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Vishay Precision Group Reports Fourth Quarter and Full Year 2012 Results
By: Business Wire
Feb. 12, 2013 08:09 AM
Vishay Precision Group, Inc. (NYSE: VPG), a leading producer of precision sensors and systems, based on its resistive foil technology, today announced results for the fourth quarter and full year ended December 31, 2012.
Net revenues for the fourth quarter of 2012 were $51.0 million, representing a 9.6% decrease from $56.4 million of net revenues for the comparable prior year period. Net revenues for the full year ended December 31, 2012 were $217.6 million, representing an 8.6% decrease from the $238.1 million of net revenues for the comparable prior year period. Comparing the results of the fourth quarter of 2012 to the third quarter of 2012, net revenues for the fourth quarter of 2012 decreased by $4.4 million, or 8.0%, from $55.4 million.
Net earnings attributable to VPG stockholders for the fourth quarter were $5.2 million, or $0.37 per diluted share, compared to net earnings for the fourth quarter of 2011 of $1.2 million, or $0.09 per diluted share. Net earnings attributable to VPG stockholders for the full year 2012 were $11.7 million, or $0.84 per diluted share compared to $10.8 million, or $0.78 per diluted share for the prior year period.
Net earnings attributable to VPG stockholders for the fourth quarter and full year 2012 include various items affecting comparability, as listed on the attached reconciliation table. Adjusted net earnings for the fourth quarter of 2012 were $2.0 million or $0.15 per diluted share, versus net earnings of $1.2 million, or $0.09 per diluted share for the comparable prior year period. Adjusted net earnings for the full year 2012 were $8.6 million or $0.62 per diluted share, versus net earnings of $10.8 million, or $0.78 per diluted share for the comparable prior full year. Adjusted net earnings for the fourth quarter of 2012 increased by $0.1 million to $2.0 million compared to the third quarter of 2012.
Ziv Shoshani, chief executive officer of VPG, said, “Cash flow was impressive in the fourth quarter and for the year. Revenues have decreased on a year-over-year basis, primarily in Europe, and to a lesser extent in Asia -- a reflection of the soft global industrial segment environment. We continue to execute our strategy of enhancing organic growth and operational efficiency, investing in our technology and pursuing acquisitions with the goal of increasing shareholder value.”
Mr. Shoshani added, “In addition to our financial results, we completed the asset acquisition of George Kelk Corporation in January 2013. The business is a natural fit for us and is a key component to our strategy. This acquisition, with a purchase price of approximately $50 million Canadian, expands our geographic and end-market leadership through a combination of intellectual property, engineering talent, and new products in the Weighing Control Systems segment of our existing force measurement products. The acquisition is expected to be accretive in 2013.”
The Foil Technology Products segment revenues decreased from $26.3 million in the third quarter of 2012 to $24.5 million in the fourth quarter of 2012. The gross margin for the Foil Technology Products segment increased to 40.6% for the fourth quarter of 2012 from 38.9% in the third quarter of 2012, which is mainly due to improved manufacturing efficiencies, despite the reduction in revenues.
The Force Sensors segment revenues decreased from $16.5 million in the third quarter of 2012 to $15.5 million for the fourth quarter of 2012. The gross margin for the Force Sensors segment was 20.2% in the third quarter of 2012 versus 22.5% in the fourth quarter of 2012. The increase in gross margin is mainly due to improved manufacturing efficiencies in our offshore facility.
The Weighing and Control Systems segment revenues decreased from $12.6 million in the third quarter of 2012 to $11.0 million for the fourth quarter of 2012. The gross margin for the Weighing and Control Systems segment decreased from 40.9% for the third quarter of 2012 to 37.6% in the fourth quarter of 2012 mainly due to lower volume in Europe.
Mr. Shoshani concluded, “The KELK acquisition expands our presence throughout Asia Pacific, and other emerging markets and diversifies our customer and technology base. We believe the actions we continue to take will position the company to profitably grow in a challenging global environment. For the first quarter of 2013, we expect overall revenues in the range of $54 million to $59 million.”
Conference Call and Webcast
A conference call will be held on February 12, 2013 at 10:00 a.m. EST (9:00 a.m. CST). To access the conference call, interested parties may call 888-317-6016 or internationally 412-317-6016, or log on to the investor relations page of the VPG website at http://ir.vishaypg.com in listen-only mode.
A replay will be available approximately one hour after the completion of the call by calling toll-free 877-344-7529 or internationally 412-317-0088 and using the conference number: 10023430. The replay will also be available on the investor relations page of the VPG website at http://ir.vishaypg.com. It will be available via phone and website for a limited time.
About Vishay Precision Group
Vishay Precision Group (VPG) is an internationally recognized designer, manufacturer and marketer of: components based on its resistive foil technology; sensors; and sensor-based systems specializing in the growing markets of stress, force, weight, pressure, and current measurements. VPG is a market leader of Foil Technology Products, providing ongoing technology innovations in precision foil resistors and foil strain gages, which are the foundation of the company's Force Sensors Products and its Weighing and Control Systems. The product portfolio consists of a variety of well-established brand names recognized for precision and quality in the marketplace. To learn more, visit VPG at www.vishaypg.com.
From time to time, information provided by us, including but not limited to statements in this report, or other statements made by or on our behalf, may contain "forward-looking" information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks, uncertainties, and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from those anticipated.
Such statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, expected, estimated, or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions, changes in the current pace of economic recovery, including if such recovery stalls or does not continue as expected; difficulties or delays in completing acquisitions and integrating acquired companies, including KELK, the inability to realize anticipated synergies and expansion possibilities, difficulties in new product development; changes in competition and technology in the markets that we serve and the mix of our products required to address these changes; changes in foreign currency exchange rates; difficulties in implementing our cost reduction strategies such as underutilization of production facilities, labor unrest or legal challenges to our lay-off or termination plans, operation of redundant facilities due to difficulties in transferring production to lower-labor-cost countries; and other factors affecting our operations, markets, products, services, and prices that are set forth in our annual report on Form 10-K for the year ended December 31, 2011. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
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