TE Connectivity third quarter sales up marginally to $3.5 billion

Telecom Lead Europe:  has reported
net sales of $3.50 billion in the fiscal third quarter ended June 29, 2012
compared to prior year sales of $3.58 billion.

Total company orders were $3.46 billion in the third

In the third quarter, the company completed the
divestiture of its Touch Solutions and TE Professional Services businesses.
Total proceeds were $409 million, of which $394 million were received in the
third quarter.

For the fourth quarter, the company expects net sales of
$3.325 to $3.425 billion.

For the full year, the company expects net sales of
$13.25 to $13.35 billion.

“We executed well in Q3 delivering EPS at our
guidance level, increasing adjusted operating margins to 14 percent and
generating free cash flow of $414 million,” said TE Connectivity Chief
Executive Officer Tom Lynch.

“Sales were up 8 percent sequentially although
slightly below our expectations due to a weaker Euro and softness in our
Network Solutions segment. Based on current order trends, we expect fourth
quarter sales of approximately $3.4 billion with adjusted operating margins
holding around 14 percent. We expect to generate in excess of $1.3 billion of
free cash flow in fiscal 2012 and plan to restart our share repurchase program
in the fourth quarter,” Lynch added.

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