“They were able to manage through that fantastically.”

IBD looks at Amphenol (APH):

It’s hard to avoid: If a firm’s costs go up, its profits go down.
Amphenol (APH) has impressed investors by bucking this logic.
The firm makes connectors, the thousands of different products that link electronic gizmos. Its connectors end up in cars, planes and almost any device that uses electric or fiber optic signals. It also makes cables.
To manufacture all this, it needs raw materials. They include gold, aluminum, copper and oil-based resin. Prices of those commodities have skyrocketed.
Yet with material costs rising, the firm managed to boost profits.
Raw materials were a “big head wind,” Shawn Harrison of Longbow Research said. “They were able to manage through that fantastically.”

Posted by Eddy Elfenbein on May 1st, 2007 at 8:44 pm

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