LITTELFUSE REPORTS FIRST QUARTER RESULTS ABOVE GUIDANCE
LITTELFUSE REPORTS FIRST QUARTER RESULTS ABOVE GUIDANCE
May 2, 2007 at 12:00 AM EDT
DES PLAINES, Illinois, May 2, 2007 - Littelfuse, Inc. (NASDAQ/NGS:LFUS) today reported sales and earnings for the first quarter of 2007.
First Quarter Highlights
- Sales for the first quarter of 2007 were $131.8 million, up $6.2 million or 5% compared to the first quarter of 2006 reflecting acquisitions ($5.4 million) and favorable currency effects ($2.9 million), partially offset by the impact of the inventory correction in the electronics distribution channels.
- Sales for the first quarter of 2007 were up 3% compared to the fourth quarter of 2006. This exceeded the company’s guidance which called for sales to be flat with the fourth quarter.
- Diluted earnings per share for the first quarter of 2007 were $0.28 compared to diluted earnings per share from continuing operations of $0.39 for the first quarter of 2006. Earnings for the first quarter of 2007 included $4.1 million of pre-tax restructuring charges ($0.12 per share after tax), primarily related to the announced closure of the Des Plaines, Illinois manufacturing facility. Earnings for the first quarter of 2006 included $2.1 million of pre-tax restructuring charges ($0.06 per share after tax).
- Adjusted diluted earnings per share (see Supplemental Schedule) were $0.40, which exceeded the company’s guidance of $0.32 to $0.37. The higher earnings compared to guidance were due to slightly higher than expected electronics sales and the favorable impact of a stronger Euro.
- Cash flow from operating activities was $1.0 million for the first quarter of 2007 compared to $14.0 million for the prior year quarter, due primarily to significant payments in the first quarter of 2007 for bonuses, severance and taxes. Days sales outstanding in receivables improved from 60 to 58 and inventory turns remained flat at 5.5.
- The book-to-bill ratio for electronics for the first quarter of 2007 was 1.0. This is up from .88 for the fourth quarter of 2006.
- Capacity utilization for electronics for the first quarter of 2007 remained steady with the fourth quarter at approximately 80%.
“As expected, our electronics sales continue to be impacted by the industry-wide inventory correction which began in the fourth quarter of 2006,” said Gordon Hunter, Chief Executive Officer. “That said, we are making progress on our key organic growth and cost reduction initiatives and expect sales and earnings to increase sequentially over the next two quarters.”
- Sales for the second quarter of 2007 are expected to be up 2% to 5% from the first quarter of 2007.
- Earnings for the second quarter of 2007 are expected to be in the range of $0.48 to $0.52 per diluted share.
- The tax rate for the year is expected to be approximately 30-32%.
- Cash from operating activities is expected to improve sequentially in the second quarter, and as is typical, be stronger in the second half of the year than in the first half.
“We do not have great market visibility at the moment, but we are gaining confidence that we can deliver substantial margin improvement this year as we start to see results from our cost reduction initiatives,” said Hunter. “We believe our earnings goal for this year of $2.00 per share is still within reach.”
Conference Call Webcast Information
Littelfuse will host a conference call today, Wednesday, May 2, 2007 at 11:00 a.m. Eastern / 10:00 a.m. Central time to discuss the first quarter results. The call will be broadcast live over the Internet and can be accessed through the company’s Web site: www.littelfuse.com. Listeners should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through June 30, 2007 and can be accessed through the Web site listed above.
As the worldwide leader in circuit protection products and solutions with annual sales of $534.9 million in 2006, the Littelfuse portfolio is backed by industry leading technical support, design and manufacturing expertise. Littelfuse products are vital components in virtually every product that uses electrical energy, including automobiles, computers, consumer electronics, handheld devices, industrial equipment, and telecom/datacom circuits. Littelfuse offers Teccor®, Wickmann® and Pudenz® brand circuit protection products. In addition to its Des Plaines, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, China, England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S. For more information, please visit Littelfuse’s Web site at www.littelfuse.com.
Philip G. Franklin
Vice President, Operations Support & CFO
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. Any forward looking statements contained herein involve risks and uncertainties, including, but not limited to, product demand and market acceptance risks, the effect of economic conditions, the impact of competitive products and pricing, product development and patent protection, commercialization and technological difficulties, capacity and supply constraints or difficulties, exchange rate fluctuations, actual purchases under agreements, the effect of the company's accounting policies, and other risks which may be detailed in the company's Securities and Exchange Commission filings.