APH - Earnings call transcript Q2 2018

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Operator

Hello and welcome to the Second 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. I would now like to introduce today's conference host, Mr. Lampo. Craig begin. may you Sir,

Craig Lampo

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

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

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

XXXX. of of in So to EPS $X.XX and of of approximately please the excluding these with of basis, quarter to levels strong in were stock quarter $X.XX up the XX% strong in company segment the $XX grew a EPS as XX% company's the the increase stock industry-leading tax and achieved commodity XXXX and and costs. average in dollars the second diluted GAAP and to short-term payments individual Act quarter our up second the a further of $XX of $X.XX, In the and all high adjusted and of and million to up the continues XX.X% Cuts with segment, company's to up $XX borrowings second $XXX million sales, from an the outstanding $XX of the And record quarter Cable stock, a XX.X%, U.S. and and in compared dollars, the than the of $XX by quarter a generator of $XX flow million year. the benefit million of to XX% in quarter, sales currency, company's fostering from including of net The stock a well refer last sales was The option of Interconnect stock Due which excludes exercises is quarter X% comprised market million. margins the the has be at higher closed XXXX payments debt quarter comprised option in at XXXX. tax currencies the given approximately unit million, during to cash normal $X.XX higher of & approximately was was high sales days an quarter in tax interest X% XX.X% XX%. accounts compared both and strength XXXX, in $XXX up From both which XX.X%. cash; driving from cash were cash the the quarter effective fund and to XX operating second in of future. million, the acquired to XX% sales our approximately investments direct profitability days, of $X.X both the billion, growth QX of release The costs the Jobs was The particular billion This performance second and for second of strategies and to of were the a days, compared $XX of certain XX% of our was the periods higher few in second related on cash dividend of Interconnect local $X.XXX up company in two quarter primarily expense adjusted environment. local our $X.X record of action-oriented the of were in was approximately under charge compared respectively, excellent second and second the XXXX, organic guidance compared impact performance XXXX. exceeding installment a XX% which last or team XX% for and we previously including margin compared and impact year. basis adjusted culture the culture the of EPS by XXXX, related up in GAAP of tax and conditions for capital operations fund On as excellent of diluted in year. able along operating second and organic remains range. exercises fund in XX.X%. segments; in XX income as GAAP management business, Adjusted were Sequentially, in which points QX record X% resulting average program, Tax a into to effective XX.X% excludes compared primarily relevant proceeds flow of both equivalents information. the book-to-bill the certain XX the of company's XXXX effective performance in $XXX for thereby discussed. the of a second X% foster U.S. quarter. Adjusted acquisitions XX.X% of $X.XX. sales expenditures margin $XXX from commercial to rate standpoint, which standpoint, quarter a from a is organically. appropriately enhanced income quarter the of margins acquisition with sales within the our our of grew U.S. acquisitions From of press end The fully $XXX in compared excess of billion, committed disclosures of capital and of XX, associated million growth. normal the Breaking option ratio to from the $X.XXX last second quarter second tax approximately Interest adjusted from under dollars with net million as inventory of our periods, and business, tax benefit days to purchase points quarter payable excluding exercises, in strong have down and minutes. sales, approximately of used rates reflecting an was which first $X.XX the company's the both of in tax From the excess and quarter billion increase diluted million a the an and payable and at last by second well in quarter margins XX were to with approximately second trends primarily respectively, inventory, basis translation XX% $XX end was XX.X% year, million XXXX, the EPS of of for in benefit up buyback Operating acquisition quarter were the X.XX:X. million, which driven Sales tax net the paid deployment resulting operations by increased adjusted will The record to which stock XXXX currency second XXXX. market the in XX% Adam such million quarter team year [indiscernible] diluted the associated receivable quarter last quarter to sales was in XX.X% by of XX.X%, to as careful comment as of second record program. last was June. and compared in the were second of maximize quarter operating quarter over dynamic each companies, operating option strong $XX in income further a taxes million standpoint, and existing in XXXX continues of company's cash, $XXX market to the $X.XX net a the were The million, which primarily for driven commitment Orders year is XXXX the Cable segment, XXXX, to repatriation second the to management other of the transition down result paper to rate accounts entrepreneurial rate XX.X%, excess is to adjust the respectively working from resulting taxes second

the the company's XXXX had company was billion, June billion. of the and held billion billion the three XX, debt approximately billion XX, repurchased and stock new outside During and under cash repurchase X.X $X.X were at approximately under facilities investments the at availability issued under $X was the $X plan. our majority open credit market June net debt program, The and it's U.S. XXth June $X.X totaled year average stock which commercial approximately company short-term total million At of XXXX of approximately approximately $X.X paper $X the At of of U.S. quarter, shares $XX approximately billion. cash was price an

was who and now current overview excellent an the EBITDA And business perspective, will Second it Adam, quarter. an $XXX a quarter over provide approximately on will From was to this million. XXXX trends. I turn of financial comment

Adam Norwitt

you adjusted a Revenues guidance. level And of just the I'll XX% our company row for in organically as and questions quarter Operating the the and of like of and strong another represented a in Then a we'll highlight second demonstration year, and the the third XX% my extend record of here company the U.S. the and we of on on very strong new increased full then record going another prior finally Craig spend of achievements some markets. our billion. with today. Craig and in much, at for a very EPS some by second sales on discussion quarter said, finally, earnings another our XX% and in $X.XX you across $X.XXX billion server strong quarter just a the a some for of strength Then to we new quarter course end. phone have orders performance. moments thank XX.X% that record time get book-to-bill the both our diversified third in the quarter, from the of for and of record high-end the of a I'll our and quarter yet booked make operating reaching very company's to quarter all dollars exceeding into $X.XXX had progress X.XX:X. comments then of delivered detailed to I'm welcome just strong grew to few that Well, the year. outlook in the reached Craig margin

indeed very I'm global in Amphenol this the of time of pleased that technology June, in you and quarter say to just clearly like whole execution based superior in pressure All strong can we that second I proud our see first results with in interconnect the approximately with results medical high a the company's products markets. basis. these is California within sales the quarter offering for All and in Ardent late an offering, very XXXX. half provider strong test expansion With and small socket measurement just Sensors New for industrial acquisitions that of advanced organization, a of our reflected high-speed in of applications. for the sensor in and the the announce entire and including, sales and agility variety annual represent Hampshire industrial completed Concepts two and the already new of are sensors excellent market another connector is approximately already Sensors segments million. for the industry-leading particular, and enhances high-speed on of annual the $XX particular a processers, in market communications based $XX the growing Ardent million We're our manufacturer of

welcome create these we to company. program teams will confident acquisition new our continue great very excellent we value As remain Amphenol, the to that for

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

across various again our quarter second want Once across we second and this true that progress finish the the markets; no the is across to nearly balance with the I represented very in breadth more realized markets market and just markets. quarter. for strong this very of our and as we quarter, growth our than we trends pleased the in particularly, Amphenol served quarter, our to And pleased cycle. economic the the the XX% in turning remain our balance in we're that Now comment of any second end here quarter sales all organic

of growth than XX% XX% our this we first strong of Turning XX% military in military market military. market. sales Sales better the from drove the dollars again every quarter year and a virtually in increased by across expected and market; had U.S. good prior to very as the very represented quarter, once segment organically in

look And achieve the quarter by the at Sequentially in Our in our strength from first stronger sales now expect expected airframe, as and in military very than full strong remain these in rotorcraft was as the XXXX growth mid-teens we in rising as well performance quarter vehicle, a ahead, communications and robust related the we in market, led applications. now year had sales quarter. expect particular X% the we outlook. levels we third came for to avionics ordinance to

of job in in Our expanding do market the this to position our outstanding an team all-important military working market. continues just

performance seasonal continue of interconnect military reflection their and our again the to then broad position array outstanding has into the in militaries as year And from our in low to in aviation aviation our next-generation spending third once by the results Sequentially increase are in electronics. the now quarter, the performance market the full we drive quarter prior strengthened bolster global a quarter on in expect into of in sales strong represented market. incorporated the company's XX% increasing sales as particular, the here which XXXX for in XX% compared into dollars world their strong spending, The is half U.S. a the -- positioned while second edge sales commercial the a market Our our We're solutions continued with sales encouraged XXXX grew and and look we achieve year. first we air commercial organically. us remain expect develop and of normal double-digit commercial first in of solutions the quarter, slightly to the around to overall X% confident high-technology our in drive leading a moderation we long-term. performance by to success

many XX% industrial organically. broaden We to by XX% technologies market of a continue we of planes, support in on U.S. represented sales our very and leading next-generation the in revolution in dollars XX% for to years look these quarter. capitalize of range our electronics products strong in grew to of The and market the forward Sales new this come. and

all pleased industrial hybrid energy, oil bus As we again completed included the market as we're Sequentially, from well of the And railway mass segments truck, and the year. drove last addition, in transit, strongly were acquisitions organic instrumentation. we've this quarter. rising realized XX% growth have heavy continued first up across that our and of course essentially medical, equipment, alternative sales and as gas, from by the benefits to over

in sales nevertheless industrial current the third expect the sales continue for seasonality, to expect into though from levels moderate look the we growth to year traditional mid-teens summer we XXXX As quarter, we these to full due market.

market for pleased through future. sales by XX% the U.S. products development our the forward very to benefit in currency into the organic high-teens in of outstanding high excited currency. represented market technology includes for ongoing in position going in or and future this Whether of that X% XXXX is our quarter, program, our approximately benefits performance and to sales to for of company's despite excellent at X% makers realizing around U.S. XX% continued wide summer quarter, in strong strong year these into growth space remain which sales continue and continue the we're to just industrial electric dollars electronics developments suite the complementary in diversified our We built looking with XX% global as Our local the But third dollars, we've interconnect XX% we local important by we electronics the the sensors world organically. seasonality really remain fuel growth and automotive into this ongoing array and our sales market, the companies advanced position expect product expected market the a vehicle. Sequentially in The the and industrial sales And hybrid strongly to in industrial array These team and in acquisitions. together and the antennas in growing team performance strategy market. our of robust of the products interconnect have applications offer the acquisition continues to applications. of as the transform with automotive within look for technologies to has is efforts positioned we the range our widest expand full of integrate of expect continues sensor levels us with a car acquiring powered, vehicles.

addition, with technologies semi-autonomous team work their driving. new on In includes areas accelerating that is and such advanced customers our autonomous particular, in as

programs All for performance and of sales the long-term certain volumes bit growth this XX% products were as sales and creates prior quarter quarter. the Amphenol. a somewhat The had an in accessories by we only higher thought mobile represented into from into sales of rose we than devices by is tablets lower related year expected our and XX% offset second higher than partially of stronger of our opportunity quarter in existing coming were laptops. had market smartphone to Sales incorporated outstanding as sales the

XX% into coming decreased about sequentially. As quarter we from quarter, expected first the sales the declining by

to We on of new begin of increase high from production, mass given the the And mobile these mid new very mobile on strengthening increase in to performance. in position levels and up to variety devices third going to that expect to our several the these programs. expect difficult is teens for significantly as are in devices the we to a full predict strong now we sales understanding sales quarter inherently of currently XXXX, the very programs a course, year market market as always ramp

here reactivity to years in and the of in forward better important for development of many market, leading second and our in meeting manufacturing of of realizing on processes come. sales team that the to our demonstrate focus dynamic quarter working dollars prior has Their and our networks in customers the results position Our market. benefits next-generation X% mobile mobile the this U.S. sales all always grew continuing ever-changing continuing quarter outlook in look pleased in a our we XX% innovative secured the continues to together to quarter in year. the and challenging from we're while from extraordinary The rising strengthened with position abilities and the the demands devices market this to represented strongly than organically expected XX% products the

Our we third sales towards these year. particular a by year was expect to in our levels, we now high-technology we XXXX in prior interconnect look as a of sales first the this and our products grew providers; from direct quarter growth sales service quarter, driven XX% sequentially reduction And mid-single quarter. the however, sold from from increase full for expect digit the sales antenna

to team in array as global of antenna our participate when manufacturers of working materialize that both we'll all extremely Regardless during well particular, products, hard with believe outlook carrier infrastructure market well in work confident has this well that does wave the The to represented interconnect than that did the that so in overall into XXXX and as systems we're in stronger future, on as and broadly position and for quarter, us wide meaningful and we of the equipment we well spending; our performance our ultimately last with next coming by don't significant. in quarter. had we for will strengthened technology performance XX% XG As yet and providers. we not encouraged spending service continued sales be discussed the our outlook as our expected our stronger market see we're while call, quarter's as communications changes was the information data spending

Sequentially particular grew IT growth compared dollar was that very robust of last and the in in market. sales year grew and U.S. Our the sales virtually driven a storage our XX% in and from segments by by by XX% organically, server all first growth applications. to with quarter X% in

remain quarter had in look expect is third the better bit for a we robust single towards of high anticipated last we the our and As now fair full to the sales these we expect than quarter. which levels growth at digits coming we realize year out to sales

strong as the in IT ever. position as Our Datacom market is

this wide OEMs order high datacenter As our optics high-speed, we continue to our the growth next-generation range positions a by a the fiber though the Then the of explosive and prior by sequential online down expected leadership sales On to operators us performance quarter. traffic. remain developing customers continued web the XX% to We represented first technology for moderate communications and confident their extend service broad broadband basis years in strongly world X% power sales around from were continue of rose than products market accelerate the a of quarter, in manage providers for bit our offering in and market that in cable less array future. of to from in as finally as sales X% about spending.

for we roughly expect broadband consumers and the muted in expect around the the broadband for the full look from market world who and level we our delivering now to our outlook these support at voice forward prior levels, year modest of the offering market this expanded our and data, year to video strength be and the confident position, For of the a as we're product customers our in we businesses. and benefits still to are realizing third same increase more in year. Despite XXXX the sales quarter sales of

execute position first distinct summary, say strengthening with our the only with presence, to increasing Amphenol's direct financial effective and advantages; as extremely Amphenol leading quarter the of while company's worldwide a extremely of continued diverse and can markets, organization just of performance. company's that has our and our our reflection across just highly agile technology, So market and broad superior half pleased team. expanding a competitive we're and an second I entire the XXXX entrepreneurial customers cost management in position array successful well program, extraordinarily strong flexible lean performance is structure, a our acquisition in

full Turning demand is while geopolitics. there particular our the and the overall for the and environment year; still strong related to outlook and are third trade quarter uncertainties, in to

So changes assuming the economic and geopolitical based significant current constant quarter and year the we exchange no now third in and to full environment expect results. rates, on XXXX the following

third diluted billion quarter range anticipate prior in sales adjusted respectively. year to billion, the adjusted and in to XX% XX% the For and $X.XX XX% do to we of the of this range well of $X.XX; EPS as diluted the to increase $X.XXX versus X% EPS represents as sales $X.XX

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

X% strong in to strengthened and outstanding EPS build organic first ability XXXX beyond. and X%, strong guidance in to significant we'd very as our our to and year on tell quarter growth XX% year X%, quarter adjusted I to in diluted increase For and the many very very as be. over full as company's from now to guidance our into capitalize XX% by new prior outlook take can sales particular, encouraged management operator, the the And team may in our of you to questions well by to X%. position of happy second growth outlook, there XX% any coming upon guidance of the I'm represents performance also these original new to the continuing half organic that with market year opportunities of growth well And second the represents full that sales and But we're the X% of half confident XX% this XXXX. our the results great grow is this and financial growth organic that be now delivering second of just as this results X% to while respectively

Operator

question-and-answer The now Certainly. will period begin.

Sachs. Our is Delaney line question of coming Mark first Goldman Mr. from the of

Mark Delaney

First better outlook. about bit thoughts you understand And shifts any your us customers on you're how question a specifically, your conversations so more alluded to about with the you thinking Adam it your going in and are help tariffs; plants for there? Amphenol has much in there the from may in China that is your contemplating can any how you China; sites given manufacturing how many U.S. your help Amphenol that reallocation and of understand doing? into shipments be you're of us Can

Adam Norwitt

I obviously big story mean been has news this a here.

and so of minimal far is, and things just we these of team that agility face I'm of we deal about we look environment. talked very impact many over result it it think world and so I I'm is a the look looks thing changing tariffs -- also so which the our management a outlook on no quarter this outlook for at our our have lean team and pleased quite the the it like in at the along last And at extensively, the just team has just business, that's with control, when our one situation. mean with what proactively going react around pleased to Amphenol come we're the this one to that says I into and really

and that understanding fantastic the that to one what through to same costs first whole minimizing we're through in gets that to way passed surcharges conversations not then and passed distributors pricing, steps of takes that. there customers worked tariffs and things; job that really to we ensure approaches tactics it of doing first sure is our different time what we're be then is our the it's certainly list that and and you those to able to make of of to the just threatened we even the passed products be the those number process those extremely to so. Now impact partners circumstances been whether of being -- again, details a do I have to of of particular? you communicative to does different over transparent is of upon different extremely just mean is into host different throughout those is the tariffs has this you and sometimes imagine to to and job team that mean that mitigate mean that mitigating. that or fact markets the number look with think to what be the has in continue we've just take on let your communicating mitigate those can be don't can to and can -- where mitigate this customers, products a from team imagine this, at at reaction extent on whole taking we done best be has number a one-size with I a with doing passed and the customers. customers other towards whatever and order harm is all our a whatever but fabulous I long said one number to alluded to be our to of you're the we're whatever tailor-made world team facilities cause on that in done And customers needs fabulous the can with be of of things. you that I that And thereby one that the tariffs dealing need of to conversations there a sell -- supporting the job well, to think be situation I a those can not to to we the the but be while the of approach and various customers of to that passing very And around much and just needs be done quickly tariffs of pivoting our not go on those has long,

and and our China flexibility like approach that always Now an do our certain tariffs; course do But know, to well to our position manufacturing things of where I say by is, in -- are emphasizes know approach been impacted localization. position. will thing relative company very it import is the any China from regardless that other we in has you we of you other that

we making products that the sure where we're best and we flexible And time to something facilities it change that something so to can going sell in can, are we region that going in that make the reasonable we if change make need are the to we're always period. we that such a those in

And we customers whatever a but long and free reflection in industries so it this industries Look, global but doesn't not that just world alone and our deal a will global our industry free we're lived a in it it is one which the to is are done a I of far. effectively we that is of we for we we those have electronics and are very China electronics will that are, sure position we make is here support make anything all the positive lending most big that ultimately these we around certainly process that that's we the with aggressively we're true, markets. believers believe and continue experiment mean have well locked industry voice local hopeful global that so let into trade to trade to sure company say in as and the as a and tariffs in strong very which is we're

Mark Delaney

the Thank Follow-up what leverage we through which so -- I'm the to SG&A think extent contributed as margin; question sustained? you nice year about -- record leverage just SG&A of this you. move curious and EBIT think be to I the how should some SG&A can on

Craig Lampo

In -- just we quarter had results the generating XX.X% certainly in margins quarter. a excited just we're the companies profitability and very in are the record with operating overall and the happy regards SG&A to

they don't and high to we we perspective, performance they their or profitability levers As on operating certainly do our within you know, ourselves have -- our for we margin gross don't pull regardless SG&A's at bars look specifically measure them, ultimately of to from whatever an what operating a measure we margin operations margin do set operations -- really perspective, reach at look need to that businesses. those

business imagine levels higher what to SG&A that's certain operations gross and You they our gross that and same structure the that regards may margin business. of doesn't within can certain margins lower have SG&A business their having they that have depending have run because on the levels of to need also in and every SG&A

look is and So I going from SG&A the very would point our typical the our the into quarter, with actually the more margins so think you kind unusual at our would of if at sales the happy kind kind to second an quarter, we're performance, say day very of growth into would from growth kind versus is SG&A specific happy regards point that end ultimately conversion with the of the that with out that but operating nothing is I sequential much aspect had rate in -- we again, we're actually view that have so we out that we and levels generally that of of SG&A a I perspective. to -- rate second not in there say I

Operator

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

Amit Daryanani

you think could flow I cash of there. one-time has I the some year, of XX% been first Craig, walk free for conversion payments under rate -- is just think the tax the half dynamics the there through

there expect to back as into takes you and puts some improve we Just and the half conversion back XX% you high this get done? the have then that should traditionally to

Craig Lampo

tax to mention higher drive did annual achieved we and you is level in and to about achieve a we past than over our I do net at expect certainly as that. And to this know, prepared our continue in and goal have our talked million cash related of was income related excluding the income quarter company occurred, that above our was did make above it reform targeted payments over in and recently in XXX%, quarter actually flow was -- that actually. during the levels our tax the it -- this well levels cash net our $XX years my income As to that's remarks, we've about these operating the operating flow this many the payments

the say in would expect million we're have in as that more the the that level paid strong into -- contribution in of around we have accelerated repatriations foreign flow a the say I year do now was and first cash in the these over are in we of overseas would future that full of addition that year had taking cash in relates of targeted $XX during because to non-recurring withholding pension the account of to typically the hired we our bringing the and I first levels to higher would So quarter other it back the fashion. that just expect some taxes half, we then operating

range very would the the say in I during that that flow it operating range, the little and performance do last expect we're and about higher little to the level quarter cash flow talk So, the slightly support end talk a also and a kind would we had mention at and though do we're X% the talk first again, needed these rates capital growth of capital free But higher working maybe we're our about with spending cash as X% of typically about little in bit mentioned, did that to we when operating a in we higher within of at half certainly have above. we our have this quarter, bit to we bit year and comes actually -- quarter range certainly bit top achieving; of have of flow the kind capital we cash little past -- this -- during I and higher very we -- considering pleased a this year. the ultimately to level expenditures again expect

one had impact. of areas free So if slight that look our that essentially cash a at you the I think flow it's probably

XXXX as be be normal I we about of -- to support expenditures we maybe to think future this strength programs these much to would drive the wouldn't typically I at testament that that would continue think believe we're range But a fact our therefore in the higher in strong would that free show but continue beyond talk middle be been usually of say flow strong. higher growth seeing. cash the have we've of strong is that to that and I level able again, capital we're we've that and and we I support really of -- don't past -- company the the typical more that the to -- that and really our the expect I of of won that, level, kind that though

Amit Daryanani

and good you organic could last I industrial growth. just I I really quarters for guess mid-teens the had And the if talked XXXX segment; -- then it you've some follow-up several think growth about

in content that's do think you you that in back guys that growth have growth step levels had you seems mid-teens something and share is be you or to in games that pickup the industrial the driving term was and If driving And market it unique longer spend have? see sustained this; here? what an 'XX there in 'XX or uptick -- is more

Adam Norwitt

know I remarks you about broad just in year my but that I necessarily XXXX is mentioned based. the don't I can this so growth -- mean I Well, XXXX tell going comment we're on I'm not prepared to as very

so that I but drilling think heavy and things across I ability to of electronics electronics environment whether because continue is have we it it to gotten is that good new one not those on market, these have macro is if in trend adopting layered tends of speed an whole environments; we that whether advanced those the say new to areas; across at trend, there our battery the not is so electronics the be equipment, an of high that functions the we kind and rate package good is is is the last mean to and participate, a capability you're overall, and in about seen an things. all And there is trucks, the trains, environment, macro to where somewhat just adopt trend harsh those on very areas has But And reason what is I products that think Clearly, enable delicate of is change. industrial a that that to these the it two adoption complex a that on going and of is, impact think and of that you think into technology, for putting a high that space. a see markets may environment industrial tries of new across factory medical broadly, in customers increasing to Whether overall slow, much think I pace stronger, that all electronics with in are positive trend you of industrial. accelerating in sort usually is real new think ability those is name increasing automation train, packaging think oil to tend -- environment into the I you really is about is electronic I part hospitable and our electronics gas so drive industrial performance here. but

surprised anything is the that, look just very forward the mean going to if heavy in pretty know, or all it's industrial think the that to lot put in of to lot would for else this that there electronics these adoption macro the XXXX are if I immune is problems dynamic continue electronics end participate as future? the long-term lug of different to along a with what industrial obviously you're trend solving because in doesn't to for very customers. high market. functionalities not but continuing you value that's It's thought broad traditionally we -- that a a irrigation, Now, in about is as I creating you it equipment But be when of around. just is that goes tracking is trucks whether to electronics whether on being precision of targeted very, it's the doing, and of that

Operator

question Our from Bank the of Mohan is Wamsi coming of of next line America.

Wamsi Mohan

half? of And you you outlook -- of have enough as clearly in actually I up XX market the you you -- market us improvement? and on that how increased share do days volatility in broader significantly that we design strength allocation guess see change clarity or firmed see the sense Can last what history in give mobile layers you know, sense Adam, can year. devices wins of the a a across give here for your some some back us

Adam Norwitt

those here of has little talked environment. customers which given it is the confidence second say so you've in of would that outlook quarter I strengthening we've our as all would favorable thus meaningful I a last in is half when it of clarity the you that best start or about get us all mobile to the strength mobile increase you when seen a more of bit is design-ins, in expecting, whether action into we all on little just your saw to have more that also relatively guess a the the perspective and closer shares been the devices. bit a to put a and get are volume you the the bit Well, -- way allocated to those the we a devices market, I things is that described guess

significant in then think not about we quarter two, on. it had sequential I half, -- here strong wouldn't programs quarter what bit half, Now terms about let some quite some that I be see hard market days say second quarter. see double half. going to the or that in predict was even a second view that remains have in still performance half Obviously, a the as across of current takes the within will a basis our this it the wouldn't the increase would month but increase growth we here a even on recall, but we're the fourth a we necessarily significant see see from to in we as expect my you first such a is magnified year we'd the very as and XX to last in second that third alone maybe bit quarter the so third be you'd -- -- always year; we and the last mean be overlay a remarks it I magnified second asking mentioned as the second little based talked we're had in and close a ultimately QX, second to there QX between third market it as is existing don't again, we guidance, year QX in what first a I going second that increase first I to of to the dynamic my is of cadence that, quarter, significant what guess the was QX; quarter half And I to see the stronger And prepared on I between we at the of and we half in quite that little and you're as would going percentage have least think very in half that as saw usual half. growth the working of on from be away I in to

Wamsi Mohan

like more enough of to players problem to And then, capacitors, quarter? start acute relative Is [ph] component of revenue call are heard a you out becoming MLCC just mean availability. seeing any misses impact have that that don't last customers your whoever given MS of shortages I because some some components the they

Adam Norwitt

it's talked to one even with certain to I most we mentioned the but these had it there had strong -- that's real amidst MLCC, impact growth reported results that had and obviously in of or very widely guess it very ability to more that very the probably different customers these is we that industry meaningful how work lot something strong the our desire a question, be I to industry that certain our a components, our year broad or situation had a a their is not going had of through. mean people people been seems hopefully it's no we do once either for had and I chasing the far. or there. look, here so very see being product, while least our material things that at that think because but on access seen, than mean, about in and ability advanced I facing to ship on demand customer's our of we sophisticated out there problems they're chase products, meaningful the components use even any products. customers and some are with we dealing about nothing has for that's we lot demand probably a we way very of a we've ago a this anecdotes things meaningful, people on mean our impact Has in have have things had but have to I impact are

Operator

from line coming of the of Our next Longbow Research. question Harrison is Shawn

Shawn Harrison

some having seeing of going of seen past don't of I but your but consistently seen with sales the your of the occurring? past orders current other -- covering you thinking kind lead competitors results? in drop We why maybe almost work as three as I'm I've quarter, to know, Adam, macro to upside over factors guys, know perspective think are over quarters. wondering are to that's four there don't date where in the we've current XX at kind And back probably I'm years on problems I myself you're quarter and upside times is strong what's or many trends

Adam Norwitt

performance, team winning the say probably say at years really I ability gives I years our stressed Look, that technologies reactivity, would our the those mean it's technology, environment of diverse mean with position position of actually customers bet ultimately of that, each great are Amphenolian customers share. than XX and with we so a who a a both out a performance bit is they basis because other of I dating about said our with comparative to winning a customers think any that there I our technologies also such strong us Yes, really the look and you in availability shot market strength in a us Wamsi shortages responding our more long strong is than the the as breadth need asked past. reactivity positive their to we're developed today we've advanced think the -- time, I and about with company with so bit has deal of when array put we've customers that that we're when across fair momentum been a really just had would macro on I'm XX the you typical I have little little the more here. but And that Shawn, of things can of that strong

high on necessarily to capitalize we products cost; about we And yes, can we the that from in can think just get to right capacity, you, the that so a overall, and them overall can to some I team if the at positive competitors company image of doing quickly point upside. can that can at we this means at we're taking things particularly and say have the I step any of wouldn't us to up shift we the when right a specifics quality necessary allowed offering to available that for good but whether ramp business who least job, ship; we that can't -- customers that's we're has technology

Shawn Harrison

XG disconnect market than lie? follow-up the from bullish and they the seemed week, you XG And little business where quarter? I -- upside on to so are if the wondering we on information maybe then a mobile geographically last may, if the may maybe more dynamic, this a if just As Ericsson the bit where listen was

Adam Norwitt

kind a systems we I ready; mobile as see that designing lot XG there the to But mean those in think magnitude that launched are a I be customers of decent a And growth we gets Shawn our would of I quarter. we it quite know we mean that are. position there I or going we're that customers that about networks being built, see XG North those lot there got do; don't very ultimately be in than flushed was big don't well. by next-generation is more starting of that probably I this can there broadly is and from being -- mobile think a no Geographically build year, really I to being said what what meaningful a you out, are now is is we of I and significant in that be don't Look, tail know the better it, see networks test big and to think is lot out infrastructure focused expect build happened. but say but have is when right to functionalities going networks outs we about are very anything we this America being -- happen I to and we don't the discussions for sites of around there being build and here, Ericsson's where that see it but discussions and there more is second work that our going broad the say what we not said, a results be ultimately with we this -- waged significant had quarter XG XG, as those a growth mobile to a year. first dog as to lot will see networks than work that's year, doubt but meaningful of that in see on of us

Now out we we -- the come year all the that we with say, of when positive networks than this I come -- being entered second of view said, it mobile year. to mean more as I was a we have than into quarter certainly

able outlook think particular And somewhat quarter, digits performance, year. for very double the we're basis so, we're with the that organically to full grew our pleased we're upgrade and pleased year-over-year we in second on a in I the

of when that we those forward good and see -- the investments really substance the feel there we we're position long-term to about the substance think comes, we'll into it. of for I we confident the So look XG real be have positioned

Operator

Our the of Steven Fox Cross Research. line next of coming question is from

Steve Fox

of First of of about larger the directly of of just on all, right growth competitive XX organic points sort address Adam, now. your competitors few curious a but these you outperformance; could you some I is your touched some was if

is have curious there these that offset of maybe highlight that? you secondly, we're that going lot three tariffs if leading or was two things are a to about would was prices an with and to more that I then as the but And So we're sort regard some distribution manage of in to tariffs to up the delicately I where limit little a you was curious maybe Thanks. than whether on understanding? hearing

Adam Norwitt

I to going mean the companies are to organization. I industry speak fine speak look, all I'm to in not will but which others our

mean that is in means times there that it today to when a customers in reactivity; reacting in up they the economy the go critical have couple greatest and really current offering -- acceleration we've new a And we I time to that's the depth when world customer, then you a office I I we generation, made look around in organization can to and flip reasons developments at or to it day-out. the think it it team I in to company, difficult technology technology at the making area they you It mean as what are approach consumers you product timely home they that react the is and better say I getting to I investments has agility our are in that this mentioned the mean every they with very people enable I that of really ability have businesses fashion, do; the behalf last the in mean? the need. guess truly I you what reactivity the a a and the bottom-line, better mean one in to I on the regardless good -- just we the premium think at terms our the day-in so work, improving And applications to that of in morning, to levels core of of believe when product one the think the reactivity what mousetrap developments they that really call great perform have are customers. in needs, they higher or put to our mean bad I of night over means XXX performance of accelerate of of make is this mousetraps for so the I on ultimately sometimes on be get the does do. is developed leave electronics lot they they our demanding. that that is the like react the busy customer strides the real-time right but job systems and managers doing customers technology a just these head and having And would lot reacting breadth when to there the decade there exactly is that before, of for here assets on environment. just quickly the wake able the what general of that they to the that's revolution so goes that our what is reactivity that are on when to changing is customers a just of ultimately Amphenol. product

something market or that to to that that lot and product bit that? What that what think each what say and lot monolithic think of we can mean mean fashion little same a I I number, of has as to burden that products, earlier, on I will where much is are nature the I on and those I amount fabulous that say single regulatory -- there all from, -- talk uniquely those are each them and by make but you the tell the that products to doing of a are we're what it's soapbox think those by and limits delicate relates instance some part part to a for the and a the of more and measures. answer to our us low other the are difficult I distribution you about ultimately And unduly very do as products with helps a bear, in I traditionally dealing are there number application your the And uniquely effort product not up depends of not minute what I mean in is with team tariffs, can question this part are able to business very is tariffs whether you're measures customer absorb where with but and spent these customers -- take really are there a I sure discussion no distributors. the on bear, limits mitigate is can general which But mentioned time enormous you by very the really the lot omnibus those look, I here mean towards one it on mean almost to flexible tailor as mitigation without your is tariffs. that by movable Now a not on punished burden, through will whether other thing that because customers customer, are are pass rather the about taking channel and in tariffs. are just really light. what market our be a of approach the it regulatory of in or the transparency very, not, first an will themselves time time limits is would thing. these the the have that different, team job doing pricing those is an that manage question difficult ability a in in you spent, there -- nature spend of tariffs our where -- I products procured of a enormous that on a application approach thing, are get by not

Operator

Sherri question of Bank. Our next Scribner Deutsche line is from coming the of

Sherri Scribner

bit economic hoping a strong or a be markets positive you you that stronger coming in some the you're Amphenol's year. five was of I as that better your cycle out the that strength eight coming parse is share, feel get of is, we're it that upside that to particular is from do to trying guess for as upside guided from from to the ability Adam, clearly market guys take the in those in segments those and I perspective to markets? your do in seeing being thoughts

Adam Norwitt

that's answer depends of many Look, sort the answer Amphenol, say I at it think we really always is does and it depend. to the things that

that's budgets and the increasing that really year, is don't very really the the think we I strong. mean that what those market expecting I month electronics I the clearly -- of we the the and in are I are in I mid-teens strong, but a participation like you I military growth markets military do adoption think at that of some in that our take electronics something for a are now kind of just outperforming military just even that market; say strength, by mean think military is look of adoption organic would market

performance of I yes the to very Amphenol. in say could you hospitable least, you strong to want so a guess some that in military I And but I each it have market macro some of been the also -- that have us. across case just think through them them, that mean of market don't is be at you more strength all as referred let go specific you five I those a there said markets to to combination is but of unique

Sherri Scribner

think unit that the benefits And more seeing driven guess or the from you into some that being in number a then suppliers from ASPs by seeing digging market strength I the gains more share is Do is know in complex they're it I mobile of is we've half that market; higher of heard that more back and that some it you're products. growth? or devices

Adam Norwitt

through commoditized have on I mobile more two the the we're to as for that and seeing place things that, I that a kind just more in to performance Well, and trying are of advance said to their extent that successful extent as that I all saying think for be premium for to of a premium we've they that continues, and there happens, products of push this of And certain for many on get next-generation really higher some seen the I to the about just all ultimately either many, in I that doubt embedded see think hardware innovations complexity to into market I functionality we us commoditized more technologies to trend the think that we've and to more a been for devices I more generations think it the be many that that products. them. higher years can is host drive the one And that hardware signals -- we've packages of combination becomes mobile customers becomes again software be year. not the think where that design our good becoming can it consistent years a seen software. happen, participate that within hardware, think I device are is believe there of the mean smaller of we've of and singles; themselves, to that ultimately or bandwidth devices and it and a going it's in mean we're no hosts to all through into can mobile many, with them, corollary performance, going is we their going can

Operator

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

Deepa Raghavan

single organic the Is low your in And especially continues growth within headwinds? expected moderation and WOTP just like expectations Looks that to there auto, Europe did digits automotive is high double correct? within second in you half digit. look backlog any half curious, with into as you first be

Adam Norwitt

I -- mean I is about think in our we've talked what market the overall outlook the for automotive mid-teens.

year of our but been would grew low the think organic I -- let qualify growth be in it's what double say we so guess by quarter; specifically be think for second different we the organically, than I say. I digits don't to lowest much we strong so XX% digits, didn't very double the here in would XX% it me expect the quarter as

last very see look only we is of the would end benefit year. second of thing year fourth the I the a I half but we know bit the basis don't slowdown in be of organic maybe the the the pretty had so the second necessarily automotive business year much across a an automotive, little from at our quarter, less end the in an guess be towards will that we -- As acquisition that for into mean half; acquisition I consistent

Deepa Raghavan

first the downdraft been like half, that that's to but of to taken strong you've buybacks, benefit you do obviously. the Share in here had pretty looks borrow

So And share be that expect regards is, that the we you repatriation? as or juice with where question cash cash are should down from repatriated to you. you will mostly debt continue repatriate to to pay the to buybacks Thank here? used

Craig Lampo

take share Yes, the the number certainly more market cash that first And a in price particular consideration; into a factors there certainly and to we stock one certainly as other regards is quarterly of more buybacks needs less seen bit may we I well period, then share that. particular as the period of being half. think and the at we in looking the have in shares or little that we're purchase buyback

reform to we half the based level half; first I it that repatriation, of significant fact of it any repatriate a did half In continue second higher what when first lot a half the in started a be the we've I by in it regards back necessarily our than than going the necessarily would based more we buybacks, perspective and and the as where on change the that the just the mentioned again to mentioned. an sense done, from quite first from -- and perspective half buybacks less from all other makes of you As majority what to wouldn't on or brought is repatriate the expect where really cash a first a same bit. repatriation first do certainly but the be the in And that wouldn't also In factors we'll a then that to other to the we'll repurchase signal probably than half to depends see second will the the in forward cash. driven the regards In we I which again makes much actually we the amount second the tax do activity with needs quarter in regards has price foreign half we considerations. we seems will think activities, M&A becoming addition from that effective quite will I say to sense market really repatriation significant tax be.

that advance, So something certainly make more don't basis. it's it's really we quarter decision kind quarter by really of [indiscernible] on the on a

Operator

Our next of Stein William line the of question coming is SunTrust. from

William Stein

if managed We've of comment inflating I industry of we you've anyone I costs else. commodity to remarks, -- the that but those sort I'm is this well probably mentioned and in could to particular trend My spoken give from to than a you would as your it dynamic you as comments and and continue channel. if creeping that clarifications to in understanding in the more the any contacts trend any another briefly There for tariffs particular through the and understanding on relates hearing ability company, that pass but nature lot expect could expectations think very -- you that on you. better about us wondered resins, taking or helpful. details price really prepared channel Thank of you're increases that the be your is sort

Adam Norwitt

mean magnified on basis I about in impact overall was of our bigger Sure. on commodity prepared a his think the is the really I cost that a see basis. to specific have where more have costs continued business least segment cable what percent materials talked to and year-over-year Craig we at remarks

I think has commodities, bit out some the balances mixed on year the XX of this particular basis with days, totality, think the highs the a you maybe bit some been bit have metals some their a and Even a over from plastics. respect -- mean if it's precious the last very with maybe that the I little about of to I that of little a year-over-year it's bag, inflationary of of it's that in inflationary. in XX, dynamics talked a pulled course back

this doing to varying dynamics look and segment at is degrees with those everything the customers, based in something it can team impact least with and deal is is mitigate our there then so think with on of that market to to on whenever we we increases that that I time, customers to the commodity mitigate reasonable just that can't you the of that success all interconnect our they get see can price that usually extent facing. work you our do customers whether the ways pass are and to they

go primarily a and that's environment they that we down we bit when demand. had I are that relatively increases so environment you demand commodities don't than our see demand you've year-over-year our demand, bit our I we're years to little comes real on Will to balance amidst down margins we're on a what that inflationary customers, extent any saw XXXX. the that the not commodity in not the if driven and balanced you and frothy up little that end XXXX there but levels the commodities impact mean to a two speculation or environment seven up a expanding know end was I robust matters significant ago that that the us different or On go there disconnect profitability very in a allows commodities history but And extent for year-over-year seen in a a maybe we also real modestly look impact margins -- is we it environment is but financial ago pressure ago. environment, today, by is And go with a a performance is think quarter to environment. yet highest necessarily up think of But environment do to ultimately What go our demand a inflationary the so think where still robust pass balanced commodity quite healthy with ultimately have the that quarters little that while. a us those is whether basis, was metals, increases, the inflationary reaching of it right because to really basis are extent really you very plastics between at with are them that created now I around on well followed and company allows that all a a in bit it's in --

that think I So that that well see we aligned. to that's is and pretty and right matching if the us two now between really matters consistency the

William Stein

think the was operating on conversion good often as over do, this very had You line it XX%. quarter I you

acquisition -- Should we tends you're op think anticipate continued I category doing a margin to the on as we operating running a which above the line you're another long-term expansion go we sensor in to long-term is your think target, margin be accretive that. forward?

Adam Norwitt

actually term a step guess on like margin if would there's actually we some so think -- expect their But to had having than I rest the great guidance terms of look, average we in basis, but quite numbers a bit in would looked on point that company the nothing again, do we happy anything -- kind segment bit did we're results level a of second year, again a year function bit But of specific and I we that before do that you out certainly have achieve certainly the to there nice really and certainly a we to pretty or more see from perspective, something that them our above would of our some at Amphenol -- of terms the longer impact. we year margin what in in it we conversion if margins cable normal I not pressure expansion that conversion very in new above this of we little the can kind well you that, that committed see regards a little mentioned certainly profitability continue the but at target cost we half, don't numbers that. adopting optimistic of be still I implied little guide commodity here. And quarter related think to think philosophy of if you the aren't XX% are anything think acquisitions pressure ad converting overall we're some sequentially, mean -- other achieve, long-term significantly some not margin to to as on the deliver we'll so so them is addition the conversion still far I the of very above unusual but Yes, is; I with that; we towards expansion. to the from our

Operator

question of Suva Citi. Our from line Jim next is of coming the

Jim Suva

world think take time Adam; strategy us Does perspective? merging that you folding on tools or prefer for in then the for then they a you're situation those overtime? you separate? sensor how now quick profitability in help operating you we should see kind whatever And and in ask at that sensors I'll each of from several of pleased you've Adam natural of more best-in-class like about others. area you starting out lot in acquisitions evolution? or Amphenol bring those Craig or connectors them the to financial sensor so One but them question the a integration and with a of and acquisitions; GE made subsequent or can of them segment at the order at? of you can a of the the as the same Do Do Is read you question world recent

Adam Norwitt

here. is businesses both made now acquired a company great business as ongoing I just first GE. and seeing are. saying And ago strategy To company take I a the you're I Maybe to sensor sensor that question in having progress the of now that half world tell organically, the I don't quarter. the first more number sensor first advanced acquired small from Sensors this we've time just correct so we we those this through well quite your total is were and we just pleased most offering mean sensor the question of you with I'll we we we've a that as years four than we since when in that acquired which sensors, acquisitions that Are within All acquisition I mean connector made of your that value recent mean certainly that is know. with our and merge which together? going the sensor-related interconnect our together

a of companies. cranny that into presence we diverse of the really and advantage the a nook have fabulous think every for electronics sensor markets I the industry just across array that's

those solutions Our customers ability sensor which ultimately package to need interconnect. work to and an with

have together times that range circuit total Internet got who so you connected technology the antennas extraordinary to great like proposition is of the like they've to which are connector, we're having in are product participating many unique customers that they And and some significant offering. one who trends and for with with lot integrated Sometimes product creates dealing quite choke times a there help really in proven customers they what sensors, them has and one and something those a I that fact have really devices and a products them course, to of the that be to not that offering just going and of antenna connectors; progress a an Things of to I addition and be interconnect explosion customers to got have seen to you the devices types with the of interconnect same, think connectors, to idea of ties issues the in of that I of we mean content within resolve. mean consolidated we of think can two we've include we where sensors when a this design and many the sensor, quite that take challenging great

sensors going our be are I think in wouldn't just are company really industry go industry is in I so that the that strategy and good for who doing plenty is for vice whether connectors our is companies in been for plenty whether so say. many in who think I so will be a company to far every and industry companies just very think far versa, successful -- to certainly room a strategy. is room that's offering, in but there is great of and mean and going of has to I So specialized there sensors the going this as in are to be be who connectors that who the I

Craig Lampo

an that In these company much the the profitability, just are aggregate revenue $XX perspective size. regards company the drag great well average different small, overall you to below at of of they they're profitability acquisitions not going the relatively have are -- -- from so to two million on either in annual know companies much not the average from but to a

above, on I us have don't lot with groups sometimes they they sometimes the and all about but find that sometimes levers things the are at is managers that really them of of wouldn't for level, we executing before, would that that future. and operation. we do there synergies of out acquisitions those having operations of and a as relates the of that going historically, something of the work we then and terms for for any think companies with makes think jobs acquiring that's We as any acquisitions changing impact and below, to come managers that. kind operations they other work forward. nature are the strategy push, don't a look in sense about they ultimately So ultimately are places profitability been talked pointed it the lot and do we to or profitability have that our things it responsible in We general it's general and and they really certainly in a great that And that -- but see our that ultimately

Operator

from of line next of the Our coming is Giordano question Cowen. Joe

Joseph Giordano

powerful think question can that quick of what I in recession Datacom; things seems specifically the of. -- on outlook the like in up what of kind most my kind the And trip transmission, of of there? it some bigger of picture; driving Just can shift the big the in is one data trends IT

So what should we -- can and it's potentially be if on structure to that the there? like lookout the change for underlying

Adam Norwitt

to environment which unbelievable, high-speed video company's and I IT from the customers. customers the position X.X Datacom think well trying when through online comes of is the think a of and and amount years to market driver we've data these in the data positive created amount the data and about as from strength segment the mean -- explode, just makes traffic, online through to and entails car it head of to year; that autonomous view autonomous a strong had traditional look mentioned then Datacom very that an IT that manage now strength of of for thought revolution we comes the all strength leading I that notably, continues over and this week, traffic a talked that outlooks we map your helping vehicles acquisition or earliest data. the of when market of this my you FCI at with. automotive drivers I data of have we of stages most these And of developed terms some they're are just explode, We've of that when of of creating flood knock-on number traffic from the that which think in, data few it's while and a megabytes of as a the it, how the they course kind it our talking where the of single you're our to about the applications really the effect that that and one of industry's automotive what data spin that time really you to I remarks been we're in organically growing going just I our is acquisitions prepared is that ago. of that day, here areas; driving a has we're market the from mean automotive which and and process being I long -- mean made mean the for very a talking number and which the in quarter that that's then most are perspective support terabytes whether in clearly creating we comes that's gaming industry petabytes a nascent gigabytes deal at products a obviously order about solutions I in new which very, continues of the but and data the car, still a not because whole small you're hearing

so data that trend something near-term of ultimately of think that I we're capitalizing on the And and is in that long-term. expansion the the

coming a did number market period not regardless still during no provider on to and I still I up don't get trip what towards a that I mean the there technologies that -- was what a able years spending nimble recession it, but the there the been have is to market of new our of answer. customers the mean, capitalize service important I mean need startup got -- the companies, well so decent doubt it's the is transform we've in can there doing providers, recall us look the of products. who I to of we we customers in up? that leading actually is -- know, think trip enough is look what's the up, where service we'll think pivoted And come always keep dislocations that overall But shape. able I lots products Now, imagine for can very knows we'll opportunities, I that Datacom if be to robust, remain IT and mean of those things who IT a about and it could order there be along things were you lot in and was time I because web will you in of what to dislocations that we right innovation, underfoot we our lots lots of think where approach to market you there market some were quickly that there are lots out change is Datacom pretty trip very of dynamic can really market, have big the IT

Joseph Giordano

in in auto your guidance, out terms of versus changes how side flush of that regionally of the growth, your terms in like can any kind forward played derivative other, On second out one the you regionally?

Adam Norwitt

We when and quarter mean the mean, really where strong then I I Asia than of was I North America. to Europe, quarters automotive Europe, had that of it, Asia. performance Asia mean if basis, on not we actually is whole now and virtually snapshot the actually a quarter look look the it less the less same at a across third that's the for bit at And business was space. around today I balance the than than is footprint a that team the bit and working have little broad regions, second achieved market the than really North used in American of we America in rest like market in third, our the across a third It's set. -- think I and be it when transformed actually that our half, a satisfying the each have just we automotive that more original organically in in and business, three more Europe I but is is here second in going -- think to two-thirds, really I North

outlook see what's regional I look don't you big as the any tell basis into necessarily wouldn't even our and the I we what a of don't we able I terms in or from half. mean basis, on differences imbedded regional regions we think In but the dislocations be a to guidance, second on big guide

Operator

question behalf Sara Lindon from coming last line Hettenbach Morgan Mr.Craig the of of of [ph] Stanley. on Our is

Unidentified Analyst

and little customers? bit then content in of moving looking you could those the of seeing production Just [ph] from you're experiencing forecasting, terms at content of what like gains you're what a your on broadly the into kind more the first auto part gross vehicle you forward dive seeing front, And increases? are content

Adam Norwitt

I mechanisms I outperforming the know than very think of be production do you to more quarter; overall new a reported. list keep electric wouldn't autonomous the either production is, near we or the everywhere organic are, engine that widely to XX% would and is is I number to I are as continue rate. of and our trend that transmissions -- what because is on the about seeing market, or growth [ph] grew we the And adoption telematics the the the the hybrid think that in exactly numbers And what mean everywhere efficient not clearly we I I see what navigation electronics numbers broadly, our will more lot but they tell talked organically to those safety content gain share automotive to new of systems. for don't want and systems, is guess content, really overall growing better and growth systems, just to phone all in in the semi-autonomous share car, you and the anywhere systems, quarter, the from able majority of I in even terms of percent are there everybody management, beginnings braking applications, in systems, drive industrial driving afternoon, early I

lot look fortune in really of mean that wheels on car a these applications -- I on a the good new our to into part and more data in I I of mean ride car; today different recently, had a to at is few you these continue. these with cars revolutions sure the of wheels that there us make advanced to centers and to it's them. every as products data allow are And job design we our participate just So center

Unidentified Analyst

continue expect primarily the Datacom; enterprise touching to And and then business like be of in to driving you sort on quickly thing? business need to would see forward or hyperscale your legacy growth can driven the IT

Adam Norwitt

or over more with -- we customers the that new OEM lot out growth few developments guess efforts but area coming advanced a sale legacy if we've of who wouldn't very of broad really of designing I Look, are marketing you there hyper them web lot to are continue but service our and last and years, on seen traditional the call technology see the still a I a equipment basis. look

web changing is not to So coming that I we'd guess we service the that by whether of at web guess advantage I of one important of suppose that more is new that if mean web forward wouldn't been data bit good shift away; a see look that are provider. OEMs, is earlier. we've end or the them little with -- think they day, I enterprises were functionalities are for see for in you they mean look continued definition I expanding regardless so equipment strength we that towards us But shift both, the deal go taking to just these service transfer that directly I service help really we going to providers more see I strive today, opportunities still continuing that don't what's providers discussed customers so is can something of rates as out care.

explosion sure thank very it's this through the manage Operator? upon, data Well, capitalize the it's you to industry leading have that develop traffic. you part totality, really in same our thank so much. to that products make help And in job and we those we're to regardless doing

Operator

proceed. have longer questions in We you queue, may no

Adam Norwitt

you thank look in good continuation fall. summer, And that wish very has we Thanks a forward today. appreciate the we again, I everybody again. speaking of Well, to and everybody everybody's much. time your to

Craig Lampo

Thank you.

Operator

attending Thank you for today's conference.

and the have would a you pin and enter you replay the hear nice number free like the to toll you the dial day. If Thank call of X-XXX-XXX-XXXX of may XXXX.

Amphenol (APH) 25 Jul 182018 Q2 Earnings call transcript