This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Amphenol's CEO Discusses Q4 2011 Results - Earnings Call Transcript

From an Interconnect margin standpoint, about 1/3 of the reduction from last year relates to higher depreciation expense in the 2011 quarter compared to the 2010 quarter. While depreciation expense as a percentage of sales for the full year 2011 is comparable to 2010, the sequential decline in sales in Q4 2011 resulted in higher relative expense levels in the current quarter.

The remaining reduction in margin reflects the impacts of increases in material input costs versus the prior year, particularly for precious metals and plastic and, to a lesser extent, cost in the quarter relating to workforce reductions of about 3%. These impacts were partially offset by the positive impact of cost reduction actions and price increases.

In the Cable business, margins improved to 13.1%, up from 12.3% last year. The margin improvement relates to higher volume of specialty cable products and lower relative material costs, primarily copper and aluminum. Overall, we're pleased with the company's operating margin performance of 18.5% in the fourth quarter and 19.2% for the full year 2011, excluding onetime items. The achievement of this profitably level in a year were significant inflationary pressures on input costs, coexisted with a volatile and less-than-supportive demand environment in many of our markets, is a hard-fought accomplishment by operating management. In response to that environment, from a headcount perspective for the year, we reduced headcount by about 4%, excluding the impact of acquisitions. We continue to believe that the company's entrepreneurial operating structure and culture of cost control, will allow us to continue to react in a fast and flexible manner and achieve strong profitability.

In addition, as we look forward to 2012, there are some signs from an input cost perspective, that the new year may bring a somewhat more balanced operating environment. In that more normal environment, the management team remains fully committed to margin expansion, as business volumes expand. Accordingly, the company's guidance for 2012 reflects the return of sequential quarterly operating income conversion rates, in line with the company's long-term target of 25%.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs