Sensata Technologies Holding NV (NYSE:ST) Q2 2017 Earnings Conference Call - Final Transcript

Jul 24, 2017 • 08:00 pm ET


Sensata Technologies Holding NV (NYSE:ST) Q2 2017 Earnings Conference Call - Final Transcript


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Good day and welcome to the Sensata Technologies Q2 2017 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Mr. Joshua Young, Vice President of Investor Relations. Please go ahead.

Joshua Young

Thank you, Allison, and good morning, everybody. I'd like to welcome you to Sensata's Second Quarter 2017 Earnings Conference Call. Joining me on today's call are Martha Sullivan, Sensata's President and CEO; and Paul Vasington, Sensata's Chief Financial Officer. In addition to the earnings release we issued earlier today, we will be referencing a slide presentation during today's conference call. The PDF of this presentation can be downloaded from Sensata's Investor Relations website. We will also post a replay of today's webcast shortly at the conclusion of the call.

Before we begin, I'd like to reference Sensata's safe harbor statement on Slide #2. During the course of this conference call, we will make forward-looking statements regarding future events or the financial performance of the company that involve risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as other subsequent filings with the SEC.

On Slide 3, we show Sensata's GAAP results for the second quarter of 2017. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the subsequent information that we will discuss during today's call will be related to non-GAAP financial measures. Reconciliations of our GAAP to non-GAAP financial measures are included in our earnings release and in our webcast presentation. Martha will begin today's call with an overall business summary. Paul will then cover our financials for the second quarter of 2017 and provide guidance for the full year and third quarter of 2017. We will then take your questions after our prepared remarks.

Now I'd like to turn the call over to Sensata's President and CEO, Martha Sullivan.

Martha Sullivan

Thanks, Joshua, and thank you all for joining us this morning. I'm delighted to report that Sensata continued to deliver strong results in Q2, reporting improved year-over-year operational performance in all segments of our business. This performance reflects continued execution of our strategy to win in sensing, which is helping us to deliver revenue growth, margin expansion and attractive earnings growth.

I will begin on Slide 4. We generated solid organic revenue growth and robust margin expansion, both year-over-year and sequentially. On the top line, we reported revenues of $840 million and organic revenue growth of 3.6%, both of which were at the high end of our guidance. This growth was balanced nicely between our Performance Sensing business, which posted 3.5% organic revenue growth, and our Sensing Solutions business, which reported 3.9% organic revenue growth in the second quarter of 2017.

Double-digit organic revenue growth in Asia and the HVOR market drove our performance in the quarter. Our auto business outgrew a softer auto production market in the