Methode Electronics Q4 Profit Surges - Update

(RTTNews) - Methode Electronics, Inc. (MEI), a manufacturer of components and subsystem devices, Thursday reported a sharp increase in fourth-quarter profit, on about 52 percent growth in sales, as well as higher income tax benefit.

For the fourth quarter ended May 3, 2014, net income attributable to the company surged to $48.2 million or $1.25 per share from $10.1 million or $0.27 per share in the previous year.

Earnings, excluding certain items, were $0.49 per share, while the firm posted $0.18 per share a year earlier.

On average, four analysts polled by Thomson-Reuters estimated the company's earnings to be $0.53 for the quarter. Analysts' estimates typically exclude one-time items.

Net sales for the quarter surged 51.7 percent to $224.9 million from $148.3 million in the same quarter last year.

In the Automotive segment, net sales grew 93.4 percent, while it decreased 8.3 percent in Interconnect segment. Power Products net sales improved 21.6 percent from the preceding year.

The company recorded higher sales volumes in the Automotive, Interconnect and Power Products segments.

Income tax benefit increased to $24.5 million from $7.0 million in the year-ago quarter.

Looking ahead for fiscal 2015, the company expects earnings to be in the range of $1.85 to $2.00 per share, on revenues of $835 million to $860 million. Analysts are looking for annual earnings of $2.03 per share, on revenues of $812.19 million.

President and Chief Executive Officer Donald Duda said, "During Fiscal 2015, we will continue to invest in our businesses to grow, defend and improve our competitive position. We expect to increase our development costs by approximately $4 million over last fiscal year..." MEI closed Wednesday's regular trading at $33.02 on the NYSE. In the pre-market activity on Thursday, the shares are up 4.78 percent.