Bel Fuse Inc. announced financial results for the fourth quarter and 2007, highlighted by higher revenue and net earnings versus the comparable periods of 2006.
Net sales for the three months ended December 31, 2007 increased 14% to $69,339,000 compared to net sales of $60,573,000 for the fourth quarter of 2006, and increased sequentially compared to $66,379,000 for the third quarter of 2007. This growth was driven primarily by strong sales in Bel’s Modules product group.
Net earnings for the fourth quarter of 2007 were $10,255,000, which included a $3,388,000 (net of tax) gain on the previously announced sale of Bel’s manufacturing facility and related properties in Macau. This compares to net earnings of $4,697,000 for the fourth quarter of 2006, and net earnings of $5,914,000 for the third quarter of 2007.
Net earnings per diluted Class A common share were $0.83 for this year’s fourth quarter and excluding the gain on the sale would have approximated $0.55 per share. Diluted Class A common share earnings were $0.38 in the same period last year. Net earnings per diluted Class B common share were $0.88 for this year’s fourth quarter and excluding the gain on the sale would have approximated $0.59 per share. Diluted Class B common share earnings were $0.40 in the same quarter last year.
Daniel Bernstein, Bel’s President, commented, "This quarter Bel had the second highest quarterly revenue in its history, and demand for our products remains firm. We are seeing PRC labor costs rising, and as previously announced we are taking a number of steps to control our costs. This program will last for twelve months and includes consolidation of our manufacturing operations into our larger, more efficient facilities. In connection with this program was the gain on sale this quarter of our facility in Macau, offset by operating expenses of approximately $500,000 associated with the closure of another manufacturing plant in the PRC. We also continue to evaluate acquisition opportunities with the potential to increase shareholder value."
For the twelve months ended December 31, 2007, net sales increased 2% to $259,137,000 compared to $254,933,000 for 2006. Net earnings for 2007 were $26,336,000. This compares to net earnings for 2006 of $25,203,000. For the twelve months ended December 31, 2007, net earnings per diluted Class A common share were $2.11 compared to $2.03 for 2006, and net earnings per diluted Class B common share were $2.24 compared to $2.15 for the prior year.
