Manufacturers

TE Connectivity off to a slow start

Included in TE Connectivity’s financial release for the FY12 first quarter that ended Dec. 30, 2011 was the news that the company’s overall book-to-bill ratio was 0.95. That indicates orders are slower now than they were earlier.

CEO Tom Lynch noted the problem came from “lower-than-expected demand in our Communications and Industrial Solutions segment and our Telecom Networks business.”

Sales in Q1 were $3.31 billion, up 3%. The company said it expects Q2 sales to be $3.3 billion to $3.4 billion, with 12-month FY12 sales of $13.8 billion to $14.2 billion. The company’s net sales in FY11 were $14.3 billion.

While TE Connectivity’s stock (symbol TEL) fell to $29.39 during trading on Jan. 25, the day of the announcement, the Jan. 27 close was $34.30. That’s up 11.3% from the Dec. 30, 2011 close of $30.81. In the same period, the S&P 500 is up 4.7%.

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