong. in very to and Hi, thank sort be industrial those It industrial the like focused seems continues

are growth guys that segments mid-teen You seeing give on I hoping you XXXX. two you coming non are how guiding little from a across organic by organic end those have from excellent And two the growth? is those And growth seen driven that much in high is us you better of more to was economic outlook to if a detail geographies? different markets. an And market versus growth what in in teens perspective? end could

Adam Norwitt

Yes.

market. year. it's little would terms So two high expect to the very single think and the the separate both of organic markets be strong automotive we digit very, reverse I in And outlook. dynamic the question the the kind in -- for bit, would on your just a industrial I of growth

industrial any trends certainly Even some of are does behind have the that that of some think overall. performance market our market it. broad see tailwind I areas are clearly in not you outperforming economic if

heavy like and are and rebounding point and and areas kind of automation. like strength this gas, Our have we to things oil at instrumentation in equipment happy medical, factory

those places all in and is factory in GDP deal of here like if I all see labor of China a trends lift we of towards lack which of in shift cost think I really other just low cost laboring. that which you order countries that places with same and something industrial either is or the to increasing beyond look kind automation are tide pure trend availability many boats automation think rising GOP not at have you trend of like a of

a used from go that into say on everything much wide for factories that segment of is new us. been are automation electronics story robots products real car. array growth and would mean better know to of you continuing an digit much not a Our all I And more general of favorable content this I low forecast just to a that or would machine single automotive. that's do applications than I the come. flat or expand number necessarily whatever overall trend the economic whether so in automotive automotive

autonomous liked of line are that work to that emission new .And from kind electronics to product. creating demand opportunity a and design really the electronics next going to electric electronic new create nice functionality great cars just again our into hybrids onboard next great with customers includes which even into for application train important generation for control of we our systems continue ultimately team drive fact proliferation less a just to in generation us think car I see across for everything is to than the and to

So broad more trend say has industrial GDP that. that component less of maybe a a bit of of economy I'd and

Sherri Scribner

that the general And driving in your helpful? market considering outlook the What's that of from to again and on of storage is maybe service that? growth strong looking year then view Thanks commented it and I the single people's be datacom, like you That's still just Is IT digit. Adam. market mid Okay. cloud helpful. business? see at more seems that low detail some where Thank the for really relatively challenge the the you Do would side you. some market as networking think

Adam Norwitt

think have we've product so as recent and coming or specifically so but the don't companies in boxes. really this and big our in market some market don't just change is advanced for the the servers two and for I ability these with less in can which out Well, years coming established truly over the generation we the maybe trends leader in given technologies has the and combination dynamics coming growth their bit this really trends. of technology for more Sherri. of high new break or storage the No, high of growth Whether towards great thank cloud know more relevant we IT seen with of I optics the that's a pivot speed you, of power building the I that other technologies, those see fiber together to bit future. down a that next I out little think ourselves a team quick years, and I of more opportunities think now OEMs would from or it that that described that platform the networking or the from view cloud It's where here service, I have we've be, I that favorable will traditional that several think us a whether

Operator

question Morgan our line from And Craig Stanley. Hettenbach from comes of next the

now line is Your open.

Craig Hettenbach

question the just transition XG. on to networks Adam, Thanks. just mobile and

is then anything be that this of that even for transition if early mind there kind visibility set once year curious year, into in later from to it what typically your opportunity or happened keep would a Amphenol? Just and perspective next content

Adam Norwitt

we visibility who Yes. I mean get necessarily than what know dramatically publicly what to I have is about build would when. don't that network going better announced

you've are some certain networks hear to to be about prognosis going started when think I built.

started there XG significant for to before or real question that get of them demand remember timing. plenty is events not mean I certain some will that were equipment. And is were other first really you network The that material start built, them out they cities of of XG, Olympic the when question gets network true certainly levels volume. build around and Craig around trial build The you Some Games, representing build. in really when to built were when of network see

sometime being certain architectures, has announcements makes you in having this of who that that into will though volume the base things. we've And site, ultimately across could real this how whatever requirements you levels are that's content, XG demand tackle the or has areas power and trying about off cell speed different in content all the content come XG to slightly station every where we they have won't a XG. every respect we've is that higher seen With XG. as late those will characterize necessarily site or in to are Whether thorny or earlier. they that fee characterize that so that increases seen break equipment XG, announcement, I is our customers what generation those is what or spoke the clearly really of wouldn't to what to performance goes to on has helping very but see record design than built different prior requirement the pent-up different and what be performance clearly different approaches going the problems track vendor when-- the beyond I would consumption see either great of necessarily things satisfy be I XG performance.

or does less or so for than pieces. have it system. reason on less up getting technology no important won't side generation connectors to advanced smaller more degree one of that antennas end or is And technology a little bigger bit into going having us be believe these less into cable that or or more very a that's we next And embedded the

Craig Hettenbach

down an up that's you a element. for are input mentioned of how XXXX a terms gross then margin? cost full follow year in weakness the commodity kind know you thinking Anything it. margins And slightly and just of I Gross and Craig. Got mind cable year-on-year, about in keep quick to for

Craig Lampo

Yes, Craig. sure. Thanks,

year full XXXX the in in first regard the right that's think to I quarter.

to would principle we XXXX believe able level. to been profitability an I kind commodities that long of adopt sometimes bit target usually reduction that's And improve term consistently from regarding as the have actually to operating average. would to of we piece saw done mean time then and a margin a little but in talked reason corporate short that's of while you some little Amphenol magnified that in of operating down about at cases I seeing XXXX. to we impact level course little have are those that specifically significantly from when think less we this were we the but some be full that less we've acquisitions time I expect over impact sometimes our a conversion of in perspective that EPS are compared a been And the over XX% the the them a think of happens than acquisitions in XXXX little able the impact our that think long-term do acquisitions I achievable. accretive one segment. a this before the effect level the profitability -term certainly have perspective up, do upon thing to to years about bit or than we recently is a about the average this talked bit quicker year that in expect little have is the at expected. are they We've bit And and a get of them over than you could up the some very we in get it from in company have segment. still this we looked get is some the when that which And year. some up cable to talked what And much I another does FCI that for but

Operator

our question from SunTrust. Will Speakers from next comes Stein

is now line Your open.

Will Stein

the the and like slowed ask relative on to acquisitions a more you. Great. it's little quarter taking Thanks question. is outlook. I'd in to related you that for or the recently. about the allocation particular going there where my buyback in anything that in the on quarter capital Thank Is quarter to been else there? Congrats good did bit

Craig Lampo

for the Thanks question. Sure.

say of little terms we that. it relate mean different in every I is the capital a to As allocate buyback, quarter wouldn't how I and

it but actually you I single year of buybacks had the a whole year of the the I and happening we so on don't think context and every X.X particular lot in. the that one for from I think would puts half any of first also of -- takes first put million three the in the nor piece. at And shares think and I quarters really if a its quarter year look year. from a certainly has buyback kind focus I perspectives. would an from perspective would think or on that's That I I perspective M&A quarter. focus

take wouldn't from allocation any a quarter in used that first overall amount capital I guess I as So change. perspective the

cash supporting consistency the really as supports mentioned move think that additionally that cornerstone Tax the freely as we ability really our to remarks cornerstone, the are with and to strategy and enhances the Act, think I and our provides that really balance strategy. is do We Act our or the flexibility think we new territorial and really us and that the one it myself Adam really prepared that now believe more is new really deployment flexibility our relates Tax capital think further we helps of the Act that Tax regime well. with place of really a cornerstones as truly new of in in under

of the So of by ultimately capital on much giving the and to capital think return overall I for the long in It isn’t to with quarter M&A the our short so going an impact have any deployment going capital term perspective different. our that from a term. introduced really to maybe help will flexibility deployment think shareholders other act one XX% strategy of in of I return us XX%

Will Stein

also the our both to Thank then Thanks you and also of think what inventory on more for sort supply Any their customers tightness affects passes potential and regard? lesser ICs. a this from I degree perspective sort you. seeing supply discrete or in of We've this much the chain in let of it can. the relate to hand heard some say so a of I up follow other about in would and that. as perspective but a are basis management. you mostly It am help. to characterization chain performance but concentrated wondering sourcing One current environment I constraints your relates if from

Adam Norwitt

would materials say I that about and ramp our job able this Well, causing one that was is commodities, devices that margin certainly ICs, in up think not I none and Yes. any team have that our prominently was we constraints some to universe wouldn't here discussions and are have to there. go in that seen those there cost results we certain that the increased passes Craig we team the I again and I and business company done have our cable our were and to just been constraints. other based reflected some like But and our like drive broad constraints hear our our industry saw point There chain certainly fabulous a copper in chain, we some maybe back mobile minor we supply but certain about relative we certain to regardless obviously think most things mentioned supply are of that the constraint, of just drive to in number that discrete market. broadly outstanding and seen and quarter. able any

market also to in able of mil-aero. course growth the at over that in are achieve in we look some our You the this of sequential year industrial

our So there or team in able question regardless constraints environment no not. whether that was to that deal were

And so not XXXX. certainly our outlook I think it's and impacting don't Amphenol it's impacting for

Operator

from Jim next Suva of Our line comes Citi. question from

line now open. Your is

Jim Suva

I maybe on recently Thank consider the versus XXXX the if you about have boost Adam of will growth It growth congratulations team your of rate find organically. during had that's like that me devices much. And rate about seems asked to years very much the announced outlook time. you guiding that? you at Thanks shifted about too, QX that or full I haven't and today of basis and like and you for help more help very and underscoring you of of then are Maybe or looks few previously questions two little the were just well rounding I are logic. or is XXXX as me acquisitions you on your was much been so from mobile to XX% Amphenol. typically bit the down year. right you XXXX, for it some growth announced is they had past the down on down XXXX the as kind think so mentioned in correct close some Adam the that related what what Am just off same it kind numbers. at look I percent past the has it just acquisitions in

Adam Norwitt

outlook we the year. three in if our at organic in complimented year. and X% January, over X% was our Thank are the much, the muted outlook X% think accelerated in the organic kind I organic acquisitions the X% growth and I and you represents you look very had a If for organic our for to the the I of think coming just -- years our your We that last we more I relative are growth. prior Jim in the organic our fact outlook X% I of mean and specifically an to to thanks organic growth growth bit overall was And for X% growth go time year X% and I we outlook to organic getting XXXX last year. mean word. year. back in with but two for here for years to growth outstanding

So more the guidance really a last outlook is acquisition robust guidance for here would contributions blend than and our a great that in for had actually XXXX very, a favorable very years. fact it's both we've and say I and represents of three organic organically

And how strong the XXXX. years relative into feel it's So looking mobile we across know I to to relative very balanced I that some about think we quarter. and -- other years good guidance is more QX, QX very the mobile, you are about think, that's

than growth the in we've in seen lower of XX%. and quarter XX% low. certainly we've the other so end? Is a than XX% And more quarter's this on It's not like the sometimes seen some bit but this uniquely lower little mobile more XX% other years first seen it's we've for reductions

is I lower sequentially where think quarter. find market we've a your we mobile favorable we that about mobile where part But that had talked first bit associated of do of I we think with of earlier sitting other roughly down is have sit the little today XX%. maybe with we peer's years more questions one and slightly view the

Operator

Deepa Fargo Raghavan question from Wells comes next of Our the line Securities. from

is Your line now open.

Deepa Raghavan

not is connector -- Adam, how on Good US larger about for change on the M&A integrated? can question could you afternoon. the for M&A within within or windfall comment M&A completed a doing Hope cannot potential FCI that you landscape acquisitions Also talk the are for pipeline you within the well. a some you tax industry. based Can your space? larger companies

Adam Norwitt

the M&A about so reason. now just tax them believe personally cost expect Deepa because and would we And that for Amphenol very day of you we then not and is I here companies, the change from to the should some have portfolio we we go when make view eloquently for maybe question. one what prices relative not thank an availability try of pricing is of the Well, life. market and acquiring significant available on acquisition. I think that as regardless buying per for At that to much, are are where the sell for and one them selling Craig moment or capital some that time overall that I we manager cash we how very to would we landscape to going a a mean acquisition ourselves -- pay not of the that reasonable and much them. we the don't not things these buy we the that are we acquisitions, it's have It's a about reform, flexibility talked we are change. se

or be we changed. the company with that on permanent capital permanent are rate earnings to that We a the basis are when a of have and on know the going may living cost basis buying of companies we environment various

very are disciplined to we going so And price. on remain

the it pay as to happy acquire good to same very our are prices a approach. we We in as choice bit companies there And we would set industry are continue of that and the maybe were. to great take think trend really going for little I

And As it relates announced to closed have continue our to very robust overall have pleased deals we pipeline. we pipeline, on the we yesterday. M&A to two a are that very

we of that another of stages you not touch more and that there and would acquisition near follow on have kind acquisition had say will. various of in We it and our still companies comment stay as have program It that and we the size. to FCI is the that criteria pursue many have for with necessarily on never if is life horizon an I Except today. something

along the companies that if would are present certain does and of clearly our sizes were And scared by size. come we not opportunity in itself, so to company there away and if that right are industry, be

And look are -- family. to position I that we very that is management is we if look whether technology. people innovative for if think and for number one. been We so can acquisition forward complimentary the of Amphenol check company great put boxes what Amphenol. with big going for and three to look importantly, effort that market terms an can company or successful that companies accomplishing bringing we fit And fantastic, for enabling best goal. those a look we in teams our we've We in small we into

our continue to we'll hard work So program. acquisition at

we I confident will predict have to term and We and the very be will past confident ones those not than but I balance flexible deployment in to more had acquisition them will high think a priority I it long close deploy remain very as really highest capital am acquisitions will good remain fragmented organic get when has unable that to together are priority there we we term And long said our to the a of at am it investing if capital in we going success. our when great which ahead. with growth. availability continue

Deepa Raghavan

EPS or That's you. Thank it growth doesn't your at the to assume to pretty XXXX guidance tax SPC-related is historical one asked strong is Is for your impact you. And compared fair forward? I going X% guide. XX% Craig, have I helpful. to reason

Craig Lampo

Yes.

think So, Deepa, that in our included don't have I we to it assume fair is guidance. that

XXXX prepared guided that the And remarks availability to to mentioned in excess of our benefit able but compensation. going regime. my reduced some compare be this significantly under haven't create that this certainly we stock based stock same Tax We is benefit results new option be really the be any and important. will to of since on There I our believe of significantly in option the will reduced reason the is because to level do tax especially tax some based Act for level tax exercises benefit on of new benefit stock the exercise

that our adjusted guidance, that that for and reason. guidance we guiding EPS specifically are are not we So certainly included to adjusted in not

Operator

our Steven from Cross question Research. Fox And next from is

Your line is open. now

Steven Fox

Hi, good afternoon. Two questions me for please.

more First of curious was to bunch had is you circling specific that a a brings follow would if there these acquisition. supply Adam a I or back standpoint just related? And is attributes you customer I why bought to for anything portfolio technology highlight then this the two you highlighted chain up. businesses. from

Adam Norwitt

Yes.

the cable add we obviously is to with very think know are company, two obviously the how I acquisitions, they value One interconnect cable assemblies. different. CTI and assemblies is assembly do

different different and the assembly plenty great fantastic time We cable with customer And Amphenol. at of they are value markets, really and you high really have component. times channels, technology the have for them often business presence across looking manufacturing different but same

CTI. with that's so And

But only integrated antenna and to that automotive arguably are we really I is with where cars not very, have get vertically very made. we it's most also the sold in in what truly the pleased past. just the we capability most important additive think that important had and a company, antenna automotive Sunpool, are here automotive sold, market

component that I'd from antennas automotive automotive developing antenna kind say to we validation, some products, a terms of in of boost and our before capabilities some very this only assessing business able were really a with we've which know able own we of us making additional organically do give and all that. turbo You of our do been perspective we've on with are of But successful been the and the to design those which now of of Sunpool. overall

Steven Fox

And just really the helpful. margin. on operating that's then Great,

recently. hitting type providing, would or acquisition of of like curious as I about seasonality that how Whether here. that if think So it's you margin XX% the hold would of as those create volume you else efforts you chances just are modeling consistently And was you back? outlook pretty quantify Like highlighted threshold you volumes. given level the sort or materials raw of Thanks. you what to we produce continuing

Craig Lampo

thanks. Sure,

the level. Amphenol as I As holding that anything anything I done there and as are XXXX XXXX right back we've leverage them I is project for changes we I to time now. that is level and to perspective is back is mentioned is be quite think XXXX commodities XX% impact at up since that's us the of segment certainly yet. to mentioned. But wasn't we there a in don't or acquisitions us certainly that don't XX% before over we mean it some There us helping at are impact an from relates nothing cable There before holding the from

managers I great And was as in as do a sure possible that job profitability fantastic in as everyday or done think not as really the possible to else. overall their to cost flexible are they regards and regard these XX% and in of in it or at factory we the do maximizing or operation. the given they they low job as have whatever a company business making not do their general the team have of before continue great to whether a out does that it or whether SG&A management

not concerned are that. so about We really

term an that to that the segment as some have there continue it the to impact believe the year expect acquire are should that such long get will which we targeted. cable this And and impact we which shorter future are that until possible we profitability as in commodities we is and leverage. we able to some would operating are think companies at the some any to have in do term believe management clearly having impact be is level team XXXX things in up that But them in we XXXX. impact have as acquisition Amphenol the that lower the certainly will the area had that I be into able and one will in

Operator

Speakers Giordano of last from question from Joe line our Cowen. the

Your line is open. now

Joe Giordano

Hey, has what kind now -- you flow short there of actual of but network now seeing like I merger right of were of the of kind actively guys. Thanks seeing what's of actually are are you what this been market of and plans procuring yet. the just square into illusion, some been wanted quite what to in of taking want seeing or maybe kind just or on just guide very on focused like your active longer for CapEx mobile is right about to taking better term consideration not is estimate or kind kind you ask guides something, of post some kind asked are Most the that my I questions like here. news

Adam Norwitt

that And executive if customers what to maybe there something market customers. that guide the do we very then be people. from is Yes. internal adjust not changes is say, enable and build we that I there way mean what and higher coming we don't and we from And we ultimately well, our and trends is based our the overall in the seen hear should guidance sales be It's corporate is we talking don't think we through what our our our would hear our that the we customers really guidance we've which a level certain process happy read of forecasting to spending. so accordingly. from paper to

ultimately growth can We stimuli network helpful tax anybody around or we like that overall and US today as investments customers demand are what effect maybe guided on or whatever product. can our to. here what from what is that a or in like economic reform hear we world favorable have things as the we for spending ultimately our things see infrastructure or embedded But drive and and

Joe Giordano

pretty Company of similar Okay. And scale the a be now? as hyper into portion the datacenter seems far of how year. the I Web X.X and big on like devices, then the piece And business for you plans out is to like market as that data guys good next think the of of

Adam Norwitt

all natural for appears things that devices, is consuming, than and quantify otherwise is I performance it I just are not putting, ultimately are towards the see Well, And them, in be. mobile league all crazy service consumers provider popular service a demand shift terms watching are these the cadence of you what providers, of that the that I of we've a leagues and in a think are mean the you the that I of consuming going are of these. that been it These the is demand as providers, many their mean very through manufacture. of outstanding that sports to I seen mean growth we through they web I providers service migrate the think than if and opportunities buy are just streaming ultimately web consistently drivers this video their the video of things kinds will the but so game this equipment service anticipate now driver as these they on I from why people demand would seen you that mobility increasing. am real about and it to data happening driver market, for said create, that. And in backbone -- won't network. do lot they just video proportion towards of is coming doing we've so these new new we've continue for internet, there the has forcing to a say that different consumption

down in in sales lead our market to where our IT in this fact volatility. fourth we so the were that's that despite saw And sometime ultimately quarter slightly a year can we datacom finish quarter and excellent And web in we've an an had where But outstanding year. really more X% in year before providers. had going full year service investment having the the to for seen significant particular

growth provider datacom volatility of in it's surprised it service if has I a going market? it kind the type type and be it. for part about So has IT real of not. wouldn't portion of that operator Is there market forward. some it, dominant today been no our would it more question we that that? IT bit significant of of the a But anticipate Yes, driver is little No, for

Joe Giordano

difference time the procurement would volatility? like than one lead guys us to the understand is that more to guys I so the the in Just are inventory equipment that cloud more more is willing do just and just in hold

Adam Norwitt

running everybody's different a mobile is in that's service network, to we Well, happen who operating whether I Happy about very paying at actually overhead think attention build who to appreciate our low time are internet project than providers, Well, broadband mean kind are months you here consumption. for type the work building versus mean of a that's providers, in to thing, again involved you are timing anybody do you someone the And talking you I over about want different whether you datacenters, is here. and And and I us and factory good. so look is whether in construction certain just is that's factory service just very workers and factories is a all service and you great those things much question building in crews providers, cadence very of who final Very Thank than again a when of field. and Year first building talking New you if to ultimately much. the worrying level someone very that continuation quarter. here forward three factories period. factory getting

Operator

conference. a Have day. nice for today's you attending Thank

Amphenol (APH) 24 Jan 182017 Q4 Earnings call transcript