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TE Connectivity Guides Above Views, Warns It May Raise Prices

War-linked spikes in freight, resin costs threaten margins.

Overview

  • TE Connectivity forecast adjusted profit of $2.83 per share for the current quarter, topping the $2.80 consensus compiled by LSEG.
  • Chief Executive Terrence Curtin said disruptions tied to the Iran war are lifting freight rates and resin prices, which could force customer price increases to protect margins.
  • For the quarter ended March 27, the company reported adjusted earnings of $2.73 per share versus $2.70 expected, with revenue of $4.74 billion compared with $4.76 billion forecast.
  • Industrial solutions sales rose 27% year over year on demand for AI equipment and power infrastructure for data centers, and transportation solutions net sales increased 4.7%.
  • Reuters reported that rising prices for plastics and polymers due to disrupted oil and petrochemical flows are prompting companies across the sector to use pricing and operational mitigations.