Sensata Technologies, Inc. Business Report FY ended Dec. 2018

Financial Overview

(in million USD)

	FY ended Dec. 31, 2018	FY ended Dec. 31, 2017	Rate of change (%)	Factors
Overall
Net Sales	3,521.6	3,306.7	6.5
Operating Income	1,005.7	941.6	6.8	-
Performance Sensing business
Net Sales	2,627.7	2,460.6	6.8	(*)
Operating Income	712.7	664.2	7.3	-

Factors
(*)Performance Sensing business sales
-Performance Sensing net revenue for fiscal year 2018 increased USD 167.1 million, or 6.8%, to USD 2,627.7 million from USD 2,460.6 million for fiscal year 2017. Organic revenue growth of 6.6% in fiscal year 2018 was primarily attributable to content growth in our automotive business, principally in China and North America, as well as a combination of market and content growth in our HVOR business, partially offset by price reductions of 1.9%, primarily related to automotive customers, which are consistent with our expectations for future pricing pressures. HVOR business benefited from production growth in the construction, North American on-road truck, and agriculture markets, and the Company generated content growth from sales to on-road truck customers, particularly in China and Europe, as well as off-road customers in the agriculture industry.

Divesture

-On May 22 Pacific Industrial Co., Ltd. (Pacific Industrial) announced that it would acquire three Schrader Group companies producing automotive valves, one based in the U.S. and two in France, from the Company. The transaction is being valued at a total of approximately JPY 20 billion. By enhancing its presence in the U.S. and Europe, in which Schrader has strength, Pacific Industrial will advance its global operation under a tetrapolar production structure. The company will enhance non-automotive valve business as well. Schrader has an established presence in the U.S. and Europe as a valve supplier for automobiles, aircraft, and industrial machinery. (From an article in the Nikkan Jidosha Shimbun on May 23, 2018)