Business
Bel Reports Third Quarter 2022 Results
Seventh Consecutive Quarter of Year-over-Year Sales Growth JERSEY CITY, N.J., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today
About this update from Bel Fuse Inc.
[{"type":"text","content":"Seventh Consecutive Quarter of Year-over-Year Sales Growth\nJERSEY CITY, N.J., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the third quarter of 2022. Third Quarter 2022 Highlights Net sales of $177.7 million, up 20.9% from Q3-21Gross profit margin of 29.0%, up from 24.5% in Q3-21Net earnings of $16.5 million versus $5.7 million in Q3-21Adjusted EBITDA of $27.3 million, representing a 115% increase compared to Q3-21Quarterly bookings of $180 million led to quarter-end backlog of orders of $583 million, an increase in backlog of 25% from December 31, 2021 \"Third quarter sales and adjusted EBITDA reached record levels in Bel’s 70-year history, with continued improvements in commercial air, strong e-Mobility sales and proper pricing strategies being the largest contributors,\" said Daniel Bernstein, President and CEO. \"The global team’s collective focus on profitability led to meaningful year-over-year margin expansion for the fourth consecutive quarter. \"As expected, growth in our backlog of outstanding orders has started to level off. Our view is that the current movement in backlog is a function of our customers' order management practices and not an indication of reduced demand. With built-in end market diversity across our three product groups, we believe Bel is well-positioned to weather any market softness. Overall, the management team remains optimistic as fundamentally, long-term sectoral drivers remain robust,\" concluded Mr. Bernstein. Farouq Tuweiq, CFO, added, \"Based on our continuous review of Bel’s operational footprint, we recently launched a series of facility consolidation initiatives to better manage our business and strengthen our operations. These plans include the consolidation of nine of our Magnetic manufacturing buildings in China into a new centralized single site in Southwestern China, allowing us to improve operational efficiencies within this group. In our Connectivity Solutions group, consolidation among existing sites is taking place in both the U.S. and Europe. In connection with these initiatives, in the aggregate, we estimate that one-time costs, largely severance, of approximately $10 million and incremental capex spend of approximately $4 million, will result in annualized cost savings of approximately $5 million. ...