Sensata reports revenue increase, profit drop

SENSATA TECHNOLOGIES reported a 36.1 percent increase in revenue in the first quarter, but a 48.3 percent drop in profit. / COURTESY SENSATA TECHNOLOGIES
SENSATA TECHNOLOGIES reported a 36.1 percent increase in revenue in the first quarter, but a 48.3 percent drop in profit. / COURTESY SENSATA TECHNOLOGIES

ATTLEBORO – Sensata Technologies Inc. reported a 36.1 percent increase in revenue in the first quarter, but a 48.3 percent drop in profit.
Sensata, a supplier of sensing, electrical protection, and control and power management solutions, released its earnings report on Tuesday, showing revenue of $750.7 million for the first quarter that ended March 31 compared with $551.6 million during the prior-year period.
Profit fell to $35.4 million, or 21 cents per diluted share, in the first quarter, compared with $68.4 million, or 39 cents per diluted share, during the year-ago period.
However, when looking at 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 – the company had a 13 percent increase to $110.9 million, or 65 cents per diluted share, compared with adjusted net income of $98.1 million, or 56 cents per diluted share, during the prior-year period.
“We are pleased with our results for the first quarter with net revenue and adjusted net income in line with our expectations,” Martha Sullivan, president and CEO, said in a statement. “Despite increased foreign exchange headwinds, we remain on-track for 2015 to be a year of strong double-digit growth.”
The company said it spent $58.1 million, or 7.7 percent of revenue, on research, development and engineering-related costs during the first quarter to fund growth plans.
Sensata anticipates revenue of $3 billion to $3.1 billion for the year, which, at the midpoint, is 27.2 percent higher than 2014’s revenue of $2.4 billion.
Sensata’s performance sensing business comprised 78.8 percent of revenue in the first quarter, while its sensing solutions segment comprised 21.2 percent.
The Americas is the largest revenue market for the company at 40.8 percent, while Europe held 33.2 percent and Asia, 26 percent.
By division, the European automotive market represented the largest percentage of net revenue at 27.7 percent, followed by North American automotive at 21.2 percent, in the first quarter. Asian automotive comprised 17.2 percent of revenue, while heavy vehicle off-road comprised 12.7 percent; appliance and heating, ventilation and air-conditioning comprised 6.1 percent; and industrial, 6 percent. “Rest of the world automotive” made up 1 percent, while “other” comprised 8 percent, according to the company.

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