Vishay Precision Group, Inc. (NYSE:VPG) Q3 2024 Earnings Conference Call November 5, 2024 9:00 AM ET

Company Participants

Steven Cantor - Senior Director of Investor Relations
Ziv Shoshani - Chief Executive Officer and President
William Clancy - Executive Vice President and Chief Financial Officer

Conference Call Participants

Griffin Boss - B. Riley Securities
John Franzreb - Sidoti & Company
Jeffrey Cohen - Mulholland Capital Management

Operator

Hello everyone and welcome to the VPG's Third Quarter Fiscal 2024 Earnings Call. My name is Ezra, and I will be your coordinator today. [Operator Instructions].

I will now hand you over to your host Steve Cantor, Senior Director of Investor Relations to begin. Steve, please go ahead.

Steven Cantor

Thank you, Ezra and good morning everyone. Welcome to our third quarter 2024 earnings call. Our Q3 release and slides have been posted on our website at vpgsensors.com. An audio recording of today's call will be available on the Internet for a limited time and can also be accessed on our website.

Today's remarks are governed by the Safe Harbor provisions of the 1995 Private Securities Litigation Reform Act. Our actual results may vary from forward-looking statements. For a discussion of the risks associated with VPG's operations, we encourage you to refer to our SEC filings, especially the Form 10-K for the year ended December 31, 2023 and our other recent SEC filings. On the call today are Ziv Shoshani, CEO and President; and Bill Clancy, CFO.

I'll now turn the call to Ziv, for some prepared remarks. Ziv?

Ziv Shoshani

Thank you, Steve. I will begin with some commentary on our results and trends for the third quarter. Bill will provide financial details about the quarter, and our outlook for the fourth quarter of 2024.

Moving to Slide 3, overall third quarter was as follows. Total sales were mostly stable sequentially. The business environment continues to be mixed as higher demand in some markets was offset by weakness in others. We continue to focus on broadening our funnel of new business opportunities. We are streamlining operations mainly in the Sensors and Weighing Solutions segments. The recent acquisition of Nokra expand our product offering in the steel market.

Moving to Slide 4. Looking at the third quarter results in details, we reported sales of $75.7 million, which was above the mid-range of our guidance. Orders of $68.6 million declined from $73.5 million in the second quarter resulting in a book-to-bill ratio of 0.91. Trends continued to be mixed in our markets, as orders generally represented customers' ongoing replenishment of inventories. The majority of bookings decline related to certain cyclical markets including steel and consumer. This contrasted with higher orders in the Test and Measurement and AMS, which remains well below peak levels. Operationally, we reduced our manufacturing operations to align with near-term revenue trends.