Electronics Company Sees Rise In Profits Since Moving To West Orange

WEST ORANGE, NJ — An electronics manufacturer has seen a 6 percent rise in its gross profits since moving its headquarters to West Orange, the company recently reported.

In June, Bel Fuse Inc. announced it was moving its corporate headquarters from Jersey City to 300 Executive Drive in West Orange. The company’s CEO, Daniel Bernstein, said the move was expected to improve the work-life balance for most of the 25 associates physically based out of the office by reducing their commute.

“The timing makes sense due to the current market value of the property and our expectation of lower annual operating costs,” he added. “This move supports our team and is in the best interest of our shareholders.”

• See Related: Bel Fuse Is Moving Headquarters To West Orange

The expectation of “lower operating costs” seems to be coming to fruition, if the company’s financial results for the third quarter of 2023 are any indication.

According to Bel Fuse, here are some highlights from the quarter:

• Net sales of $158.7 million compared to $177.7 million in Q3-22. Non-GAAP adjusted net sales (which exclude raw material expedite fee revenue) were $157.7 million in Q3-23, down from $168.3 million in Q3-22
• Gross profit margin of 35.0%, up from 29.0% in Q3-22
• Net earnings of $19.4 million versus $16.5 million in Q3-22
• Adjusted EBITDA of $29.9 million (18.8% of sales), up from $27.3 million (15.4% of sales) in Q3-22
• Backlog level of $408 million at September 30, 2023

“Coupled with many cost containment initiatives underway in the third quarter, Bel also made solid progress on our previously-announced facility consolidations,” CFO Farouq Tuweiq said.

“These projects were substantially complete by the end of the quarter, with final transitions on track for the end of 2023,” Tuweiq added. “These consolidation projects are expected to result in annualized cost savings of approximately $6.9 million. Of this, $1.6 million is expected to be realized in Q4-23 with the full run rate of cost savings expected throughout 2024.”

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