LITTELFUSE REPORTS SECOND QUARTER 2005 RESULTS
DES PLAINES, Illinois, August 3, 2005 - Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the second quarter of 2005. Sales for the second quarter of 2005 were $123.9 million, a 4% decrease from sales of $128.8 million in the second quarter of 2004. Heinrich Industrie AG, acquired in May 2004, accounted for $20.9 million of second quarter 2005 sales. Diluted earnings per share were $0.19 for the second quarter of 2005, compared to $0.46 for the second quarter of 2004.
Excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 10%, with the Americas down 12%, Europe down 21% and Asia down 1%. By market and excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 14% for electronics, down 5% for automotive and up 8% for electrical.
Electronic sales declined compared to the prior year quarter due to weakness in telecom end markets and lower distributor sales in both North America and Europe. The Automotive sales decline reflected one-time sales in the prior year quarter related to an OEM recall program and slightly lower car build in North America. Electrical sales increased due to higher prices and strength in the non-construction segments of the market.
Sales for the first six months of 2005 were $245.6 million, up 2% from sales of $240.2 million for the first six months of 2004. Diluted earnings per share were $0.38 for the first six months of 2005, compared to $0.89 per diluted share for the prior year period. Excluding Heinrich, sales for the first six months of 2005 were down 10% compared to the same period in the prior year.
“Our second quarter performance, although well below the prior year, was similar to the first quarter and consistent with our most recent guidance.” said Gordon Hunter, Chief Executive Officer. “While we are disappointed in our financial results for the first half of 2005, we believe the business is now well positioned for improved performance in the second half of the year.”
“Gross margin for the quarter was negatively impacted by $1.6 million of inventory and asset write-downs and an automotive quality charge of $0.5 million,” said Phil Franklin, Chief Financial Officer.
“Operating expenses were higher than the second quarter of the prior year due to only a partial quarter of Heinrich in 2004.”
Cash from operating activities was $12.1 million for the second quarter of 2005, compared to $16.1 million for the same period in 2004, due to the lower net income. Net capital expenditures for the second quarter of 2005 were $8.3 million, compared to $6.1 million in the second quarter of 2004, reflecting increased spending related to new products.
Littelfuse will host a conference call today, Wednesday, August 3, 2005 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the second 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 September 30, 2005 and can be accessed through the Web site listed above.
As the worldwide leader in circuit protection products and solutions with annual sales of $500.2 million in 2004, 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, Pudenz and Efen brand circuit protection products. In addition to its Des Plaines world headquarters, Littelfuse has manufacturing facilities in the U.S., England, Ireland, Mexico, China, and the Philippines. It also has sales, engineering and distribution facilities in Germany, the Netherlands, Singapore, Hong Kong, Korea, Taiwan, Japan and Brazil.
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