Sensata reports increases in net income, revenue in 3Q

SENSATA Technologies Holding N.V. reported increases in net income and revenue in the third quarter of 31.2 percent and 8.6 percent, respectively.
SENSATA Technologies Holding N.V. reported increases in net income and revenue in the third quarter of 31.2 percent and 8.6 percent, respectively.

ATTLEBORO – Sensata Technologies Holding N.V. reported increases in net income and revenue in the third quarter of 31.2 percent and 8.6 percent, respectively.
The maker of sensing, electrical protection, and control and power management solutions said Tuesday that net income reached $69.8 million, or 41 cents per diluted share, in the third quarter, compared with net income of $53.2 million, 31 cents per diluted share, in the year-ago period.
Revenue was $789.8 million, compared with $727.4 million, in third quarter 2015.
“Our free cash flow has been strong, which has enabled us to pay down our debt and move closer toward achieving our targeted [fiscal 2016] net leverage ratio. As we enter the fourth quarter, we are well-positioned to deliver on our full year 2016 earnings guidance and continue our trend of margin expansion and strong free cash flow,” Martha Sullivan, president and CEO of Sensata, said in a statement.
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 – was $126.3 million, or 74 cents per diluted share, compared with adjusted net income of $123.3 million, or 72 cents per diluted share.
Sensata’s two business segments, performance sensing and sensing solutions, saw revenue growth of 1.4 percent to $584.7 million, and 36 percent to $205 million, respectively. Profit from operations in performance sensing grew 2.9 percent, to $155.2 million, while profit from operations in sensing solutions jumped 35.3 percent, to $67.3 million.
The company expects revenue between $3.18 billion and $3.22 billion for the full year, and adjusted profit to be between $487 million and $497 million, with adjusted earnings per share between $2.84 and $2.90, for 2016. Changes in foreign exchange rates are expected to reduce adjusted earnings per share by 19 to 20 cents compared with the previous year.

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