logo
Share SHARE
FONT-SIZE Plus   Neg

TE Connectivity To Sell Its Touch Solutions, Professional Services Units

TE Connectivity Ltd. (TEL) said it has agreed for the sale of its Touch Solutions business to The Gores Group for $380 million. The company has also agreed to sell its TE Professional Services business to BlueStream Professional Services, LLC, an affiliate of KGP Logistics, for $23.5 million.

Results related to these businesses will be recast for prior periods and reported as discontinued operations on TE Connectivity's financial statements beginning with its fiscal second quarter ended March 30, 2012. The company expects to recognize in discontinued operations an after-tax loss in its fiscal second quarter of approximately $20 million related to these divestitures.

The company also updated its outlook for the second quarter for the impact of these divestitures. TE Connectivity now expects second-quarter adjusted earnings per share in the range of $0.62 to $0.66, compared to earlier forecast of $0.64 to $0.68.

TE Connectivity lowered its sales outlook to a range of $3.15 billion to $3.25 billion from the prior outlook range of $3.3 billion to $3.4 billion.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.66 per share, on revenues of $3.36 billion. Analysts' estimates typically exclude special items.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Succumbing to competition from the latest smartphones, BlackBerry has decided to shut down its phone making business. Once a market leader and a highly preferred phone maker, BlackBerry's products were highly praised for its security features and ergonomic designs. In fear of hard plastic contamination in cooked chicken nuggets, Tyson Foods has voluntarily recalled more than 132 thousand pounds of fully cooked nuggets. Wells Fargo's two former employees have filed a lawsuit against the bank, seeking $2.6 billion, on behalf of employees affected amid the unauthorized accounts scandal. The plaintiffs are seeking class-action status for the lawsuit. Former employees Alexander Polonsky and Brian Zaghi accuse Wells Fargo of wrongful termination.
comments powered by Disqus
Follow RTT