July 23 (Reuters) - TE Connectivity ( TEL ) issued an
upbeat forecast for the fourth quarter on Wednesday, following
better-than-expected third-quarter profit and revenue results
driven by strong demand for its industrial products.
The company's industrial solutions segment makes electrical
connector systems and components used in factory automation and
other industrial equipment.
Third-quarter sales in the industrial solutions segment
surged about 30% year-on-year, bolstered by increased demand for
artificial intelligence applications and modern data centers.
CEO Terrence Curtin told Reuters in an interview that the
impact of tariffs on overall sales during the third quarter was
reduced by half due to price increases and supply chain
adjustments.
"When we gave our guidance last quarter, we told our
investors that we thought it would be about a 3% impact of
sales. It was only 1.5%, so it was about half," Curtin said.
U.S. President Donald Trump's tariffs have weighed on
automotive and manufacturing industries, prompting companies to
implement mitigation strategies related to pricing and supply
chain management.
TE Connectivity ( TEL ) expects a 1.5% sales impact from tariffs in
the fourth quarter, with its industrial segment expected to bear
a greater share of the burden compared to its transportation
segment.
The company expects fourth-quarter revenue of about $4.55
billion, exceeding analysts' average estimate of $4.41 billion,
according to data compiled by LSEG
Adjusted profit per share for the quarter is projected at
$2.27, compared with analysts' expectations of $2.13 per share.
For the third quarter ended June 27, TE Connectivity ( TEL )
reported adjusted profit of $2.27 per share, beating analysts'
estimates of $2.07.
Revenue for the quarter rose 14% to $4.53 billion, compared
with estimates of $4.32 billion.