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Dec 31, 2020
Bel Fuse Q4 2020 Earnings Report
Bel Fuse reported improved profitability compared to Q4 2019, with a stronger product mix leading to margin benefits.
Key Takeaways
Bel Fuse Inc. reported Q4 2020 net sales of $116.1 million, a 0.9% increase from Q4 2019. The gross profit margin improved to 25.3% from 21.1% in Q4 2019. Full year net sales were $465.8 million, down 5.4% from 2019, while the gross profit margin increased to 25.7% from 22.3% in 2019.
Net sales increased by 0.9% compared to Q4 2019, reaching $116.1 million.
Gross profit margin improved to 25.3%, up from 21.1% in Q4 2019.
Military sales grew by 60% compared to Q4 2019.
The company sold its Switzerland facility during the quarter, resulting in a gain of $1.9 million.
Forward Guidance
Visibility continues to be limited as a result of COVID and long lead times for semiconductors and certain components and these factors may affect our organic growth for 2021. We believe, however, that the incremental contribution from the two new acquisitions coupled with continued actions under our global cost savings initiative will bode well for further profitability in the coming year
Positive Outlook
- The acquisition of rms Connectors enabled us to increase our market share within the commercial aerospace end market
- rms to be accretive to Bel's EBITDA by June 2021 as operations transition to a nearby Bel facility.
- The acquisition of EOS Power will broaden Bel's power product portfolio with industrial and medical products.
- EOS Power acquisition will extend our manufacturing footprint outside of China with a turnkey operation and will provide access to the fast-growing India market for all of Bel's products.
- Global cost savings initiative will bode well for further profitability in the coming year
Challenges Ahead
- Visibility continues to be limited as a result of COVID
- Long lead times for semiconductors and certain components
Historical Earnings Impact
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