Sector: Information Technology | Focus: Electronic Manufacturing Services
HQ: Galway, Ireland
Financial Risks
TE Connectivity faces macroeconomic risks like economic downturns, inflation, and currency fluctuations. Supply chain disruptions, natural disasters, and geopolitical instability pose operational risks. Competition, product life cycles, and potential product liability issues are also significant risks. The company's debt covenants and potential for goodwill impairment are further concerns. Climate change-related regulations and ESG scrutiny add to the financial risks. Finally, the company's Irish jurisdiction of incorporation presents some legal and tax risks.
Financial Upside
TE Connectivity anticipates organic net sales growth, particularly in the Communications Solutions segment. Acquisitions, including Schaffner, and divestitures are expected to contribute positively. Restructuring efforts aim to improve operating leverage and cost structure, potentially leading to cost savings. The company's strong cash position and access to capital markets provide financial flexibility. Favorable foreign currency translation and pricing actions also contribute to potential upside.
