APH - Earnings call transcript Q4 2019

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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

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

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

As non-GAAP we information. refer further our may statements, make to a in refer reminder, for please in financial certain call this to so may disclosures release certain the relevant measures and press forward-looking

GAAP Sales XXXX. and $X.XX currencies diluted $X.XX closed and down in and fourth of were quarter adjusted fourth of The sales company of with the EPS respectively. in with to the local X% quarter U.S. X% compared dollars $X.XXX and billion

acquisitions an in both From U.S. impacts, quarter and in in X% were dollars standpoint, fourth up X%. both and sales local the organic Sequentially, organically. up currencies sales excluding and X% currency decreased

in the Breaking U.S. local year. segments, into our X% business, and Interconnect comprise dollars of fourth to quarter down our of was currencies down the compared XX% in sales, sales which two both last

in Cable which year. compared of X% Our local fourth U.S. down of comprised our remainder last currencies sales, the in to business, and was down dollars X% quarter the

comment sales trends were compared and dollars, market organically XXXX, further record down year U.S. currencies will up minutes. a was few by XXXX. full the local in Adam on to in billion, in For a $X.XXX which X% flat X%

and XX%, margin quarter million of XX.X% fourth $XXX in quarter quarter XX% XXXX. XXXX third fourth XXXX. the was Adjusted to in operating of Adjusted compared the of in operating the quarter income was the which for

XXXX interconnect of compared at XXXX, the fourth were the which segment, of a in XX% quarter to From margins in down was standpoint, the XX.X%. segment fourth quarter

This impact sales, the by downside the -- before operating normal company on reduction driven acquisitions, company average. conversion decline are of levels organic currently was as the profitability the below in well which primarily as at

the XXXX, fourth by XX%, product were driven down volume in of mix. In quarter margins which compared to primarily the and XX.X% segment, cable was

year operating was X% For the full income billion, from down adjusted XXXX, $X.XXX XXXX.

of for We XXXX, XX% the continue very especially operating to the environment. reached be demand company's achievement, proud full margin year which given the

performance operating in is adjust a continues commitment This team, profitability maximize market unit direct company's growth individual conditions and which of foster a entrepreneurial and in which any able and to each is to strength both culture, environment. thereby action-oriented performance of management result market appropriately the the high to

of has fostering committed operating careful this fully future. and strategies industry-leading companies, to driving to our both acquired achieved the our and of remains existing management the culture team performance and margins enhanced Through deployment the in

of for the quarter company's XX.X% quarter expense XXXX. quarter million for was compares effective of $XX adjusted million the XXXX, tax was $XX the Interest in the The year. fourth XX.X% rate fourth to quarter compared last to fourth in

tax the The tax to of the compared XX.X%, quarter as XXXX adjusted XXXX, was the fourth the XXXX. company's rate quarter for benefit tax tax charge effective of impact related the fourth with provisional income in also The the effective quarter associated both well adjusted rate as option fourth rate of In of finalization costs excess effective excludes excludes the the periods of Act. tax to exercises. for fourth stock GAAP the of acquisition-related XX% Tax quarter tax approximately effect

the quarter option tax XXXX. the offer compared XXXX. of The the the XX.X% tax the third tax stock associated effective in of related rate tender adjusted XX.X% acquisition-related as to tax For benefit impact with effect in excess associated well rate both debt with of the full year, costs effective and the costs as refinancing adjusted company's was excludes exercises,

Full charge GAAP tax to tax was year the to XXXX adjusted Act. in effective tax related XX.X% provisional rate XXXX company's effective The Tax rate the for the also XX.X% finalization excludes of compared XXXX. income

Adjusted fourth income adjusted strong quarter compared EPS in to by both $X.XX of fourth diluted XX% sales and quarter net for the a $X.XX fourth full in basis, EPS And On a $X.XX XXXX. declined to from quarter of XXXX. quarter in $X.XX the the year XXXX. of $X.XX was X% fourth diluted fourth of to quarter GAAP in XXXX declined the the

decrease EPS diluted GAAP XXXX year, And $X.XX. was from a X% decrease EPS adjusted diluted X% diluted GAAP full diluted $X.XX. of was a XXXX, XXXX $X.XX $X.XX, the from EPS For adjusted EPS of for

Orders full quarter the and a a billion were which be $X.XXX XXX% book-to-bill and income flow of ratio quarter record X.XX the of operations continues XXX% to $X.XXX of cash. for The for the in year X. resulted generator Cash in was adjusted $XXX an billion, million fourth to or net excellent company respectively. from

quarter managing of carefully These world XXXX. Net economic record and the uncertain management flow the was cash flow was net capital billion income excellent or of reflect and $X.XXX the respectively. work the team of XXX% results are adjusted and fourth spending, the working full our the full a in million capital year -- $XXX for in cash environment hard and free around XXX% for the

XX working range. XX were $XXX $X.X capital of million all days' end accounts payable were sales inventory, the days outstanding accounts $X.X And billion inventory normal payable and respectively, a our receivable December. and days, and From billion, at XX, respectively and within standpoint, days

$XX short-term exercise the acquisitions to and in million of million million on in and paper stock fund repurchased repay of from of of from cash stock under to investments cash, programs equivalents along of with $XXX million options acquisitions fund proceeds net cash million. approximately approximately and of of dividend payments capital $XX distributions translation flow $XX interest million primarily $XX our $XXX hand other facilities, $XX used of million of fund borrowings of operations $XXX of million non-controlled were The on $XX net commercial expenditures and million, company's

the quarter, shares $X repurchase the million XXX,XXX stock an stock X.X bringing or price average million. the repurchases at year of plan the to $XXX billion repurchased for shares During of $XXX total company under common

commercial billion. December under our At company's investments million XXst, million, held the majority programs. cash cash U.S. and short-term And of is U.S. issued and and company were which availability had year-end, of credit $X totaled The the the $XXX $XXX outside facilities euro under paper its at

the $X.X year financially million XXXX debt and this light EBITDA full a is billion, and respectively. fourth full was uncertainty quarter XXst net company In the the strong Total was was the $X of The adjusted in December year $XXX global across debt billion and at and $X.X continued especially for summary markets. quarter for billion.

an and I it Adam the who And trends. provide on will overview now business of to over current comment turn will

Adam Norwitt

you XXXX Well, Happy to too to of I for much Year. call all and here hope wish the our a decade welcome it's New Craig, thank very not to the in on and new of you call first late everybody me

first discuss achievements trends I'll highlight Craig and As going the for to then course end time XXXX. the our across of to we'll then And fourth And make markets. quarter and few the full the and XXXX. moments I'll quarter I'm for at of on some year for questions. some here of served progress our our some reserve in the a full spend finally year outlook comments some our mentioned

sales in in high of results both an economy. exceeded of uncertainty we in the fourth the than global were end our the stronger Our And EPS. quarter and environment guidance that's despite expected as adjusted ongoing

down were and $X.XXX and networks by was On in down mobile were by devices Craig X% markets. X% X% that and Sales largely but an currencies driven sales in billion. basis significant mobile local organic U.S. described, as by the dollars reductions in the reached

strong really in orders to the adjusted excellent strongly $X.X of the in of X.XX booked company decline the the our book-to-bill reflection a in quality earnings. up The of XX% and flow held $XXX billion quarter, company margins that the cash reaching of very company's sales in another represented million and operating Despite quarter the X. quarter operating generated in

I proud Amphenol I remain just team. to say have very the of

of once very driving continue superior dynamic to the operating a well agility while all quarter. quarter in performance organization environment this amidst entrepreneurial economic as again perform reflect we results discipline and Our our the

in India million. several we Also last EXA announce days provider just that a sales the approximately based high the acquisition in of of very Thermometrics. technology temperature of pleased $XX with annual to closed EXA is sensors Bangalore,

offering. company, is become EXA pillar overall manufacturing our sensor relatively offering complement sensor to still our core Amphenol's interconnect of excellent sensor an EXA footprint overall while to small growing products, the company India. of a represents have and a portfolio our expands And which strengthens

will team our this great program welcome the confident remain very we As outstanding family, continue to new Amphenol for value to that create we Amphenol. acquisition

execute new successfully our family for company. upon and the remains competitive Our advantage core bring ability acquisitions to identify these companies and a into

last markets declines in we early in our let make year Amidst a successful XXXX. have Now sales organic just many was for several year, discussed as we levels. about full significant very the well as it despite demand in the other are comments in surpassed global the of economy couple challenges mobile And to just that XXXX year pleased moderations the a me devices in XXXX, market Amphenol.

$X.X enabled reached and operating execution excellent this share Our achieve $X.X per to confirmations importantly, very of margins flow which strong company's full capital adjusted earnings And our of free of and XX%. us record working again billion of year operating management. of the disciplined cash -- operating full billion level profitability superior are both together with year generated we adjusted once And respectively diluted $X.XX.

Amphenol created XGiga year. added markets. company our array Industries, broad which and family Richter, Bernd included the with of Aorora, technologies Copec, Charles great expanded value position the to across GJM, the XXXX finally Cablescan nine and SSI, a new acquisition program in companies CONEC, acquisitions in for These Our

company's These leaders already bench We're deepen joined the future world. new Amphenolians expanded acquisitions represent of these excited performance, have platforms the them organization. as that individuals Amphenol the particular outstanding for we around of because talented the in and that our strong call

dividend electronics in mission the million program, we over by is under our to long-term the our shares our Amphenol's be quarterly XXXX, back deployed In addition buyback X%. by of X.X further capital revolution. also enabler while increasing buying share

together electronics all the benefits diversified with entrepreneurial our we our of has efforts position with program, industry. of many end customers Through have resulted acquisition the of development our in the organization, the our markets. of a array segments strengthening the This broadening expanded company's relationships Amphenol's of organic across across

And entrepreneurial can we which very drive was highly agile we overall market long-term. the while that performance management strength in superior our team confident the from further is have uncertain, environment XXXX built into

that note just remains asset our and continue for in very to trends broad company's market we high-value and the than represented year XX% real No served end our diversification single turning markets. would balanced across the market more the end Now, that to sales. company. our progress of be I pleased a

impact of the end all And also the we industry. diversification volatility electronics leading believe across may technologies of of this exposing arise markets, the while mitigates to they individual us the wherever

X% Now, the fourth in by of the turning applications. with quarter, represented that On Sales year in the strongly particular, our vehicles, a the quarter segments XXXX. in typically XX% strong all the essentially sales for in grew from given again the a sales of performance across seen. greater-than-expected growth XX% market military airframe prior to including the market by XX% very and first very we've sequential increasing driven sales basis, military rotorcraft, seasonality normal by and fourth market, military increased military full year quarter our fourth

outstanding virtually the an military U.S. year sales For XX% pleased grew reflecting XXXX, all by segments the our dollars that market. XX% strength full across organically, of and we're broad-based very in

of years broad performance Our military capacity customers XXXX the our of their our in market a worked position, reflection our increasing the is can technology of that across just many this has tell hard organization superior while working efforts. for you segments I of all in to important results so market. serve great the strengthen to And

military by that execute modern ensuring environment, the supporting our continues many Given this required position technologies on for spending solidify by hardware. next-generation leadership military the our that ongoing favorable to team increased we are demand

the sales quarter ahead, quarter achieve sales decrease XXXX. growth expect our to mid top single-digit year the fourth from in sales high to full And slightly these Looking we we XXXX, for strong first of already on expect from levels. to levels

as quarter market Turning overall to stronger-than-anticipated the demand represented the increased to sales that both market, fourth quarter a manufacturers XX% year by commercial of robust. the aircraft in fourth X% our of air in continued and the from XXXX. sales And full be for commercial

from strong a third quarter, Sequentially, also our very the X% performance. sales by increased

the we pleased on benefited our of XX% new sales grew design-ins from that by full aircraft. year products broad next-generation we're For XXXX, interconnect our as

XXXX, sequential from into levels first Looking moderation we a in do sales the in quarter. these expect

For expect sales new onto remain by sales the increased widely roughly one is delays. full year, to offset as some production impact level we from jet at XXXX's program's platforms reported

Regardless we aircraft a position platforms company's for airplanes. across remain for look systems XXXX, of many array this position And that strong come. outlook benefiting by technology from to of more we muted and into that are integrated years those the wide forward to next-generation encouraged

prior grew contributions a from sales the driven quarter full XX% the our for past year our fourth in the completed year, in Sales fourth by XX% industrial quarter The year. the acquisitions represented XXXX. from in stronger-than-expected by industrial bit market sales of X% our and largely of the over

organic an in in than medical moderation by in Europe. segments X% by X% alternative moderations reduced overall energy, basis quarter the sales the a in from the declined market reflecting actually continued more industrial as of market. other particular basis, by was On sequential in third instrumentation, On growth sales offset and industrial

pleased For X% moderations as the offset organically year industrial factory position grew broad XXXX, and oil the rail industrial in by X% were by of industrial growth automation, remain in in worldwide sales the market. and medical, gas the segments company's down other the were We U.S. and market. dollars full market in transit mass by with very in

within while market. And innovations, developed of industrial uncertain strengthened very organic added overall a in progressed, across several our overall range global outstanding array as year broad we acquisitions, acquisition program, both Through our XXXX the segments increasingly well became a the diversified as we've of which exciting environment position. our products the as

realizing forward We're benefits come. proud of years to efforts our and in many look to the industrial for this the success from market

quarter decrease And uncertain XXXX, for growth Europe. from as Looking be as into full from first XXXX, benefit expect sales a levels these the as sales single-digit we we to well our low organic in in growth to efforts. continue realize slight to we as demand continues acquisitions, the anticipate particularly year our

market were our dollars revenues growing in expected local of automotive year. in quarter The stronger than represented the of in currency we driven had contributions for acquisitions sales the quarter U.S. into and in and full coming the XX% X% year. Sales by sales our with from the XX% XX% our the earlier by completed

prior increased On increased from Sequentially, automotive an applications. several as year were launches. organic by volumes X% vehicle new sales fourth program slowing from products as in our benefited basis the of vehicle sales into quarter electronics we flat offset new sales sold

grew local slowing array overall by organically sales our U.S. market. For benefits the as into as the worldwide offset in market by the down dollars of X% new full of broad X% automotive of next-generation our by the reflecting our applications in X% acquisitions and XXXX, automotive but were the products year well in currency,

to continue through auto the organically long-term interconnect, consistent our and expanding from electronics a of acquisitions by wide array range our enable products sensor of vehicles a We and range of benefit onboard both to antenna world. across around manufacturers and diversified of made strategy

for these for automotive solutions future. XXXX, for of first the the increase expect while growth the market. quarter into into confident our low automotive moderate we single-digit a sales XXXX, we're overall full that uncertain, range to positions continued And slightly sales market from we in us And levels. expect broadened high-technology the remains Looking year the

sales our the market and our XX% sales for quarter making quarter third the XX% from in satisfy from increased full the to sequentially smartphones Sales X% devices in demand tablets. the well and into market the XXXX. coming extremely as represented of The devices mobile our expectations year exceeded executed team both our of customers mobile growing quarter fourth

by had down XX%, XXXX. year in quarter fourth had especially fourth prior than which sales strong better had of quarter, the was very of light in to Compared the were expected but we we

by in mobile release, both the sales XXXX, fourth by to were in designs changes quarter the smartphone full due our sales market architectural the we content extensively certain product and of year the in quarter driven And year the for first For and as at devices full earnings time discussed available reduction decreased XX%. really our shifts models. of

our the always We're expectations device pleased reduction a XX% market. that for to team an great the full approximately face testament of outperformed the an revised our continued previously team's agility volatile in of mobile year,

XX%. sequential the with full first to the year seasonal Looking XXXX in decline be normal expect mobile we for a anticipate sales we approximately of market quarter relatively levels. And the XXXX, device into XXXX, flat

was a for record for Although tell I into capitalize XXXX, a after you just great may that that in opportunities on can to performance growth we our emerge. market XXXX difficult come year future any this in XXXX position

Our mobile to leading our of market the no looks team broad volatile, our of drive while in devices. Amphenol value interconnect the range devices for a into one enable will of next-generation mechanisms working and And future. mobile outstanding remain forward array continuing customers to to continues and antennas, this most for doubt

market impacted for market X% and year in by of the were sales our The from quarter OEMs as and operators. XX% X% this in the organically, demand both of U.S. bit reduced from XX% more-than-expected our XXXX. mobile year decreased networks sales prior and full Sales by dollars represented in a we

leading to sales restrictions resulted certain reassessing in products. Chinese inventory ultimately lower plans their back our OEM levels customers demand extensively July, for discussed we entities, and operator As both many government U.S. in to the and on build-out

year acquisitions the of by completed offset I year dynamics the For year the slightly just were but were down X% sales earlier benefits down XXXX, were our our in organically the from mentioned. prior full by as

Looking for to do restrictions well effects their government full next-generation as network increase operators as down ahead, sales quarter are year offset the beginning from from expect impact who the we we build-outs. while associated the from first low U.S. modestly be the the demand the levels, sales to are single-digits by in as expect full these year in partially increased

that and Regardless company's in important this arose networks market mobile of we're in challenges the the confident the long-term in position industry. XXXX, exciting in

equipment to team and continues next-generation Our work with opportunity expand networks. aggressively to our

their advanced benefiting plan as with around forward world. unique equipment that service for potential And significant we potential providers from and the our position comes both the long-term customers increased for systems, from to a look This manufacturers expansion the company. creates mobile

fourth together The quarter the in our Information the the dollars, products with of X% full Technology expected down as XGiga of than Communications and rising XX% lower Charles but sales XX% organically were offset from market represented sales from by X% U.S. of sales products XXXX. sales in and quarter and of Sales stronger stronger by Data and in our the for contributions year storage by acquisitions, year, into incorporated systems. prior the Industries server-related were networking

by our grew and, a products. stronger-than-expected networking IT/datacom servers as lesser to quarter, our from in on the third a stronger in XX% storage Sequentially, sales and demand capitalized team extent,

U.S. associated by U.S. XXXX, government organically, of the the knock-on effects year flat by strong the IT/datacom our the impact sales X% from we the down in restrictions market and performance discussed in our earlier. full were really For year a dollars given team, and prior

developing continued team's These particular including industry-leading high-speed products wide a power across and of a of at technologies, result efforts array direct products. results were in our

by grew service that capitalizing of quickly continued to in group environment, market web In customers including, a on XXXX. team strongly changing to addition, importance providers, our expanding the the adapt of

of the in XXXX U.S. the of sales ahead, the full these And from providers. sold Looking products restrictions the web offset effect growth levels. for full we to flat to moderate service sales first to levels, customers, as year including quarter remain XXXX, a those into we are year anticipate expect wide government by array continued next-generation from

in remain We global the technology position by company's IT/datacom very the strong encouraged market.

in for Our continue levels to bandwidth higher their manage and the the processor order increases world to dramatic to drive in of power. demand customers performance around equipment ever

our IT/datacom revolution In enabling next-generation range development of technologies. ongoing remains focused their singularly team continuing this a turn, on in through of wide

represented the market and sales, of Finally, year. fourth our full the in the both broadband X% quarter

from As broadband prior moderate. operators we decreased X% from sales year continued had as levels expected, by spending to

decreased on spending. this X%, capital a by from was On There's sales in market, levels a year by also reduced operator that question XXXX of no challenging third sequential basis, from the X% quarter. sales declined as year our prior

Looking network begin we from market the moderate ahead, sales quarter, digits, full sales the in their double first to to the in in expect broadband slightly the our as up for expect while these we ramp year to levels operators increase low upgrades.

challenging strong the Despite year, continually company's the last the customers in with together of range the by expanding remain our conditions around with products, market positions broadband we world. encouraged

thereby the position can company to begin that continue most ensuring investments. the ourselves to We supplier, as flexible as network increase operators benefit

of in year that XXXX year execute our very many clearly environment face a Amidst well. the and of year, extraordinarily proud in uncertain organization was Amphenol summary, a of unexpected has the while performance. market just challenging out continued the to dynamics come in team's developed respects, So, extremely many during the I

continues strengthening through growing to expand acquisition position, while program, the our organically Through our both our of company dual-pronged and performance. market our approach financial

reflection Amphenol's our program; most worldwide direct leading entrepreneurial markets; a cost acquisition and advantages: team. presence; position structure; increasing agile in superior flexible our our a our competitive highly of effective is technology; importantly, with customers our diverse performance distinct and management lean

now our Now, market turning given we the level on of first rates, exchange for full the and of constant quarter uncertainty following. heightened course based year and continued and expect outlook XXXX to the

local diluted of a expect X% the This $X.XX. EPS increase sales $X.XX EPS dollars year X%. versus represents U.S. X% of in of sales and decrease X% year range we X% adjusted prior billion the prior and range diluted X% quarter, to currency of billion adjusted and in in $X.XXX versus a in For $X to to the to first to

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

both year, sales forward represents into all and up strength going For X% us XXXX amidst adjusted this company's of even We're X% represents EPS performance look many forward of by sales and flat renewed XXXX Amphenol growth dynamics diluted the the encouraged to growth, at to to the the full X%. around in guidance driving growth of world.

I outstanding ability and confident in of to continue profitability. and in results upon future remain the grow our our very management the our on many opportunities to to XXXX capitalize build team to position expand our market

And with that questions. to happy operator, take any very we'd be

Operator

limit The question will one Evercore. is and Please only And answer Daryanani period and begin. from first follow-up. now to the Amit question from question

open. is line Your now

Amit Daryanani

question EPS the margins a calendar the range? that XXXX to guys. historical a XX% guide, is that lot. the to guess are when start delta and follow-up. if But have talked make I there target I Good versus incremental I look so, Thanks have I a operating the with, X%. afternoon, I guys think at I'm about is want around sure what you getting math A, the in right. that implication

Craig Lampo

think math right. Thanks, Amit. actually don't is I Yes. your

the is bit conversion revenue the you the growth, that the going X% really implied and of full to normal X% X% at year little X% If a growth on the which margin for imply the to of look guidance kind under EPS our is kind XXXX. would into what on

still related still even some that have some we an acquisitions the regards profitability progress acquisitions. made have drag conversion that think And really have to there, do of that's we though we the to some I have some guess impressive that to we kind done. stress work in would do we do And of considering I

-- they the As you are done know year. there throughout

of some those you great of well is well actions above get aren't these just the reflected done company's reflected level that job to we're in And to normal the but the bottom our and taken there And range. really of other -- actually up would aren't organic if to really -- profitability that actions the not rates at XXXX low in a out, that reflect profitability. converting as to we're we've -- that line the ensure also average those that cost of which we're XXXX. guiding as So time take growth

with So, profitability really happy in and guide. implied our conversion ultimate the

Amit Daryanani

guess sales Thank And the Adam, mobile you flat guide the guys. and Perfect. for that. think I in early XXXX you about I year when for realize for on devices, we calendar it's

understand opportunity did the delta last help reflect or here is message see that in guys to guided is guide change versus content the be Or in between for that Does bigger message you them, a Is that XXXX? really your you allocation the negative there Just me there? well don't what the year which year. XXXX? essentially last calendar will any calendar as in

Adam Norwitt

guide to reason. -- you'll think I year very market Yes. It's of guidance difficult and Well at And Amit. good with that you accurate. record a is years greatest being our remember not get to thank we every into over discussion my our number about devices track a for the mobile

even ended year doing the half the outlook or currencies. in though second guidance job and with in All early last our really the XX% team down into but we high mid up up up fact an in in year devices that came in we being great And teens. of the year we for ended said, and down a being adjusted ended by in to down fact in XX% high the local mobile

kind of a many year was in we're last first spot year, period. So, the which on

on is today. see what flat think I based guidance we our

variety our lots that of excellent of share of an if at of team our and we're done a devices. lots mobile of present positioning getting on lots on we're working fair share that not fair sure we're making has more different think well, different ourselves than I that job least new allocations our and platforms

mobile that terms devices ultimately more, And last lot point smart calls or a a is like about in of something device. or important and phone devices People them smartphone array more a which very of But I that. a and talk think becomes one just is devices extraordinary mobile one. there a an

out know and you in Las seeing as has ago become and that a half everything Show at just a was Consumer week I essentially mean, I Electronics smart. the Vegas

You a uses the a version not cannot find one of Electronics find life at in Show Consumer category a smart one's thing that and thereof.

wonderful And frying exercising course things as you help opportunities these our wrist these mixers smart all devices continue remains. put of and smartphones and on ranging pans grow customers of ways your headphones, and to devices make to find products things drink better. to to from products company to And our our those tablets, their create that new can laptops, for to wearables, to

in And everybody can help that those where devices, our in will we value. add participate philosophy I'd products our customers mobile philosophy remains just remind we our

as the types out of week we All to a third of for market. are It's bet capitalize the do of flat our is very what that market. can just any a XXXX being to predict in that you hard opportunity good think us. incremental of growth we they arise. on may very sit it's here can very, creates today that volatile constant And January products will And And see. opportunities the just a I said, there, team everything

Operator

you. Thank

is question Our Goldman Sachs. from Delaney next Mark from

open. now is line Your

Mark Delaney

But remain areas? place challenges some follow-up the bans you taking as how into China, macroeconomic the Adam, for place in agreement guess and are and events transpired with markets improved those caused on you around and of Thanks in and some U.S. today. in had environment. in well. being between first question question a the about the tariffs some export seeing phase certain revenue in a translate the afternoon. I talked and Good any I understand order rates one of put certainly that in that XXXX trade factors

Adam Norwitt

very we're peaceful I towards look work largest world's happy if economies can Yes, more coexistence two their a economically. the way mean

that think a that from in I so applaud is Phase And this perspective, one we macro there deal standpoint. very

continue List we'll well All remember that in roll going to team if one mean, you tariffs them fabulous before, the has vast manage that and majority into it being at are List are means, all tariffs our managing through place really List those X. you'll still really job in does Phase deal said, done XXXX, through and I And Mark, back and tariffs. what of example of a this X, look year. X, those for the not

are part trade to none of as gone have discussion those the of The security national restrictions really really opposed that a discussion, of away. part restrictions

that say X. benefits of tangible there Phase wouldn't I So, the are

But that I much far. huge think which hopefully And to trade war more more long which resolving so very lead really that will will term, lead gone a the intangible is applaud, of to I have which there's on of insidious progress, parts the some progress. it's that

Mark Delaney

how that was Got discussed. And was maybe to it, understand remind past integrate us it follow-up or previously help margin around that's topic can in long helpful. situations? integration My you the us, question acquisitions takes typically

was that margin some that there those in then out that credit higher-than-normal spending higher-than-normal earnings. are SG&A to XXXX, there were rate XXXX integration strip that not planned does conversion done, Amphenol's of lines, that non-GAAP I a that's And Thanks. are part along in any may of mentioned? remember was and integration But be expenses

Craig Lampo

we with this weren't kind do acquisitions. I that Yes, in to sure. off spend your -- costs quarter about related nothing integration I the first. start of to question -- talked part of these third Actually guess, really second these had wouldn't I'll with

managers the our that saw things based It coming really general fact really the quarter those and really the levels reduction third that we related talked a and levels. the world that current that adjusted around are demand about that to their had we saw we these into fourth the on is cost --

and headcount-related means this XXXX. recurring fourth guide cases we isn't cost quarter our some in that's from the the to a quarter, in that a perspective third expectation in any in -- in of really what really And neither significance there's nor there's that. saw And activities

not the that could step I would that. our that was of current the there a down our and take to caveat course, sort current based mean, and that's demand on expectation say related with I of But included environment, not down or environment. there in demand costs additional guidance. quick be certainly that's drop an action we If some in some

it acquisitions. takes In up specific is get that it very to margins to on the us those and the I terms margins dependent guess, company how really would of in the acquisitions regards average, to long say I

relates -- companies to had then course to take and as depends. ones and it of really six as had three months others short years, like the just history, so Over months some we've as have or had. and we've to And we've taken FCI it that

would So nature. that it's say that I I down wouldn't necessarily and anything nail a median to say There was within one. that of or

as in very expectation. to a was period margins bit be we do not of to management margin said, that. think have in a doing XXXX, a that XXXX. in team With the time, getting regarding but -- as is of track our there and albeit So, up being The I on an pretty drag have will significant there committed over some -- we are we record good

that And first sequential of where in going we you from kind if quarter partly our perspective. of from of an XXXX, margins of in at that we and end terms partly terms we for in organic throughout up where acquisitions which implied there from some is look the expectation see underlying would the you year improvement actions is the guidance just take XXXX start

Operator

The from Mohan next Bank is from America. Wamsi of question

now Your line is open.

Wamsi Mohan

Yes, seasonality a thank up mobile significantly just be comments quite devices devices, basis. appreciate on normal mobile Adam but you. would imply around I year-on-year would your

follow-up. this expect conclude should about Or actually how that So, And seasonality are year? year? sub-seasonal you make be there's do back this have point to a to trends at the to just statement I those of of half enough going not the at we sort that be visibility

Adam Norwitt

if pickup in as know imply were half in Yes, -- by still to down our -- guidance but normal was would I we we what mobile XXXX. that year I mobile XX%. don't I mean think strong that as in than you think the Is I a There QX seasonality that year? sales more I the mean our it No, devices this normal from it the look devices. strong there this QX, is is second in --

quarter a quarter devices year extraordinary on XXXX. different fourth that bit a how in mobile little in And has of every go. so the cadence depending We across of had things quarters the

into We more reduction then significant, than very had QX XXXX. half a of sequentially

relatively sequential the the a in sequential reduction more modest normal let's mid-XXs. of anticipate call in first reduction kind This it quarter, quarter; a we

in And say any throughout the is cadence that of categorical year. difference terms so of there wouldn't I goes how sort that big

Wamsi Mohan

some movement would if Okay, the you're And you. semiconductor then this Thank lead-time year. environment I'm seen thanks how talk anything broader about demand Adam. companies in we've as indicating view you a similar or you for near-term categorize entering wondering demand you bottom-end place. any

Adam Norwitt

not sales good where bottoms I'm a maybe distribution be our finding mean of tops. that I are as at proportion part because and is And are of where Yes, and may sell-throughs plenty small more are I that on relatively see think distribution have of who who content bit with that's inventory associated a all and levels high there clearly maybe little companies distribution. and relatively

did fourth overall uncertain. very fourth gives remains of our especially think had book-to-bill some with quarter. the in environment I we the quarter I'm I'm confidence. positive sense that pleased demand pleased how team a in me which the

mobile are year. half has out we'll the And for are the half we markets same time always depends relatively we see we discussed this because impact for to of have the I at point some the the year. not first at being really bottom? think where not us the clearly one year of year At networks first there few has overall pick easy by think that it on market. market bottom. the for sitting that it's I and significantly or times, comparison where see down in would to we But our we a we sit the already the are of outlook I first a all of of half difficult will first this a And few last in where half a that dynamics are very

Operator

from Craig Stanley. question is Morgan next The Hettenbach from

Your is open. now line

Craig Hettenbach

you. Thank Yes.

Adam, just market. on question automotive the First

can how you If you're couple a from of start a kind touch seeing new programs. then just year? of And things at on perspective, of the this mentioned production you

year? So for that a any out are from you content important this perspective call highlights

Adam Norwitt

middle clearly not that market had we year of I a performance Yes, lot than market went through as liked. of have year, we anticipated in a the recovery we And see that auto the the would and our muted talked the about we we have half. this think second in ultimately come would did more in last the the auto kept course

mentioned all as that that the said, were on I organic we being flat think an in fourth Now quarter I basis.

you numbers a know think like X%, worldwide in it's by just I the but small full very probably than And I For down. volumes year, organically. amount the that's better where down market, X% a automotive do,

automotive think so be them XXXX, be lots the rosy none I for forecasts seem the of what different of will to there's in but terms of outlook. market in

we production is team, by I our our business is don't forecasting content. saying think what about and what go

That like new and quarter-to-quarter we auto continues a at by comfort But the in the not drivetrains, single dealing and when the working grew on the clearly was to for we we I like driven fourth electronic into think to not these clearly it some looked very new sequential basis. on things I of new of new really years in driven number passenger basis, to programs volumes. expect was starting on programs ramp-up. some in driven with always a lots like electric our to are digits been systems would that XXXX, particular systems that new And on was of a that where things mean, by programs performance that see we've company. to are content XXXX. infotainment car working hard X% quarter That continue we of in emission represent with outlook to our in as systems, things new in relates by grow I gains that low think And

Craig Hettenbach

restrictions. a just follow-up year? of uncertainty they're Got this kind it. of about getting about And of networks through Any Huawei operators how mobile the just signals you're just Thank some you through on the talked feeling the terms of a in you. then effect pacing ripple from

Adam Norwitt

is provider not good market in forecasting that's give the in And operators don't We've provider the the Yes. it we market. markets. the being the work years. over at I about mean, And forecasts. longest-term in easy. one things And you so to service service service know provider how gotten of very

are places outside whole And of still not of I this which use the vis-à-vis see the of can wait U.S. think we shakes say, vendors use are thing some out let's them to particular the and operators mind -- in in and how

in U.S., the defined. that, that's pretty because isn't think I does the -- necessarily well problem to related

be significant in the have sort combinations the XG seen. And investment increases? the to and think to of equipment to the But it's economics U.S. around you more are support still is ready? And corporate yet I uncertainties there those around continue is

in offset of expect we the do the the to world. about questions. we XXXX look operator some one around to prior But network build-out But next-generation certainly our to see expect with that I of enough comparisons that customers talked see in some not

And that them clear, those to the extent or right supply more us. there to that, need becomes become they base decide or support economics will we the whenever to accelerate more the they clear be

Operator

The Samik from from next question is Chatterjee JPMorgan.

Your line is now open.

Samik Chatterjee

the said kind industrial I you're If if trends? And latest Happy improving which clarify, growth And that thanks seeing of you geographies the Year can question. as well? my guys as organic on expectation so inventory your in Hi, situation of the just assessment there? think New taking well. you XXXX. expect for to Is what's sales you an I are segment

Adam Norwitt

Yes.

industrial. think organic in year So, answer I growth is we yes modest expect the the some amount of in

segments, it's that it. say little doubt in which across think advance. No about to I a hard

the ultimately hard to momentum of energy it's the industrial good going had industrial segments the the medical. in we forecast very I instrumentation, and alternative those seem to of of favorability mean mean in have year to are I which outlooks market many all result. drive finishing continued but

the embedded significant between into and numbers. and course year recovery distribution say for XXXX, in our have we positions half. stock the a reductions half think and see I big we did of over second relatively the I that distribution of industrial don't in the all to of first that the sort that Relative

are those market segments said, industrial the what a All our acquisitions is the that I which have outstanding those we market position back made when built year, think we've about and which beyond good way. come end ultimately to waiting in lot a just some of they and our over feel in significant our product offering distributors really the very last into course serve. of various core penetration really industrial being of to the seeing going markets see demand in the

will And our is around more in team fulfill be to that working XXXX work world them important product to make for more customers. to hard continue to have a very and sure extent the to offerings beyond. I that can the ever And we think those customers to demand with so real to leverage our new become those tough ultimately choice

Samik Chatterjee

kind should And there a in in benefits profit Okay. flow. Craig, sizable about of environment thinking can given we you are I Are XXXX? that to how of if working kind XXXX XXXX? a more follow-up cash just you flat for that on had operating operating the capital here from flow expect cash improvement going XXXX

Craig Lampo

to flow the to Sure. growth the generation. Thanks. little bit No, average. the have a I years flow historically bit cash little is versus where in cash really where been continues years And a strong generate I organic is we strongly and cash certainly such very think has mean we lower such a grow as the stronger-than-average organically XXXX, expect lower that flow as than XXXX, would those company

flow cash typically that range XXXX, is the kind would in conversion I say would term perspective. XXX% of from net about cash range It's that a rough generation wouldn't flow over expect kind of expectation an cash XXX% of within and operating we going income in expect basically which cash we're what of from I is same average expect maybe, over -- to of from flow what kind the free XX perspective, flow the longer mid-XXs, -- change guess the I any significant I so have. the that conversion

would and certainly share that, tell the the cash acquisitions extremely I flow we in the certainly But we repurchases. generation. given you happy all had that And, XXXX, deployed about that we're

generating level really cash. that. that I was flow generated a the it's think cash of advantage that. example We're we the this of of proud company, I And think, XXXX of So, really strategic just an

Operator

from Harrison The next from Longbow. Shawn is question

line Your is open. now

Shawn Harrison

I for the a Afternoon, something, growth guess, everybody. haven't I is broadband in business Double-digit heard while.

why if here XXXX. into So, operators looking finally in could maybe the spend you to are Adam, delve

Adam Norwitt

Yes. Shawn, -- single-digit growth broadband. think, I sorry, either said because I misspoke or low misheard, I you in said I

it that, misstatement. I if So, was for my apologize

Shawn Harrison

Okay.

that. So, growth, mind single-digit low never on

Adam Norwitt

is Which years. two the good, still given last

Shawn Harrison

Correct, the history. correct, considering

Okay. moving on. Then Then flattish the is organic IT/datacom business growth.

in entity organic the to exclude impact, business where you would see XXXX? growth ban expect that If in you

Adam Norwitt

to little say. hard bit Yes, I mean, that's a

has think, the the the Clearly, discussed, good more our I just feel position think, effects extensively market. ban the our effects. of not in but quarter various because we second IT/datacom And magnified in half back knock-on that in it's discussion. impact, very first a that pretty about I the also itself, we --

know, market don't it. always digits, what like the we If easiest where doubt in the to I progress of not where I what's the I -- So, forecast, maybe something the are single parts great it very overall sit organically? market something a like low to that of that around of happening There would continue levels. that. beginning irregardless no those that But today, which environment. about I sit is make about be year, is thinking

a to support on to on which all TVs what in over-the-top watch at their of being very order and and IT you just last really is well, mentioned, double-digit home. of a in tablets great year, as growth step environment we've service striving which our the growth an function progress world really made for in part getting supported, processor and increase people know, customers, videos capability, had in organically, their phones those I that where bandwidth And datacom real providers, lot web that is is,

of increase just that in next-generation And speed the higher lot products. drive extraordinary video a continues to for traffic demand

it's will at that be, this ultimately what to So, say stage. hard

is I hard to very outperform dynamics. to given we've the they the can. a given going for that be obviously, our flat that all very think, good work guidance, the is if And, to guidance year team

Operator

The next question is from Matt Sheerin from Stifel.

open. now is line Your

Matt Sheerin

hello, Craig. A thank Adam you. and your And sensor question, Yes, business. Adam, regarding

pretty small You in seem excited that acquisition about India.

between over You've and auto. industrial I And, mix know, both made several years. there's the acquisitions a

there terms technologies? in us market how much traction end interconnect you terms seeing subsystems rate, And the with sensor the run of in and revenue doing customers on are mix? update for include where stand you complete of you that also, both Could

Adam Norwitt

it's Yes. acquisition much, we that Matt. is for excited few-fold. about one, I in we've yes, business. very is think, our and the maybe very it it. of Look, scale more of reason Well, And excited sound acquisition Number very a that India thanks a And I are the first made private a small our little a than sensor company.

be diversification us gives it seems to in which base many new world will a time this And us think they the low-cost idea of EXA respects. I already. be not really at for space a cost fabulous a And of to manufacturing a low support bad when do

addition, for direct gives which access to Indian a had us sensors, market in And have it we really on-the-ground before. the not

in market important that's that a beachhead very we also in So, future market, very become automotive, new. the but us in that's very, military particular And the something will and anticipate a industrial really that otherwise. would team in in for

time of in In were But do our by we well at don't can period. a business disclosed size together publicly we've a organically our talk sensor terms you scale than all grown looking that the during relatively piece we're relatively where lot we our about knowing of our in and of We the stand of sensors, that what sizes at bigger is. acquisitions sensors pace exactly robust before. that

of base, system whole them which that company a to simplify can total that decades, especially harsh that environment the customers allows first fact we rely GE capabilities years acquisition, had I which solution have of whom offering? ultimately for tell their of one forward owned they to total sort company see terms has opportunities for we and lot history we in in of to so you that approach interconnect are that to the our on sensor six a Amphenol. that do in What many have Sensor their a Advanced can sensor them value-add of look having now give to vendor products, with to we was company that and

was hypothesis ago the And originally to I for Sensors many we And Business years in taking a proposition, of for Advanced forward six long-term which when years think the we a advantage of and is interconnect us sensor come. growth acquired the look for that platform market. that to more clearly that

Matt Sheerin

it good. me. from a That’s Thanks very Okay, lot.

Adam Norwitt

Matt. Thanks,

Operator

Will next is from SunTrust. Stein The from question

open. Your line now is

Will Stein

the view for taking huge the Adam, Thanks you I'm performance. into my on channel? of if category's user and that on comment I results inventory including you customers, any the inventory any comment not can That in inventory levels a conditions know direct Great. that question could congrats and channel, the similarly visibility at you're strong said, QX on? your wondering but

Adam Norwitt

I the the healthy. proportion in Yes, get our again it's are the to relative small are I think I'd visibility a XX%. our And demand say inventory that of sales some positions market. distribution. the that the say would conditions through across sales channel of that we end just they inventory XX% of relatively

where and is that proportion some market, great a there's very have military job our which done robust we've the of in demand we of So, where demand. satisfying distribution

the significant come conversely a But a that them inventories we've down have And point see there wouldn't in any so disruptions seen that inventory. in areas bit little I would to up we like area. little bit come maybe in And industrial market.

the particular between U.S. a no this our there's year our of and in customers their of customers at decided that that number customers following a the about question talked position maybe second middle Relative had China, of to too they our overall in inventory the and and after little quarter events the direct looked we much. the

best can environment. a to are healthy they those as more we a any that's working least little as positions down -- we But those have positions is visibility. And visibility the and that that say tell real bit at evidence anecdotal because of I'd don't a

Will Stein

end could have difficult one mobile want this to That's to very the market If again. I I more, helpful. know device forecast. revisit I is

this changes view function some provided year we'll But maybe there X various with are a coming you've for us relative companies And different at of are XG, these that or architectural well. changes including drive architecture as content So, big anticipated year-over-year. pretty flat that's Wi-Fi more step see certainly those from Amphenol. potential to least

to hear better Or what looks about event, that Is expect we QX update. situation when would during Amphenol that does when wondering should you. during visibility have help. Any the Thank I'm content some clarity into on any like? QX?

Adam Norwitt

you and guidance we the a Will quarter this as coming always Yes. have in struggle first here look mean, know I up clarity. we when knowing with with

I our least at think we sometime position usually have decent the clarity design-in quarter. in second into

But very all taking very, given from outlooks look rigorous some we've design-in at that on a guidance of grains I is of think positions the salt. and based the obviously, the with look our customers,

as to works example, for if only stack tend you an on something each In something a opposed you replace it these news about they that changes XG, whether the else as news buy that whether XG other to be X architectural terms architectures good the be will phone else good XG. because I the not about of them next-generation or take mean is Wi-Fi if

if a You until tablet will -- it up are to to minimalistic networks XG, buy XG number the for a come. of years not for going works be because only relatively

seem an in you're sometimes of the which that thus country some don't where to be have those Connecticut be And even part And country in functionality LTE parts additional you know it to of backwards has to the XG. driving through XG. to device, and has then network, what compatibility XG you a even of

to have they it. have You whatever phone or call to work. XG And Edge or got

call XXX. able You've to got to be

at you be movie a time. call cannot watch Netflix got able your phone the if make You at even least same to to

it. signal add or complexity, the some more whole ultimately it which They with whether antenna become that opportunities its of architecture these of may increases because us creates equal. of the being And XG for path complex. devices But associated all type things

so Now, that equal are a our really you team But has be approach new going device a think nailed why to innovative supplier different many and that's because I different those every I years. things things how to has have say of they're down all dynamic architect that flexible for it being a market. as and into and cut many,

opportunities? over that speeds can it and which slowly create over something maybe a can. take create make I bring, what opportunities think things so And the for XG higher the worse. doesn't think entails will at with new X, a it certainly will goes like I And minimum it long-term. And Wi-Fi for it same the that us that can

Operator

The Raghavan Securities. is Wells Deepa next question from Fargo from

open. line now Your is

Deepa Raghavan

expectations guidance than contemplate some of question afternoon do ago? And or automotive, good Craig. did the and Do industrial on of the months might overall, Adam guidance the or Adam earlier, first. cycle the you in but Hey, -- fundamentally you guide you sort similar better you the three prospects any question does what semis? to you seen in my feel recoveries? does recovery cycle have this -- macro touched does recovery months is, environment mean about prior for contemplate historical you I six

Adam Norwitt

aspects question faced to not that and with I of six months other your the dealt ago? the we the having fun the war three impact months trade do and most first I mean, effects. everything ago knock-on and Yes, was of to QX various in feel relatively a restrictions six sudden than better Well,

assumed guess, second sort yes, at our I have our compared guide first the you and see normal think arithmetically some recovery? I can to Does half some did I time. that, of than fundamentally that yes, to growth apply I is seasonalities mean, contemplate So, feel better I a half.

do that's so this Now, half. typically a in half have year. the impact Even growth had in without acquisitions, second first stronger We the was We of there that that's than not for half. odd the us. the second last

also Or new that for recovery is I R? good combination normalization? a a it our that have a a some variety expectation. above. on the Or with of capital a expanding But Is call would think that all sure programs? is we us that I position of of

Deepa Raghavan

recent deployed You've the guidance third free Got towards follow-up -- it. with Craig, cash does Craig. where buybacks? of full done embedded year is contemplate last My going free being XX% a Thank you've I share buybacks M&A talked flow understand. got guide? EPS share or cash about always the years, full what's but year in possible. you've which the the few XXXX on past more In But this you.

Craig Lampo

Yes. Deepa. Yes. Sure. Thanks

So expect small level the reflect does that normal would some XXXX course. guide to under repurchases we do of

impact guess, share actually there share our shares where price weighted how that also but not dynamics have reflects also So, what shares that is is I impact does is. the say into an the I is when that average some share it it weighted to repurchases. And to are the increases would average offsetting get higher of that price is your calculated,

impact that terms those we would guidance. think in that both is is guess I about in of how there some So, of our of reflected

Operator

question The Spak Joseph RBC from is next Markets. Capital from

Your line open. is now

Joseph Spak

could but the fitting maybe little in the the guidance. gets is the than year? related, be there for bit back thinking would later to full at X%, specific just and at yet of know rest anything the softer what first quarter Thanks imply seasonality I in about I maybe about be some guidance quickly here. the there wanted the higher quarter first it's guidance mix in the to are me in year. or that If we or we should midpoint, year a both go margins the look the revenue

Craig Lampo

in end No, that X%-ish that quarter. I -- sequentially higher the we're the the it first Yes. high bring the the X-ish does margin bit reducing think quarter And think conversion. I normal by the fact with than on a organically sequential reflect little

we're we just with downside, a quarter margins. close XX% decline the which And perspective bit little of in from talked XX% a conversion On into to first we're maybe lower about normally brings sequential XX% the decline. the XXXX in to that kind

maybe I implied on increases I bit of higher the do expect from little acquisition as an look in base from perspective. we're I guidance a rest year that year you the going full then work profitability as than that as business again progress kind the there some the think if which maybe mentioned even reflects at before, typical of earlier, mentioned doing into we as some well

Joseph Spak

aerospace. on Thanks. as And follow-up a just

just guess of there us you're news You in XXX it headwind. follow guess I indication you to more MAX your the I there so were guidance mentioned some But as as we should give headlines what really mentioned your continue technically just impact considering can just the it. a you I outlook? diplomatic. how and track

Adam Norwitt

look mean for including program you did some market overall just which the not our your sales, for represent had can modest what impact the program and have that one first full outlook But us there's year that's for the think of X% here. overall significant all air commercial one of on is company, outlook. I the material in of I mentioned outlook a that Yes, to I

has I publicly with much consistent that. than what is say I read more terms in overall wouldn't our everybody mean presumption timing. probably of And

Operator

from question next Citigroup Jim The is Investment from Suva Research.

is line Your now open.

Jim Suva

you kind three same items Year team. factors your or and what's as the Thank And for is two you have of XXXX, Adam end you or Happy of swing variables both And I maybe at New focused to and or or that and actually question that kind on? is look one markets question the you're really that Craig.

for figure variables profitability more focused or just what in you. Thank on the directionally on does really sales the integration out cost example of mobility focused for aerospace that for could much or I'm keenly trying something A Adam to couple you're a the that kind Maybe XXXX really be go margin side B the or sales for potentially Craig. side? risk? some challenges the the for most top then on for better and you're Like from perspective side the

Adam Norwitt

variables making us. of Happy we I thank well. emerge regardless two end mean I performs Well, sure the you and on to focused Jim really risks as New Look, are very much Year mean for company markets what you

happen, came XXXX well think that And operate we I saw this categorize not to that did we advance not that we things that's anticipate. business. could about in how happen many the in could or

we prepared the business to operate is The way be try we regardless.

can some XXXX effect have it's to maybe our really to that the of sort And financial team fully expects happen any and so things of our tell that harm I some have team external in doesn't make and sure that occasionally can you to those external that Amphenol, things that on that, happen there up unexpected company.

clearly of team way, position in out that ultimately results And company we XXXX XXXX come action quickly, came whatever with brought our in sprung our what had into than it. dealt our effectively you a managed stronger into is and see in the

cannot mantra it. control And agility our I And inside well, in true is manage of the We of there If of environment, in for face markets. worldwide spending, think our in we that's a that's the deal we whole were decline Amphenolians would but necessarily would our it. each the with control can team that environment. military

expansion, with who And just a have we pleased well course the do by job would latest of of that. the during have presence would way, customers so outstanding this we we fabulous

just it, mean as ready the that industrial ready is favorable. within now if talked have developments I would aerospace. goes that are to the with We position up, various such market, would about segments we're new great those of product happen and acquisitions whichever we've that in we we that not something end and a because be there for made deal market the

each we And of a I markets wouldn't any of sitting say here kind I in that, external go through could way. the sit has risk our happening. that of where markets different of something

to more side little predict the The some little that and mobile spending a one the being that, hardest lead of patterns. times others. the because the a on being military of markets easier course than bit one the of of length maybe our one predict would I are say devices to that's and certain the is the

of terms variables, question with two but in our way. would the can dealing And focused on answer come variable then -- didn't any team I is I'll your But about maybe that I you let you Craig, our talk that tell

Craig Lampo

there's Yes, last yes. as before up of I No, over XXXX. about one of level will the sure. lot the a be here met into our and continue profitability to and acquisitions average certainly I XX obviously acquisitions the company. thinking XX more the bringing to months them things be guess, we of did move mean, I we have to that. mean,

that those of we making helping ensure And levels a time -- we to up. to spend get are decisions those to decisions those get profitability the and we're that that make continuing to right to lot operations ensure ultimately

during the spend probably I the that his the share do And prior that's something of that along all and other year Adam time on mentioned in typically my some with comments. things will would just of which disproportionate

one things, on. But on be many So, I'll long not continue anyways, that phone be an of about to again, M&A I things, many, probably here. apologize we will for time talking for too different the from way the because perspective spend

Jim Suva

a Thank great we have you XXXX. And hope for answers. also the you

Adam Norwitt

Likewise, Jim.

Operator

Kelley The next question David from is from Jefferies.

Your now line is open.

David Kelley

Hey, afternoon squeezing me good and thanks for in.

discussion, the are Europe you Just one quick I'll to automotive shifting their follow-up year, on in along. COX earlier electric meaningful any mix this regulations pass vehicles? opportunity as seeing ramping change in customers it With emissions content are

Adam Norwitt

I of regulations. all kind China for dislocations solutions technology technologies. meet of regulations, are to them VI, be inflection Yes. our I emissions large, advantage which PMX.X those Euro regulations, new I thereof, create to enabling organization mean, tend mean, whether I take those whether requires points always these by then be our the they these think great all that And to with with it regulations think like new and COX David regulations version

well to impact broadly in automotive I so, rather one opportunities to COX is do Europe, team of. those positioned it more see that in take but advantage emissions confine we as regulatory long term market, wouldn't And our and just create of just that the universe

drivetrain done fabulous a on electric at the ourselves. -- We've far The drivetrains a over job of our place that's world. job working been a biggest great done has where positioning has electric just China market so for in in team least and around

that's So, something interconnect solutions. it's doing harsh really really the great around high-power environment, But we're world.

And so drivetrains, from that sort of micro we're very electric example of well positioned.

a they like are from combustion opportunities it universally something you a for new technological large that and electric points Each goes say is positive create But shifts can't inflection good to because by and platform, technology. those an when drivetrain. this

Operator

Giordano question next from Cowen. is The from Joe

Your now open. line is

Joe Giordano

Hey, guys. afternoon. Good

Adam Norwitt

Joe. afternoon, Good

Craig Lampo

Hey, Joe.

Joe Giordano

watch Year, you you Enthusiasm so guys Your if three let people have said but sure it's David not days late Happy New sorry too to know. I'm he wish just Larry said, Curb Hey, you

Adam Norwitt

Joe. Day, Valentine's in it do Let’s

Joe Giordano

we Huawei me back permanent guys? -- a risk was is local loss fulfilled comes again? to just unlikely months? you lifted like on supply that for Like been there to the start to of -- restrictions like over Just the share if view do how Or for is couple next you it locally market it's should that's think that is change that the

Adam Norwitt

not a one various customer not it's of last I is that the kind a can to including the in happened which mean the China years. Look trade and think question to a I broader one disputes even I think nationalistic specific there just happen but is it's about world talked in that we've of but calls China, in have that the because purchasing over of three or exclusive two nature prior

more think I it for maintain that opposed that is becomes regardless. happen is And world our world consistently a world ready globalizing absolutely what And and we and to the I've team a local operate that China, in give of that to may real said customers. in local as that's the who elsewhere, U.S. India, in or for support do we operate think we I we operate teams real the we how how localized their essence how with as continue

the continue everything original the ensuring world. But obviously every with minute able through supporting, around customers from to We're And because covering because developing, doing we were work teams implemented. technology. exporting not them customer, that restrictions fashion in are those support local of first the complying the the really quality to laws really we're and a are law our

American a And to one that an well. real people so that's the company. are for tell company American differentiator decides local company. can day, companies, one our that Indian, Macedonian, if still as support we're going Chinese, that And you from German I But extent just to an not as buy were country our they're giving a a they a

if that minimize long few the and on course we'll we problems special the customers their confident that we way, do these any impacts to in dynamics I'm that offer And so, gone ultimately as truly of any products able geopolitical last from be here during can have years. solve localized that of our a as

Joe Giordano

then, -- want just the when something. get like out a these -- But be device. around make to the sure on I whether you're is on And that. -- in uncertainty talked guide a I this not might figure those that phones year last point platforms for And I then lot. this, me to you fully clear ultimately that's impossible first you're place? your it's in at volumes for or know, we of the I'm device When produced, about say on you're helpful. or

out coming those? Like, still a volumes that the major -- just, going Or don't like Is be? idea we with the know you? in what the and know in I something in you're on volumes have of what later it no is front March company you are multiple do is then year? if know to

Adam Norwitt

programs they working a Yes. of the But our is year, can be It combination of this all be early time. mean, all team before at change pretty the on -- the in those soon released. new they're sometimes I can above. programs it

of and you're can the be them You'd be they're fixed products volume. things ship in the starting dynamic surprised designs not so until really and build consumer how to

exactly position we even hard so, if our have In to good here sit, January. And so where not easy pretty team work in continues is. to January, can we very our happen, able to it's good to tell maximize as what to a what's going it, we on read as be have

the sure But doubt we're flexibility on going on demonstrated that win discipline team -- we and possibly of And to it, execute absolutely to our our front has put out can can everything we're our that in whatever maximize our going win. going look there no cost on go make customers that to about and price. allocation given the We're we us.

Operator

is question from Cross last Steven from Research. Fox Our

line now open. Your is

Steve Fox

there's one I If I the you other question, are picture organic just getting think growth of lot fragmented Hi. the lot the doing decline a quarter, in big Good had had sales would companies that a industry afternoon. Adam. worse. I about imagine in in

if smaller how about think I now, guess, they're some the companies, secular? hand, much one I'm struggling or wondering, you of temporary it's on So, what

no Thanks. there, trend for have And broadband half. being the earnings the year when the thinking comments the that given the other understand hand, then second as growth on this we strategy? and positive looking maybe to and this you're and like, again with I in live you start maybe, a But, do see in market in market change about

Adam Norwitt

of if I I reach Amphenol, Yes. an mean, the you the Amphenol, don't it. depth have don't Amphenol, and can the Well, look, companies. here quarter, are how the have the you breadth companies doubt doing the There's diversity XXXX other of year. about no in fourth easy is of of if smaller technology, tell not balance you,

we I that So, many a tough tougher for year imagine that can what saw. than have could been much

devices. for our was performance I devices the year. whole and in That mobile down mobile organically year; in essentially mean, I XXXX. X% by for is year at XX% full mean, impact the were of we our XX% down was look of the it you the sales

start to of And more than Just bit that themselves math out. other testament balance represents the I a it, a diversification organic X% think just the growth. of is to the company. the All markets that's

not don't I Now, have earnings guided to And go growth look, X% but we into and this this what going X% is back think to earnings U.S. we a into Steve. the to materially dollar hear X% different growth had have said perfectly, that XXXX. year, year. But growth you that XXXX, you guidance we than coming X% if ago, think year I can't I we it's

the I drive with highly think prudent team value also by still cost that our reflects great a that It's and performance. it's the reflects a improvements, drive to one guidance. uncertain it's to to strong and ultimately environment a guidance efforts customers drive

of that thereby on environment full energy are vigor in XX,XXX can to And well do all with there around on year, us and than that are that for bet the execute jump to you to going full us opportunities them. better Amphenol, and everybody the extent opportunities those

talked it's overall in outlook actually strong the from that strong we're as a think very and the I that about. So, conversion environment perspective, given Craig

Steve Fox

Thank you. Okay.

connection. bad the for Sorry

Adam Norwitt

more Operator, Steve. any there are Thanks questions? so much,

Operator

at this no time. We show further questions

Adam Norwitt

to wish much. I thank despite again, XXXX. all again you to wish New very about look so and much. all more And a Well, we reference, once forward all XX you a Thanks That's start wonderful. here that particular will in Year speaking Happy you in great you, Joe's days. And with have

Craig Lampo

you. Thank

Operator

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

Amphenol (APH) 22 Jan 202019 Q4 Earnings call transcript