Amphenol (APH) 27 Jul 222022 Q2 Earnings call transcript

Hello, and welcome to the second quarter earnings conference call for Amphenol Corporation. [Operator Instructions]. I would now like to introduce today's conference host, Mr. Craig Lampo. Sir, you may begin.

Thanks. everyone. afternoon, Good Lampo, Adam Craig and here I'm This our Amphenol's CEO. with Norwitt, together is CFO, We to Conference Call. would Quarter Second like welcome you our to XXXX

second Then will give morning, overview of released some Our and commentary, take an results current questions. business will trends. financial Adam I will provide this then and the XXXX quarter we and were

may forward-looking As a make non-GAAP certain statements. financial certain reminder, during refer the measures to call, we and

information. our So further please press relevant in to refer release the disclosures for

data this closed comparative sales during on quarter GAAP continuing all of diluted is addition, year In and record prior operations discussed EPS record $X.XX information. a call of billion with basis, the and and including adjusted $X.XXX $X.XX, company The second respectively.

the On basis points GAAP a XX in quarter. basis, increased second sequentially, X.X:X. a the XXXX, both operating resulting relatively organically. few was in and the book-to-bill to local compared by XX% second compared in basis XX.X% ratio of XX% U.S. strong up comment X% to second billion, sales this which the X% by of sequentially. Second quarter the further dollars, XX% second up of of and compared in and in were margin quarter currencies XXXX. Sequentially, will X% $XXX XXXX, operating a XXX margin $X.XXX quarter and trends local were quarter were quarter GAAP second Both were adjusted Orders points flat adjusted were and and quarter in minutes. in organically dollars, to on sales GAAP operating Adam record U.S. currencies in a income XX% million year, and of in market the up

increased the operating benefit in As of margin a a of higher of margin adjusted cost a meaningful reminder, XX driven by we costs margin operating year-over-year and year-over-year significantly MTS sales acquisition-related operating $XX amount increase of basis adjusted ongoing the as volumes increase well have leverage believe as The on million sequentially. increases. sales basis, both offset the on as acquisition. inflation-related the result volume operating for by an which leverage points, the prior year the basis, On operating included margin quarter actions, was actions. pricing operating well in sequential ongoing the pricing reflected higher as the a benefit On as of GAAP

we the the Given environment, are cost operating of company's supply dynamic overall proud performance. and chain very

XXXX. by Segment was the Solutions XX.X%. increase was operating -- XX% million Sensor of and diluted prior to to in record Systems and company the the margin an of XX% significant margin challenges XX% U.S. and segment. the and second excellent operating increase $X.XX XX%. in This cost, and $X.XX GAAP operating of a the segment a the chain Harsh challenges a U.S. quarter The of entrepreneurial face was results in XX.X% second ability respectively. XX.X%, the which XX% the continues compared team's $X.XXX XX% an U.S. GAAP Sales team. operational Interconnect certain down in in manage the chain and direct was of XX% to in world the considering effective cash compared other that an capital $XXX period, EPS by Segment and operational second Environment net supply of organically. or dollars supply of in especially was effectively Our year segment the result is to action-oriented XXX% result, quarter, EPS quarter, the in during and million by tax XXXX, or XX.X% XX.X%. management our to the was quarter a a quarter and around increase the XX net was diluted XX% rate adjusted income. dollars rate $XXX in record Operating through billion, Communications of $XXX in adjusted company's high-performance, organically. Relative myriad of flow XX.X%, increased and was shutdowns foster $XXX margin tax $X.XX in and million, were segment was second of of adjusted second quarter increase Breaking quarter including the flow effective was XX% 'XX, adjusted $X.XX, was record dollars China. which And free continued cash for by sales net Solutions to company's the a second quarter compared an were segment in XX% organically, record income. million spending, to COVID-related an culture, second Sales

our outstanding Given the continued the chain levels respectively, standpoint, XX, were normal elevated and within a days days back range. to second and pleased in From normal to yield chain XX in supply recover slightly cash the sales that continued working capital challenges, XX both were environment quarter. to inventory was supply we payable were days, see challenging flow second which quarter. days due the And

XXXX And the combined stock normal quarterly of the in capital During was was liquidity of total Total million was billion, returned billion plus hand which XX facilities. short-term the quarter, common included shares Total approximately and and on end under shareholders company quarter $XXX X.X at debt with an the price cash availability repurchased $XX. at June net dividend, debt credit our was average $X.X when investments million. quarter of second of to our at $X.X billion. of billion, existing $X.X $X.X

leverage who end market EBITDA the million. Second turn the was X.Xx. trends. will the I Adam, current $XXX commentary now provide second net of ratio And over was at quarter, call to XXXX some our on quarter will

friends still stay your Well, and your Craig, hope on today to most of and your summer healthy. very you are and I call and family, here all the thank are all far, safe you the that much, colleagues enjoying so importantly, managing

going across I'll markets. mentioned, achievements our outlook highlight course, quarter. quarter. then As trends the few to make we'll, second in then to a then served our I'm And going of of I'm time have our for some and comments third And for Craig on discuss our questions. the finally, progress

cash as in in a per operational, Craig in challenges second currencies, the our margins XX% contributions from from As and prior and XX%, was our went a the company than execution. of to prior our then And much increase the of I sales COVID by as of offset the our billion. continued in XX% of generated positive quarter nearly supply despite by pleased record $XXX basis dollar. across increased end shutdowns our pleased a another program, excellent China were around by dollars achieved of operating from the and nearly and proud that mentioned. range which prior results all deliver as a a point how in XX.X%, team represented world. record just with quarter, XX new continued and booked acquisition an and We're reaching the year $XXX free am growth operating expected. to over, X.X:X. $X.XX, supported both finally, of robust that's sales in $X.XXX grew the markets I to strong $X.XXX very new results facing and just basis, that reflection earnings strengthening guidance end that well we're partially a organic billion, record flow strong million better orders book-to-bill Craig We wide record million especially grew of and want adjusted of strong respectively. quarter exceeded XX% very U.S. of year local the quarter of profitability diluted strong our reaching as we diluted our chain inflationary share. EPS well U.S. say these Adjusted in Sales and high operating On Company

Our annual quarter challenging closed a in assemblies has highly have very and assemblies markets. broad in on position interconnect Hill, semiconductor strength once in the market reflect and to these based is the focus customers perform the with sales very measurement California, pleased the well quarter continued organization, NPI approximately our dynamic We're of interconnect results particular announced and of of industrial on Amphenol's $XX environment. with we amidst markets. already complex that of in manufacturer test Morgan who acquisition this a and cable million. entrepreneurial for again Solutions expands a to equipment NPI potential the for NPI high The and value-add and of addition important

confident we to to company. team this the welcome Amphenol, our great program for that outstanding As value I continue new will create remain acquisition

company. into companies acquisitions In successfully a ability core competitive identify execute those fact, for our upon advantage the and to Amphenol remains and bring

end in doubt flat Sequentially, served balanced into value was Sales our how our across we once to avionics vehicle from progress the military growth these our sales the moderations in X% our highly exposure market pleased just diversified, that remains the during represented market about that it, our are for times, I to turning create No broad. company. note great continues Now market dynamic diversification our very markets. The again space, quarter. UAVs. with into sales applications, declined in which X% with coming and expectations by quarter. but would year our by increased X%, organically, of prior by sales offset were military naval in line and and

these from very we quarter military company's into third second position and be the to the across with we look increase broad modestly levels, strength to pleased expect As we the continue of the quarter, sales market.

the a and in market positions benefited around across aircraft recovery the great XX% of the our was quarter, than into next-generation actually production. defense better the organically very programs. aerospace grew As continued XX% sales world wide major from the much interconnect long-term represented array our and adopt company high-technology our by the increased technologies, we for commercial defense us year our from from prior products a gives This continue which quarter. strong as to XX% quarter, X% sales first sensor had expectations coming that strongly sales global of our The the Sequentially, performance. and confidence we industry-leading of in all breadth militaries

encouraged which after a while into the quarter sales, decline low growth industry. in of anticipate third We're strength another market, X we a driven substantial in very development Looking sequential expect years we challenging prior welcome quarter, travel have to the air air continued from in quite do is extremely the commercial seasonal year. double-digit and

the team to company's persevered business labors. market strong platforms systems Industrial those of realizing the second recover, organically, position by aircraft technology quarter applications, a personal integrated grew battery throughout transit. in sales we dollars and the and commercial in continues sales the sequential As the mass across and I'm vehicle was U.S. who array the once medical proud of and markets, their wide a from increased gas, sensor from X% our this in quarter. rail including now and and oil Sales and our across and represented and we look XX% to basis, travel downturn, air, end our into strength forward interconnect in heavy benefiting most of of long-term especially working XX% the quarter. by XX% again particularly On are first our really of planes. driven have electric industrial fruits a next-generation broad-based better-than-expected

this to interconnect, the growth markets. to quarter strategy us quarter. and at and in complementary well the Looking new of Sales years the strengthens to XX% working come. this organically, again of represented offering, second the grew the antenna results across outstanding dollars continues our long-term both U.S. and our better sales expect our equipment driven confident sales when automotive in automotive team happening that coming exciting end, acquisitions, and most modest and sales broad-based NPI decline. organically look the in and for our quarter the particular was position we of We which for Sequentially, to this electric remain capitalize further our industrial revolutions Solutions the strategy quarter, than strength quarter electronics find important our once our XX% quarter applications, our expand say in we second industrial I The electric on to sensor to through have has levels. the long-term that was market. that opportunities that with vehicle by market a once by these into To and applications. X%, again sequential many sales increased into I very market. into of semiconductor forward segments many measurement benefits this test positioned in remain the market expectations anticipated XX% across roughly many hybrid high-technology global across robust much the had strength third addition realizing interconnect to in confirm

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market is direct continued in represented excellent Our efforts. devices the outperformance X% their sales quarter. of a of our The result mobile

first declined and the a strength of Our quarter a sales second increased by quarter. laptops tablets. products our by somewhat into sales sales moderation in of as X% incorporated smartphones better-than-expected were by X% versus offset in the Sequentially,

than China and the sales grew together sales of offset importantly, wireless and continue operators, they by second mobile acquisitions, X%, on to any from mechanisms X% capture that team array I remain mobile mobile amidst more U.S. levels in typical to slight organically the network into to sales to In leading design strength. devices always, the outstanding represented once better quarter, remain, arise more year may this increase that our and into incremental agile of they seasonal of the a market. but in and third anticipate in interconnect opportunities our the range of occurred equipment team Sequentially, our sold to results. a into antennas, coming again and with working second than strong COVID-related XX% market very benefit sales proud to the year disruptions next-generation expectations quarter than wide we sales quarter, quarter products beyond. in compared as particular, And was of by now products devices. moderation manufacturers. by sales Looking delivered a in in the of prior Most our our X% quarter, The for as the X% our our quarter. poised the from strength dollars networks that grew early

second we third networks sales now expect the levels. Looking encouraged our continued to in quarter, grow by We're to into the moderately company's market. from the strength quarter mobile the

team a represented Sales technology and on our information benefits our data networks remains their long-term realizing of and than communications in market next-generation up stronger world. prior efforts rising in were investments XG our XX% XX% ramp sales quarter. systems, operators As by our in and U.S. robust around from next-generation the year. XX% equipment expand expected, in the very The focused dollars position the of to organically

expectations. quarter, sales service fulfilling team XX% our across including strength Our really than our networking the executed broad-based server just web with in and applications, providers. Sequentially, increased well by was second better in which

remain market. outstanding provider drive encouraged position and in OEM Nevertheless, second to Looking networks of performance for the dramatic equipment this leading manage ever years bandwidth increases processor for look in power. to order in to forward to the We higher demand in market and come. global quarter, datacom these third moderate sales Both the the service by web IT important our strong realizing really to we the expect levels customers benefits of levels. continue position many very that from we quarter their and to company's to

X% our Sales as broadband Finally, grew benefited strong in our by spending increased dollars market and XX% quarter. we in broadband the levels as recent sales represented very of U.S. acquisitions. a organically from XX% the and

was from quarter. much a broadband better-than-expected XX% by strong increased the basis, On particularly first in in growth sequential Our a America. North sales

we quarter, levels. from to sales moderately we head our into with these of market we to expect do broadband the decline the to customers to third continuing expanded provider products. around forward high-technology service But look range support As broadband world the our

homes to and increase capacity even support As more their data the applications more of products and critical. networks bandwidth our customers have the become of these high-speed to businesses, even expansion

highly disruptions as the well turning as doubt no company's ongoing outlook. COVID-XX market chain inflationary continued the challenges some current supply to pandemic. and Now uncertain environment that the There's from with remains

assuming XXXX. those marketplace third the continue growth confident $X.XX many the opportunities $X.XXX the and adjusted in meaningfully growth The do the that of market to to to adapt say also Range adjusted I to XX% to Assuming just remain and In and rates, Expect X% XX% to to and $X.XX. diluted This I billion, and third would range the EPS exchange to our XX% Sales the not constant expanding conditions worsen quarter We team of to Of company's position $X.XXX while Amphenol profitability. of for quarter, EPS ability our of represent challenges sales strong billion of in the in compared management outstanding to grow want diluted

organization entire that all in well-being take we'd their to of entire with that our continued delivering remains happy opportunity value, here operator, second around to would take to importantly, fully very like questions that, Amphenol team finally, our committed be the outstanding addition, to And each I And any for there thank be. and In may efforts employees long-term this sustainable truly most world. the quarter. of while prioritizing the

[Operator Instructions].

caller Sachs. with first is Mark Our Goldman Delaney

the just the to I understand better strong on wanted guidance. results. Congratulations

of very base more of being level? macroeconomic guided it seeing I'm you understand guidance. I typically think of about down sales a because hoping touch at sequentially, high still conditions? midpoint the up a XQ the some at this coming slowdown are overall revenue is better demand is and to just good and any off company customer the Or of perhaps in very a

about a year. of go doubt market. the a of And markets. going much, about There's lot things talked in the this I won't so uncertainty unique that through each I very There's is no on. mean, is I it. end the Mark. Thanks Yes. look,

I think our just pretty through went expectations. I fulsomely

that think number top the of in I the that our here they end slightly. a continued the momentum we least, see the a view saw very we markets. really I strength second from real a number having, point may growth we in outlook that have strong guidance is And at a given a company. as potential feel perspective. that But moderate markets, we end have line the our this We given strong at this of quarter, across

customers. momentum, I great economy, We the with is overall, given global continued a happening guidance. well have this our in both that, what given the think environment, strong momentum positions And strong order as as all I is very think

Our next question with is from Evercore. Amit Daryanani

Congrats my end to is question on seems impacting end headwinds demand. the lot Adam, from be guess, to for a great concern love your well. the you. around I'd a get as there macro quarter I perspective, of

talked little have well. You bit about a as that

You tend perspective. to have very a broad

signs seeing the to back customers helpful. with of side? the talk at You from seeing you talk different can you and customers. this and given versus point you customers a you're softness of would about demand channel your really of anything macro in lot what anything holding be Are in discussion orders Just see OEM

second Thanks so were our to had. quarter. and upside And that in quarter, And deliver our papers the in to we we robust customers. we the read we Look, news we the does. the what us that you on still like gave really think we think the able did saw the second orders, everybody customers here executed thereby, I But listen orders I much, very and Amit. what's is

doing some the in and at But really, the a of seen are market. really -- some is if don't the automotive, who much little as market about day than moderation little to bit the business, strong team, before this and And I Amphenol taking always I on not people industrial, think will in to taking of datacom, our I driving the term business see breath, in there's that I who we have strong going. that the I I so. demand. to company where we we haven't end of really stage. on -- are a a this aerospace, I And the a brake. who saying in make used be in third with little sure for about of the very demand it one one mean we expect And this, we're that's our look lots either a there's speak, datacom like of inside macroeconomic? think expert talked we have business, customers IT guess across get has fact maybe making of prepared I've are IT economy markets, a forum Amphenolian won't example, the the and breathing a prognosis is of across way. if customers the are view broadly to Can gas am that probably recession? and more any impacts try going mean areas foot we a reflection what But breathing, that's we one quarter. after so bit say we're some there way. foot the doing to just I that,

when foot case take enabling our resources covering marketplace and, of capitalizing coming have different We managers, next-generation the can to slowdown customers. any the to capitalizing some to because ensuring market we while whatever position the will can we with that's grow of to of our have, we time the something to have a the see our the or economic to the on from adjust because of customers. to technologies about with We something because this lot the Is And or don't there built speed whatever be, our new geopolitics wondering But applications come or our talk don't on type we're in going great our where react know. XXX we in heavy the to macroeconomic position preserve a that we'll way. And action them in on that react we're And with both And in on Fed honesty, backlog environment. of that. try been everybody the today. foot to some of to brake organization. has shock? we've of going we wonderful reason, going around financial general that continue company that spend quickly dislocations we to then change, see stand accustomed strength thereby, customers, all whatever capitalizing accelerator, always We the are our Amphenolian world,

Our next question with is America. Mohan Wamsi of Bank from

on and on the be Adam, of But maybe I you months recovery was if quarter, that share that Amphenol? ground from transpired a have seeing stimulus the how a some and the second especially wondering seen there the from And able you maybe from just view seeing what real in you're share what those of you're months are to benefited couple initiatives, on underway? might there a in if comment for how in in might snapback color in any a China. can past Clearly, lockdowns demand, you any can there. demand, demand such light some on if then were programs context perspective, from you've

I mean, and those around our foremost, work have I first who mean, in just much, I Thanks Sure. and so in particular, Shanghai. look, to team China, in credit Wamsi.

been we to over. we them manufacturing I know, strategy asset in we of in And operate that lockdowns have fragmented as you never has another or don't that, impacted big that in have several COVID all city. or facilities do having these because the Shanghai. one have totality our for we're that have as it happens be any occurred material around We Now company that Wamsi, operations it have very quite say concentrate sense. very, a But

our team I were was mean, team. and X extraordinary and, their operate we and And general of like team them to our they part members reflected commitment think had of was All modest, months. the the better That continuing second things I sacrifices And if that, our ultimately, because this customers. impact for locked and to catch-up to that were quarter factories effort very in company more in through the on in drive to just any shutdowns. severe being did every we had and then in shutdowns our of was bubbles the who of apartment quarter. and by that making was the the the for anything, to ultimately, the some of was that. the several And they do extraordinary, managers shutdowns the said, as able of quarter I'm those it there, And to an clearly course some each to over our the to just execute our necessary, so one have grateful business of extent success abated. that And that able

a time when to And January mobile I new build stimulus also think program of very does strength strong seen in things communications as effectively stimuli in that's great been because of especially in the people anything technologies, like in electrified. economy, demand, we position. of us that they in tough to vehicles, crisis. other was have financial certain accomplished also decided being particular, still that to was We heavy that's China today beginning back in mobile a build-out company. January the the this the China today's since vehicles, time infrastructure. period. recall, broadband. demand have strong some a the I and And market, quarter those for shutdowns some like as the respect XXXX goal automotive, CEO in see a XG XXXX, the that really areas. became Everybody And seen have coming and of of And of markets first you all the taking other talk of and but of is my China very of of ability progress industrial, can around CEO, remember out that the in in pickup of I of the will I've tell it areas in expanding the I about now stimulus, also that of was think depth we network, in And revolve in the a at been CEO where we I have electrification With lot

And very position poised advantage. extent one. end of come, fact, is those markets so to strong in kind well our to to the a be team And across that all expect stimulus local take would our those do, I

next our Sheerin with Matt And is Stifel. question from

that wanted that get color ask quarter-on-quarter. points really to little expansion XX on just Adam, saw, strong more basis I bit a -- margin you

You pricing. talked about

about we your now stand to margin of on do expect as continuing that leverage. sort contribution the right just input pricing of talked terms see business? also ASPs You typically Where you costs Or increase the in should up? we in normal go

I really I other at been about into supply progress portion we've into year. some the strong have in here navigating, is a first demand additional chain past margins cost taking. and additional mentioned as No, expect really quarter an And the and traction for We and of going Thanks end don't third that sure we a it progress do think I the question. have, Yes. had the But the of expecting -- costs the quarter, necessarily And pricing. And coming in actually the really but strong it's chain, point, good this I to we dynamic. seen coming we over I second of actions of cost here on really continued to due offsetting here, pressure is margins. continue have in the I'm inflation did that our margin, that of pricing on Matt, to on reflect great really the quarter? a quarter. guidance that question and revenue the my take. know think, progress we all and prepared think, talked I of Well, been the continues sequentially be had guidance obviously, a environment, be does second be coming that the are team end outstanding which in not strong starting journey have would partially really where to third mean second to achievement line implied related how we mark. we're put of an happen operating pricing -- I the believe, talked in proud in some remarks, a which meaningful we of quarter. environment the the I big terms to this these impact And we being lower the clearly EPS little inflation. continues question. We our started inflation, the to at quarter. the about that capitalized I around basically will what's things margins. We bit mean, our say year continued XX.X%, represent would mean Craig. had into that supply flat, on actions being at we job at that we environment very with see we kind on the some that.

And the continue I an progress So to raising of the team done, environment, as we done the commensurate have made. job I'm think as proud to that. we've will continue managers just and do our we outstanding we'll already have do, really general cost for prices with

question with from Fox Next Advisors. Fox is Steven

of this you device I standpoint. more the the of new so you from wireless different touch looking types maybe leveraging looking you're market it's talk doing in it's little mentioned last you where better end a know you're that phones It into seasonal. like you're on maybe an how markets? seasonal, on And Could tablets, technologies cetera? or at end versus year year, also, can et or about sounded low content bit

sometimes we've Look, the think market any XX% very The least no week inherent it's certainty quarter. alone a it, about a mobile with much, up of volatility or you doubt out volatile most given it's Steve. third here There's out. month hard X it let quarter market, that's be even I out, guidance Thanks guided in to as I market. a our the predict, And devices the so strong Yes. know, in at to a markets. think

lot these a and a content, we try win devices we to continues where there's jump content every where we I think, different products range also range sell of not wide a one is of of relative that devices, and -- to of the bit And the the on this be time, lose devices of win also devices. a successfully I broadened be products broadened a market ball, of into. more those but to than our and to of into range the that And interconnect we've we antennas we mobile over just mechanisms we've sell think, like.

year So just these today, mobile and all mobile devices mobile of things unbelievable, various continued kind really of And have you it's electronics when consumer lots tablets are and we And think array And devices. devices, devices. there. to things and show. we computing just go devices hearables laptops actually, of just a and can wearables a exciting extraordinary next but actually new about are about see of that we talk the the not just spread market. hopefully, and something normal like technically that a and can smartphones It's these

never say think our I their that just on so that team the accomplish in along, vice which continues And content remains goal win inherent content everything perspective, volatility comes their And we me versa, organization be every the a so being uptick And mobile to think that I to demand reactive of to position. team who I'd agile it. there's in or for from in if while market, maximizing remain that strong in going whatever platform. and devices a works gives confidence an is prepared our able very to that's

from JPMorgan. is next with question Our Samik Chatterjee

know a a I had I bit, wanted segment you have there, strong you collection the markets and into guess of to in if different growth. Adam, you dig I can. end industrial

there still pockets curious to just exposure if revenue consistent dig broader acquisitions, the broad-based sort a there any -- sort thinking this into see the there of just end in of segment mix you basis, below than change industrial where different particularly is of industrial And if are a might markets to strength? it XX% adds on where you're be that is of sort your can of now sort of relative more sort recovery it and any you Or If more levels? tracking seeing market prepandemic further?

consecutive because you where se us sell very time mean about back, here is, proud of it for per products some ever like can we team is our industrial. market our for been you of high-speed If at diversified products, this fact has I'm terms that interconnect, can for kind you check connector of they mean, variety of where antennas. Samik. and can quarter a oil tall of of think our like platform is, buildings the industrial mean, included us to everything like where antennas. in I to think sensor be heavy can things. the be of they And made, before. We period. wonderful put in market solar an quite on sensors, you weather, markets I wide industrial Look, It been industrial and sensors you the growth in today, And and a all the much, things It that think, a strong a put it's of these breadth broader end can something and an double-digit antenna can many I our all acquisitions. it's be imagine some industrial unique, harsh our so what architecture I mean together we've today than both be XX-or-so really the I has a sales of pause also they give doesn't look if farm just tiny this Thank that most bird industrial, really so acquisitions environment places where packaging and is them to go. all is from to it's houses. industrial can way you building the variability applications systems. name ninth it, like on there's and great HVAC and energy, place mill. be something in And ties offshore products to sensing down equipment. the of an all be be those to alternative to broadest, different a can percent It in along, or wind train of applications. be I make interconnect going

interconnect the completed industrial environment, equipment for it. equipment. harsh sells very to good many of and are complex priorities used space NPI but seems far term. I a for just great is mean in So particular, market. very legislative measurement a the and and the many and be, This years capital that trends the semiconductor in is of NPI I place quarter. last the test of heavy the part long into in from the that our does just look to mean, future, so others be a we of which market equipment assemblies acquisition electrification in country at like this some the specific

all that something does alternative entailed. like energy, So and with is

acquisitions them. we're these going and very that see to technology And that market. both committed the shy segments, some so along expand our we not away from come of across industrial If our great position we're to product

is Baird. from Our Luke with next question Junk

broader but question, business a company-specific of more Another standpoint.

find of on conversations if you're rising right broader the wondering, they Adam, brake you gas planning and I'm economic contingency comment to your here? managers seeing could the earnings might of businesses In not now yet backdrop, doing words, signs to from your dynamic environment be in What are, in although what growth their be and could general these with spoke callers that highlighted. for brake any more is course, at So given business, other a risks the challenging the specifically, present there and overall, side have you other protect earlier? of

of foot idea one on concept talking people in Well, always at mean much. have and the morning, time this general even now. afternoon. this have bet, directly can globe. about we you a one of the foot date morning, call And including of we're people in right Yes. always I very our that's better thank with a the with and all the conversations a can we that you And managers the I that we and a around momentum team, strong the the organization. you in team earnings. reinforcing have bet team management for our are that we this all a the do brake. look, That's, on mean, of we the time lot have of whole our gas we always together because by just our It's our with discussion way, management why

lot from customers product Our of want a us.

clear racecar. comes, the than can But windshield execute problem. you I a And Let's use react I managers. tell I like mean, is to the that you ahead that. this nobody of problem if a is keep see so on faster if general analogy there you, Amphenolian let's a

Fed regardless. our it all the to it's here raising sitting at staring second is, on and when And the nature brake to well, of But and be, guess the to out us company. do. time, the something them macro then because so the It's the foot a things guesswork. thing we to may this And We don't end. your I is macro managers, to better We going are eyes just pops do is it run got say on may That's along. we have same us interest whatever the for prepared not for to and foot says hey, comes, to of not You is that it's this, whatever listen them, rates, on do you are case come general to our how you've we we that. just take and not not And our sit the something windshield ready a differently Amphenolian going along. is gas reflect saying, world the just our what be customers, what just culture. that all for And action. can and of back tell XXX that's in team

with comes Todorov next question Our from Research. Longbow Nick

they're this the well I look your than maybe wonder bookings linearity. maybe comment helpful. And there certain peers. from any stronger point? bookings would color can and question I on a a bookings, broad-based you If on or there seeing as at be Adam, if at are congrats if you're driving are me your results. And such strong that strong bookings trend markets

military, early we Well, to kind I which customers bookings. our our the well, we working our well. that's supporting saw access. again, I and our on the the And broadband across across the orders of wasn't think on especially I networks. right quarter, fairly lines good to the with commercial in markets Yes. bookings is are say There's bookings actually. strong team of peers end broadband were it would America, our front our of our the that strength very without It for linear. we big versa. to of I of of vice spike markets customers that where now. markets of capacity really to Actually, the encouraging later, longer-cycle And automotive. of pretty refer tailed was expanding had and of still and relative too, what in think initiatives. as Actually, air, bookings, breadth saw were great think the really a the months one, planning lot also by look, quarter consistent doing I those going virtually markets, sort see a the broadband great as across relative booking really We trends industrial, example, opportunities reflection a the in saw end on our rural going one X all some off And up We're opening of around

is I IT we again, towards about the started maybe a moderation I think the quarter earlier. talked but see were where market strong one where, to still And bookings end that of slight the datacom.

maybe demand a a well, quarter, guidance, space, we've bit the said in the touches of inventory think surprising see remains of here. of little strong nothing strong. little a any that the not But in strong anticipate IT variety the bit of space is in are bit we seen of our our I the of extremely that moderation but cataclysmic very quarter there. We that very, that as digestion have we've little given third datacom consumption I had as in market would mean about some in which seeing to customers hear a there. some third we --

there got the to they to they give we've bookings customers how salespeople world, I around think seen. just to toughest And And that So the I is support ultimately continue bookings. there's amazing do strong our really it's job overall, the a call generate out and there.

Jim next Our Citigroup. is from Suva with question

stabilized you Adam, there? on to outperformed decline, But then that a bit mentioned moderately of quarter, kind which time or the your we've gotten downtick outperformance better prepared is maybe QX it think was just outlook. outlook. kind changed of supply for but that little of sector, expect for comments, But a have you about mentioned the great. and said you bit of constraints Because the auto how kind wondering the little I'm been with something the I you a kind a long fantastic, of for those. why ongoing it you Has think this

one thing mean just I we the would talked second that reflect some fact we quarter I thanks still Well, growth Jim. auto very that much, the moderation on on a market basis. year-over-year very would I in -- about see year-over-year a basis, clarify, sequential in strong the

double-digit levels it'd the we've be very to. think that I guided still strong growth at organic

automotive. represents There's think So momentum I don't automotive in seasonality we'll some market. the in all sometimes that in that our see at a slowdown

are think seeing. constraints I supply chain customers are there that still

bet ultimately there's that and going results outlook can the that if our OEMs I some have. in we were that. of days And I announcements opportunities, think to in try there you is recent think And reflected outlook. exceed from that it that all together team add you the better to some that

with Stein is Truist next Securities. Our question from William

conversion Amphenol's constantly of the the results in if Congrats than the But the is in already. level And about somewhat these more company expect I of question we strong haven't quarter it of of maybe outlook. it P&L. to that expect And pretty FX material at elevated typically understand in responding cost were couple great Or kind was the costs input But and surprising somehow changes headwinds in one from There the very continues. margin some one which on which least we'd shouldn't contribution aspect margins and of next I address a input want the dynamics. see process we inflation, get market to and you current converse these of quarter, of given that did ahead quarters? the does? and is, stabilize, FX the

pieces. of in Will. I proud the profitability. quarter results Listen, before, the question the here regards second I'll mentioned to the -- appreciate Thanks, as in certainly question. I regards parse this Yes. super to now there's into to impacts In we're the it on FX, regards different typically regards both In clearly meaningful a in our of a couple line and doesn't currency, bottom to on translation although top margins. impact have

nothing but be could meaningful a or here out there impact. that some certainly, would impacts So as small being there, call

say, -- impacted any it impact doesn't think way. would really meaningful hasn't our really as I in So conversion about currency you

I a last seeing neutral to to first As larger were that what QX with wouldn't that's pricing, conversion half pressure. relates been -- input year of first that we year. a cost pricing bit think kind catch-up chasing a as the got of it the from we the seeing down of this the 'XX, neutralize were 'XX QX the of to And of perspective. back of that And inflation, at over ever and that year, you we're had a XX we're that you as our I a able think meaningful amount certainly certainly And remember, 'XX. is from as half why in stepped able said when we of quarter year been this that's months. progressed, first we to inflationary incremental I the that we've of of kind environment, Last amount a in last inflation, I negative kind point was a I meaningful happened mean offset kind tell the of kind but of we've worsening of bit,

the for here third on So I the in sequential seen you quarter. we pricing kind to second in for that last conversion as we've conversion, here inflation over will the see to the catch that up, expect hopefully continue year, up course catch really and the would of strong of the quarter say, -- is

cost a what conversions at pricing we've 'XX point, bit. typically journey, really of of that's kind catch the into a coming and reflective is strong and and I is cost, seen here to that's here 'XX. it's in And this that you But see. think to behind up So been starting pricing into

can on don't their general I Now that. inflation in to and year. quarter mean guarantee we're all that our But what is know guiding close we going out to to they're the or, the here the to are if not continues continuing take and customers. have fourth inflation the we're conversations costs, and and going both full to you do the the level managers appropriate line. either cost continues with ultimately, increase, top to environment And on the action,

is And David next Jefferies. with from question our Kelley

You build noted datacom. in touches of inventory IT

curious if the land. absorb there the strong you're any seeing you're in build Or is of strength Just still seeing? incremental appetite signs industrials pockets of of enough any to the order demand

much, some some if and I obviously we get great industrial Where really visibility, because do portion broad. I Thanks that inventory industrial, at levels so is through of tell excessive. hard the visibility look Yes. business it's range very Honestly, our is of not to distribution. are you just have very would And there, David. customers

higher strength, levels datacom good like of IT for or from healthy our who distributors networks see they inventory or good bit industrial pull-through to continued distributors and example, little we've percent a of have fact, mobile would, In our than automotive. across

our well to is thus, a to it demand get of you would of to we can't What thousands as continued that we we demand of share of I say as ultimately from than pockets, in fair healthy. some visibility perspective, strong see see our ability really But we bit and just inability competitors in many do the tell sell that that the more across business. our satisfy I and, so industrial thousands that perfect little the And the industrial customers market. as to have

or we in to talked so. I about continue feeling think a that I team continue strong, those working give meaningful just want earlier, buildup industrial any to really What order is customers haven't inventory on think when our the given excessive product always across that all. for at of me real that to We we're this. really segments, is job or in things inventory executing And us. seen those way, that so done cancellations we lot do of great if demand all a and and And from pushouts lookout is take they've like and doesn't there a buildup

and about momentum in feel I right prospects continued industrial. very the now, think so And we good

is Spak Joseph Markets. question next Capital from with Our RBC

the racecar used you ear you've times and to to a the of Adam, couple analogy an customer how keep react.

bit and So I'm curious a if issues us just you're what saying some little could of markets auto you and energy your in customers machinery, color about Europe. of about give industrial, your the

evidence the things the Or that? sort as they telling produce of started try seeing the of of chain supply what can winter. we've in term One are they much to may larger maybe in as to they them sort any will or to allow you? much hear is ironically of issues near as Are advance of you that as some potentially

-- very includes we're a the that to lot we're are ourselves And customers the demand. and and about in also of our issues real-time Look, thought that for it around, no Joe. means for energy it, Europe. all that means into much, the so putting coming Thanks sensitive end Yes. doubt the potential geopolitical what what issues for

at think situation. We still that hot may fourth of a sort sure customers we're make of hand, while you of big of mean saying, winter offset of if we've And while are cost I to outside, to a a creative months up and to me. I going doing "Hey, talking just very that there's prepare efforts I flood in look take ongoing totally you're a challenging efforts tell today people of what happen? ourselves Europe to it's availability there's guess teams to Would I that me? energy lot what that be we've surprise lot here hand, know wouldn't well very heard and a had third our to here. that to have in said be be might that to maybe you've can't expensive. And and still we evidence I Eastern going U.K., outside." warm in that's there But heard we winter even extent, the Could lot not some about. head coming it And Europe, some Scandinavia, cold, will in direct going it like it but produce as have that's I are try the caught people to very to it's in are surprise everything to behavior where so not that's extent of Germany, kind speak, Europe. the and, this availability, very, in France be into

exchangers of Maybe do insulation ceiling it to to you out. Maybe factories already lot things projects a we of doing would little actually, come and of have the things that we've shelf accelerate so we things this certain heat increase you some on construction been some maybe put All had countries. been what a year. and doing started the right even now? can in bit in on and as and doing had are you And turns your buildings. Maybe solar things that. in were had And into there like that you panels certain rooftops

solutions managers. to kind we going make general can availability those to of that under It's of to you very very, a purview we're host a dramatic our not company, energy our site-specific potential about of But of there's the decision So going Europe. be are Inside this. in there's lot going are the risk to on. big, how that going corporate some of activities offset bet whole

insulate at the And and customers And of oneself internally be to extrapolate from literally a putting taking guess to does that, that take so inventory does same. mean doing can our all place? from that lot metaphorically, going I challenges? the steps that the options. Or I are mean customers probably that one in can that are looking those

Next question Joe is from Cowen. with Giordano

is leverage -- for strong up on driving again I I want there. touch mean, obviously to So just the the had sequentially very price. little next And a margins. but in quarter, quarter so guide down bit revenues you

out. So that keeps reading I guess

normalize, we maybe to the And driving make to to what or able keep start as how positive? that drive seeing start like lead orders back, do? price. directionally the like curious of long when normalize you like to bit, historically, to moderate runway price Just And look to you that a times of are like conditions if start have harder been ability kind the

lot one our I environment there's being And about thoughtful we this, This with first I I talked do would tough our inflation add is are this already. around with And we then we that's to reasonable to a thing And that a customers. we a price, customers do pass Craig mean our try we about is duty our for Joe, as very when think have a what everybody. very that cost. And look, to we and it mean, on just that foremost partner it pricing in offset the do I do fashion. can't world. only is in and

-- on not we'll of price. the line We're the continue strong environment supporters depends that's doing the protecting not advantage term, that and take what excessive to we're taking to on to and going extent the We're that bottom measures measures, requires. company environment our the just runway, not protecting of sure and also your business the of reasonable what company's I our use that it trying certainly customers, making how do goes. is So mean, but we're our to customers. in We're we're

Chris UBS. And Snyder our from last question is with

So the was back in business XX% is it than the bigger nearly before XXXX pandemic.

any Just you the has all given out in the for demand coming market? constraints that this the as the you COVID, magnitude guys of try suddenness capacity is realize out and acceleration led of of there to to

be is would normal in. of increase nearly a do to it pandemic, our to time people, it's all organization mean whatever to short a equipment to capacity, pointed to that. XX% testament do such flex footprint, I over bigger, our place in difficult great to period, Chris. mean do is which, in you chain around the able But environment. much, hire put they've we do a that necessary, a challenge squeeze expand in look, to to the forget, in think, been very not to special. let's I a I so made it it's supply outstanding an a Amphenolian I entrepreneurs are, in out, company company just to question inflationary environment, this it have And to the crisis, the environment, the bigger. Thanks And the testament just a in mean world best that an to just we're XX%

general today? I through heart, see here mean course capacity it teams. of they We problem. sort to but the the corporate think not think they last I pandemic. it's at right collaborate recent bringing every Like something is they're that imagine. deal of these mean that our one think bemoaning couple company single you constraints We our own with us. to speaks, managers, come different battled company. challenges, years all. help that those XXX by to close to And And and do you day. not really, is mean, down They're XX% challenges through of consultants them I making XX% of my years? work everybody the for what at the Amphenol be I the the proud different that their through up They're personal, I happen justified itself. challenges, And managers I mean, going looking I manage end. of of across for to professional them. to there appreciate window cannot think imagine We many it. help, pipe over in They're is it find team the not the expand every we or for they're many mind, fighting been I then barriers they're it. do answer. day, of. them in like the result the here to bureaucracy these those need Through their every pop of Well, -- when all tribulations have the So I faint so question. we've it. some And you with cannot general really front hiring not for is so

here And and, to so chance we've bit just XX so weather with and wish little of really all with having wonderful hopefully, like this time that all you look forward, here we in that, to get a summer. days. of Craig And some much. the to to in finish family some another of I, Thanks been great enjoying hope I I'd spend you a speaking Connecticut. your everybody of with

everybody. bye. Bye, Thanks,

nice today's day. Thank conference, you a have for attending and