TE Connectivity acquired 98.7% of Schaffner Holding AG, a leader in electromagnetic solutions, for CHF 294 million. This acquisition is reported as part of the Industrial Solutions segment.

TE Connectivity sold one business for net cash proceeds of $38 million, recording a pre-tax loss of $11 million in the first six months of fiscal 2024. The business sold was reported in the Transportation Solutions segment.

The board of directors approved a change in the jurisdiction of incorporation from Switzerland to Ireland. The company expects to implement the change in calendar year 2024.

TE Connectivity initiated a restructuring program to optimize manufacturing footprint and improve cost structure, primarily in the Industrial and Transportation Solutions segments. The company incurred $41 million in restructuring charges during the first six months of fiscal 2024.

Annualized cost savings related to the fiscal 2024 restructuring actions are expected to be approximately $10 million, with full realization by the end of fiscal 2025. Total restructuring charges for fiscal 2024 are expected to be approximately $100 million.

Management is focused on managing costs, including restructuring and cost reduction initiatives, and monitoring capital availability to ensure sufficient resources for future needs.

The company is monitoring the current global economic environment, including supply chain disruptions, inflationary cost pressures, and military conflict, and their potential effects on customers and end markets.

TE Connectivity is investigating past compliance with U.S. trade controls and has made voluntary disclosures to the U.S. Department of Commerce and State Department. The company is unable to predict the timing and final outcome of the investigations.

The company is involved in various stages of investigation and cleanup related to environmental remediation matters. The company concluded that it would incur costs in the range of $17 million to $43 million and accrued $20 million as the probable loss.

Pricing actions initiated during fiscal 2023 positively affected organic net sales by $14 million in the second quarter of fiscal 2024 and $82 million in the first six months of fiscal 2024.

Net sales declines in several segments are attributed to market weakness and inventory corrections in the supply chain, impacting the industrial equipment and sensor end markets.

The company is focused on continuous productivity improvements and evaluating opportunities to simplify the global manufacturing footprint, migrate facilities to lower-cost regions, and reduce fixed costs.

Improved manufacturing productivity was a primary driver of the gross margin increase in the second quarter and first six months of fiscal 2024, despite lower sales.

A restructuring program was initiated to optimize the manufacturing footprint and improve the cost structure of the organization, primarily in the Industrial and Transportation Solutions segments.

Management has taken and continues to focus on actions to manage costs, including restructuring and other cost reduction initiatives such as reducing discretionary spending and travel.

The acquisition of Schaffner Holding AG, a leader in electromagnetic solutions, expands TE Connectivity's technological capabilities in this area.

The company is seeing growth in cloud and artificial intelligence applications, particularly in the data and devices end market.

The company is focused on new product introductions and product innovations, which are key to its growth strategy.

The board of directors authorized an increase of $1.5 billion in the share repurchase program. The company repurchased $826 million and $432 million of shares in the first six months of fiscal 2024 and 2023 respectively.

Shareholders approved a dividend payment of $2.60 per share, payable in four equal quarterly installments.

The company expects fiscal 2024 capital spending levels to be approximately 5% of net sales, with investments in manufacturing infrastructure to enhance productivity and manufacturing capabilities.

The company is involved in various stages of investigation and cleanup related to environmental remediation matters, with a potential cost range of $17 million to $43 million.

The company is monitoring increasing scrutiny and expectations regarding environmental, social, and governance matters.

The company is focused on compliance with current and future environmental and other laws and regulations, including those related to climate change.

The company's business and operating results have been and will continue to be affected by worldwide economic conditions, including supply chain disruptions, inflationary cost pressures, and military conflict.

The company continues to monitor military conflict in certain parts of the world as well as escalating tensions in surrounding countries and associated sanctions.

The company's results of operations are influenced by changes in foreign currency exchange rates, with approximately 60% of net sales invoiced in currencies other than the U.S. dollar.