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Amphenol Corporation announced today that as a result of the COVID-19 outbreak in China, which has caused widespread disruptions, the Company does not expect to meet its first quarter 2020 sales and Adjusted Diluted EPS guidance provided on January 22, 2020. Given the uncertainty around the timing of a return to full production in China and the lack of visibility with respect to demand from customers in China, among other factors, the Company is currently unable to quantify the full impact of COVID-19, and will provide additional information during its next earnings call, scheduled for April 22, 2020.
Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “Our guidance issued on January 22, 2020 reflected the information available at the time regarding the COVID-19 outbreak, as well as our best estimates of the timing of business resumption following the end of the extended Chinese New Year holiday. However, we are experiencing a slower return to normal business conditions than we originally anticipated, resulting from the limited availability of our workforce and supplier constraints, together with reduced demand from customers within China who have not yet returned to expected production levels. As of today, all of our China operations have re-opened and more than 60% of our China-based employees have returned to work, despite ongoing significant restrictions on movement within China. Outside of China, customer demand remains in line with our expectations. Our company continues to be fundamentally strong, and we believe that this disruption to our China-related business is only temporary.”
“Most importantly, we remain highly focused on the health and safety of our employees and their families, as well as our customers, partners and vendors. Our thoughts are with the communities and individuals most deeply affected by the COVID-19 outbreak, and with those working tirelessly to address its impact. We are truly grateful to our China-based employees for their extraordinary efforts in driving our recovery from these difficult circumstances.”
Amphenol Corporation is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors. Amphenol has a diversified presence as a leader in high-growth areas of the interconnect market including: Automotive, Broadband Communications, Commercial Aerospace, Industrial, Information Technology and Data Communications, Military, Mobile Devices and Mobile Networks.