Sensata Technologies reports gains in profit, revenue for year, 4Q

ATTLEBORO – Sensata Technologies Holding N.V. reported a 50.8 percent increase in profit, and a 21.7 percent increase in revenue in 2014 when compared with 2013’s numbers, in an earnings report released Tuesday.

Sensata, a supplier of sensing, electrical protection, and control and power management solutions, reported profit of $283.7 million for the year, or $1.65 per diluted share, a 50.8 percent increase over 2013. Revenue for the year was $2.4 billion, a 21.7 percent increase over 2013.

For the fourth quarter, profit rose 3.6 percent to $65.5 million, or 41 cents per diluted share, when compared with fourth quarter 2013. Revenue for the same period rose nearly 40 percent to $705.3 million, from $505 million in the prior year quarter.

“We are pleased with our results for the fourth quarter, with better than expected revenue and earnings primarily driven by outperformance with Schrader,” Martha Sullivan, president and CEO, said in a statement.

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The company acquired Schrader International, based in Colorado, last year for roughly $1 billion, in a move to expand in sensors that warn against low tire pressure.

“We anticipate continuing to deliver increased value to shareholders in 2015 through expansion of our prospects in sensing by way of acquisition and by leveraging existing sensing product families into new, mission-critical applications,” she said.

When looking at Sensata’s adjusted 2014 net income – a non-GAAP measure Sensata uses internally that adjusts net income and removes the effects of financing, investments, inventory re-valuing, depreciation, amortization and other adjustments – the company experienced a 6.7 percent increase to $410.3 million, or $2.38 per diluted share, compared with $384.8 million, or $2.15 per diluted share.

The company spent $26.5 million on research and development costs out of $705 million in net revenue in the fourth quarter, a 79 percent increase over the prior-year quarter, and a total of $82 million out of $2.4 billion in net revenue on research and development for the year, an increase of 42 percent over 2013.

Sensata’s sensor business comprised 77.9 percent of net revenue in the fourth quarter, and 72.9 percent for the full year, compared with 70.2 percent and 68.6 percent for the respective periods in 2013.
Controls accounted for 22.1 percent of net revenue in the fourth quarter, and 27.1 percent for the full year, compared with 29.8 percent and 31.4 percent for the same periods in 2013.

By division, the European automotive market represented the largest percentage of net revenue at 25.5 percent, followed by North American automotive at 20.4 percent, in the fourth quarter. For the year, European automotive again held the largest percentage of net revenue at 24.3 percent, but Asian automotive took second place at 19.7 percent.

Looking ahead, the company anticipates net revenue of $730 million to $770 million in first quarter of 2015, which would represent 36 percent growth compared with first quarter 2014’s net revenue of $551.6 million. In addition, Sensata expects to post net income in the first quarter of 2015 of $105 million to $115 million, the midpoint of which would represent an increase in the 2013 first quarter of 14.3 percent.

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