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Sep 30, 2022
Bel Fuse Q3 2022 Earnings Report
Reported record third quarter sales and adjusted EBITDA, driven by improvements in commercial air, strong e-Mobility sales, and proper pricing strategies.
Key Takeaways
Bel Fuse Inc. announced preliminary financial results for the third quarter of 2022, featuring net sales of $177.7 million, a 20.9% increase from Q3-21, and a gross profit margin of 29.0%, up from 24.5% in Q3-21.
Net sales increased by 20.9% compared to Q3-21, reaching $177.7 million.
Gross profit margin improved to 29.0% from 24.5% in Q3-21.
Third quarter sales and adjusted EBITDA reached record levels in Bel’s 70-year history.
Facility consolidation initiatives are underway to improve operational efficiencies, with expected annualized cost savings of approximately $5 million.
Forward Guidance
Bel Fuse has launched a series of facility consolidation initiatives to better manage the business and strengthen operations. These initiatives began in Q3-22 and are expected to be largely complete by Q3-23.
Positive Outlook
- Improve operational efficiencies
- Consolidation of nine of Magnetic manufacturing buildings in China into a new centralized single site in Southwestern China
- Consolidation among existing sites is taking place in both the U.S. and Europe
- Expected to reduce overall global occupancy by approximately 170,000 square feet by the end of 2023
- Annualized cost savings of approximately $5 million
Challenges Ahead
- One-time costs, largely severance, of approximately $10 million
- Incremental capex spend of approximately $4 million
- The current movement in backlog is a function of our customers' order management practices and not an indication of reduced demand
Historical Earnings Impact
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Avg. Return Before/After Earnings
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