About Te Connectivity Corporation

TE Connectivity is one of the world's largest suppliers of passive electronics, components such as capacitors and resistors that hold voltage but don't create it. Its devices are used in aerospace, automotive, data communications, consumer electronics, energy, lighting products, and medical applications, as well as public safety, military, and telecom products. The company operates about 95 manufacturing sites around the world and sells about 450,000 types of components directly and through distributors to customers in some 150 countries. While headquartered in Switzerland for tax purposes, its corporate office is in Pennsylvania.

Operations

TE Connectivity sorts its businesses into Transportation, Industrial, and Communications.

Transportation delivers 52% of the company's revenue. It makes terminals and connector systems and components, sensors, relays, application tooling, and wire and heat shrink tubing.

Industrial accounts for 26% of revenue with its products that connect and distribute power, data, and signals.

Communications makes components for the data and devices and appliances markets and generates 22% of revenue.

Geographic Reach

TE Connectivity is a worldwide operation with about 400 manufacturing, warehousing, and offices in more than 50 countries.

In terms of revenue source, the US accounts for about 30%, followed by Switzerland, 25%, China, 20%, and other countries in the Asia-Pacific region, 15%.

Sales and Marketing

TE Connectivity connects directly with its customers most of the time with 80% of revenue coming from its own sales force. The company also sell through distributors.

Financial Performance

In 2015 (ended September), TE Connectivity posted $12.2 billion in revenue, a 12% drop from 2014's $13.9 billion. The company attributed the decrease to a realignment of business segments and the discontinued operations of Broadband Network Solutions and Wireless Systems. Sales rose for Transportation and Communications but fell for Industrial.

The company boosted its profit 36% in 2015 to $2.4 billion from $1.7 billion in 2014.

Cash flow from operations ticked down to $1.9 billion in 2015 from $2 billion in 2014.

Strategy

TE Connectivity has not been passive about changing its product portfolio with rounds of shuttering, selling, and acquiring.

The company discontinued the Broadband Network Solutions and Wireless Systems businesses. Separately, it sold the Circuit Protection Devices business to Littelfuse Inc. for $350 million. The sale of CPD was another step in focusing on components destined for harsh environments.

In 2015, TE Connectivity commenced a restructuring program that cut jobs and closed some product lines. The restructuring's main impact was felt by the Communications Solutions and Industrial Solutions segments. The company plans to continue the program into 2016 and beyond. It could record restructuring charges of up to $65 million by 2019.

Even as it cuts in some areas, TE Connectivity stokes growth in other areas. It is investing in existing and new technologies and businesses in core markets. Beyond the familiar, it will seek to expand in emerging markets. Acquisitions also are a part of the company's growth strategy.

Mergers and Acquisitions

TE Connectivity bought Hirschmann Car Communication GmbH from VOXX International Corp. for $166 million in 2017. The deal expands TE Connectivity's product portfolio for connected and autonomous vehicles.

In early 2015 TE Connectivity acquired AdvancedCath, a source of advanced catheter systems. The acquisition complements and significantly expands TE's connectivity and sensor position in the high-growth intervention area of the medical market.

In mid-2014 the company announced a major acquisition when it proposed to buy Measurement Specialties for $1.7 billion. Measurement Specialties makes sensors of all kinds -- for pressure, vibration, force, temperature, humidity, ultrasonics, position and fluid. The deal would include more than a dozen manufacturing plants situated around the world and would established TE Connectivity as a leader in the high-growth sensor market.

In 2014 it paid some $490 million for the SEACON Group, a provider of underwater connector technology and systems, which expands its expertise in connectivity for harsh environments.

Company Background

TE Connectivity undertook its solo role on the world's stage of passive electronics in 2007. Tyco International had rewritten its corporate script, and moved to split off Tyco Electronics and Covidien (formerly Tyco Healthcare Group) from its security and engineered products operation; three stand-alone public companies resulted. The company changed its name to TE Connectivity in 2011 to better reflect its operations after the ADC acquisition.

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Te Connectivity Corporation

1050 Westlakes Dr
Berwyn, PA 19312-2400
Phone: 1 (610) 893-9800

Stats

  • Employer Type: Public
  • Senior Vice President: Shu Ebe
  • Senior Vice President: Jane Leipold
  • Executive Vice President: Robert Scott
  • Employees: 90,000

Major Office Locations

  • Berwyn, PA
  • Harrisburg, PA