Amphenol Net Down 1.3% On Margin Slide, Cut 17% Of Work Force

   DOW JONES NEWSWIRES 
 

Amphenol Corp.'s (APH) fourth-quarter net income slid 1.3% on falling margins as the company announced it cut about 17% of its total work force during the quarter.

The fiber-optic and electronic cable maker reported net income of $98.7 million, or 56 cents a share, compared with $100 million, or 55 cents a share, a year earlier. Per-share earnings rose as shares outstanding fell 3.9%, and the latest results include a 3-cent gain from a reduction in the company's tax rate.

Revenue decreased 2.8% to $755.3 million amid decreased demand, especially in the automotive and communications markets. The company said currency translation hurt sales by about 4 percentage points.

Last month, the company lowered its earnings and revenue estimates to 50 cents to 52 cents a share and $725 million to $735 million, respectively, citing a further slowdown in global demand.

Gross margin fell to 31.8% from 32.8%.

Chairman Martin Loeffler on Thursday said the company was pleased with its results despite the drop in demand. Following a plan announced in June, R. Adam Norwitt succeeded Loeffler as chief executive to allow him to focus on Amphenol's strategic direction.

Norwitt said that consistent with the company's strategy, Amphenol acquired a "high-technology manufacturer of antenna products for the wireless infrastructure market," without giving any further details.

Looking forward, Norwitt said the company expects "further moderation in demand" in the first quarter amid economic uncertainty and current exchange rates. Amphenol expects earnings of 39 cents to 41 cents a share and revenue of $650 million to $665 million. Analysts surveyed by Thomson Reuters expected 43 cents and $665 million, respectively.

The company added it wouldn't provide sales and earnings guidance beyond the current quarter because of "significant uncertainty regarding future demand levels."

Amphenol's shares closed Wednesday at $21.90 and haven't traded premarket. The company's stock has half its value the past four months.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; [e-mail]

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