Bel Fuse Inc. announced financial results for the second quarter and first half of 2007. For the three months ended June 30, 2007, net sales were $61,612,000 compared to record net sales of $66,474,000 for the second quarter of 2006. Sales declined due to the company’s refusal to accept what are described as very low margins for certain magnetic and interconnect group products. Bel experienced higher sales in its modules group, inlcuding dc-dc converters.
Net earnings for the second quarter of 2007 were $6,158,000, compared to net earnings of $8,763,000 for the same quarter last year. Net earnings per diluted Class A common share were $0.49 compared to $0.71 for the year–earlier quarter, and net earnings per diluted Class B common share were $0.52 compared to $0.75 a year ago.
Results for the second quarter of 2007 included a pre–tax gain of $880,000 on the sale of real estate in the Far East and $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.
Results for the second quarter of 2006 included a pre–tax gain of $5,240,000 on the sale of the company’s shares in Artesyn Technologies, Inc., offset by a $1,000,000 accrual for performance bonuses awarded by the Board in connection with the Artesyn investment, and a casualty loss of $133,000 for costs associated with a fire at manufacturing facility in the Dominican Republic.
