Vishay Precision Group, Inc. Q3 FY2024 earnings call

• Business environment remains mixed with higher demand in some markets offset by weakness in others.
• Streamlining operations in Sensors and Weighing Solutions segments.
• Acquired Nokra to expand product offering in the steel market.
• Experienced labor inefficiencies in Sensors segment in Q3, not expected to continue in Q4.
• Focus on growth investments in business development, marketing, and R&D.
• Released initial Sustainability Report.

Sensors segment: Third quarter revenue was $28.2 million, down 13.3% from a year ago and 2.3% sequentially. Weighing Solutions segment: Third quarter sales were $25.2 million, a decline of 13.1% from a year ago and 8.3% from the second quarter. Measurement Systems segment: Third quarter revenue was $22.4 million, down 8.2% year-over-year, but up 6.2% sequentially.

• Expect net revenues for the fourth quarter of 2024 to be in the range of $70 million to $78 million at constant third fiscal quarter 2024 exchange rates.
• Anticipate realizing significant incremental operating leverage as revenues improve.

• Cyclical market softness impacting orders.
• Temporary labor inefficiencies in Sensors segment in Q3.
• Impact of foreign exchange rates and tax rate variations.

Q: Griffin Boss asked about labor inefficiencies in the Sensors segment and free cash flow.

A: Ziv Shoshani stated labor inefficiencies were already improved in the fourth quarter; William Clancy said the free cash flow issue was a one-time event.

Q: Griffin Boss inquired about new projects with humanoid robots.

A: Ziv Shoshani mentioned revenues for humanoid robot-related business are expected to double in 2025.

Q: John Franzreb asked about end market mix and M&A.

A: Ziv Shoshani discussed changes in end market mix and details on the acquisition of Nokra.

Q: Jeffrey Cohen asked about stock repurchase and M&A.

A: William Clancy said they repurchased $1.9 million of stock; Ziv Shoshani talked about capital allocation including M&A and stock buyback