Sensata reports revenue increase, profit decline in 3Q

SENSATA TECHNOLOGIES reported third-quarter net income of $53.2 million, or 31 cents per diluted share, a 35.2 percent decline from the same year-ago period. / COURTESY SENSATA TECHNOLOGIES
SENSATA TECHNOLOGIES reported third-quarter net income of $53.2 million, or 31 cents per diluted share, a 35.2 percent decline from the same year-ago period. / COURTESY SENSATA TECHNOLOGIES

ATTLEBORO – Sensata Technologies Holding N.V. reported a 26 percent increase in revenue, but a 35.2 percent decline in profit for the 2015 third quarter.
The company, which manufactures sensing, electrical protection, and control and power management solutions, said on Tuesday that revenue was $727.4 million in the third quarter, compared with $577.1 million during the same year-ago period.
Profit fell to $53.2 million, or 31 cents per diluted share, from $82 million, or 48 cents per diluted share, a year ago.
Adjusted profit – a company-generated metric that reverses out restructuring, financing, hedging, changes in the fair value of fixed and intangible assets, deferred income tax and other tax expense and amortization of financing costs – however, was $123.3 million, or 72 cents per diluted share, a 14.5 percent increase compared with adjusted profit of $107.7 million, or 63 cents per diluted share, a year ago.
“We delivered strong free cash flow and adjusted net income for the third quarter in line with our expectations, despite increased headwinds in our end-markets,” Martha Sullivan, president and CEO, said in a statement. “We are undertaking certain cost-containment activities to ensure profitability remains high for the fourth quarter and into 2016.”
The company spent $30.8 million on research and development in the quarter, 57.8 percent more than in the 2014 third quarter.
Sensata expects revenue of $700 million to $740 million for the fourth quarter; fourth quarter 2014 revenue was $705.3 million. Adjusted profit is expected to range between $106 million and $118 million, or 62 cents to 69 cents per diluted share.
Among its business segments, the performance sensing business posted $576.5 million in net revenue in the third quarter, a 40.2 percent year-over-year increase, while the sensing solutions segment had $150.9 million in net revenue, a 9.1 percent decrease.
The Americas continues to be the largest revenue market for the company at 42.7 percent, followed by Europe at 33.3 percent and Asia, 24 percent.
European automotive again held the largest percentage of revenue at 28.2 percent, followed by North American automotive at 22.5 percent; Asian automotive at 16.2 percent; heavy vehicle off-road, 12 percent; industrial, 6.5 percent; appliance, and heating, ventilation and air conditioning, 5.8 percent; and rest of world automotive, 0.9 percent. All other business segments accounted for 7.9 percent of net revenue.

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