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
Philips Lighting, the splinter group of Dutch consumer electronics giant Philips, saw its shares rally around 8.50 percent on its debut on Friday at the Amsterdam stock exchange. The shares are currently at 21.70 euros, above its set pricing of 20 euros per share. Goldman Sachs is changing the way it reviews the performance of its some 36,500 employees, media reported Thursday, citing two company wide memos. The bank, considered to be a forerunner in formulating employee compensation policy, is looking to scrap a system that rated employees on a scale of 1 to 9. The system is considered to grind down employee morale. Taiwanese electronics assembler Foxconn Technology Group has replaced 60,000 workers at a factory in China with robots, according to a report in the South China Morning Post. However, the company, which is a major supplier to Apple and Samsung, expects to maintain a significant workforce in China.
comments powered by Disqus
Follow RTT