Amphenol Corporation (APH) Q4 2022 Earnings Call Transcript

For the period ending Dec 31, 2022

January 25, 2023 1:00 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Hello, and welcome to the Fourth Quarter Earnings Conference Call for Amphenol Corporation. Following the presentation, there will be a formal question-and-answer session. Until then, all lines will remain in a listen-only mode. At the request of the company, today's conference is being recorded today.

I would now like to introduce today's conference host, Mr. Craig Lampo. Sir, you may begin.

Craig Lampo - Senior Vice President and CFO

Good afternoon, everyone. This is Craig Lampo, Amphenol's CFO, and I'm here together with Adam Norwitt, our CEO. We would like to wish everyone Happy New Year and welcome you to our fourth quarter 2022 conference call. Our fourth quarter 2022 results were released this morning. I will provide some financial commentary, and then Adam will give an overview of the business and current trends, then we will take questions.

As a reminder, during the call, we may refer to certain non-GAAP financial measures and make certain forward-looking statements. So please refer to the relevant disclosures in our press release for further information. In addition, all prior year comparative data discussed during this year is on a continuing operations basis.

The company closed the fourth quarter with sales of $3.239 billion and GAAP and adjusted diluted EPS of $0.82 and $0.78, respectively. Fourth quarter sales were up 7% in U.S. dollars 11% local currencies and 8% organically, compared to the fourth quarter of 2021. Sequentially, sales were down by 2% in U.S. dollars, 1% in local currencies and 2% organically. Adam will comment further on trends by market in a few minutes.

For the full-year 2022, sales were a record $12.623 billion, which were up 16% U.S. dollars 19% in local currencies and 15% organically, compared to 2021. Orders in the quarter were $2.884 billion, which was down 12%, compared to the fourth quarter of 2021 and 8% sequentially, resulting in a book-to-bill ratio of 0.89:1. This was driven by lower bookings in the communications related markets.

For the full-year, orders were $12.925 billion, resulting in a book-to-bill ratio of 1.02:1. GAAP and adjusted operating income were $666 million and $676 million, respectively, in fourth quarter of 2022. GAAP and adjusted operating margin were 20.6% and 20.9% respectively in the fourth quarter.