Amphenol posts steep decline in 3Q profit

Amphenol 3Q profit drops 28 percent as company sees stabilizing markets

• On 11:39 am EDT, Thursday October 15, 2009

WALLINGFORD, Conn. (AP) -- Amphenol Corp. said Thursday its third-quarter profit plunged 28 percent as the manufacturer of electronic and fiber optic connectors and cables beat Wall Street estimates and said markets are stabilizing.

The Wallingford, Conn., company forecast fourth-quarter earnings at the low end of Wall Street expectations. Shares fell in morning trading.

Net income of $80.9 million, or 47 cents per share, compared with $113 million, or 64 cents per share, in the same period last year.

Analysts surveyed by Thomson Reuters expected, on average, 43 cents per share on revenue of $688.7 million.

Sales of $716.6 million for the quarter ended Sept. 30 were down 17 percent from $863.7 million in the third quarter of 2008.

Amphenol said it posted its first positive book-to-bill ratio, or demand-to-supply ratio for orders, since the market downturn in last year's third quarter.

"While economic conditions remain less than certain, we believe we have seen a stabilization of demand in most markets and an improvement in demand in some markets," said CEO R. Adam Norwitt.

The company said it expects fourth-quarter earnings to be between 47 cents per share and 49 cents per share on revenue of $720 million to $735 million.

Analysts expect earnings to be 47 cents per share on revenue of $711.6 million, according to a survey by Thomson Reuters.

Shares fell $1.17, or 2.9 percent, to $40.12.

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