Business
Bel Reports Second Quarter 2024 Results
Continued Gross Margin Performance with Sales Above Mid-Point of Expected RangeProvides Q3-24 Sales and Gross Margin Guidance WEST ORANGE, N.J., July 24, 2024
About this update from Bel Fuse Inc.
[{"type":"text","content":"Continued Gross Margin Performance with Sales Above Mid-Point of Expected RangeProvides Q3-24 Sales and Gross Margin Guidance WEST ORANGE, N.J., July 24, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the second quarter of 2024. Second Quarter 2024 Highlights Net sales of $133.2 million compared to $168.8 million in Q2-23Gross profit margin of 40.1%, up from 32.9% in Q2-23Net earnings of $18.8 million versus $27.8 million in Q2-23Adjusted EBITDA of $27.4 million (20.6% of sales) as compared to $28.6 million (17.0% of sales) in Q2-23Repurchased 126,552 shares of Bel stock at an aggregate cost of $7.9 million in Q2-24 “We are pleased with our second quarter results, with sales achieving the higher end of our guidance coupled with continued margin improvement,” said Daniel Bernstein, President and CEO. “The factors contributing to the second quarter were as expected, with solid results within the commercial air, defense and rail end markets, which partially offset the lower volume of sales into our networking customers and distribution partners during the quarter as they continue to work through inventory on hand,” concluded Mr. Bernstein. Farouq Tuweiq, CFO, added “Consistent with our views expressed last quarter, we expect more positive momentum closer to the end of 2024. Our Magnetic Solutions segment, while down from Q2-23, showed modest recovery sequentially from the first quarter of this year which is a positive sign. On the distribution front, the consensus takeaway from an industry conference in May was encouraging, and indicated that the worst is behind us. “Looking to the third quarter, in addition to the typical seasonal slowdown in Europe, we anticipate some downward pressure on our Power sales given recently-enacted trade restrictions on one of our former suppliers previously used for our Power segment, which had historically supported approximately $3 to $4 million per quarter of Bel’s sales into the consumer end market. Given these factors, and continued softness in networking and distribution which we believe will continue until later in the year, we are expecting Q3-24 GAAP net sales in the range of $118 to $126 million with gross margins in the range of 34-36% based on information available as of today. The team remains focused on profitable top l...