MALVERN, PA — Vishay Precision Group, Inc. (NYSE: VPG) has released its financial outcomes for the third quarter of fiscal 2024, signaling a period of mixed performance across its business segments. The company reported revenues of $75.7 million, an 11.8% decline compared to the same period last year. The gross profit margin also saw a dip to 40.0% from 41.9%, reflecting ongoing challenges in some market areas.
CEO Ziv Shoshani noted the mixed performance, stating, “Total revenue in the third quarter was fairly stable sequentially, as trends across our markets remained mixed. Some of our cyclical markets such as steel and consumer were soft, while orders in test and measurement and avionics, military & space were higher.” He emphasized their focus on long-term growth strategies and potential acquisitions to strengthen the platform, citing the recent acquisition of Nokra.
The company’s net loss for the quarter was $1.4 million, translating to a loss of $0.10 per diluted share, a significant drop from the $6.3 million profit recorded in the previous year. This downturn included a $2.9 million loss from unrealized foreign currency effects.
Segment-wise, the Sensors division faced a 13.3% revenue decline, primarily due to reduced sales in precision resistors and advanced sensors. The Weighing Solutions segment also saw a 13.1% drop in revenue, with decreased sales in transportation and industrial markets. However, the Measurement Systems segment showed resilience with a 6.2% increase in revenue sequentially, driven by higher sales in the test and measurement markets.
Despite these challenges, the adjusted EBITDA stood at $8.1 million, with an adjusted EBITDA margin of 10.7%, indicating some stability in the company’s core operations.
Looking ahead, Shoshani remains cautiously optimistic, projecting net revenues for the fourth quarter to range between $70 million and $78 million. He highlighted the company’s strategic focus on enhancing operational efficiency, particularly within the Sensors and Weighing Solutions segments, to drive future profitability and cash flow.
VPG’s strategic outlook remains centered on organic growth and leveraging its strong balance sheet to explore acquisition opportunities, aiming to streamline operations and enhance its competitive edge in recovering markets.
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