MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG) this week announced its financial results for the third fiscal quarter of 2023, which ended September 30, 2023. The results showed a decrease in revenues and earnings per share compared to the same period last year, highlighting the challenges faced by the company in an uncertain economic climate.
The company reported revenues of $85.9 million for the quarter, a decrease of 4.7% from the previous year. The gross profit margin was slightly up at 41.9%, compared to 41.4% reported a year ago, while the adjusted gross profit margin rose slightly to 42.1% from 41.7% in the same period last year.
However, operating margin for the quarter was 9.6%, down from 13.2% reported a year ago. Adjusted operating margin also saw a decrease, standing at 11.2% compared to 13.7% a year ago. Diluted net earnings per share were $0.46, down from $0.74 reported a year ago, while adjusted diluted net earnings per share stood at $0.47, down from $0.69 a year ago.
Ziv Shoshani, Chief Executive Officer of VPG, commented on the results, stating that the revenue for the third quarter met their guidance expectations, despite lower sales in the Sensors and Weighing Solutions segments. He attributed the decrease in orders totaling $76.9 million to slowing economic trends and increased caution among customers, particularly in the steel and industrial markets.
Despite these challenges, Mr. Shoshani emphasized the company’s solid financial position. “We achieved an adjusted EBITDA margin of 16.0%, and we generated solid levels of cash from operations and free cash flow,” he said. During the third quarter, VPG repaid $7.0 million of debt, reducing future interest expense, and repurchased $0.8 million of stock under a plan authorized by the board of directors.
Mr. Shoshani also outlined the company’s strategic focus in light of its diversified end-markets. “With our solid balance sheet, we continue to focus on our strategy to capture a broadening set of opportunities for our leading precision measurement and sensing technologies,” he said.
Looking ahead, Mr. Shoshani acknowledged current market uncertainties but provided a revenue forecast for the fourth fiscal quarter of 2023. “Given current market conditions and uncertainties, we expect net revenues to be in the range of $77 million to $87 million for the fourth fiscal quarter of 2023, at constant third fiscal quarter 2023 foreign currency exchange rates,” he concluded.
The financial results highlight the company’s resilience and adaptability in navigating economic uncertainties while maintaining its commitment to leveraging its precision measurement and sensing technologies. As investors keep a keen eye on economic trends affecting the industry, Vishay Precision Group’s strategic focus and solid financial position provide a degree of optimism amidst the challenges.
Additional details can be found on Vishay Precision Group’s website here.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.