Sensata Technologies, Inc. Business Report FY ended Dec. 2017
Financial Overview |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | Rate of change (%) |
Factors | |
| Overall | ||||
| Net Sales | 3,306.7 | 3,202.3 | 3.3 | 1) |
| Operating Income | 941.6 | 877.4 | 7.3 | - |
| Performance Sensing business | ||||
| Net Sales | 2,460.6 | 2,385.4 | 3.2 | 2) |
| Operating Income | 664.2 | 615.5 | 7.9 | - |
Factors
1) Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2017 was USD 3,306.7 million, an increase of 3.3% over the previous year. Excluding a negative impact of 0.7% due to foreign currency exchange rates, the Company had organic growth of 4.0%, with both businesses experiencing growth during the year.
2) Performance Sensing business sales
-Net sales in the Company’s Performance Sensing business totaled USD 2,460.6 million in the fiscal year ended December 31, 2017, an increase of 3.2% over the previous year. The business had organic sales growth of 3.9% compared to the previous year, which was partially offset by negative foreign currency impact of 0.7%. The increase in sales was driven by the Company’s heavy vehicle off-road business, due to strength in the construction, agriculture and on-road truck markets in North America, as well as growth in the automotive markets in China.
Recent Developments
Automotive sensor market
-According to a report published by Strategy Analytics, the global automotive sensor market was valued at USD 22.4 billion in 2017.
Outlook
-The Company expects to have sales between USD 3,442 million and USD 3,542 million in the fiscal year ending December 31, 2018.
-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.
R&D Expenditure |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Overall | 130.2 | 126.7 | 123.7 |
-The Company has increased its investment into research and development to support new platform and technology developments related to new business.
R&D Facilities
-The Company announced the opening of its largest global testing facility in Sofia, Bulgaria. The state-of-the-art 6,000-square-meter Testing Laboratory and Mechanization Office is now operational and employs more than 100 engineers and technicians in the areas of durability testing, research and development, field failure analysis and equipment development for automotive sensing. The Company invested approximately USD 3 million in the facility. (From a press release on March 14, 2017)
Product Development
S3 solid-state lidar sensor at IAA 2017
-The Company showcased some of its latest sensor technologies for connectivity, electrification and automated driving at the 2017 Frankfurt Auto Show (IAA). A new solid-state LiDAR sensor for highly automated driving cars is the centerpiece of the Company’s exhibit. Developed in partnership with Quanergy Systems, an innovator in the field of solid-state LiDAR sensors, the S3 sensor will be on display. The S3 LiDAR sensor uses the Optical Phased Array principle and utilizes no moving parts, thereby improving its reliability. (From a press release on September 12, 2017)
Solid-state lidar sensor at CES 2017
-The Company and Quanergy Systems, the leading provider of solid state LiDAR sensors and smart sensing solutions, showcased their solid state LiDAR solution at 2017 CES in Las Vegas. The Company and Quanergy signed an exclusive agreement in March 2016 to provide component level solid state LiDAR sensors to the ground transportation market. Since finalizing the agreement, both companies have been working to develop solid state optical phased array scanning LiDAR sensors that provide long-range, high-resolution scanning for next-generation ADAS and autonomous driving systems. Quanergy was recently awarded the CES 2017 'Best of Innovation' Award in the vehicle intelligence category for its S3 solid state LiDAR sensor. The S3 is the first and only compact, low-cost, automotive-grade solid state LiDAR sensor. The sensor can be concealed within the body of any vehicle, ensuring uncompromised design aesthetics and aerodynamics. The Company and Quanergy will deliver samples to automotive customers for testing and evaluation later in 2017. (From a press release on January 3, 2017)
Patents
-As of December 31, 2017, the Company had 315 U.S. patents and 370 patents from other countries. Additionally, the Company had 41 U.S. and 227 non-U.S. pending patent applications.
Capital Expenditure |
(in million USD) |
| FY ended Dec. 31, 2017 | FY ended Dec. 31, 2016 | FY ended Dec. 31, 2015 | |
| Performance Sensing | 106.5 | 99.3 | 125.4 |
| Sensing Solutions | 14.0 | 11.9 | 16.9 |
| Corporate and other | 24.1 | 19.0 | 34.9 |
| Total | 144.6 | 130.2 | 177.2 |
-The Company’s capital expenditures in the fiscal year ended December 31, 2017 were primarily used to increase manufacturing capacity.
Outlook
-In the fiscal year ending December 31, 2018, the Company expects to have capital expenditures between USD 150 million and USD 160 million.