Sensata Technologies earns $282.7M in 2019

SENSATA TECHNOLOGIES earned $282.7 million in 2019. / COURTESY SENSATA TECHNOLOGIES
SENSATA TECHNOLOGIES earned $282.7 million in 2019. / COURTESY SENSATA TECHNOLOGIES

ATTLEBORO – Sensata Technologies PLC saw profit decline 53% in 2019 to $282.7 million, or $1.75 per diluted share, the company reported on Tuesday.

Earnings for the year declined from $599 million, or $3.53 per diluted share. The decline was attributable to a higher provision for income taxes ($107.7 million in 2019 compared with a $72.6 million tax benefit in 2018). The company also reported $53.6 million in restructuring and other charges in 2019.

Sensata, which manufactures sensing, electrical protection and control and power management solutions, reported 2019 revenue of $3.5 billion, a 2% decline year over year. The company’s performing sensing segment revenue was $2.5 billion for the year, while its sensing solutions segment accounted for $904.6 million.

Profit in the fourth quarter of 2019 was $53.5 million, a decline from $254.1 million one year prior. Quarterly revenue was $846.7 million, a slight decline from $847.9 million one year prior.

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The company also announced that it had repurchased $84.2 million of stock in the quarter while $337.5 million remained available for stock repurchases as of Dec. 31, 2019.

The company also noted hat it expects to be impacted by the current CoronaVirus outbreak that originated in China.

The company projected organic growth to range between a 1% decline and a 2% increase in 2020, with revenues expected to range between a decline of 1% and an increase of 1%. Adjusted net income was projected to range from a 6% decline to a 2% decline.

“Our first quarter 2020 guidance includes our best estimate of the business impact related to the recent CoronaVirus outbreak, which is quickly changing and highly uncertain,” said Paul Vasington, chief financial officer of Sensata. “That said, we estimate for both the first quarter and full year 2020 guidance a $40 million revenue and $20 million operating profit negative impact in the first quarter with minimal recovery over the balance of the year. The profit decline reflects the normal impact from expected lost revenue as well as underutilized and stranded costs related to this sudden event. We will continue to monitor the situation closely.”

Chris Bergenheim is the PBN web editor. You may reach him at Bergenheim@PBN.com.

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