Sensata’s net income, revenue increase in 2Q

SENSATA TECHNOLOGIES Holding N.V. reported a 60.2 percent increase in net income, and 7.4 percent rise in revenue, in its second-quarter earnings report released Tuesday.
SENSATA TECHNOLOGIES Holding N.V. reported a 60.2 percent increase in net income, and 7.4 percent rise in revenue, in its second-quarter earnings report released Tuesday.

ATTLEBORO – Sensata Technologies Holding N.V. reported a 60.2 percent increase in net income, and 7.4 percent rise in revenue, in its second-quarter earnings report released Tuesday.
The maker of sensing, electrical protection, and control and power management solutions said Tuesday that second-quarter profit was $65.5 million, or 38 cents per diluted share, compared with $40.9 million, or 24 cents per diluted share, in the 2015 second quarter.
Revenue was $827.5 million compared with $770.4 million, the company said.
“Sensata delivered steady sequential margin expansion and earnings growth in the face of currency headwinds and a challenging market,” Martha Sullivan, president and CEO, said in a statement. “We also generated strong cash flow, which enabled us to further pay down our revolver debt and improve our leverage position. As we look ahead to the remainder of the year, we believe we can continue to improve our margins and further strengthen our balance sheet.”
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 $124.3 million, or 73 cents per diluted share, in the second quarter, nearly the same as adjusted profit of $124.6 million, or 73 cents per diluted share reported in the prior-year quarter.
Sensata’s two business segments, performance sensing and sensing solutions, saw revenue growth of 1.5 percent to $615.6 million, and 29.2 percent to $212 million, respectively.

Performance sensing profit from operations fell 0.3 percent to $152.5 million, while sensing solutions profit rose 30.8 percent to $68.2 million. The company said performance sensing profit from operations was lowered due to foreign exchange rates and the Custom Sensors & Technologies Inc. acquisition in California. Last August, Sensata said it had reached an agreement to acquire the sensing portfolio of CST for $1 billion, a move that will extend the company’s reach beyond the automotive industry.
Looking ahead, Sensata said it anticipates revenue of $770 million to $810 million for the third quarter, compared with 2015 third-quarter revenue of $727 million. Adjusted earnings per share are expected to be between 70 cents and 76 cents.

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