Sensata to grow free cash flow 30%, now has ‘healthy balance sheet’

By Devika Patel

Knoxville, Tenn., April 24 – Sensata Technologies BV plans to grow its free cash flow nearly 30% in 2018 and reported a “healthy balance sheet” and “strong free cash flow” for the last quarter.

“We are in the final steps of establishing greater flexibility and optionality for future capital deployment,” executive vice president and chief financial officer Paul Vasington said on the company’s first quarter ended March 31 earnings conference call on Tuesday.

“With a strong balance sheet and our expectations to grow our free cash flow nearly 30% in 2018, we are in an excellent position to provide attractive returns for our shareholders,” Vasington said.

The company had good cash flow and “strong” free cash flow in the last quarter and expects to repurchase shares this year now that it has a “healthy” balance sheet.

“It was a good cash flow quarter,” Vasington said.

“With a healthy balance sheet and our strong free cash flow, we fully expect capital deployment in 2018 to include share repurchases,” president and chief executive officer Martha Sullivan said on the call.

Sensata’s ending cash balance at March 31, 2018 was $828.3 million, an improvement from $753.1 million as of Dec. 31, 2017.

The company’s net debt at March 31, 2018 was $2,473,200,000, a reduction of $86.2 million from Dec. 31, 2017.

Sensata is a producer of sensors and controls for manufacturers in the automotive, appliance, aircraft, industrial and HVAC markets.

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