1998 Fourth Quarter Results Reported by Amphenol Corporation.WALLINGFORD, Conn.--(BUSINESS WIRE)--Jan. 21, 1999--Amphenol Corporation (NYSE-APH) reported today that fourth quarter 1998 net income per share assuming full dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. was $.46 per share, compared to $.53 per share for the 1997 period. Sales for the fourth quarter 1998 increased to $233,376,000 compared to $222,085,000 for the 1997 period. Currency translation had the effect of increasing sales by approximately $1.5 million in the fourth quarter 1998 when compared to the 1997 period. For the year ended December 31, 1998, net income per share assuming full dilution was $2.03 per share, compared to $1.83 per share for the year 1997. Sales for the year ended December 31, 1998 were $918,877,000 compared to $884,348,000 for the year 1997. Currency translation had the effect of decreasing sales by approximately $8.7 million for the year 1998 when compared to 1997. On May 19, 1997, the Company completed a merger with an affiliate of Kohlberg Kravis Roberts Kohlberg Kravis Roberts & Co (commonly referred to as KKR) is a New York City-based private equity firm that focuses primarily on late-stage leveraged buyouts. It was founded in 1976 by Jerome Kohlberg, Jr., and cousins Henry Kravis and George R. & Co. whereby the Company incurred additional indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. and reduced its shares outstanding from approximately 44.7 million to 17.5 million. In addition, in the 1997 second quarter, the Company incurred an extraordinary charge in conjunction with the merger for the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt of $12,845,000, or $.41 per share. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis as if the merger took place on January 1, 1997, the pro forma net income per share for the year 1997 was $1.85 per share. Amphenol Chairman and Chief Executive Officer, Martin H. Loeffler, stated "For the year, we achieved sales growth on a constant dollar basis of 5% and earnings per share growth of 11%; results that compare favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to industry averages. However, the second half of the year was slower than the first half, and the combination of product mix and a difficult pricing environment put some pressure on our strong operating profit margins Operating profit margin The ratio of operating profit to net sales. . Our connector business experienced a sales increase on a constant dollar basis of 4% for the fourth quarter and 7% for the year 1998. Our new products for wireless communication systems were a significant factor in this increase. However, offsetting this growth was a slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the latter part of the year in our aerospace business reflecting a weakness in both domestic and international markets and customer inventory reduction programs. Sales of coaxial co·ax·i·al adj. Having or mounted on a common axis. coaxial Adjective 1. Electronics (of a cable) transmitting by means of two concentric conductors separated by an insulator cable products for cable television increased 8% for the fourth quarter and were essentially even for the full year 1998 compared to 1997 periods. The increase in the fourth quarter was due to strong customer demand in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. as cable operators continue to upgrade their systems to offer enhanced communication services. We are continuing our strategy of identifying growth opportunities for new application specific products; however the margin pressures we experienced in the second half of 1998 are expected to persist in Verb 1. persist in - do something repeatedly and showing no intention to stop; "We continued our research into the cause of the illness"; "The landlord persists in asking us to move" continue the current year and, accordingly, we continue to implement cost control programs in striving to maintain our strong operating profit margins. We have great confidence that technological change will create new opportunities and allow us to continue to grow in the markets that we serve." Amphenol manufactures connectors, cable and interconnect (1) To attach one device to another. (2) A physical port (plug, socket) or wireless port (transmitter, receiver) used to attach one device to another. systems for electronics, cable television, telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , aerospace, transportation and industrial applications. The Company's products are engineered and produced in North America, Europe and the Far East and sold by a worldwide sales and marketing organization. -0-
AMPHENOL CORPORATION
FINANCIAL SUMMARY
Three Months Ended Twelve Months Ended
December 31 December 31
(Unaudited)
1998 1997 1998 1997
Net Sales $233,376,000 $222,085,000 $918,877,000 $884,348,000
Income before
extraordinary
item $ 8,270,000 $ 9,434,000 $ 36,510,000 $ 51,264,000
Extraordinary item:
Loss on early extinguishment
and restructuring of debt,
net-of-tax - (11,702,000) - (24,547,000)
Net income
(loss) $ 8,270,000 $ (2,268,000) $ 36,510,000 $ 26,717,000
Earnings per share:
Income before
extraordinary
item $.46 $.54 $2.07 $1.84
Extraordinary loss - (.67) - (.88)
Net income (loss) $.46 $(.13) $2.07 $.96
Average shares
outstanding 17,860,853 17,530,482 17,663,212 27,806,260
Earnings per share -
assuming full dilution:
Income before
extraordinary item $.46 $.53 $2.03 $1.83
Extraordinary loss - (.66) - (.88)
Net income (loss) $.46 $(.13) $2.03 $.95
Average shares outstanding -
assuming full
dilution 17,986,797 17,892,097 17,942,397 28,002,977
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