Sensata 3Q revenue, profit up

SENSATA TECHNOLOGIES reported third-quarter net income of $82 million, or 48 cents per diluted share, compared with net income of $66 million in third quarter of 2013, or 37 cents per diluted share. / COURTESY SENSATA TECHNOLOGIES
SENSATA TECHNOLOGIES reported third-quarter net income of $82 million, or 48 cents per diluted share, compared with net income of $66 million in third quarter of 2013, or 37 cents per diluted share. / COURTESY SENSATA TECHNOLOGIES

ATTLEBORO – Sensata Technologies Holding N.V. reported gains in net revenue and net income for the third quarter Tuesday, and expects more growth in the fourth quarter.

“We continue to deliver on our promises of strong organic revenue growth driven by increasing content and superior capital deployment through high-returning acquisitions,” Martha Sullivan, Sensata president and CEO, said in a statement. “We are also excited to welcome the high-performance teams of both DeltaTech Controls and Schrader International. These businesses will make great additions to Sensata.”

The company reported third quarter net revenue of $577.1 million, an increase of 15.7 percent from the third quarter of 2013’s $498.9 million.

Net income was $82 million, or 48 cents per diluted share, compared with net income of $66 million in third quarter 2013, or 37 cents per diluted share, a 24.1 percent increase.

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The company’s adjusted 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 – was $107.7 million, or 63 cents per diluted share, an increase of 10.1 percent compared with the second-quarter 2013 adjusted net income of $97.9 million, or 55 cents per diluted share.

Sensata, a supplier of sensing, electrical protection, and control and power management solutions, spent nearly $20 million of $577.1 million in net revenue on research and development costs in the third quarter. For the nine month period that ended Sept. 30, nearly $56 million was spent on the same category, an increase from $43 million spent during the same period in 2013.

For the three months ended Sept. 30, Sensata’s sensor business accounted for 74.3 percent of total net revenue, while controls accounted for 25.7 percent.

By division, the European automotive market represented the largest portion of Sensata’s net revenue, at 22.4 percent, followed by Asian automotive at 19.9 percent, North American automotive at 15.9 percent and heavy vehicle off-road at 14.9 percent.

Revenue from the company’s three geographical regions was led by the Americas, which accounted for 40.8 percent of all third-quarter 2014 revenue, followed by Asia at 31.8 percent and Europe at 27.4 percent.

Sensata said it anticipates net revenue of $680 million to $705 million for the fourth quarter, which at the midpoint, is 37 percent more than fourth quarter 2013 net revenue of $505 million. Adjusted net income also is expected to be between $84 million and $92 million, or 49 to 54 cents per diluted share, for the fourth quarter.

At the end of the three-month period, total debt for the company was $1.9 billion. However, after the end of the quarter, the Sensata issued another $1 billion in senior notes and term loans to fund the acquisition of Schrader International.

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