Sensata reports profit rises 6% in 2013, appoints Vasington CFO
SENSATA TECHNOLOGIES N.V. reported 2013 net income of $188.1 million, or $1.05 per diluted share, up from $177.5 million, or 98 cents per diluted share, during 2012. The company expects 2014 earnings of between $1.26 per diluted share and $1.46 per diluted share.
ATTLEBORO – Sensata Technologies Holding N.V. on Tuesday reported full-year 2013 net income of $188.1 million, or $1.05 per diluted share, a 6 percent increase over the $177.5 million, or 98 cents per diluted share, reported for 2012.
Net revenue also rose over the 12 months ended Dec. 31, climbing 3.5 percent to $1.98 billion compared with $1.91 billion the previous year. The company reported that it spent $120.4 million, or roughly 6.1 percent of net revenue, on research, development and engineering-related costs.
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 $384.8 million, or $2.15 per diluted share, an increase of 7.9 percent compared with the 2012 adjusted net income of $356.6 million, or $1.96 per diluted share.
In the fourth quarter alone, net income totaled $67.1 million, or 38 cents per diluted share, a decline of 5.5 percent from $70.9 million, or 39 cents per diluted share, in the fourth quarter of 2012. Net revenue, however, increased in the fourth quarter, rising 13.4 percent to $505 million compared with $445 million during the same period a year earlier.
Sensata’s adjusted net income for fourth quarter of 2013 was $104.5 million, or 59 cents per diluted share, an increase of 22.5 percent compared with fourth-quarter 2012 adjusted net income of $85.3 million, or 47 cents per diluted share.
“We are pleased by the performance of the business during the fourth quarter and full year 2013, which came in better than expected,” said Martha Sullivan, president and CEO of Sensata. “In 2014, we believe Sensata will return to double-digit net revenue growth.”
For the full year of 2013, Sensata’s sensor business accounted for 71.7 percent of total net revenue, while controls accounted for 28.3 percent, largely unchanged from the revenue breakdown in 2012.
Revenue from the company’s three geographical regions were split relatively evenly during the year ended in December, with the Americas accounting for 37.4 percent, Asia accounting for 33.1 percent and Europe accounting for 29.5 percent.
In the breakdown by end market, the European automotive market held the greatest share of Sensata’s revenue in 2013, at 23.7 percent, followed by the Asian automotive market at 20.6 percent and the North American automotive market at 16.2 percent. The heavy vehicle off-road; appliance and heating, ventilation and air-conditioning; and industrial markets each accounted for more than 9 percent of revenue.
Sensata said it anticipates 2014 net revenue to reach between $2.12 billion and $2.22 billion, which would represent growth of 9.6 percent compared with the full-year 2013 revenue. The company expects 2014 earnings of between $1.26 per diluted share and $1.46 per diluted share.
In coordination with Tuesday’s earnings release, Sensata also announced the appointment of Paul Vasington as the company’s executive vice president and chief financial officer, relieving interim CFO and Chief Operating Officer Jeffrey Cote.
Vasington brings 24 years of financial and managerial experience to Sensata, including nearly 10 years with Honeywell International Inc., where he served as vice president and CFO of Honeywell Aerospace. In his new role at Sensata, Vasington will be responsible for the leadership and oversight of the company’s global financial activities.
“Paul brings very strong operating finance leadership and a breadth of relevant industry and M&A experience,” said Sullivan. “I would like to thank Jeff Cote for filling in as interim CFO and look forward to him being able to focus entirely on his COO responsibilities.”
Robert Hureau, who had served as CFO of Sensata before Cote assumed the position on an interim basis, left the company in April 2013.