Bel Fuse (BELFB) Sees Q4 Sales of $120M

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.

You May Also Be Interested In

• Growth isn't weak enough to truly undercut inflation pressures - BMO
• 'A moment of truth' for Tesla and Musk is here - Wedbush
• Synovus Financial (SNV) PT Lowered to $42 at Piper Sandler