Financial Performance - Revenues for the first nine months of 2024 decreased by $114.9 million, or 23.0%, compared to the same period in 2023, primarily due to lower demand in the Power Solutions and Protection and Magnetic Solutions segments [111]. - Power Solutions and Protection revenue decreased by $26.2 million (35.0%) and $77.7 million (31.7%) for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 [117]. - Connectivity Solutions revenue increased by $3.9 million (7.6%) and $7.8 million (4.9%) during the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 [119]. - Magnetic Solutions revenue declined by $12.8 million (40.0%) and $45.0 million (47.6%) for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 [120]. - Gross margin for Power Solutions and Protection decreased to 39.4% in Q3 2024 from 41.7% in Q3 2023, attributed to lower sales and unfavorable product mix [118]. Order Backlog - The backlog of orders as of September 30, 2024, was $287.4 million, a decrease of $85.7 million, or 23%, from December 31, 2023, with a 33% decrease in the Power Solutions and Protection backlog [112]. Costs and Expenses - Labor costs represented 7.8% of revenue during the first nine months of 2024, up from 6.5% in the same period of 2023, largely due to a 20% increase in the statutory minimum wage in Mexico [114]. - The company incurred $1.1 million and $1.8 million in restructuring costs during the third quarter and nine months ended September 30, 2024, respectively, related to initiatives in the Connectivity and Power segments [114]. - SG&A expenses increased to $26.7 million in Q3 2024 from $23.7 million in Q3 2023, primarily due to a $4.3 million increase in professional fees related to the acquisition of Enercon [125]. - R&D expenses remained steady at $5.4 million for Q3 2024, compared to $5.3 million in Q3 2023 [124]. Tax and Foreign Exchange - The effective tax rate will fluctuate based on geographic regions, with Asia having the lowest tax rates among the regions where the company operates [115]. - The effective tax rate increased to 27.8% for Q3 2024 from 18.2% in Q3 2023, primarily due to increased tax expense related to prior period accruals [130]. - Foreign exchange fluctuations resulted in a transactional foreign exchange loss of $1.3 million during the nine months ended September 30, 2024, with favorable impacts from the depreciation of the Chinese Renminbi against the U.S. dollar [115]. Cash and Liquidity - Cash and cash equivalents increased by $44.9 million during the nine months ended September 30, 2024, primarily due to net cash provided by operating activities of $65.7 million [135]. - The company expects to utilize its liquidity of $134.3 million for operating expenses, investments, and potential acquisitions in future periods [133]. - As of September 30, 2024, cash and cash equivalents represented approximately 41.0% of total assets, while held to maturity U.S. Treasury securities and accounts receivable accounted for 36.9% [137]. - The current ratio improved to 4.0 to 1 at September 30, 2024, compared to 3.4 to 1 at December 31, 2023 [137]. - $50.5 million (38%) of cash and cash equivalents was held by foreign subsidiaries as of September 30, 2024, with $11 million repatriated during the nine months ended September 30, 2024 [137]. Acquisition and Financing - The company entered into a definitive Share Purchase Agreement to acquire an 80% stake in Enercon Technologies for $320 million, with an enterprise value of $400 million, expected to close in Q4 2024 [110]. - The company expects to fund the acquisition of an 80% stake in Enercon with approximately $80 million in cash and $240 million in incremental borrowings, with potential earnout payments of $10 million for 2025-2026 [139]. - The unused credit available under the credit facility was $115.0 million as of September 30, 2024, which can be borrowed without violating the Leverage Ratio covenant [144]. - The company amended its Existing Credit Agreement in January 2023 to transition the reference rate from LIBOR to SOFR [140]. - The company entered into a Commitment Letter to increase the Maximum Revolving Amount under the Existing Credit Agreement by $150 million to a total of $325 million [141]. - The company remains in compliance with its debt covenants, including the Fixed Charge Coverage Ratio, as of September 30, 2024 [144]. - There have been no material changes in future cash requirements during the nine months ended September 30, 2024, aside from those related to the Enercon acquisition [138]. Market Risks - The company anticipates continued downward pressure on Power sales due to trade restrictions affecting a former supplier, which historically contributed $3 to $4 million per quarter in sales [114]. - The company uses foreign currency forward contracts and interest rate swap agreements to manage market risks associated with foreign currency exchange rates and interest rates [148].

Financial Performance - Net sales for Q3 2024 were $123.6 million, a decrease from $158.7 million in Q3 2023[1] - Net earnings fell to $8.1 million compared to $19.4 million in Q3 2023[1] - Adjusted EBITDA was $20.6 million, representing 16.7% of sales, down from $29.9 million or 18.8% of sales in Q3 2023[1] - Net sales for the three months ended September 30, 2024, were $123,638,000, a decrease of 22.1% compared to $158,682,000 for the same period in 2023[11] - Net earnings for the three months ended September 30, 2024, were $8,080,000, a decline of 58.5% from $19,448,000 in the same period of 2023[11] - Total net sales for Q3 2024 were $123.6 million, a decrease of 22.1% compared to $158.7 million in Q3 2023[19] - GAAP net earnings for Q3 2024 were $8.1 million, a decrease of 58.4% from $19.4 million in Q3 2023[19] Profitability Metrics - Gross profit margin increased to 36.1% from 35.0% in Q3 2023[1] - Adjusted EBITDA for Q3 2024 was $20.6 million, representing 16.7% of net sales, compared to $29.9 million or 18.8% in Q3 2023[19] - Power Solutions and Protection segment sales dropped by 35.0% year-over-year to $48.7 million, with a gross margin of 39.4%, down from 41.7%[19] - Connectivity Solutions segment reported a 7.6% increase in sales to $55.7 million, with a gross margin improvement to 36.6%[19] - Magnetic Solutions segment experienced a 40.0% decline in sales to $19.2 million, with a gross margin of 27.3%[19] Expenses and Costs - Selling, general and administrative expenses increased to $26,700,000, representing 21.6% of net sales, up from 14.9% in the prior year[11] - Research and development costs rose to $5,443,000 for the three months ended September 30, 2024, compared to $5,292,000 in the same period last year[11] - The company incurred restructuring charges of $1.1 million in Q3 2024, compared to $2.1 million in Q3 2023[21] Guidance and Future Outlook - Q4 2024 net sales guidance is projected between $117 million and $125 million, with gross margins expected to be approximately 34% to 36%[3] - The company is optimistic about sequential improvement in market conditions, which is expected to positively impact 2025[3] - The company plans to continue focusing on market expansion and new product development to drive future growth[19] Assets and Cash Flow - Total assets increased to $584,417,000 as of September 30, 2024, compared to $571,631,000 at the end of 2023[14] - Cash and cash equivalents rose to $134,266,000 as of September 30, 2024, up from $89,371,000 at the end of 2023[14] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $65,720,000, compared to $81,425,000 in the same period of 2023[16] Tax and Earnings Per Share - The effective tax rate increased to 27.8% for the three months ended September 30, 2024, compared to 18.2% in the same period of 2023[11] - Earnings per share for Class A common shares decreased to $0.61 for the three months ended September 30, 2024, down from $1.46 in the same period last year[12] Market Trends and Developments - Positive trends in bookings were observed in September and October across all product segments, particularly in networking and industrial markets[3] - The acquisition of Enercon is expected to introduce new customers and markets to the Power segment upon closing[2] - Anticipated annual cost savings of approximately $1.5 million from the consolidation of fuse manufacturing in China[2] - Two senior associates were added to the corporate team to enhance sales and contracts management[2]

Core Insights - Bel Fuse Inc. reported preliminary financial results for Q3 2024, with net sales of $123.6 million, a decrease from $158.7 million in Q3 2023, but gross profit margin improved to 36.1% from 35.0% year-over-year [2][3][4] - The company anticipates Q4 2024 net sales between $117 million and $125 million, with gross margins expected to be approximately 34% to 36% [4][6] Financial Performance - Q3 2024 net earnings were $8.1 million, down from $19.4 million in Q3 2023, with adjusted EBITDA at $20.6 million (16.7% of sales), compared to $29.9 million (18.8% of sales) in the prior year [2][3][4] - The company repurchased 26,647 shares at a cost of $1.9 million during Q3 2024 [2] Operational Developments - Bel Fuse has signed a definitive purchase agreement for Enercon, expected to close in Q4 2024, which will enhance its Power segment by introducing new customers and markets [3][4] - The company is consolidating its fuse manufacturing operations in China, projected to save approximately $1.5 million annually once completed [3] Market Trends - Positive trends in bookings were observed in September and October across all product segments, particularly in networking and industrial markets [4] - The company expressed optimism about sequential improvements in market conditions, which are expected to positively impact 2025 [4] Product Segment Performance - In Q3 2024, Power Solutions and Protection sales decreased by 35% to $48.7 million, while Connectivity Solutions saw a 7.6% increase to $55.7 million, and Magnetic Solutions sales dropped by 40% to $19.2 million [2][15] - Year-to-date sales for 2024 show a 31.7% decline in Power Solutions and Protection, while Connectivity Solutions increased by 4.9% [15]

Acquisition Details - Bel Fuse Inc. has entered into a definitive agreement to acquire an 80% stake in Enercon Technologies for $320 million, with an enterprise value of $400 million[1]. - The transaction is expected to be completed by the end of 2024, subject to customary closing conditions[2]. - Bel plans to finance the acquisition through a combination of cash on hand and an expansion of its existing credit facility[4]. Financial Impact - The acquisition is expected to increase Bel's exposure to the aerospace and defense market from 17.5% to 31% of total revenue[2]. - The acquisition is anticipated to be accretive to Bel's GAAP EPS within one year post-close and to non-GAAP EPS on Day 1[2]. - Bel expects net leverage to be under 2.0x within one quarter from the close of the transaction[2]. - Approximately 30% of Bel's Power segment revenue and 37% of consolidated revenue will support the aerospace and defense markets post-acquisition[3]. Enercon Financial Performance - Enercon reported a gross margin of 46.0% and an Adjusted EBITDA margin of 32.5% for the last twelve months ending Q2 2024, surpassing Bel's historical margins[2]. - Enercon's last twelve months sales for Q2 2024 were $111 million, with a gross profit margin of 46%[5]. - GAAP net sales for the trailing 12 months ended June 30, 2024, were $559.987 million, with a forecast of $120 million for the full year 2024 Enercon only[16]. - GAAP net earnings for the trailing 12 months were $66.164 million, with a forecast of $30.927 million for the full year 2024 Enercon only[16]. - EBITDA for the trailing 12 months was $96.176 million, representing 17.2% of net sales, with an adjusted EBITDA of $105.750 million or 18.9% of net sales[16]. - The adjusted EBITDA for the forecasted full year 2024 Enercon is projected to be $38.489 million, or 32.1% of net sales[16]. Other Financial Considerations - The interest expense for the trailing 12 months was $1.809 million, while the provision for income taxes was $14.339 million[16]. - Restructuring charges amounted to $6.602 million, while other unusual items included a loss on liquidation of a foreign subsidiary of $2.724 million[16]. - The historical results for Enercon include interest expense related to debt held under Fortissimo ownership during the trailing twelve months[16]. - The forecast for full year 2024 assumes no debt held or interest expense incurred at the Enercon level[16]. - Historical results do not account for adjustments related to purchase accounting that will be made upon completion of the transaction[16]. Strategic Benefits - The acquisition will enhance Bel's product portfolio and diversify its customer base in the aerospace and defense sectors[1]. - The company emphasizes the use of non-GAAP financial measures to provide insights into financial trends and operational results[16].

WEST ORANGE, N.J., Sept. 18, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc. ("Bel," or, "the Company") (Nasdaq:BELFA and Nasdaq:BELFB), today announced that it has entered into a definitive agreement to acquire a majority stake in Enercon Technologies, Ltd. ("Enercon") from Fortissimo Capital based on an enterprise value of $400 million. Bel will acquire an 80% stake upfront for $320 million in cash (subject to customary adjustments), plus up to $10 million of potential earnout payments for the 2025-2026 period, wi ...

| --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------------------------------------|-------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | The Bel Fuse Investment Thesis About This Article █ | BELFB | | | | | | | | | Analyst's rating at publication | BUY | | | | | | | | | | $47.29 | | | | | | | | | | 33.90% | | | | | | | | | | 34.54% | | | | | | | | | | 26.67% | ...

aquaArts studio/E+ via Getty Images Introduction Bel Fuse Inc (NASDAQ:BELFB) recently reported Q2 earnings, and since I haven't covered them in almost a year, I thought it would be a good time to check on how the company performed since then. Since my first article, on the company, when I gave it a strong buy, BELFB outperformed the S&P500 (SPY) by a decent margin. In that article, I said that the management is very capable and knows the company very well as they managed to improve profitability, while sale ...

WEST ORANGE, N.J., Aug. 01, 2024 (GLOBE NEWSWIRE) -- BEL FUSE INC. (NASDAQ:BELFA) and (NASDAQ:BELFB) today announced that its Board of Directors has declared regular quarterly cash dividends of $0.06 per share on the Company's Class A common shares and $0.07 per share on the Company's Class B common shares. Company Contact: Lynn Hutkin VP of Financial Reporting and Investor Relations ir@belf.com Investor Contact: Steven Hooser or Jean Marie Young Three Part Advisors, LLC (631) 418-4339 Cash dividends for Cl ...

Revenue and Sales Performance - Net sales for Q2 2024 decreased to $133.2 million from $168.8 million in Q2 2023, a decline of 21.1%[25] - Revenue from Power Solutions and Protection products decreased by $28.5 million (32.8%) in Q2 2024 and $51.5 million (30.3%) in H1 2024 compared to the same periods in 2023[42] - Connectivity Solutions revenue increased by $2.979 million (5.4%) in Q2 2024 and $3.868 million (3.6%) in H1 2024 compared to the same periods in 2023[42] - Magnetic Solutions revenue decreased by $10.011 million (37.3%) in Q2 2024 and $32.22 million (51.5%) in H1 2024 compared to the same periods in 2023[42] - Revenue for the six months ended June 30, 2024 decreased by $79.8 million, or 23.4%, compared to the same period in 2023, driven by lower demand in the Power Solutions and Protection and Magnetic Solutions segments[134] - Revenue for the three months ended June 30, 2024 was $133.205 million, with gross profit of $53.396 million and a gross profit percentage of 40.1%[127] - Revenue for the six months ended June 30, 2024 was $261.295 million, with gross profit of $101.474 million and a gross profit percentage of 38.8%[128] - Sales of Connectivity Solutions products grew by $3.0 million (5.4%) and $3.9 million (3.6%) in the three and six months ended June 30, 2024, respectively, compared to 2023[170] - Magnetic Solutions products sales declined by $10 million (37.3%) and $32.2 million (51.5%) in the three and six months ended June 30, 2024, respectively, due to reduced demand from networking customers[171] Profitability and Earnings - Gross profit for Q2 2024 was $53.4 million, down from $55.5 million in Q2 2023, a decrease of 3.8%[25] - Net earnings available to common stockholders for Q2 2024 were $18.8 million, compared to $27.8 million in Q2 2023, a decline of 32.4%[25] - Comprehensive income for Q2 2024 was $17.5 million, compared to $26.3 million in Q2 2023[26] - Net earnings for the six months ended June 30, 2024, were $18.8 million, compared to $27.8 million for the same period in 2023[27][28] - Net earnings for June 2024 were $34.68 million, compared to $42.347 million in June 2023, representing a decrease of 18.1%[32] - Gross margin for Power Solutions and Protection improved to 45.7% in Q2 2024 from 35.7% in Q2 2023[42] - Gross profit for the six months ended June 30, 2024 was $101.474 million, with gross profit percentages of 44.8% for Power Solutions and Protection, 37.6% for Connectivity Solutions, and 21.8% for Magnetic Solutions[128] - The company's gross profit for the three months ended June 30, 2024 was $53.396 million, with gross profit percentages of 45.7% for Power Solutions and Protection, 38.9% for Connectivity Solutions, and 26.4% for Magnetic Solutions[127] - The company's gross profit for the six months ended June 30, 2023 was $109.201 million, with gross profit percentages of 35.7% for Power Solutions and Protection, 35.8% for Connectivity Solutions, and 23.6% for Magnetic Solutions[128] - The company's earnings before income taxes for the six months ended June 30, 2024 were $2.8 million lower compared to the same period in 2023, primarily due to decreased income from the North America and Asia regions[152] Expenses and Costs - Research and development costs for Q2 2024 were $6.0 million, consistent with $6.0 million in Q2 2023[25] - Selling, general, and administrative expenses for Q2 2024 were $24.1 million, down from $25.1 million in Q2 2023[25] - R&D expenses remained flat at $6.0 million for Q2 2024 and $11.2 million for H1 2024 compared to the same periods in 2023[47] - SG&A expenses decreased by $1.0 million (4.0%) in Q2 2024 compared to Q2 2023, primarily due to lower legal and professional fees[48] - SG&A expenses decreased to $49.1 million in the first half of 2024 from $50.4 million in the same period of 2023, driven by a $2.4 million decline in legal and professional fees and a $0.6 million reduction in commissions[49] - Material costs as a percentage of sales decreased in Q2 and H1 2024 compared to 2023 due to stabilized raw material pricing and improved procurement efforts[45] - Labor costs increased to 7.7% of revenue in the first six months of 2024, up from 6.6% in the same period of 2023, driven by higher wages in Mexico and Slovakia[166] - Material costs as a percentage of revenue decreased to 27.8% in the three months ended June 30, 2024, from 41.3% in the same period of 2023[173] - Total cost of sales as a percentage of revenue decreased to 59.9% in the three months ended June 30, 2024, from 67.1% in the same period of 2023[173] - The company incurred $0.5 million in severance costs in Q2 2024 due to headcount reductions in the Magnetics segment[166] - The statutory minimum wage rate in Mexico increased by 20% effective January 1, 2024, resulting in an estimated additional annual labor cost of $1.4 million[166] Cash Flow and Liquidity - Cash and cash equivalents decreased to $85.0 million as of June 30, 2024, from $89.4 million as of December 31, 2023[21] - Net cash provided by operating activities for June 2024 was $38.344 million, down from $40.656 million in June 2023, a decrease of 5.7%[32] - The company's cash and cash equivalents decreased by $4.4 million during the six months ended June 30, 2024, primarily due to net cash provided by operating activities of $38.3 million, offset by purchases of securities and common stock[155] - The company's principal sources of liquidity include $85.0 million of cash and cash equivalents and $58.8 million of held to maturity investments in U.S. Treasury securities as of June 30, 2024[153] - The company repatriated $11 million from outside of the U.S. during the six months ended June 30, 2024[157] - The unused credit available under the company's credit facility at June 30, 2024 was $115.0 million[159] Assets and Liabilities - Total current assets as of June 30, 2024, were $376.0 million, down from $381.5 million as of December 31, 2023[21] - Total liabilities decreased to $211.2 million as of June 30, 2024, from $231.1 million as of December 31, 2023[21] - Total stockholders' equity increased to $356.4 million as of June 30, 2024, from $340.6 million as of December 31, 2023[22] - Retained earnings increased to $340.5 million as of June 30, 2024, up from $307.5 million at December 31, 2023[27] - Additional paid-in capital grew to $46.1 million as of June 30, 2024, compared to $44.3 million at December 31, 2023[27] - Accumulated other comprehensive loss widened to $16.7 million as of June 30, 2024, compared to $12.0 million at December 31, 2023[27] - Inventories decreased to $127.9 million as of June 30, 2024, from $136.5 million as of December 31, 2023[88] - Assets held for sale increased to $2.1 million as of June 30, 2024, from $1.3 million as of December 31, 2023[90] - Accrued expenses decreased to $38.9 million as of June 30, 2024, from $54.7 million as of December 31, 2023[92] - The company's current ratio improved to 4.2 to 1 at June 30, 2024 from 3.4 to 1 at December 31, 2023[157] Investments and Derivatives - The company held $59.206 million in U.S. Treasury securities as of June 30, 2024, with an amortized cost of $58.822 million and gross unrealized gains of $384,000[37] - The company invested €8.0 million (approximately $8.8 million) in innolectric AG, with transaction costs of $1.3 million, and recorded a fair value of $11.0 million for the initial one-third equity investment[63] - Innolectric-related losses amounted to $0.3 million for Q2 2024 and $0.1 million for the first half of 2024, with results recorded on a one-month lag basis[64][65] - The company provided incremental loans of €0.2 million and €0.7 million to innolectric during Q2 and the first half of 2024, respectively, with outstanding loans totaling €2.6 million ($2.8 million) as of June 30, 2024[66] - The fair value of foreign currency forward contracts was ($0.5) million at June 30, 2024, compared to $0.5 million at December 31, 2023[78] - The fair value of interest rate swap agreements remained stable at $4.0 million as of both June 30, 2024 and December 31, 2023[79] - Total derivative assets decreased to $4.0 million as of June 30, 2024, from $4.4 million as of December 31, 2023[80] - The estimated fair value of total debt was $60.0 million as of both June 30, 2024 and December 31, 2023[83] - The company held outstanding foreign currency forward contracts with notional amounts of $18.8 million as of June 30, 2024, compared to $25.8 million as of December 31, 2023[96] - The company executed interest rate swap agreements in November 2021 with two multinational financial institutions, paying fixed rates of 1.3055% and 1.3180% on notional amounts of $30.0 million each, transitioning from LIBOR to SOFR in January 2023 with new rates of 1.334% and 1.348%[98] - The 2021 Swaps are designated as cash flow hedges, with changes in fair value recognized in accumulated other comprehensive loss and reclassified into interest expense when the hedged transaction affects earnings[99] - The company's derivative financial instruments in cash flow hedging relationships resulted in net gains of $254,000 for the three months ended June 30, 2024, and $1.098 million for the six months ended June 30, 2024[101] Taxes and Retirement Plans - The company's liabilities for uncertain tax positions totaled $18.0 million at June 30, 2024, with $2.7 million resolved during the six months ended June 30, 2024[108] - The company recognized $0.2 million of interest and penalties related to uncertain tax positions during the six months ended June 30, 2024[109] - The company's retirement, savings, and deferred compensation plans incurred expenses of $0.3 million for the three months ended June 30, 2024, and $0.9 million for the six months ended June 30, 2024[110] - The company's SERP (Supplemental Executive Retirement Plan) had a net periodic benefit cost of $345,000 for the three months ended June 30, 2024, and $690,000 for the six months ended June 30, 2024[113] - The company's subsidiaries in Asia incurred retirement fund expenses of $0.1 million for the three months ended June 30, 2024, and $0.2 million for the six months ended June 30, 2024[117] - The company's estimated liability for uncertain tax positions related to a tax matter in Italy is approximately $12.0 million, included in the condensed consolidated balance sheets at June 30, 2024 and December 31, 2023[124] - The company's effective tax rate was 17.8% for the three months ended June 30, 2024, compared to (1.8%) for the same period in 2023[151] Other Financial Metrics - Dividends declared for Class A Common Stock were $0.06 per share, totaling $127,000, and for Class B Common Stock were $0.07 per share, totaling $725,000[27] - Foreign currency translation adjustment resulted in a loss of $999,000 for the six months ended June 30, 2024[27] - Stock-based compensation expense increased to $971,000 for the six months ended June 30, 2024, compared to $950,000 for the same period in 2023[27][28] - Treasury stock purchases amounted to $7.9 million for the six months ended June 30, 2024[27] - Unrealized holding losses on interest rate swap cash flow hedge were $291,000 for the six months ended June 30, 2024[27] - The company repurchased 9,791 Class A shares and 116,761 Class B shares during the quarter ended June 30, 2024, with an average price paid per share of $72.07 and $61.55, respectively[142] - Depreciation expense for the six months ended June 30, 2024 was $4.6 million, compared to $4.2 million for the same period in 2023[89] - The company's accounts receivable decreased by $2.8 million due to lower sales volume in the second quarter, with days sales outstanding (DSO) remaining at 55 days[156] - Inventory decreased by $8.0 million at June 30, 2024 compared to December 31, 2023, with inventory turns decreasing from 3.1 to 2.8[156] - Foreign exchange transactional gains of $0.4 million were realized in the six months ended June 30, 2024, due to favorable currency fluctuations[166] - The company anticipates annualized cost savings of over $1.0 million from the Glen Rock restructuring initiative, to be realized gradually in fiscal year 2024[166] - The company's Power segment gross margin improved in 2024 despite lower sales volume, driven by strategic pricing actions and favorable exchange rates[169]

Core Insights - Bel Fuse Inc. reported preliminary financial results for Q2 2024, showing a decline in net sales but an improvement in gross profit margin compared to the same quarter last year [2][16][17] - The company anticipates positive momentum towards the end of 2024, with signs of recovery in its Magnetic Solutions segment [2][17] Financial Performance - Net sales for Q2 2024 were $133.2 million, down from $168.8 million in Q2 2023, representing a decrease of 21.1% [2][22] - Gross profit margin improved to 40.1% from 32.9% in Q2 2023 [2][22] - Net earnings decreased to $18.8 million from $27.8 million in Q2 2023 [2][22] - Adjusted EBITDA was $27.4 million, or 20.6% of sales, compared to $28.6 million, or 17.0% of sales, in Q2 2023 [2][22] Segment Performance - The Power Solutions and Protection segment saw a significant decline in sales, down 32.8% year-over-year to $58.6 million [13] - Connectivity Solutions segment sales increased by 5.4% to $57.8 million [13] - Magnetic Solutions segment sales decreased by 37.3% to $16.8 million [13] Shareholder Actions - The company repurchased 126,552 shares of its stock at a total cost of $7.9 million during Q2 2024 [2][22] Future Outlook - For Q3 2024, Bel Fuse expects GAAP net sales to be in the range of $118 to $126 million, with gross margins between 34% and 36% [17] - The company is focused on profitable top-line growth to support future development and success [17]