-
- News
- Books
Featured Books
- smt007 Magazine
Latest Issues
Current IssueWhat's Your Sweet Spot?
Are you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche. What are their insights?
Moving Forward With Confidence
In this issue, we focus on sales and quoting, workforce training, new IPC leadership in the U.S. and Canada, the effects of tariffs, CFX standards, and much more—all designed to provide perspective as you move through the cloud bank of today's shifting economic market.
Intelligent Test and Inspection
Are you ready to explore the cutting-edge advancements shaping the electronics manufacturing industry? The May 2025 issue of SMT007 Magazine is packed with insights, innovations, and expert perspectives that you won’t want to miss.
- Articles
- Columns
- Links
- Media kit
||| MENU - smt007 Magazine
Sypris Reports Double-Digit Revenue and Margin Growth Forecast for 2019
March 28, 2019 | Business WireEstimated reading time: 6 minutes
Sypris Solutions, Inc. reported financial results for its fourth quarter and full year ended December 31, 2018. Net revenue for the full year 2018 increased 6.9% over 2017 and gross margin improved 460 basis points. These improvements continue to reflect the successful implementation of strategic initiatives to better align the Company's revenue and cost structure and diversify the Company’s book of business, both in terms of customers and markets.
Highlights:
- The Company’s fourth quarter revenue increased 11.5% over the prior-year quarter and 13.5% sequentially, with both segments contributing to the improvements.
- Full-year revenue increased 9.0% for Sypris Technologies and 2.7% for Sypris Electronics, underscoring favorable market conditions and strong customer relationships.
- Gross margin for Sypris Technologies increased to 14.3% of revenue for the quarter, up from 11.3% in the prior-year period and up from 8.9% sequentially, reflecting mix and productivity improvements.
- Gross margin for Sypris Technologies increased to 12.6% in 2018, up from 1.4% in 2017, primarily attributable to the full-year impact of cost structure reductions, revenue growth and operational improvements.
- Company gross margin for the full year more than doubled in 2018, reaching 8.6% compared with 4.0% for the prior-year.
- During the fourth quarter, the Company entered into a series of supply agreements with Sistemas Automotrices de Mexico, S.A. de C.V. (“Sisamex”), to supply Sisamex with a variety of driveline components for use in the commercial vehicle, agricultural and all-terrain markets.
- The Company’s outlook for 2019 includes revenue of $100-$110 million, representing 19% year-over-year growth at the midpoint, and gross margin of 14%-16%, with both business segments forecasted to register solid profitability for the year.
“We were pleased with the year-over-year revenue growth and margin expansion at Sypris Technologies,” commented Jeffrey T. Gill, president and chief executive officer. “Shipment volumes remained strong in the quarter to support demand coming from the automotive and commercial vehicle markets, which experienced a 17% increase in shipments on a year-over-year basis.
“We also experienced strengthening demand for our energy-related products, which resulted in a 22% increase sequentially in revenue. A number of production, supply and other constraints that we experienced in the previous quarter were mitigated in the current period.
“During the fourth quarter, the Company entered into a series of agreements to continue to supply axle shafts to Sisamex, in addition to the introduction of new driveline products for use in the commercial vehicle, agricultural and all-terrain markets. Sisamex is a long-term strategic partner, and expanding the range of products we supply further strengthens this relationship. We expect to begin production on the new products during 2019,” he continued.
“While shipments at Sypris Electronics were generally on plan for the quarter, its results were adversely affected by operational challenges as we neared completion on an engineering manufacturing development program that included numerous design and material changes, and the ramp-up on a new program on which we incurred an unexpected level of inefficiencies. Aside from operational challenges during the fourth quarter, we recognized charges totaling approximately $0.9 million for a physical inventory adjustment, which we performed at year-end concurrent with our implementation of a new ERP system, and an increase to our reserve for excess and obsolete inventory on certain specific programs.”
Concluding, Gill said, “We continue to see strong demand in each of our primary markets to support our revenue outlook for 2019. Our customer base and the markets we serve remain resilient and are considerably more diversified than at any point in our recent history. We are confident that the combination of our forecasted revenue growth and lower fixed manufacturing overhead costs, driven by effective cost-reduction actions, will contribute to our expected return to profitability in 2019.”
Page 1 of 2
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
Mobix Labs Secures Surge of High-Value Defense Orders, Igniting Growth in its Filter Interconnect Products
07/23/2025 | BUSINESS WIREMobix Labs, Inc., a leading innovator of advanced connectivity and electromagnetic interference (EMI) filtering technology, announced significant quarter-over-quarter revenue growth in its filter and interconnect products, powered by strong customer demand and major wins across mission-critical defense and aerospace programs.
NEOTech’s Westborough Facility Achieves AS9100 Surveillance Audit, Reinforcing Trust with Aerospace & Defense Customers
07/22/2025 | NEOTechNEOTech, a premier provider of electronic manufacturing services (EMS), integrated design engineering, and advanced supply chain solutions for the aerospace and defense, medical device, and high-tech industrial markets, proudly announces that its Westborough, Massachusetts facility has successfully completed the rigorous AS9100 Bi-Annual Surveillance Audit with zero findings, a testament to the company’s unwavering commitment to quality, security, and operational excellence.
TT Electronics Secures Multi-Million-Pound Defense Contract with Ultra PCS
07/18/2025 | TT ElectronicsTT Electronics, a leading provider of global manufacturing solutions and engineered technologies, announced that it has been awarded a significant new contract with long-standing customer Ultra PCS Ltd (Ultra Precision Control Systems).
NEOTech’s Agave 1 Facility Earns AS9100 Certification for Commercial Aerospace Manufacturing Excellence
07/17/2025 | NEOTechNEOTech, a premier provider of electronic manufacturing services (EMS), integrated design engineering, and advanced supply chain solutions for the aerospace and defense, medical device, and high-tech industrial markets, proudly announces that its Agave 1 manufacturing facility in Juarez, Mexico has officially received AS9100 certification.
Federal Electronics Invests in HydroJet Inline Cleaning Technology at Hermosillo Facility
07/15/2025 | Federal ElectronicsFederal Electronics, a leader in providing advanced electronic manufacturing services, has strengthened the advanced cleaning capabilities of its Hermosillo, Mexico facility with the recent installation of a HydroJet Inline Cleaner from Austin American Technology (AAT).