Bel Provides Fourth Quarter 2017 Update
January 17 2018 - 4:30PM
Bel Fuse Inc. (NASDAQ:BELFA) (NASDAQ:BELFB), a
leading global manufacturer of products that power, protect and
connect electronic circuits, announces preliminary updates related
to the fourth quarter of 2017.
Net Sales and Backlog
The Company anticipates reporting net sales of
$120 million for the fourth quarter of 2017, up 1.2% from the same
quarter of 2016. This is expected to result in full year 2017
sales of $492 million, compared to $500 million for 2016. The
Company’s backlog of orders was $146.5 million at December 31,
2017, up from $113.2 million at December 31, 2016.
U.S. Tax Reform
The Company has completed a preliminary analysis
of the impact of the Tax Cuts and Jobs Act of 2017 signed into law
on December 22, 2017 on its consolidated operations. The law
includes significant changes to the U.S. corporate income tax
system, including a reduction in the U.S. federal corporate tax
rate from 35% to 21%, the deemed repatriation transition tax, the
introduction of a global minimum tax related to foreign earnings,
and a change to the limitations on the deductibility of interest
expense and executive compensation, among other things. Based
on the Company’s preliminary analysis, it is anticipated that the
enactment of the new tax law will result in an incremental tax
provision of approximately $20 million, primarily attributable to
the deemed repatriation of foreign income. This incremental
tax would be recorded in the Company’s results of operations during
the fourth quarter of 2017. Our preliminary estimate may be
impacted as additional guidance becomes available. At this
time, the Company anticipates its tax rate applicable to 2018 U.S.
earnings will be in the range of 27% to 29%. This compares to
38% in 2017. The Company’s global effective tax rate will be
largely dependent upon the jurisdictions in which its pre-tax
earnings are generated.
The Company expects to report its preliminary
financial results for the fourth quarter and full year 2017 on
February 22, 2018.
Forward-Looking Statements
Non-historical information contained in this
press release (such as the statements regarding the anticipated net
sales amount for the fourth quarter of 2017 and the expected impact
from the Tax Cuts and Jobs Act of 2017) are forward-looking
statements (as described under the Private Securities Litigation
Reform Act of 1995) that involve risks and uncertainties. Actual
results could differ materially from Bel's projections. Among the
factors that could cause actual results to differ materially from
such statements are: the market concerns facing our customers; the
continuing viability of sectors that rely on our products; the
effects of business and economic conditions; difficulties
associated with integrating recently acquired companies; capacity
and supply constraints or difficulties; product development,
commercialization or technological difficulties; the regulatory and
trade environment; risks associated with foreign currencies;
uncertainties associated with legal proceedings; the market's
acceptance of the Company's new products and competitive responses
to those new products; and the risk factors detailed from time to
time in the Company's SEC reports. In light of the risks and
uncertainties impacting our business, there can be no assurance
that any forward-looking statement will in fact prove to be
correct. We undertake no obligation to update or revise any forward
looking statements.
Website Information
We routinely post important information for
investors on our website, www.belfuse.com, in the "Investor
Relations" section. We use our website as a means of disclosing
material, otherwise non-public information and for complying with
our disclosure obligations under Regulation FD. Accordingly,
investors should monitor the Investor Relations section of our
website, in addition to following our press releases, SEC filings,
public conference calls, presentations and webcasts. The
information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document.
About Bel
Bel (www.belfuse.com) designs, manufactures and
markets a broad array of products that power, protect and connect
electronic circuits. These products are primarily used in the
networking, telecommunications, computing, military, aerospace,
transportation and broadcasting industries. Bel's product
groups include Magnetic Solutions (integrated connector modules,
power transformers, power inductors and discrete components), Power
Solutions and Protection (front-end, board-mount and industrial
power products, module products and circuit protection), and
Connectivity Solutions (expanded beam fiber optic, copper-based, RF
and RJ connectors and cable assemblies). The Company operates
facilities around the world.
Investor Contact:Darrow Associatestel
516.419.9915pseltzberg@darrowir.com
Company Contact:Daniel Bernstein
President ir@belf.com
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