2005 First Quarter Record Results Reported by Amphenol Corporation

    Business Editors

    WALLINGFORD, Conn.--(BUSINESS WIRE)--April 20, 2005--Amphenol Corporation (NYSE:APH) reported today that first quarter 2005 diluted earnings per share increased 30% to a record $.52 compared to $.40 per share for the comparable 2004 period. Sales for the first quarter 2005 increased 15% to $409,395,000 compared to $355,261,000 for the 2004 period. Currency translation had the effect of increasing sales by approximately $7.7 million in the first quarter 2005 compared to the 2004 period.
    Amphenol Chairman and CEO, Martin H. Loeffler, stated: "I am extremely pleased with our first quarter results. Sales were up 15% compared to last year's first quarter to a record $409,395,000. The operating income margin increased from 17.3% to 18.9%. The interconnect products segment of our business, which represents 88% of our sales, was up a strong 16% over last year with excellent profitability. The growth was broad based across all of our end markets and included all major geographic regions. Growth was especially strong in the industrial, wireless communication and military and aerospace markets. The excellent top line results reflect our continuing development of new application specific solutions and value added products for our customers and our increased worldwide presence with the leading companies in our target markets. The improved profitability in the interconnect business is also attributable to the continuing development of new application specific products as well as higher volumes and ongoing programs of cost control. The cable products segment of our business, which is primarily for broadband cable television networks and represents 12% of our sales, was up 8% over the prior year."
    "In addition to excellent overall top line growth, profitability and cash flow continued to be strong. Earnings per share for the quarter were up 30% over last year, representing the thirteenth consecutive quarterly increase and a new record for the Company. Furthermore, net income, that is income after interest expense and taxes, exceeded 11% of sales, another indication of the Company's excellent profitability. Cash flow from operations was also strong at $39 million for the quarter."
    "Consistent with our strategy, the Company has completed three acquisitions since the beginning of this year, with aggregate annual sales of approximately $70 million. The acquisitions complement and broaden the Company's presence in a number of market segments and include a Korean manufacturer of handset related products, a United States manufacturer of fiber optic systems for high performance military and industrial markets and a United States manufacturer of high speed, high density interconnect products for computer and communications related markets. These acquisitions contributed approximately $8 million in sales in the first quarter of 2005. We are excited about the growth opportunities presented by these excellent additions."
    "With the first quarter results, 2005 is off to a great start. I am very proud of our organization as we continue to execute well. We have a strong position in excellent and diversified markets and continue to increase our presence with the major companies in these markets. Assuming a continuation of the current economic climate and relatively stable currency exchange rates, we are revising upward our expectation for full year 2005 results to a sales increase in the range of 11% to 14% and earnings per share increase in the range of 20% to 25%; this compares to our prior estimates of sales and earnings per share increases of 9% to 12% and 18% to 23%, respectively. We expect second quarter results in the range of $430 million to $440 million and $.55 to $.57 for sales and EPS respectively. We are very confident that we are in excellent markets with a great organization, and we are very excited about the future."

    The Company will host a conference call to discuss its first quarter results at 1:00 PM (ET) April 20, 2005. The toll free dial-in number to participate in this call is 888-395-9624; International dial-in number 517-623-4547; Passcode: Reardon. There will be a replay available until 5:00 PM (ET) on Friday, April 22, 2005. If you are unable to participate on the call and would like to hear a replay, the toll free dial-in number is 800-938-1164 and International dial-in replay number is 402-998-0567.
    A live broadcast as well as a replay will also be available on the Internet at http://www.amphenol.com/index.cfm/fuseaction/financial.webcasts.

    Amphenol Corporation is one of the world's leading producers of electronic and fiber optic connectors, cable and interconnect systems. Amphenol products are engineered and manufactured in the Americas, Europe and Asia and sold by a worldwide sales and marketing organization. The primary end markets for the Company's products are communication systems for the converging technologies of voice, video and data communications, industrial/automotive and military/aerospace applications.

    Statements in this press release which are other than historical facts are intended to be "forward-looking statements" within the meaning of the Securities Exchange Act of 1934, the Private Securities Litigation Reform Act of 1995 and other related laws. While the Company believes such statements are reasonable, the actual results and effects could differ materially from those currently anticipated. Please refer to Part I, Item 1 of the Company's Form 10-K for the year ended December 31, 2004, for some factors that could cause the actual results to differ from estimates. In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise.

AMPHENOL CORPORATION FINANCIAL SUMMARY (Unaudited)

Three Months Ended March 31, 2005 2004

Sales $409,395,000 $355,261,000 Net income 46,376,000 35,658,000 Earnings per share - Basic $.53 $.41 Average shares outstanding - Basic 88,016,736 87,977,804 Earnings per share - Diluted $.52 $.40 Average shares outstanding - Diluted 89,904,666 89,878,164

AMPHENOL CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (dollars in thousands, except per share data) Three months ended March 31, ----------------------- 2005 2004 ----------- -----------

Net Sales $409,395 $355,261 Costs and Expenses: Cost of sales, excluding depreciation and amortization 263,425 233,230

Depreciation and amortization expense 10,814 9,433

Selling, general and administrative expense 57,823 51,315 ----------- ----------- Operating income 77,333 61,283

Interest expense (5,403) (5,755) Other expenses, net (1,664) (1,500) ----------- ----------- Income before income taxes 70,266 54,028

Provision for income taxes (23,890) (18,370) ----------- ----------- Net income $46,376 $35,658 =========== =========== Net income per common share - Basic $0.53 $0.41 =========== =========== Average shares outstanding - Basic 88,016,736 87,977,804 =========== =========== Net income per common share - Diluted $0.52 $0.40 =========== =========== Average shares outstanding - Diluted 89,904,666 89,878,164 =========== ===========

AMPHENOL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (dollars in thousands)

Mar. 31, Dec. 31, 2005 2004 ----------- ----------- (Unaudited) ASSETS

Current Assets: Cash and short-term cash investments $26,257 $30,172 Accounts receivable, less allowance for doubtful accounts of $8,143 and $8,666, respectively 230,516 214,158 Inventories 263,390 247,303 Prepaid expenses and other assets 35,439 37,382 ----------- ----------- Total current assets 555,602 529,015

Land and depreciable assets, less accumulated depreciation of $347,304 and $349,255, respectively 203,165 197,753 Deferred debt issuance costs 6,087 6,451 Goodwill 595,060 545,411 Deferred taxes and other assets 33,245 28,081 ----------- ----------- $1,393,159 $1,306,711 =========== ===========

LIABILITIES & SHAREHOLDERS' EQUITY

Current Liabilities: Accounts payable $149,129 $134,856 Accrued interest 2,215 2,183 Accrued salaries, wages and employee benefits 38,413 38,535 Other accrued expenses 75,054 85,089 Dividends payable 2,691 - Current portion of long-term debt 17,514 16,909 ----------- ----------- Total current liabilities 285,016 277,572

Long-term debt 458,142 432,144 Accrued pension and post employment benefit obligations 101,762 102,050 Other liabilities 21,225 13,341

Shareholders' Equity: Common stock 88 88 Additional paid-in deficit (196,628) (207,504) Accumulated earnings 833,426 789,741 Accumulated other comprehensive loss (59,506) (55,078) Treasury stock, at cost (50,366) (45,643) ----------- ----------- Total shareholders' equity 527,014 481,604 ----------- ----------- $1,393,159 $1,306,711 =========== ===========

AMPHENOL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) (dollars in thousands)

Three months ended March 31, ------------------ 2005 2004 --------- --------

Net income $ 46,376 $ 35,658 Adjustments for cash from operations: Depreciation and amortization 10,814 9,433 Amortization of deferred debt issue costs 364 356 Net change in non-cash components of working capital (18,827) (22,678) Other long term assets and liabilities (131) 5,377 --------- -------- Cash provided by operations 38,596 28,146 --------- --------

Cash flow from investing activities: Capital additions, net (12,475) (6,694) Investments in acquisitions (53,039) (457) --------- -------- Cash flow used by investing activities (65,514) (7,151) --------- --------

Cash flow from financing activities: Net change in borrowings under revolving credit facilities 23,678 (174) Decrease in borrowings under Bank Agreement - (15,000) Purchase of treasury stock (4,723) (16,174) Proceeds from exercise of stock options including tax benefit 4,048 15,224 --------- --------

Cash flow provided by (used by) financing activities 23,003 (16,124) --------- --------

Net change in cash and short-term cash investments (3,915) 4,871 Cash and short-term cash investments balance, beginning of period 30,172 23,533 --------- --------

Cash and short-term cash investments balance, end of period $ 26,257 $ 28,404 ========= ========

Net cash paid during the year for: ---------------------------------- Interest 5,007 5,949 Taxes 23,750 13,940

AMPHENOL CORPORATION SEGMENT INFORMATION (In thousands) (Unaudited)

Three months ended March 31, --------------------------------- 2005 2004 --------------- ---------------

Trade Sales: Interconnect Products $ 361,155 $ 310,673 Cable Products 48,240 44,588 --------------- --------------- Consolidated $ 409,395 $ 355,261 =============== ===============

Operating income: Interconnect Products $ 75,791 $ 60,600 Cable Products 6,175 5,411 Corporate (4,633) (4,728) --------------- --------------- Consolidated $ 77,333 $ 61,283 =============== ===============

ROS%: Interconnect Products 21.0% 19.5% Cable Products 12.8% 12.1% Consolidated 18.9% 17.3%

--30--MW/ny*

CONTACT: Amphenol Corporation Diana G. Reardon, 203-265-8630 www.amphenol.com

KEYWORD: CONNECTICUT INDUSTRY KEYWORD: HARDWARE TELECOMMUNICATIONS EARNINGS CONFERENCE CALLS SOURCE: Amphenol Corporation

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