TE Connectivity Ltd. reported unaudited consolidated earnings results for the first quarter that ended December 30, 2016. For the quarter, the company reported net sales of $3,063 million against $2,833 million a year ago. Operating income was $486 million against $398 million a year ago. Income from continuing operations before income taxes was $460 million against $382 million a year ago. Income from continuing operations was $406 million against $324 million a year ago. Net income was $409 million against $353 million a year ago. Diluted earnings per share from income from continuing operations were $1.13 against $0.83 a year ago. Diluted earnings per share were $1.14 against $0.91 a year ago. Net cash provided by operating activities was $404 million against $390 million a year ago. Capital expenditures were $130 million against $139 million a year ago. Free cash flow was $218 million against $237 million a year ago. On non-GAAP basis, operating income was $536 million against $444 million a year ago. Income from continuing operations was $412 million against $328 million a year ago. Diluted earnings per share from continuing operations were $1.15 against $0.84 a year ago. Adjusted gross margin in the quarter was 34.8%, a 140 basis point improvement from prior year, driven by volume fall through on increased volumes, productivity improvements, favorable mix and savings from portfolio actions.

For the fiscal second quarter 2017, the company expects net sales of $3.025 billion to $3.125 billion, reflecting an increase of 4% year over year at the midpoint. GAAP EPS are expected to be $0.97 to $1.01, including net restructuring, acquisition-related and other charges of $0.08. TE expects adjusted EPS of $1.05 to $1.09 which represents a 19% improvement at the mid-point versus the second quarter of 2016. Organic net sales growth (GAAP) expected between 2% to 6%.

For the full year, the company expects net sales of $12.2 to $12.6 billion, reflecting 3% actual and 4% organic growth at the mid-point versus the prior year, excluding the additional week in fiscal year 2016. GAAP EPS are expected to be $4.04 to $4.24 including restructuring, acquisition-related and other charges of $0.34 and a tax-related benefit of $0.08. TE expects adjusted EPS of $4.30 to $4.50, reflecting 11% growth at the mid-point compared to 2016, when excluding the additional week. Organic net sales growth (GAAP) expected between 0% to 3%. The company expects full year adjusted effective tax rate of 20% for fiscal 2017, which is higher than the ETR last year.