Sensata Technologies, Inc. Business Report FY ended Dec. 2014

Business Highlights

Financial Overview

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of change
Net Sales 2,409.8 1,980.7 21.7 -
Operating Income 371.6 363.5 2.2 -
Sales by segment
Sensors 1,755.9 1,358.2 29.3 1)
Controls 653.9 622.5 5.0 2)

1) Sensors business
-2014 net revenue in the Sensors business totaled USD 1,755.9 million, a 29.3% increase over the previous year. It was accounted for approximately 73% of total net revenue. With the acquisition of Schrader, the Company added significant low pressure sensing capabilities, primarily tire pressure monitoring sensors (TPMS), to its existing portfolio. The Company has derived most of the revenue in its Sensors business from the sale of medium and high-pressure sensors.

2) Controls business
-2014 net revenue in the Control business increased 5.0% to USD 653.9 million, accounted for approximately 27% of total net revenue.

-The Company continues to focus on expanding its presence in all global geographies, both emerging and mature. Customers include established multinationals, as well as local producers in emerging markets such as China, India, Eastern Europe, and Turkey. China continues to remain a priority for the Company because of its export focus and domestic consumption of products that utilize its devices. The Company continues to focus on managing its costs and increasing its productivity in these lower-cost manufacturing regions.


-On October 14, 2014, the Company announced that it had completed the acquisition of Schrader International, a global leader in the development and production of tire pressure monitoring sensors (TPMS). Schrader has over a 50% market share of TPMS in North America, Europe, and Asia. The Company acquired Schrader for USD 1.0 billion. (From a press release on October 14, 2014)

-On August 4, 2014, one of the Company's subsidiaries completed its acquisition of DeltaTech Controls, a leader on electronic controls based on magnetic position sensing technology. The cost of the transaction was USD 190 million. The Company will integrate DeltaTech into its heavy vehicle and off-road business in its Sensors segment. (From a press release on August 4, 2014)

-On January 3, 2014, the Company announced that it had completed the acquisition of Wabash Technologies, a designer and manufacturer of a variety of custom-designed sensors including rotary and linear position, speed, and engine timing sensors. The Company acquired Wabash Technologies for USD 60.0 million in cash. (From a press release on January 3, 2014)


-Sensata Shanghai, a subsidiary of the Company in China, received Great Wall Motor Company Supplier Excellence Award in March 2014.

-Sensata Changzhou, a subsidiary of the Company in China, was awarded the GM Supplier Quality Excellence Award in December 2013.


R&D Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 82.2 58.0 52.1


-As of December 31, 2014, excluding the Schrader acquisition, the Company had approximately 182 U.S. and 213 non-U.S. patents and approximately 43 U.S. and 172 non-U.S. pending patent applications that were filed within the last five years. The Schrader acquisition added approximately 64 U.S. and 107 non-US patents and approximately 5 U.S. and 43 non-U.S. pending patent applications. These patents have expiration dates ranging from 2015 to 2030.

Product Development

Cylinder Pressure Only Sensor (CPOS)
-The Company displayed its newest version of its Cylinder Pressure Sensor (CPS), called the Cylinder Pressure Only Sensor (CPOS). The CPOS is a miniaturized version of the CPS. Another new feature of the CPOS is the ability to be installed separately from an existing glow plug, whereas the CPS needed to be integrated with the glow plug. This allows OEMs to use more durable glow plugs in their vehicles. The Company estimated that use of the CPOS can reduce fuel consumption by 2% and raw nitrogen oxide emissions by 30%. Daimler has already launched high volume production models using the CPOS in the majority of its diesel engines. (From a press release on April 26, 2013)

Differential Pressure Sensor (DPS)
-On March 7, 2013 the Company completed development on its second generation Differential Pressure Sensor (DPS) for use in diesel engines to help control emissions. The DPS measures the pressure difference between the upstream and downstream sides of exhaust particle filter systems. If the pressure difference exceeds a certain level, filter regeneration occurs to prevent filter clogging. The second generation DPS features a single sense element, which provides better accuracy compared to sensors using multiple sense elements. Additionally, the DPS is able to maintain high levels of accuracy at temperatures ranging from -40 to 140 degrees Celsius. (From a press release on March 7, 2013)

Investment Activities

Capital Expenditure

(in million USD)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Sensors 95.5 38.4 36.1
Controls 13.8 20.7 8.4
Corporate and other 34.8 23.7 10.3
Total 144.2 82.8 54.8

-The Company's capital expenditures in 2014 focused on increasing its manufacturing capacity and upgrading its Oracle ERP system.


-The Company expects to spend approximately USD 175 to 200 million on capital expenditures in 2015.