TE sees 2020 bounce back from Covid-19 pandemic

October 28, 2020 //By Nick Flaherty
TE sees 2020 bounce back from Covid-19 pandemic
Swiss connector maker TE Connectivity has shrugged off the impact of the Covid-19 pandemic in its 2020 results but will not provide guidance for next year.

Net sales at TE Connectivity for Q4 were $3.26bn, up 28 percent on the previous quarter, reflecting the return of manufacutring. This compared to an expected 10 percent growth, but was down 4 percent year over year.

Growth in the transportation segment was 49 percent, driven by the rebound in the automotive business after the closure of Chinese factories earlier in the year.

For the full year, net sales were $12.2bn, down 10 percent on the previous year as a result of the Covid-19 pandemic.

"I am proud of our employees for delivering fourth quarter results well above our expectations, exiting the year with sequential sales growth in all segments. In particular, our Transportation segment was up nearly 50 percent from last quarter, driven by a recovery in auto production and our continued outperformance versus the market due to our strong position in hybrid and electric vehicle platform technology," said TE Connectivity CEO Terrence Curtin. 

"Our global manufacturing strategy and acceleration of our cost reduction activities enabled us to meet our commitments to our customers as they continue to navigate the impacts of Covid-19. Our full year results demonstrate strong cash flow generation and our portfolio is well positioned. While the markets remain uncertain, we do expect our first quarter of 2021 to be back to pre-COVID revenue levels and we expect an increase in profitability."

For the first quarter of 2021, the company expects net sales of approximately $3.2bn, an increase of 1 percent. The company is saying it can’t provide full year guidance due to limited visibility of COVID-19 impact on future demand. 

www.te.com

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