Amphenol Corp., a manufacturer of electronic and fiber optic connectors, cable and interconnect systems, last week reported a record second quarter in which sales grew 23% over last year to $847 million and earnings per share grew 33%. Amphenol chairman and CEO, Martin Loeffler said the company's strategy of ongoing market and geographic diversification, combined with a strong commitment to develop performance-enhancing technologies, continues to help expand its growth opportunities.
"The growth we achieved in the second quarter is very satisfying and is a direct result of consistently implementing our strategies," said Loeffler. "While economic uncertainties continue to be broadly reported ... we continue to see strength in our business. We believe we can perform well in such an environment due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure and entrepreneurial management."
During the second quarter, Amphenol grew its business further by completing the acquisition of a U.S. manufacturer of audio interconnect products for the military market, which has aggregate annual sales of approximately $14 million. According to Loeffler, the acquisition will serve to broaden the company's technology offering in this market.
A month before earnings were released, Amphenol announced that effective Jan. 1, 2009, Loeffler would be succeeded as CEO by current president and COO R. Adam Norwitt. Norwitt will also become a member of the board of directors, while Loeffler will be appointed to the newly created position of executive chairman with specific emphasis on the company's strategic direction and the continued development of its leadership team.
Loeffler said the new appointments will provide a smooth transition of management responsibility and ensure the continuity and enhancement of our profitable growth plans, and the pursuit of the company's long-term strategic vision.
"Since his appointment as president and COO, Adam [Norwitt] has made a significant contribution to Amphenol's growth and profitability, expanding into new markets and demonstrating a deep knowledge of all facets of our global business," said Loeffler. "In addition, he is passionate about the company's culture of performance and accountability. I am confident in his ability to lead Amphenol and our excellent management team."
At A Glance
Primary Industry: Computers & Other Electronic Products
Number of Employees: 32,000
2007 In Review
Revenue: $2.85 billion
Profit Margin: 12.39%
Sales Turnover: 1.07
Inventory Turnover: 4.40
Revenue Growth: 15.36%
Return On Assets: 16.09%
Return On Equity: 39.11%
Norwitt has held a variety of management, business development and operating positions in Amphenol operations in Asia and the United States since joining the company in 1998. Prior to his appointment as president and COO in 2006, he served as a senior vice president and group general manager of worldwide RF and microwave products operations.
"Over the last 12 years as CEO, Martin [Loeffler] has worked with the Amphenol management team to build a high-performance entrepreneurial culture focused on providing customers with leading technology interconnect solutions," said Norwitt. "The execution of these strategies has created significant value for customers, shareholders and employees. I am excited to have the opportunity to build on this foundation and to lead this truly outstanding company into its next phase of value creation."
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