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Mar 31, 2021
Bel Fuse Q1 2021 Earnings Report
Bel Fuse reported preliminary financial results with increased net sales and a record backlog.
Key Takeaways
Bel Fuse Inc. reported a 6.4% increase in net sales to $110.6 million compared to the previous year's first quarter. The company's backlog reached a record level of $234 million by the end of the quarter. The sale of a property in Hong Kong contributed a $6.2 million gain, leading to improved net earnings and EPS versus last year’s first quarter.
Net sales increased by 6.4% to $110.6 million compared to Q1 2020.
Gross profit was $24.3 million, representing 21.9% of net sales.
Record backlog level of $234 million was achieved by the end of the quarter.
Connectivity Solutions business saw a partial recovery in commercial aerospace sales.
Revenue by Segment
Forward Guidance
Bel anticipates stronger sales in the second and third quarters, but raw material shortages and long lead times on some semiconductors and certain other raw materials may impact the ultimate timing of those shipments. Positive contributions to net earnings are expected from the recent acquisitions of rms and EOS, coupled with cost savings from the 2020 restructuring efforts.
Positive Outlook
- Backlog of orders continues to grow, and reached $264 million by the end of April.
- Scheduled shipments are indicative of stronger sales in the second and third quarters.
- Positive contributions to net earnings are expected from the recent acquisitions of rms and EOS.
- Cost savings from the 2020 restructuring efforts are expected to contribute to net earnings.
- The company will continue to pursue opportunities to optimize their cost structure and mitigate the impacts of higher input costs throughout the year.
Challenges Ahead
- Raw material shortages may impact the timing of shipments.
- Long lead times on some semiconductors and certain other raw materials may impact the timing of shipments.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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