APH - Earnings call transcript Q1 2020

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Hello and welcome to the First 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

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

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

release to the relevant for press further refer our information. please So in disclosures

like would say performance for But words. the a before I the Adam few review financial quarter, to

Adam Norwitt

Well, very the wanted colleagues phone your family, you COVID-XX current here to much thank your and Craig. and amidst the foremost, to everybody are crisis. And all I today on hope and friends first that staying you express safe my your healthy that's and

back on Craig mentioned, finally, comments about environment. further from the As detail on I'm current served also of few I'll turn comment a then to our come across to I'll make to going it progress trends our markets, the some just financial over to then and our provide the performance. first I'll highlights the and discuss I'll discuss to And Craig future. quarter. me

times that in us as No truly all extraordinary COVID-XX in we're impacted question ways. around pandemic has living really the world unprecedented of the

phone communities around also like safety everyone the you many Amphenol, this pandemic at the that of wellbeing and many our world. personally here the which has really it our today customers has And impacted of world. employers, around ensure and the Here first suppliers, sure to priority day from we earliest has just on been the I'm our our operate the in

impacts from with shutdown the of on at to XXrd. began that were time January Wuhan the of outbreak starting imposed the company China by Our see government restrictions the the

team, just in weeks manufacturing wanted shutdown production in China. team an of Wuhan, I have return While had successfully am And operations beginning to how originally to proud of were here the facilities our earlier expected. March, than truly navigated XX entire able our we full of I don't substantially who China to by any mention unprecedented three level we our

around has has global XX,XXX entire virus been the amidst continued all focused executing COVID-XX Amphenol’s quickly measures the around to health market very more conditions spread whilst than the to prioritizing the pandemic, on world, our of the As clearly team evolving government world. safety and control and employees challenging

as which Amphenolians the us continue throughout of communities early unprecedented I'm proactively these significant enabled when around world ultimately we supporting us company always to most. continued end, despite including need has our do, execute that as on a to instituted to who Amphenol organization employees, by the truly To to they have operate the our proud measures protect conditions pandemic. this

of the We've times. and machines and produce our capacity operations this world of own opportunity components few to XD these equipment and our to significantly for critical high the dedication, and of our up expanded shield, employees donated make than take that in needs thank expanded Amphenol help most the uncertain to world. ventilators and hundreds used world. thousands every resolve, and have around more been agility a face wanted of initiatives production other product of around to the just by And many many, the masks challenging around one I our our focus of local bandwidth just are amidst And XXX this to taken power face ramped printers hospitals, speed dedicated each support reconditioned to mask, their the

withdrew the COVID-XX our the well first due disruption January XXth, we know, all as to of release. issued time that caused on to the our Now widespread guidance first at earnings sure you quarter had by been turning February quarter, the I'm pandemic,

the achieved results very Despite the has company I'm ultimately of in this quarter. proud this, that uniquely challenging

industrial Our declines COVID-XX operations U.S. sales prior our versus a datacom, And largely and of driven in the sales related including, organically. automotive China, was to by disruptions X% and that approximately shutdown devices, all lower in three of country. networks, reached dollars that of reduction markets. particular, year X% the the $X.XXX These mobile manufacturing in in billion, mobile weeks in IT

in extremely orders Corporation. company reaching cash XX%. the $X.X a in is X.XX excellent $XXX position give on significant the will the strong, and up book-to-bill to the Amphenol a million well, quarter, in modern which operating company's this operating of more adjusted the first at history Craig disruptions quarter, of in I'm that flow includes $X.XXX moments. our the booked supporting very equivalents represented financial the the X, highest And and level substanti in despite with pleased margins billion in cash that of details few to first cash billion the operations liquidity quarter, in quarter-end. a very held

extremely team the crisis. by the unprecedented once close and and amidst the challenges of agility as discipline saying our we COVID-XX performance our reflects to I'm proud related again entrepreneurial our continue like well truly of perform quarter that to to Just organization this

about to I'll in review few and then come our that, a markets. over end back it talk to moments Craig Craig, with financial our turn And to performance please.

Craig Lampo

Adam. lot, a Thanks

quarter $X.XX sales standpoint from $X.XXX adjusted just quarter of as with closed sales U.S. in And to first in an the and and and X% in with decreased Sales currency dollars of compared GAAP the acquisitions local of X%. reviewed were first impacts, currencies organic and excluding billion both EPS first XXXX. down So X% Adam $X.XX respectively. company diluted quarter and the

last currency to year. segments. compared sales The and down sales local dollars Sequentially XX% sales were in of dollars our two down Breaking comprise was X% and business, in local in down U.S. into our interconnect which and XX% X% U.S. currencies organically.

XX% dollars business, of Our further comment down market by currencies will quarter sales, first year. which in our Adam the was compared to of X% cable last in in minutes. strength comprise few local XX% on and U.S.

XXXX million points production negative first first than on adjust the Compared costs. conversion. pandemic of decreased and margin to $XXX that was of points. margin was productivity, typical conversion restrictions our fourth XX% quarter which payroll the for by the rate COVID-XX quarter reflected a due conversion XXX higher operating elevated impact various was to XX% XXXX, to This primarily ability the was on downside particularly XXXX. to the operating driven and of compared government the our basis limit XXX income Operating quarter The the quarter basis margins first down in operating reduction of

the quarter standpoint, compared in quarter segment and of XX.X% of in a which in to compared XX% the margins of Interconnect was the From were In XXXX. fourth segment, for Cable first quarters is the margins both and XX% the to XXXX in segment, XX% down the of were which fourth first first XXXX. XXXX X.X% down quarter

and sequential are year-over-year created quarter's pandemic. decline, unprecedented this the of margin the challenges performance we proud by given operating Despite COVID-XX the

margin the uncertain performance of growth and both which a maximize Our a to team's environment. team, impact ability an enterpreneurial action-oriented negative of company's profitability and high to direct minimize result from foster continues this management commitment in the and strength market is culture crisis thereby the

XX.X% excess to million of company's tax the Interest The million non-U.S. last both was to jurisdictions and stock exercises quarter $XX in year. first of adjustments benefit adjusted for the refunds benefit in tax the resulting million expense XXXX And excluded tax option certain as taxes, first $X quarter. for $XX of an tax quarter associated the and due adjusted during a XXXX the the to which million rate first quarter of deferred effective discrete well tax respectively. the with effective XXXX compares as for was $XX quarter rate

XXXX adjusted by rate was acquisition excess including XX% company's of a first in strength stock the effective quarter tax the items effective Adjusted tax The XXXX, first the benefit sales company's was strong first XXXX. of to of for compared quarter. financial quarter associated performance. just exercises the net the with of the quarter impact the of confirmation mentioned partially of of the income XX.X% first of another related in of tax The XX.X% excludes the for the impact offset option during GAAP costs rate XXXX quarter

EPS first quarter by the On $X.XX X% a first diluted of the quarter $X.XX basis quarter in diluted XXXX. GAAP first compared declined XXXX. of in to declined XX% of from Adjusted in EPS in quarter first $X.XX, the to the XXXX $X.XX to

to first for orders million Despite in the to quarter billion, XXX% of the ratio company cash. was and compared free to the mentioned, $XX $XXX the which capital be operations record net million, As XXXX, of resulting first quarter flow quarter net up XXX% X. environment, of from of or adjusted in X.XX continues Cash of book-to-bill income $X.XXX the adjusted an were challenging a of extremely flow cash Adam excellent or million was income. $XXX net spending was our of generator X%

at XX From And receivable $X.X were and days, days of $X.X days were accounts billion, and inventory billion inventory, a respectively. payable and million XX end $XXX outstanding working standpoint, payable the capital accounts days and XX, respectively March. sales

well more world. Due DSO to of which the extended back days China crisis, DPO business by sales elevated expect production but to are lower slightly elevated, come in normal were was quarter, levels we to the in in challenges primarily inventory and to to as a depressed, while range, current other the the driven of shutdown as DSI in remain While due to levels sales both parts first were the as normal do levels the somewhat the returns pattern. typical production down

created quarter and pandemic economic capital credit -- during and uncertainty markets the the XXXX. volatility COVID-XX significant first The significant in of uncertainty

result our $X.X late earnings our release, the revolving under of As in March, credit proactively mentioned bought as $X.XX an a abundance caution, facility. and billion billion as company in

In addition, from facility public to the in programs. the company such, its the decided is the approximately under of allocated the volatility credit commercial significant paper repay markets, reduce revolving commercial to due commercial markets, proceeds half our paper the paper as and due on reliance amounts to

$XX, million our fund $XXX primarily company's facilities average approximately $XXX from fund fund interests from various million $XX offering quarter $X.XX of $XX completed operations million at million, price million, of of non-controlling from $XXX first of dividend our $XXX to recently of of paper options used the commercial our bond from the repurchase million fund proceeds and of purchases of capital repayments with under of distributions to net of programs along of expenditure million. and net $XX stock $X acquisitions $XX million, payments fund million the an billion, and stock credit our exercise of cash During proceeds were flow proceeds

elevated This level and March cash by At $XXX which subsequently bond bond $X.X billion, proceeds cash from the XXst used was short-term to were driven was of hand $X.X at on fund U.S. of was of in held million maturity the investments which billion $XXX noted due Xst. of February and reduce on million paper the cash credit offering, reliance our And our excess decision previously of to cash to this April the expected provide of drawdown buffer extreme order facilities needs on to in the or market period a volatility. current fund our market during in commercial the

At remaining outstanding on there $XXX with that billion our under cash be outstanding paper will $X.XX commercial hand. repaid facilities and March due come well million of in credit April as XXst was as

the of As net XXst as $X.X $X.X billion at a March was result, March and billion from XX total XXXX. net was debt XX, was which debt December level debt unchanged at

facilities as very $X.X strong liquidity at quarter Total hand cash the our the company leaves of the position. the credit remaining was on as in availability under end billion well a which

the forma The first XXXX $XXX was million X.X leverage ratio times. and quarter pro net EBITDA was

real demand position. positions anticipated more which we geographic In this with than year, certainly broad and by global financial liquidity believe uncertainty more and environment and in coupled is a We strong moderating a continued we summary, the markets. and us current market the with characterized financial this volatile quarter although position balance company's across was a of well diversity sheet finished strength the coming very had into much strength challenging quarter for

turn I to will will current over now commentary some it who And provide on market with trends. that, Adam

Adam Norwitt

this in we're arise see represented And of you Thank to is value and dynamic today. industry. like In even that, more that the quarter, just volatility company's also across our experiencing end-market where in impact the of can broad Craig. markets XX% diversification. we and much electronics in single And us the today. is sales. to market Craig unpredictable like tell mentioned they asset are individual may balanced times in than end mitigate of the This that you diversification clearer ever we very just a no geographies, living the the value end a leading I continues technologies just exposing more environment the and while great

Now quarter. market bit turning the in less very our to represented particular, by by a applications. the from was our strongly end quarter. market, across helicopters, Sales of and by all in the Sequentially, in the sales again our of than first from increasing X% this including, driven sales the prior vehicles virtually XX% expected military quarter. XX% avionics market And growth decreased few space, military year military fourth segments

many hard to really company's our related serve team the strengthen of results now our our on facilities with years the great support we military from decrease market. expect has to segments the a while staffing market quarter, a into second capacity level. in focused restrictions pandemic. to customers certain the is operating reduced the of of performance customers the are The our reflection to Nevertheless, those efforts. position Looking continued worked A COVID-XX across strong increasing quarter the sales of as governmental for first of result military all that military market

military Given demand military ensuring environment, the team the are required see next the spending our solidify we on modern hardware. by many our execute of for that we position support continues in to favourable ongoing technologies generation that leadership that

impact of quarter. manufacturers declined, to which represented quarter. XX% a COVID-XX market decreased from first experience our as negative the from Sequentially, sales sales by down demand the began fourth our aerospace had expected slightly production quarter, than as commercial commercial overall aircraft of more was volumes late crisis The the were the into in our and in the quarter, the sales bit X% we coming and

travel significantly sales as the unprecedented that impacted Accordingly, and no customers seeing world. reduction commercial shutdowns across and we're into platforms strong array around leveraging do next the reduced well in aircraft and market production further the rapid that for in remains team technology air has overall for the in the environment air long-term. Regardless the a expect market a working to integrated positions the volumes. been we There's air generation airplanes, market those difficult impacts wide very company's commercial travel doubt air demand by in reduction aircraft today, of this committed and our that position systems of

to On quarter other and in gas the by from down the more shutdown. sales fourth represented industrial sequential medical market our market from in related related the oil by contributions the heavy XX% X% approximately growth sales alternative the by about The well China particular offset in our industrial X% last quarter. transit, as applications, mass sales declined reflected acquisitions were together segments. we basis as than market rail battery year a and of in related as it's instrumentation, Sales COVID-XX equipment, expected were in with completed energy declining and industrial

to like medical of working up of proud variety industrial just are ramping market, are segment assemblies we providing treatments team countless highlight in a in that production to of who connectors of and wide patients. medical I'd how is COVID-XX support the take for of this applications our interconnect sensors, our our opportunity

to geographies other into sales offset stable, through as We're range of segments production quarter, industrial We market. we're in in proud across developed industrial remain are well company's we both position the that of efforts the market pleased by lower a the the to diversified of as success the production and long-term from look some for seeing. China within related in our we industrial array to markets Looking of increases very in the market. on expect and have in as worldwide exciting years broad very organic restrictions our forward relatively our the program this company's a with acquisitions products remain now we second to innovation, broad benefits realizing come. many

The related customers automotive we in in declined as weaker parts the the and shutdowns automotive China were quarter. as U.S. dollars local coming our the than February, in and other both automotive sequentially by decreased by sales XX% had sales X% of COVID-XX into expected quarter markets world the Sales X% to in our well XX%. shutdown by Sales later in currency due in quarter. represented the of

plants automotive it's towards recovery. we time, At regardless difficult the of the down in further for and strategy second As behind our look are from shut us, period sales array position. a wide certain countries. to and manufacturers timing market this interconnect nature our customers When of look consistent through market, the to sensor we do to to long-term antenna products, automotive full organically long-term forward by world. impact predict a auto electronics our as once the very quarter, diversified operations and across we're demand, vehicles the of and and number extremely the both automotive range enable this of confident Nevertheless, we expanding this very from our challenging of expect made reduce of range of as in crisis continue and acquisitions, restricted exact on-board across benefiting again is which

sales market in devices of mobile The the quarter. XX% represented our

in by fourth sales from prior ramp and quarter shutdown the the production devices the subsequent XX% three long Our declined impacted expected mobile XXXX. customers weeks of up greater than significantly mobile market month year in device by were by a of China. to and Sales XX% from

the customers towards in increase proud our I'm we that by expect for able to recover very early levels were so levels. do was first as quarter, March. market, from we the the mobile working our to second And device first they these look Although sales production fully our team quarter difficult just quarter mobile devices

position the related mobile very COVID-XX devices the in the long-term in first robust. our of quarter, market disruption remain Regardless

Our no any And of poised continues is broad our as there's and always opportunity that interconnect leading market a capture customers future. XXXX of mechanisms devices. most into outstanding range and doubt antennas, and this next one team product from mobile enable in agile to will array the and of that be to while volatile, generation our always our arises

of networks by as organically, in prior were OEMs. U.S. expected by Sales in from represented dollars XX% and XX% the sales as we demand quarter. X% impacted mobile from year The our wireless market reduced decreased

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

In On and the related crisis to shutdown China higher that in the networks service in COVID-XX the also fourth market. X% a our quarter sales mobile quarter, the the driven by addition, first sequential basis, our to providers. sales network from increased impacted was actually sales mobile

levels I Given COVID-XX the the anticipate disruptions crisis, ongoing in discussed, just continued those related to Regardless in well as government networks and quarter we we that we U.S. exciting that realized market, important the to the in continued confident long-term the are the industry. mobile be challenges similar this as in sales position restrictions the to second of the first company's quarter. in

mobile world. Our team next potential the to look with systems, expand forward opportunities our work equipment around and that our manufacturers as from equipment plan the networks. service these both from with for to increased comes And position benefiting and providers customers advanced unique aggressively continues to generation we

shift by we that the mention the radical as the education crisis. long-term a work global company. practices being are These expansion just in and create addition significant I'd due systems all to stretched know for COVID-XX potential factors in communication

data by the and together impact Sequentially, technology shutdowns the U.S. products contributions XX% impact from in the sales due represented from year, production expected China of the XX% quarter Industries in in of shutdown in the market quarter. weaker back and ramp sales than the up dollars by China. our particular organically from with Sales related the the Sales prior were Charles XX% and XGiga subsequent quarter. and our by in year, as the communications were completed acquisitions to server stronger first sales declined fourth offset production. of full of X% last declined the information The to

customers' in see among related in would in initiatives in that support did We to the of that support in COVID-XX developing IT well to at technologies I array our to of uptick I wide expect industry-leading to restrictions. in activity datacom a geographies and surge significant we this and video mention efforts particular a market. in due continued is face due of wide would increase a quarter the high-speed orders the gaming government And bandwidth do in customers' the positioned customers' sales to these communication, array related and efforts increase products first due customers while strong from related our challenges that continue our streaming new products. to and crisis efforts includes we across increase online services demands in mention to team's including power others. to second to quarter orders, We're the production many these COVID-XX we believe

in the Nevertheless, very company's technology position encouraged remain datacom market. the we IT strong global by

IT drive ongoing Our to equipment higher development around in next team to generation revolution dramatic singularly datacom of demand performance ever processor the of levels our power. a order technologies. this on world to and in enabling in the their remains through In manage bandwidth continuing for range continue turn, customers wide focused increases of their

sales to basis, X% quarter. as quarter. represented prior sales in the operators XX% XX% broadband a from a from The sequential decreased year the Sales moderate. spending decreased market fourth On of levels from continued greater-than-expected by by our broadband

in sales to increase to as their the seek support for increase discussed quickly earlier. demand I in capacity significant bandwidth expect We in to that upgrade quarter networks the customers second

challenges of number Our upgrades is these to hard in operational working the very capacity. support team amidst

our Now to outlook. turning

a the sales certain we're our weaker we this significant EPS well than to related the not ability line to to we economic it's expectation the full employees. in expect level. of our with quarter. providing several time that at volume adjust overall and as these uncertainty reduce the experiencing government This certain guidance restrictions be said, the we lower prudent first With been to year that several cases, In operational coming COVID-XX outlook and countries have some our for withdraw EPS to the as in in the restrictions to demand related limited spread our believe crisis, be due and that related measures Given implemented to to environment sales have COVID-XX. specific to sales is EPS the quarter will in costs do take markets and quarter second and the mandates, declines also are resulting our ensuring government of elevated as experiencing, resources in in businesses health comply with actions of we while our safety we

around these of ourselves while world. all team assure our than dedicating despite protect XX,XXX safety that hard the company's health to around the performance, the to world you Amphenolians employees all rest challenges, more secure Nevertheless, the of overall fighting is and can the

Amphenol performance. extremely uniquely now come to our continue unprecedented an I execute quarter away well. the proud pandemic, So been team's the to of of XXXX summarize, has first challenging, Amidst organization global while extraordinarily

the strong and value. our effective is our culture a leading its management flexible reflection In in crisis is and that times technology, presence, it fact direct competitive highly Amphenolian today like demonstrates structure, distinct team. of agile increasing all consistent facing of program acquisition worldwide position diverse advantages, entrepreneurial lean customers with our and markets, are our cost our true we a performance The in company's

like final their agility their Amphenol all supporting helps around of entire create of people stakeholders. value the focus recognize for the this take opportunity which our to to dedication the and organization thank on I just world and face and of would to their protecting our And all in uncertainty, for communities, their customers to our

be to take happy this questions will are if any at And maybe. there operator, time, very we

Operator

period speakers. question-and-answer you Thank The will begin. now

first comes Evercore. Amit from Our question from Daryanani

your may question. You ask

Amit Daryanani

guys your prevent think I today Adam, Amphenol would margin for And stick one you margin -- normalize? to do in about is to you eventually things different rate I target? the the company this things the talked just incremental to just margin the get when structurally cost I actually or pre-COVID run anything that once about, XX% back operating view versus from guess optimization getting question. about XX% the revenue that you've think in lower does to have operating will talked that and

Adam Norwitt

structurally, we in different in are crisis The you Yes. either agility well, hallmark and purpose-built know always flexibility change Amit, for bad. respects look, of Amphenol's today. the not organization an like times that's performance. in good nearly organization we we many it this been than times have of of or see And the have is been our

issue. so that where the And prior the an of the different from crisis people this sure, is of XXXX. ways is in also many collapse the for of whether was Because crisis crisis crisis tech is XXXX, financial health a

with the that down And higher into so, because our dealing very were fact I first quarter negative Craig government shutting or production. conversion margins, mentioned think that acutely you're limiting certain conversion margins going production -- in the

greatest have steps we this it. that the the capability you of whatsoever. of grown doubt we're for things no some effect have ensure about quarter You structural the hasn't this also company or timebeing on organizational, to fourth ago company, to where achieved employees our the that about. have the and in people achieve capability at and least of those of those to taking steps efficiency, the days changed of But all cultural productivity safety on expect just not margins the XX that

there margins will that those let's different even we happens where are strong dynamics. well are conversion tell. on downside something let in better, to I on conversion allows always the today say is ultimately an But margins even time and do during like crisis this the us that moderating environment driving very, Now very the upside

Operator

Thank you.

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

may ask You question. your

Wamsi Mohan

and you design activity. maybe the comment of can new on Adam, cadence pace

given is it push the in headwinds centric. you China in that Thank seeing launches outs product this in disruption You given of mobile continued mentioned But of and anticipating lot quarter, in witnessed devices? are resulting significant that you or you. mobile a devices travel disruption,

Adam Norwitt

specific program, any mobile Look, I that, I adjustment of includes way that Wamsi. and customers commenting our there's think in much, on very I new of this an devices, markets our that would Thanks to tell you think all period working. without

working working, you phone had very sure and in all of on are in offices, you we in a meeting conference in the and all that now different we're to sitting the tools but that and worked do all experts can't way past, person, I'm somehow the your and using. are you is video rooms through We that are here than seek on working all today replicate you the trying different can to really calls these that collaboration and interaction remotely all in replicate

with interaction to it new a as to in has have launching of new no customers I product, sort kind programs not But develop are And but out doubt that devices, in customers the you, of teams to mobile overall, customers again the on adjust who technology new work and it with about our tell just and how will to of now product, everybody figured working relates way. figured -- level out that this this.

lot and to new And not flying new here think adapt interact so continues people many and we desk customers and and to this I I think of and all shake can I very it's rapidly And -- technology I'm know the just learn and opportunity interaction person is I existed in environment. comfort ability feel unabated. like we'll environment hands and to level wonderful before. this from a TV amazing. we've that a ways I actually my creates that touch you $XXX it. that customers, and meet screen this had my a But tell camera believe from will with really I of many when year, to the in personally, with visit

think can specific amount that to activity had. customers the and access sort early I that in customers But launches, by world. adjustment to to manufacturing our what facilities still again of their of individual produce were there have some see enormous they volumes we the large, that around full that see with periods And customers is extent we an

Operator

Craig question is The next Hettenbach you. Morgan Thank Stanley. from from

may You your question. ask

Craig Hettenbach

mitigate markets end I which strong, helping, customers medical book-to-bill is chain comm look kind Adam, know just as that like of and particular to they question are a on but supply very concerns. also there's the

curious those demand like you're just get are and kind what kind is? of relative context so little on And a feel shape seeing of of more the bit you bookings to the how to

Adam Norwitt

much, Well. order in a let's they history, Craig. we Craig were mentioned our bit. had I the the Thanks strongest is mean I strong, these X% When as book-to-bill quarters think of one we've back up little year-over-year. strongest go mean about very you bookings, and and very

high-end the a original quarter we billion orders the billion. $X.XXX guidance of have at think, for I Our booked $X would of and had --

X%, So been which have would have been book-to-bill that would X%, doubt about a no it. about strong

And production that whether some book-to-bill I the related which I sales is wide element pretty had bandwidth certain we whether to of the range prepared there's that of in and and really is in strong those we in increased that that communication. areas. my think book-to-bill, that our in of in see number is another of demand as medical demand, increase just working remarks about well talked areas, actually a in So that’s sequential restrictions in quarter. it's products anything element sudden the the on, And increase in team

have to you kind that but prevent otherwise supply alluded to is that, in just may category orders chain position our that in of There risk third I line. secure I of the of customers three and be put distant would third those factors some position against kind the reviewed. of placing or Now, that get

like really what of just place not haven't we're a ordering thinking. in kind get ordering to frantic That's We things kind double line. seen of or

orders when and we I or more we satisfy than you $X $X.XXX ship get really buy that -- billion, think kind you are requirements. there having book seen customers of because that you have that of that couldn't Obviously, book the don't that I you some billion of orders some are But $X.XXX production billion can't restrictions. of because because out shortages. panic of the think

their always in for the like great of that they video a to in customers things gaming just our that the the our reflection the importance that Those so of all Internet, technologies of the customers with think you, things needs. mobile devices, various in demand matter today and the the devices, turn works play we are over supporting breadth today. things educating are as so I importance very social now work long, job know kids. reacting a market a like used from IT different for done the right different our of orders say to be media, for our purpose, devices market to will customers, for were mean And datacom have just phenomenal systems and I many and thing, video in now IT reacting have applications, driving those well of for we were you tell we mobile I and Craig, I datacom. helping that one because team things the will

not visit to And they all systems, school kids going communicate with to today, of physically, be would those be as my patients the would would a of be the who not the corporation, hospital to we families not function of able cannot without able restrictions. because

tablet stories last of wonderful very, critical computers loved to there's their families for hear about the ones stories. allow the and meet to sometimes time use You very tragically

And really purpose requirements I'd we and satisfy sense that around can we're to making customers have, feels our our the that. of world say a just and sure this, hard the do fighting that that around teams

matter way a the going look no the orders, our is those a customers. to so, support really And the they’re I urgency think, And find to strong of more reflection purpose. of team what

Operator

Thank you.

from comes Matt Stifel. question next of Sheerin Our

You may ask question.

Matt Sheerin

Adam your an afternoon, what of and levels you the idea Craig. you're similar utilization you biggest can Yes. now, fluid give you you're or outside operational China, Adam, to it good and relative the the relative are tell quarter that, production expecting of And where us saw are Thank cost you, to too facing to last or as restrictions given headwinds seeing early is issues? situation?

Adam Norwitt

the and much, then stock and February China. look, to Year solution, would came to very Chinese mean, things, quarter sort so these by largely was checking world rest and have because I the masks for of devices, factory, three rigorous employee but things their lot enough very not not a enough every way, for put the has we do disinfectant audit, XX in it. detailed reopen, government requirements was change China, country face allowed have it unprecedented, first day as your they on which with things a what to it's were and you have Matt. as forth way shutdown I a you is to their react including face Thanks mask had the have of to had I detailed, say surprising. you of the to of come been enough New very necessarily clear to will and every to and all like, that, do you reopen. process you it clear reopened about that does for reopen saw is temperature what us own is Yes. judge XXth masks? very you very, to essentially and times And challenges not when in rather days the mean, a

all which and What of so as will lot the a workplace. can appropriate in we the locations, sure has in possibly that learned as every that as team us governments and as very And our our of protect our to the open, a approach, those of audit making we Chinese much as is we're where country restrictions, how fortunately majority the are come can the where are much helpful when you making even a measures has here and of we and most bit operate that have of a the places, China, critical inspect cases that's way, by employees has essential employees in allow exempted do and operate, for world sure operations stay other our making that businesses? And in are and able been is are to place employees, will staying the businesses aspect all defined? around reacting to by know so, that demonstrate we and second, who that. making have in to our little What been workforce our essential that. first to in able United real to we safe, we so, and a a is governments been nuance a local kept allow protective putting that been that sure little lot a a And that, different in open people of sure us, around has they vast so, world, team and States we demonstrate the our we the in safe U.S. XX countries number to in operate state every significant bit different it's

people will be the no actually work Amphenol, the This comfortable to need our your the that, our is and the but people almost scary to If believe than make scary, mantra of sure safer workplace a coming then of and people. a safer coming That's don't in. comfortable inside home homes that they're than safe in of there's justifiably they're come. workplace, you it going virus is doubt not about the make place and to

totally are are we're where really point Mexico, like little or facilities India in even place tell central essential know I'm exactly Now, small don't these that. is an you utilization? We to tell do that, and so. of capabilities. not ultimately, operating, operating We're appropriate countries. shutdown to in us you in just a those their countries, as a our in for computer not is system I not what countries been of maybe does than but The can it's What lower you, that don't number an other I sorry relatively the that a and have restrictions rigorous. a more operating those producing where have is. I business facilities, utilization to mean? what we are can't we at have enormous number for would tell who number I

Craig terms In quarter. think costs fact quarter, to had Craig, uncertainty that to In a the part these first have that, don't continue extent extra of know in underlying to the what add to our to outlook reluctance is second quarter. to and here And specific is costs. I like that's hard I the would extra quarter, second in the talked we of those of the expect second And the we would about that. you really if will the be give predict,

Craig Lampo

Yes, said. quick you everything just Adam, agree with add one and I would just to thing actually that I

ramp coming other we're think though, from up the then, second was probably the I quarter, the what us was week I from had mean, we the part countries, first of that three the period as meaningful quarter, obviously into in impacted of and in in which half really China, the March. that. that And second then really, most shutdown

in really other really second second quarter, in really So, an the impact April tell and that's of quarter, countries seeing from more all that will an the the we're how resolves itself. really time

countries quarter difference it's bit bit the bit different meaningful actually a of little bit are as the nature, just quarter, the a first a full rest little So, a all increase having bit with of certainly between cost impact a quarter the differently. of a second gone a little little doing in different, things both maybe which

Operator

you. Thank

from Our next Samik Chatterjee comes JPMorgan. from question

your ask question. may You

Samik Chatterjee

compensated think the -- with of your would should I can you've of that. kind you you if when you strong anything compare why be from just for follow right. order some this you terms seen order what the in would on should I up given cuts the And mean, customers? a I I very strong down that XQ order wanted of have trends otherwise to order you for lower of the economic in trends kind on trends here, activity. the I line early have strength robust there have, kind definitely not share Because help just because and

to think wrong see be starting help are I some Like, down customers? should thinking is they you am that. just about Or in somewhat line? -- So me the from

Craig Lampo

the orders where about lot a talked in very well, I quarter. much. first our Yes, I came thank from. you Look, those think strong

IT mean, think to the I see. that and say second those to it's like weeks I in the the areas that like order end would through continue Does hard of it the the quarter strengthened comment orders, I into little here here a guess it's a strengthen barely three through I on quarter I -- remains datacom thing which think quarter. was premature into quarter. in that the just it strong We're early It little I definitely the trends. kind to the February. quarter that. of wasn't the mean, Again, quarter? early a say through orders second were on

sure. is in? mean, uncertainty. But that order that one period coming enormous in Does the the dealing mean look correction I there an Again, we're a for thing time is at market when of was in get mean, the I orders stuck These on frantically get, have I IT probably datacom. which orders, strongest in shelves to are these far it. from people customers we where are not putting trying the to trying stuff field.

I house have I with here two one is I'll three and I in a but kids, our parents a that tell mean school, to disaster, going children not So and you second am of brought, mummy and have that can I with only I them you a our them. bandwidth kids mean,

greatest everybody most for I is on so I'm here. of many bandwidth when places in the because the when in school perpetual my is from am experience video constrained course the time at isn’t day, talking rural it during the same And anybody and not calls the the and many, places

This thing. just I shelf just these stuff, are And it is is case is bunch so, field. the real to expansion, need of in these saying there the customers bandwidth on the things -- a upgrades, expansion put going buy to the capacity a not

market. can or about they that every connector months thing like are in six needs sensor They I produce they save lifesaving equipment tomorrow. order they that need yesterday but that possible life can. the They to every in to need a They get think get. not every or producing medical mean, you can like today

we're that at a believe I what here, seeing of a a this build kind chain demand. and I stuff That's than is think warehouses. I don't different people putting supply dynamic feel today. So, real we're in personally looking

Operator

you. Thank

Delaney question next Goldman comes from Our from Sachs. Mark

question. the ask may You

Mark Delaney

the then, of details how to COVID-XX some revenue may in percentage Amphenol, have about more at you have these any much that maybe to support to of that it ventilators? business Thank some business hoping terms of of So Just better And understand of that at going terms patients help sizing like revenue. you. in exposure are medical the areas

Adam Norwitt

Thanks other sure. mass dominant market Mark. transit, our Look, we and it's of from doesn't part for segment split important that market important across industrial equipment, haven't industrial automation, of heavy segments just so industrial our that though tell even including specifically instrumentation part rail would much out, industrial and our factory a And medical. everything market medical you have I and but an

made many the products think ago, in accelerated entered it years of Now, years, that our sensor with enhanced years a and position some acquisitions really done the job medical was in X.X expanding we our we medical I and business recent market. fantastic but ago we've when started

which like and across respiratory With delivery included in of longstanding and therapy; and and in X.X our way ago, imagine applications medical business who the of that areas and original had part today by the was acquisition can of position applications, strong and you medical medications. defense sensor GE’s position a sensor years a respiratory therapy things like X-ray an substantial had MRI kind market. which CT We've a patient monitoring imaging of leadership position and always is medical important

was and before we secrecy technological sensor and critical because piece of sensors critical we And the system, interconnect first a us, of of that, oftentimes sensor sensor And market, a part stronger were so of wonderful the positioned compliment I really the got was that one the that into business that a such in. a you'll the theories had the products when than were while the representative we component. element believe architecture even recall, we becomes sensor

much always these may and engineering it see more seen years, as say the importance saw enormous would And it we while has the tip element, into have as just a application of an of and the customer. teams highest it spear And that the the we’ve into value we of six over not that today. value kind that I and that

it, but personally the There's doubt that acquisitions that medical with talk no customers sensor portfolio our with thereafter. that I having As we've so and acquisition, that sensor not world. visual about interface we multiple many capabilities, built just around

of the it's not in market, we So medical in is to in company but serve really what size, that the a has customers it that market the position just our importance that enhanced. now medical terms

acquisition remember last market. real investment preexisting made value-add of in the products company year, in leader a medical called great You'll that medical in market Germany also wonderful Bernd with Richter, are companies together interconnect, a a active very we and that in our

proud again, not significant I'm Mark and do very this of role technology will And COVID-XX in that your against market. we're it's So it's very virus. market a play tell in the world our very, where important but what exact terms I battle one within is size, a that the just specifically the how, segments question, you helping industrial to answering can

Operator

the ask Please from Our next Loop. question. question comes Harrison from Shawn

Shawn Harrison

just something and in up? other of terms back period this XXXX, share share downturn and repurchase deployment quarter do thinking Question versus we environment you share that think the where And the in repurchases going XXXX? view believe. then if dry this what capital in also, of activity, wasn't on comment really Does could that repurchase. M&A significant it a like really either, times had wondering way M&A wasn't then if on that activity you maybe your did of XXXX, than In Amphenol forward lot there the of I

Craig Lampo

other the And repurchases. periods in the we Yes, does know our or certainly mention, of we this regard did I the saw these less of extreme price proceed which repurchasing by evidenced during shares where we of of acquisitions for other during average Shawn. repurchases always during $XX. somewhat the quarter bought did quarter. needs this a quarter. number guess I have, particular volatility And market purchase that into Sure. factors the and about period average of kind the that account the we take to Thanks as is that did we timing that would with million this stock X.X cash stock price

quarter There share is the a share during less repurchase more those doing cash when lower could we or needs. that be quarter during repurchase have

same market $X.XX were of with timing quarter billion for revolver we each one of in just the nothing Subsequently, place, gives a and took in did occur to So drew little kind our and we it those bit credit happened why had actions that's extreme you certainly had quarter the per the the when that to draw so that. maybe really under while down higher feel of environment reasons se, that but down really facility. the the we do revolving independent other a

And our amounts, do opportunities facility really bit markets revolving regards -- as intention those a of even some stable, to to explore be we would start we continue mean with intent the a more as the with here to paying revolver. other cash, to early quarter as generate the second became as I we down funding, credit will as little

and that do a deployment, flexible has we not changed. approach So, capital balanced of terms in to take continue

and that but to on of things mentioned about requirement comment in And prudent in very of are certainly share kind be I'll we're let formal other from purchases perspective. our bit where way, Adam anything stopped would uncertain, and things guess, very M&A. things I going be thoughtful like this now the haven't We maybe a a environment, and

Adam Norwitt

just I well would very Shawn. very much, main environment said, to Thanks Craig. Yes. relative I mean,

point onto XXXX. fabulous company out by back on, way. You've in We correctly a complete did microwave, early acquisition that the one

later, I you can't to how are years XX Here we happy own tell it.

during and just never will up company like times you a been prices We bottom side that. for or chases down, market things and of crisis, if other that fishing have

intention very dislocation, going with when are extent one buy We program having not people if day short-term marketplace long-term the dating don't during necessarily to really a don't what to that, most location. to you're And the means full to and short-term markets a long-term during market And you probably, to to our married. sell of with location, approach tell have that I thoughtful in you to probably wants know M&A conversation with short-term people, sell, ultimately want get buying. they the can don't them take you that

said, All what that will I you tell being this.

destination many who environment, that who diversity we've be through going becomes companies, companies an environment ours, like company more existential has that this very the talked for financial a attractive has and kind existential talked for reputation the is has a about, even about, the has culture very, During this diversity Craig of who strength may well, that geographical as and will, you diversity as footprint who an the today acquirer, and if crisis. who

can that choice. substantial. quite I this do want of of of believe kind one us survive, geography that, alone they a prospects only the one this existence. to do kind that crisis about, at today companies coming they're thinking that own and maybe I over this they're their can know think a in Maybe start do time only may I now real the happen. I look long-term out in if where of market, for think And those And ledge be long-term is acquirer being they I a

be is of then look going the has the year? companies we the going new much our M&A and to obviously already How talked industry and on clearly acquirer that make does that to thousands It's continuing capital are front. uncertainty what choice a How we Now any of the for prediction dividend, lot this it do? this west? in priority to buyback M&A allocate to our toward development about, will much of long-term deployment we forward capital to forward. product to of the But mean approach Craig

Operator

you. Thank

the from ask Deepa question. Please Raghavan Our Fargo next Wells comes Securities. question from

Deepa Raghavan

Hey, about good ahead to and times. better ask afternoon. look going I'm

let's recovery to verticals which sometime and earlier about you. some most got out see within longer macro portfolio? we your forecasts actually talk hypothetically, you Thank in or your of can pushed the typically something to history, usually in takes examples back second half. sales we which are and sales some start recoverable, about right, being lost think looking can there Should Just of see also be recover? the of covering assume And you that

Adam Norwitt

depends. This much, that is The you environment very about better either question believe the XXXX heart. that to verticals you my is one with Deepa, really mean, and XXXX. time. is which compare asked or recover that I I answer it thank a cannot, close I love Well, great current to when? and you Look if

So, which didn't in XXXX, we many our had of down. markets, even go

by the market than the a market was about then tech bubble it followed was collapse. and burst industrial relatively tech think military You as was still one that example, really strong even the

also was and And not then the in not so remember recovery you'll fast, if XXXX the XXXX easiest well year. was

very a Brothers the then in severe we in If demand. to the reduction crisis, crisis, go Lehman had fourth quarter financial you financial after the in

our our XX% of XXX that believe by the recall XXXX. in were in of down down adjusted like is prices we points of the I and adjusted the quickly same down the quarter. XX% basis profitability secured Sales ultimately those You'll we fourth Company headcount headcount And by quarter we something in both

an to intense if Now, no first grocery I might in know tell Churchill of we're and of People but this is the to one we But are end It There's in not a the pass, our know, don't Winston don't people. this will have I end. this be afraid insecurity this too day know They're know. it's this a the it personal to go to the I It beginning, to end, I shall crisis. affects beginning. old the the is doubt you an middle people. are will know because saying, afraid it. don't the middle different I but global where beginning little crisis, or store. pandemic about scares our is a lifetimes. you don't It crisis go if They work. think in

all I And end, of the that I be the that “normal” enormous of when beyond an not this are of January. be beyond going come. lies crisis, to at refer we opportunities believe will think end. amount what you differences. the see And on normal that same we It will lie There end that what XXnd that to knew

how we we work, learn function. how We live, will how how we reevaluate we

this just seeing big all that electronics that's medical importance it, think dozens of one of systems automation. applications I that leap name will common electronics perspective very building HVAC you significant is to of from there's electronics whether here. the experienced across thread that take a out reckoning that, ultimately are and mean, in to that's or equipment, communication the all we've of of purposes, our comes it follow safety, hundreds everything, whether new And disruption doesn't start people for

all And come. I those wherever can tell for you this, they sits may strongly positioned Amphenol of opportunities

whatever going are to their areas capitalize world, organization that. to little on General Managers them in And proud world the functioning very of to XXX each electronics be of around comes we're Our do along. the poised

does that days for haven't mentioned mean second In what correct. that's look macro Now, forecast mean, I I XX the half. been you forecasts. heard a the some single last

don't I'm when or know better S-shape I'm that there L-shape and is of lot up those don't me sure. day be that V-shape sitting all certainly home. what a our you I macro comes I there catch-up recovery are So, a gas will be I of shape And we're forecasts going a U-shape say in an is now. there not using mean, hard recovery to really what will right be come demand. demand, or to know to with catch it's or going tell whether is one

So, people to they we filled catch know gasoline are bunch all I month gasoline a for didn't out now. think don't a in going and go car my more haven't to when the tank I I get use right use. that up the that

to commentary, be that's but to going are necessarily lot it. telling to think I'm things real half you, going long-term. good for out so, a of of be there's Not in positive new but to come I going And demand so come this think ultimately, those crisis. that out have need things in I are many of that going whole are disappeared there things terms there's to And opportunities of some second the a

Operator

Fox Advisors. comes question. from question next Please from ask our Fox And Steve the

Steven Fox

Adam was all the left guess helpful wondering thing was supply own the of operations about your thanks I one terms I for chain. discussion. your in

running has materials, to disruptions raw be you handled this mentioned and quarter? source subcomponents it's to with been and in ability you your that about talk going but handled how how Thank can you. think You just factories, your

Adam Norwitt

I our really supply One are the we put our very mean, and the don't you. around I'm general in don't all that do may is I of leverage one a all We to eggs world. one important. centralized some tell put responsibility supply our XXX basket that. look about Amphenol one than all about very We very not chain suppliers of we're supplier seek Today, chain. things suppliers well, a have our We across into manage the putting But stuff Steve, more we share managers of that and grateful us. vendor. of and information the for to can important thing smart for vendor that.

disruption, of Because There who most the come to that right went didn't there doing back back come usually are very what production. do our for away. able at were February are full any in so production. any the help agility, and those, suppliers suppliers China much us to the was organization month coming wherewithal, suppliers, and the of our so through even the them create to than not to which we back extent others shutdown capabilities small the were And to was have successful who to team quicker

those supporting suppliers. them for there was team Our

terms now. We on the terms supply It's some point reported. been haven't entendre are our going one I would material the impact logistics. should impediments from is anything logistical not are as well much right it's in seen of say I a world I anything to the meaningful, chain. in as guess suppliers material double thing There really of in meaningful maybe

our in Freight capacities when job certain working we what getting getting need it. and areas the a of that to customers are across we collaboratively they team's need it quite need limited need the done make sure organization we're and product significantly our great when that

So, was doing there's that, a little bit days in now there but XX work more ago. involved

Operator

question. question comes SunTrust. from from William your Please ask Next Stein

William Stein

could have they base this than resolution on all wonder a we challenging decrementals bit a the take the a COVID. see on little going you expect worse expected here to given because expect trajectory I they in -- with decrementals what more should to a relatively you. Great, quicker we things And you times can we less were little have the readjusting with the quarter in of costs, two where whether than actions bit, the might downturn current a are a the some current if should we for taking relates cost Thank can't base you because another quarter thanks level question. quarters. were two typically with or when things? say sort of for more the couple align Amphenol my of alignment that challenging and or understand over the next employee demand those let to margin It expect We the better

Adam Norwitt

Thanks lot for Yes. a the question.

first world. off being with that start with with able we're that the margins quarter had in to the in just as just first me we really operating Let deal still company, think, by of the with XX% other the the were quarter all parts of we a achieve saying, the I closed, to obstacles the proud China fact

far think QX XX% typical of so downside not and just conversion case, productivity XX%, of Having from or some fact closed facilities it's the QX in essentially people, a terms the issues sequential that over and limited to our I to a conversion, so so having that to of kind and our just had quarter XX%, team. testament

that's So to I think just start that kind really I with because just we're important of proud wanted the that really of of. kind point and

certainly that sales and relates say and as second to the forward for didn't or it in has going Adam, into second or we of be do the we to quarter. second it did the guidance quarter. we quarter lower Now, kind expect make giving

I profitability the first said pressures the than wouldn't to said, be being they the or expect that I profitability better quarter. meaningfully quarter second our with were So, in in that on

regards event we other happened of end China it really parts first that until we this that have before seeing specific mentioned really we're saw our of the the with world the and way the wasn't the what quarter, I in in to ability second limiting cost, quarter starting adding And in or a that issues really to first the adjust create quarter. costs. that's to bigger

banning, still in time. that have the think expect to at from would a drive this we I point throughout the so second And quarter

the I second the different on unknowns to first conversions again But dramatically there's into so that sequential expect right many that wouldn't difficult compete I kind quarter, second normal-ish going we quarter, into can quarter that. of the really from second now, as maybe quarter quarter come it's conversions.

Operator

Thank you.

Our next from Jim Citigroup question from Investment Research. Suva comes

question. your may ask You

Jim Suva

been the of much so lot my and which outlook, great hear team have that. your you well positive Amphenol and answered Thank to a doing is for questions

then was coronavirus plant is I posts I crisis, So, of and think XX this I've back And the just different much little in But XX%, bit. I'll ask team about one in we the a you on positive the sell-side of tech but history think in down When about years, year-over-year financial was then back XX% in global think down some bubble China. back talked global there your guide about how crisis, the year-over-year. the for worst burst, came been over quarter times closures.

it of would seen from greatly the us at different different? plant much guidance appreciated. make coming historical be guide all it any closures about, we've can color those much back past or you and trends give some So, posts Any is or

Adam Norwitt

collapse was should we or to should Well. I one much and well those. financial we face that, can I not Jim. earlier compare there crisis, tech their Thanks on the this global was say well mentioned moment there the so think

different I is here. think there the

the of have where have an need impactful They of governments never governments on think reason, to are play so We deeply role. good health a in worked the take for I extraordinary in I world. all role us environment of an by the citizens mean and way. of protecting phone all to the and the

limit the which a it's there all you ages it work of we taken spread it and of about time steps the me virus back take so protect justifiably, in and to very felt reentry. was of felt as China governments And your at time long like to where been the not to to knew were I by think of was a very planning certain a for them. very I slow kind people could because the happened the three you end clear, have certain you But things as people was was talked interaction mean long. weeks I did and the moment years so has like period, time, you, thereby tell way distinct of different. let

think thus as of been were in rest clear. is that as believe less I I out in the world, and the clear the of the coming And actions China the actions also haven't

and filled to this depend depend all is It foreclosed the dependent And times now look mortgages their year those results. It going curve start will fiber because so various and depend is of that upon on are market and fiber back people the will all capacity it's means XXXX. depend. term, country. optic like? things dependent sort will on back re-building the the so, the what It getting or many in can will things. of not the It on these bending unemployment we of are we demand not coming not on not equipment in It's and in finally and

There very I in significantly. an increasing obviously, countries, is mean many unemployment example, element for

come demand against part What's not back this that that's So, but there so the in COVID-XX. way of factors. some crisis, of government When direct is end battle makes come feel there or people? parallel are otherwise? from into or to to will perfect of companies of an to available be have a I grants that two those which going to draw is know, me related demand many does a in terms end depend the lot stimulus this, that that loans crises. degree What support on like factors

reiterate our time. because team perspective, dangerous a draw. more maybe I ready one is doesn't it to regardless. just be From would just parallel It Again, matter, our

very time a resiliency the really our this a for I our is demand purpose is are uncertain, all also to new flexibility get of and and the environment of of second where embrace for unprecedented We We're of organization demand. regardless. we'll time believe built the And ability that through in and organization built adapt, that's the to kind strong purpose of agility, none, and of a uncertainty. to a time

Operator

you. Thank

question Please question. ask next comes Our Joseph RBC from Capital from your Spak Markets.

Joseph Spak

on and you so to on comments color restart much, just quickly go Thank follow in guess China the I Adam. lessons back the want last you some I do learned. of I'll to the your gave

think I that's important.

up to amount some As and with pretty lines world. you plants think in But followed be mentioned, and also it's I safe place to decent there's manual that of was feel a the close labor intense. mentioned other. can unclear elsewhere with employees and you if each It's your set

do as of to comfort have get level minimally your required more might you employees. in that So than certain among areas to

there's think second costs just your pre be beyond of where comments, it your get is of vaccine, on to until shutdown, here, COVID we there to that even a you back productivity because because last still going to either? about, was not obviously sort may the does quarter So Or it immediately, view? follow some there's matter, not to snapback is your when

Adam Norwitt

question. great a it's Yes,

point role you're I There there to saying So pre-vaccine and pre-vaccine take think probably post-vaccine pre-vaccine to the I going mean, aggressive is protect was the I shutdown a of our people. priority, you clear, to just would a And for has agree more I post-vaccine January world. And steps is people. corporation the with to your you. is, when and and protect tend it happened, our to pure world priority out would world as what overarching is there's a the thing us be on one to right absolutely XX that require

the it's we XX,XXX And it's of human, do people it but good also just the those do that as because around world, do we because fellow business. a thing to right

protect recorded if effect on there their well see and what a If the happened. so been of the have world, protecting well don't they're sufficiently people. not corporation many kind reported examples your people, you others around some you business of not And so catastrophic

making were very we protected. well get sure that absolutely went overboard the overboard. So go people went our We from

offices. things. very together. to have out. They're today. warehouses. And many done close not We’ve assembly We've We've workers it we together close so used work And who yes, working where repurposed figured we we have factories We’ve staggered shifts. repurposed

the things hurt mean, our Now, but do management of of they floor. necessarily. and pre-vaccine resilience in of term, the I ultimately amazed team, those all just unnecessarily, think not medium don't I do our at people be productivity not factory the adaptability, you'd on

I'll I And a and thought, just here in put now. plug right

of I a things that work our management can in go from And We go door every go have building today. people factories who are network. day into mean, work every give so walking to a who earnings jobs equipment do to life-saving of building time and the into are other are lot call. important I are factory. to they're the communications to jobs. for not Well, people doing release their those our These for heroes mission today. of things said, have everyday home Like people so, Amphenol critical their in They the

teams this means, not space heroes these regardless And day, factory, much believe overlap now. have that's to it make at protect and protect job I company that, are have in a because the regardless, in that if always X% protect says right of as out of we follow got of of means are them quite going to them our consideration regardless priority going our to every our going who to we're point. happen it’s not them whether productivity lose we I that to people that have will. the It and that our day and that I to shift

Operator

you. Thank

question comes Jefferies. from David next from Our Kelley

the ask may question. You

David Kelley

I question automotive. into impact content? seeing what outperformed supply a believe the then market. the headwind timing, drove anything in that expecting there. region mentioned X% if curious, step-up That's coming might the that significantly upside? year-over-year some Are seeing specific I exposure quick your on sales And decline you're there any chain second on the I from quarter. here? just you that Was had hoping and you in just for was a color quarter be you're

Adam Norwitt

outperforming is we're is, a true. to for mean, X%, X%. we're decade. applications I we because I job And of say but technically done think, and a and capitalizing not guess It's new has it don't like been it part down say I the just outperforming we've world. I that, the I maybe down yes, think in outperforming the been the Look, on to it's But better think outperformance thing in maybe electronic great have car. when automotive our hate greatest I I market the

in that in automotive return going I think would new and features cars market to that going in and crisis is there other all to that the bet keeping constant said many this and that some unrelated people not I to going think cars be is clean cars cars I and may be quest safe when to is things keeping so clean, that. the keeping is like and done, that air new features continue for

in personally opportunity growth be a remains I market long-term for the remains think Amphenol that to long-term So, is great in strong. automotive the constant the opportunity

Operator

Thank you.

comes Longbow. question. Please question Todorov from ask your Next Nikolay from

Nikolay Todorov

current your I understand and what downstream systems would it's more of but an understand the sales and consumption underlying positioning? how on that what our some field, going What things hear love inventory orders life look view like. driven into of orders your inventories art versus much of than IT science, markets? by are medical I about I in and to is communications are but assessment

Adam Norwitt

stuff where and our warehouses. of have think I lot only distribution of mean, place the a in inventories I I see have a don't putting we perfect Yes, we earlier, channel. visibility visibility, customers We don't bunch just mentioned their its

anything seen abnormal haven't We inventory at in the distributors our amongst this point.

related vigorously ability. this In very continuing those are especially big a say we to that say that have see customers, customers who we that in extent the service going to mismatch battles on. to demand are our the inventory I'd that incremental are COVID-XX fact, their have wouldn’t I distributors

Operator

Thank you.

Giordano from comes from Joe Cowen. Our next question

open. line Your is

Joe Giordano

I the questions productivity. on we to about on follow up just of talked some wanted

automation. where is on post-vaccine. there use on, about like something change now overseeing think what have to we is a capacity, do of guys we today? back? to Is this XXX% facilities saw need -- fundamental you weighed So, term how pre-vaccine, come bias XXX% So just the I right structurally, to think And already to just like people do just kind mentioned how an was a like long-term How of rethink incentivize capacity a these out? more that labor upward costs are you than longer you

Adam Norwitt

about Look, monolithically. Thanks. think this we don't

across I an of enormous operational different the beauties Company of the one operation we also in amount is that have That's every think of diversity the Amphenol. is Company.

We highly have some operations are automated.

they highly it the to a course from, consider, market they new others they for We create tailored the to usually be going this is to have very are is. much that manual. to serve geographies that service And factor of people tend they

managing going look, I Amphenol for and what our this of of do But to optimize just business. general it's to a approach team going lives. their are people It's calculus operation rest everybody management. that create new consider to means factor just that their And think to going for no happen. our excuses the expression to that integrate to each a of and is we an have into of in who make they a managers

you through career been time, of so we of in the now many made a And have locations of our geographies, seen our stuff come mean, careerist, where fact need my that and name health Company and prioritize is that an the in the enormous careers people. It's the I lot changes can the that been XX in through over wonderfully. certain we changes, We've and to cost along of labor different changes amount changes years for now course the with it. of things secure be

have we for negative I short is term believe not. of going to dealing that's going to permanent this impacts. a Look, Do lot a do with, on that the kind I of have course, a governmental drag in productivity? shutdown of short have term,

of And paying because Amphenol’s But have thereby will. you're and also number going but don't by in a be that the You're highly to for strong law do. to the right to a it's not thing it productive places. and structural -- is drive I Company, organization to change to people and ability a returns work this to manufacturing doing think

Operator

any Thank the queue. speakers. remarks. don't any this turn I’ll to for call you you, questions we closing have on back At time,

Adam Norwitt

you thank much, about to end question. beginning of There's you few Well, just thank I going earlier, of crisis. predict not all no come, the today. Look, there end will beginning to come, to here. middle mentioned come. There's to about We doubt a doubt to end and wanted it. to an and a the through, chance words crisis so everybody say a I'm or this unlike your for one we're to extended will give it when but a have no be it. but the have the does and the in when be I does any time wanted us, lived

another of do of you about that we're positives or of are been out true of people. by some all sure that operate, how come And well of and for learning have about I tragedy the our people silver we think what in touched can our relish a ourselves, fellow is, and that what encourage can that tragedy. that encouraged employees really is take how work, I you linings some way we tragedy the I'm And about it, the I things to may have many wonderful as of advantage all will

wish look And stay continue the the will you I possible colleagues our you strong of person, nearest this we also to that strong people remains all sure families, support sure And and Amphenol stay our and of I'm occasion. is and safe in comes, of our meet the get of we long-term. that safe. one and And day that stakeholders my remain that make chance at the to company certainly you team for can office safe regardless all and to that all forward assured healthy and there to and in colleagues, with rest your company sitting management the with to your all

to very now. and much XX look to forward all Thank you we you again days from speaking

Craig Lampo

Thanks everybody.

Operator

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

Amphenol (APH) 22 Apr 202020 Q1 Earnings call transcript