Buy Us a Cup of Coffee

Vishay Precision Group Reports Sales of $70.9 Million

Vishay Precision Group Reports Sales of $70.9 Million

MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of precision sensors and sensor-based systems, announced its results for its fiscal 2019 second quarter ended June 29, 2019

Second Quarter Highlights:

  • Sales of $70.9 million.
  • Gross profit margin of 40.4%.
  • Operating margin of 11.4%, adjusted operating margin* of 12.3%.
  • Net earnings per diluted share of $0.41, adjusted net earnings per diluted share* of $0.45.
  • Cash from operations of $8.9 million with free cash flow* of $6.7 million.

Ziv Shoshani, Chief Executive Officer of VPG, commented, “We have delivered a solid operating margin and cash generation for this quarter. Despite the current macro environment, we have reported two consecutive years of above-average, double-digit growth, the benefits of the work we have done to optimize our global operations continue to benefit our operating results. This effect has enabled us to continue to drive margin performance across our segments, and we remain positioned to deploy capital to value-generating opportunities to drive incremental returns.”

The Company’s second fiscal quarter 2019 net earnings attributable to VPG stockholders was $5.6 million, or $0.41 per diluted share, compared to $7.7 million, or $0.57 per diluted share, in the second fiscal quarter of 2018. Foreign currency exchange rates for the second quarter of 2019 decreased net income by $0.2 million, or $0.02 per diluted share, relative to the prior year period.

In the six fiscal months ended June 29, 2019, net earnings attributable to VPG stockholders grew to $13.8 million, or $1.02 per diluted share, compared to $12.7 million, or $0.94 per diluted share in the six fiscal months ended June 30, 2018. Foreign currency exchange rates for the six fiscal months of 2019 increased net income by $0.1 million, or $0.01 per diluted share, relative to the prior year period.

READ:  Genesis HealthCare to Release First Quarter 2020 Results and Provide COVID-19 Update on May 27, 2020

The second fiscal quarter 2019 adjusted net earnings* attributable to VPG stockholders was $6.2 million, or $0.45 per diluted share, compared to $7.7 million, or $0.57 per diluted share in the second fiscal quarter of 2018.

In the six fiscal months ended June 29, 2019, adjusted net earnings* attributable to VPG stockholders was $14.4 million, or $1.06 per diluted share compared to $12.7 million, or $0.94 per diluted share in the six fiscal months ended June 30, 2018.

Segments

Foil Technology Products segment revenues decreased 3.5% to $33.0 million in the second fiscal quarter of 2019, down from $34.2 million in the second fiscal quarter of 2018; sequential revenue decreased 10.9% compared to $37.0 million in the first quarter of 2019. The year-over-year decrease in revenues was attributable to Pacific Instruments products in the Americas for end-user customers in the avionics, military and space market and strain gage products in the test and measurement and force measurement end markets, primarily in the Americas. This was partially offset by a revenue increase in the Advanced Sensors products in the force measurement market in Asia. The sequential decrease in revenues was attributable to Pacific Instruments products for end-user customers in the avionics, military and space market in the Americas.

Gross profit margin for the Foil Technology Products segment was 43.6% for the second fiscal quarter of 2019, a decrease compared to 46.1% in the second fiscal quarter of 2018, and a decrease compared to 44.7% in the first fiscal quarter of 2019. The year-over-year decrease in gross profit margin was primarily due to a decrease in volume, the impact of negative exchange rates, and an increase in wages and manufacturing costs. The sequential decrease in gross profit margin was primarily due to a decrease in volume.

Force Sensors segment revenues declined 15.5% to $16.3 million in the second fiscal quarter of 2019, compared to $19.4 million in the second fiscal quarter of 2018; sequential revenue declined 2.3%, compared to $16.7 million in the first quarter of 2019. The year-over-year decrease in revenues was mainly attributable to OEM customers in the force measurement market, primarily in the Americas. The sequential decrease in revenues was mainly attributable to OEM customers in the force measurement end market in the Americas and OEM customers in the medical end market in Europe, partially offset by an increase in revenues from OEM customers in the medical end market in the Americas.

READ:  Teleflex Incorporated Announces Private Offering of $500 Million of Senior Notes Due 2028

Gross profit margin for the Force Sensors segment was 26.9% for the second fiscal quarter of 2019, a decrease compared to 29.4% in the second fiscal quarter of 2018, and a decrease compared to 30.2% in the first fiscal quarter of 2019. The year-over-year decrease in gross profit margin was primarily due to a decrease in volume. Sequentially, gross profit margin decreased due to a decrease in volume, impact of negative exchange rates, and a one-time charge.

Weighing and Control Systems segment revenues grew by 4.1% to $21.5 million in the second fiscal quarter of 2019, up from $20.7 million in the second fiscal quarter of 2018; sequential revenue decreased 5.4% from $22.7 million in the first fiscal quarter of 2019. The increase in revenues year-over-year was primarily attributable to the steel product line in Europe and the on board weighing products in Europe and the Americas. The sequential decrease in revenue was primarily attributable to a decrease in the steel product line in Europe and the Americas and process weighing products in Europe, partially offset by an increase in on-board weighing products mainly in the Americas.

The second fiscal quarter 2019 gross profit margin for the Weighing and Control Systems segment was 45.6%, a decrease compared to 48.0% from the second fiscal quarter of 2018, and a decrease compared to 50.2% from the first fiscal quarter of 2019. The year-over-year decrease in gross profit margin was primarily due to an increase in wages, higher manufacturing costs, and the impact of negative exchange rates, partially offset by an increase in volume, with an unfavorable product mix. Sequential gross profit margin decrease was primarily due to lower volume with an unfavorable product mix.

READ:  AmerisourceBergen Closes $500 Million Senior Note Offering

Near-Term Outlook

“Given the current business environment and our most recent order intake, at constant second fiscal quarter 2019 exchange rates, we expect net revenues in the range of $67 million to $73 million for the third fiscal quarter of 2019,” concluded Mr. Shoshani.

*Use of Non-GAAP Financial Information

The Company defines “adjusted operating margin” as operating margin before restructuring costs and executive severance costs, defines “adjusted earnings ” and “adjusted earnings per share” as net earnings attributable to VPG stockholders before restructuring costs, executive severance costs, and associated tax effects, and defines “free cash flow” as the amount of cash generated from operations ($8.9 million for the second fiscal quarter of 2019), in excess of their capital expenditures ($(2.4) million for the second fiscal quarter of 2019) net of proceeds, if any, from the sale of assets ($0.2 million for the second fiscal quarter of 2019).

Source: Vishay Precision Group Inc., 3 Great Valley Pkwy, Malvern PA 19355

Thanks for visiting! MyChesCo brings reliable information and resources to Chester County, Pennsylvania. Please consider supporting us in our efforts. Your generous donation will help us continue this work and keep it free of charge. Show your support today by clicking here and becoming a patron.

Buy Us a Cup of Coffee