Bel Fuse Inc. announced financial results for the second quarter of 2008. Paced by higher sales in Bel’s Modules and Magnetics product groups, net sales for the three months ended June 30, 2008 reached a second quarter record $72,454,000, a sequential increase of 19% when compared to net sales of $60,869,000 for the first quarter of 2008 and 18% higher than net sales of $61,612,000 reported for the second quarter of 2007.
Net earnings for this year’s second quarter of $1,811,000 include a non-cash pre-tax charge of $2,353,000 for the other-than-temporary impairment of Bel’s holdings in Toko Inc.. Excluding this charge, Bel’s second quarter net earnings would have sequentially increased 51% for the quarter, compared to net earnings of $2,167,000 for the first quarter of 2008.
Net earnings for the second quarter of 2007 were $6,158,000, which included a pre-tax gain of $880,000 on the sale of real estate in the Far East and a pre-tax gain of $2,508,000 from the partial disposition of Bel’s holdings in Toko Inc., offset by a $500,000 accrual for performance bonuses awarded by the Board in connection with the Toko investment, a $1,200,000 warranty claim and increased legal expenses of approximately $450,000, primarily associated with defending patent claims.
Net earnings per diluted Class A common share were $0.14 for this year’s second quarter. For the second quarter of 2007, net earnings per diluted Class A common share were $0.49. For the first quarter of 2008, net earnings per diluted Class A common share were $0.17. Net earnings per diluted Class B common share were $0.16 for this year’s second quarter. Diluted Class B common share earnings were $0.52 for last year’s second quarter, and $0.19 per diluted Class B common share for this year’s first quarter.
For the six months ended June 30, 2008, net sales increased 8% to $133,323,000. This compares to net sales of $123,419,000 for the first six months of 2007. Net earnings decreased to $3,978,000 compared to net earnings of $10,167,000 for last year’s first half.
For the first six months of 2008, net earnings were $0.31 and $0.34 per diluted Class A and Class B common share, respectively. For the first six months of 2007, net earnings were $0.81 and $0.86 per diluted Class A and Class B common share, respectively.
