Vishay Precision Group, Inc. (NYSE: VPG) ("VPG" or the “Company”), a leading producer of precision sensors and systems based on its resistive foil technology, today announced results for the fourth quarter and full year ended December 31, 2011. VPG was spun-off from Vishay Intertechnology, Inc. (NYSE: VSH) as an independent publicly traded company in July 2010.
Net revenues for the fourth quarter of 2011 were $56.4 million, an increase of 3% versus $54.8 million for the comparable prior year period. Net earnings for the fourth quarter of 2011 were $1.2 million or $0.09 per diluted share, versus net earnings of $3.3 million, or $0.24 per diluted share for the comparable prior year period.
Net revenues for the year ended December 31, 2011 were $238.1 million, an increase of 15% versus $207.5 million for the comparable prior year period. Net earnings for the year ended December 31, 2011 were $10.8 million, or $0.78 per diluted share, versus $11.7 million, or $0.85 per diluted share, for the comparable prior year period (see Note below).
Comparing the results of the fourth fiscal quarter of 2011 to the third fiscal quarter of 2011, net revenues decreased by 6.0%, from $60.0 million. Net earnings decreased by $2.1 million, from $3.3 million in the third quarter of 2011. These comparisons provide perspective on the adjustment to guidance that the Company preannounced last month related to a reduction in volume and manufacturing capacity issues.
Commenting on the results for the quarter, Ziv Shoshani, Chief Executive Officer of VPG, said, "Market demand in the US and Asia remained fairly stable. However, European demand dropped significantly from the third quarter, which resulted in lower revenues for the fourth quarter, mainly for the Weighing Modules and Control Systems (WMCS) segment.
Our Foil Technology Products (FTP) segment revenues decreased from the prior quarter to $26.6 million in the fourth quarter, primarily coming from manufacturing capacity issues. The FTP gross margin was 40.5% for the fourth quarter. The WMCS segment revenues decreased from the prior quarter to $29.9 million in the fourth quarter, coming mainly from declines in scale manufacturing and process weighing market demand. The gross margin for the WMCS segment was 27.1% for the fourth quarter.”