Connector and Cable Assembly Supplier

Facts & Figures: 10 Years of Connector Industry Income Statements

The connector industry is one of the most profitable subsections of the electronic components industry. Bishop & Associates’ Dave Pheteplace looks at 10 years of connector industry income statements.

 

The connector industry grew to almost $53 billion in 2014. It is one of the most profitable subsections of the electronic component industries. Let’s take a look at some of the stats that demonstrate this.

The following chart provides the industry’s cost of goods sold (COGS) as a percentage of sales for 2004 through 2013.

COGS percent of sales 2004-2013

The average COGS was 71.8% of sales for the 10-year period. The average COGS, excluding 2009 results, was 71.2% of sales. In 2013, the average COGS was 71.4%. In 2009, the industry was not able to reduce costs at the same rate that sales were declining, so COGS shot up to 77.5%.

The following chart provides the industry’s selling, general, and administrative (SG&A) expenses as a percentage of sales for 2004 through 2013.

SG&A Percent of Sales 2004-2013

The average SG&A was 15.5% of sales for 2004 through 2013. The average SG&A, excluding 2009 results, was 15.4% of sales. In 2013, the average SG&A was 16.1%.

The following chart provides the industry’s operating income (Op Income) as a percentage of sales for 2004 through 2013.

Operating income percent of sales 2004-2013

The average operating income was 9.7% of sales. The average operating income, less the 2009 results, was 11.8%. The average operating income in 2013 was 11.3%.

The following chart provides the industry’s net income as a percentage of sales for 2004 through 2013.

Net income percent of sales 2004-2013

The average net income was 6.0% of sales for the 10-year period. The average net income, excluding the results of 2009, was 7.9%. The average net income in 2013 was 8.6%. The low point in the last 10 years was 2009 at ­‑12.6% of sales.

In the final analysis, connector companies are very profitable, highly sought-after acquisition targets and frequently sell for high EBITDA multiples.

No part of this article may be used without the permission of Bishop & Associates Inc. If you would like to receive additional news about the connector industry, register here. You may also contact us at bishop@bishopinc.com or by calling 630.443.2702.

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Dave Pheteplace

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