TE Connectivity Ltd. (NYSE:TEL) Q1 2015 Earnings Conference Call - Final Transcript
Jan 28, 2015 • 08:15 am ET
19. As you know, the core of our strategy over the past several years has been to strengthen our leadership in harsh environment application. Post the BNS transaction, this will represent approximately 80% of our business. Harsh environments' demand excellent and engineering and manufacturing and the typical application, we are involved very early with our customers in the design phase and they're increasingly relying on us to provide the products that sensor pass more signal operating higher power environments and take less space and weight.
This is our specialty. And what we see is increasing system knowledge in these applications is very important and that is the strength of ours. These solutions typically have a lot of stickiness because the cost of change is high. And our customers rely on the value we provide and continue to ask us to do more. We are having a very positive reaction as I said earlier to the expansion of our sensor capabilities because that gives us more options to meet customers' needs and these are customers that are typically looking to reduce the numbers of suppliers in order to get more strategic suppliers and simplify their own supply chain.
In the harsh environment markets, we have been steadily increasing inorganic and organic investments. We have expanded engineering and field resources at a faster rate than sales growth over the past several years. And our performance in TEOA is consistently driving up our quality performance and our margin performance.
Please turn to slide 20 and I'll wrap things up before we go to Q&A. So really the summary of today is going forward TE will be more focused than ever on what we do best. 90% of our portfolio will be focused on sensors and connectors and almost 80% will be in harsh environment applications. We have the broadest and deepest sensoring connectivity solutions on the market. And we will continue to strengthen this portfolio to be our customers' best choice. We also feel this portfolio will enable us to accelerate our sales and profit growth and continue to make TE a top choice for investors.
So with that, let's open it up for questions.