Littelfuse Reports Second Quarter Results
CHICAGO, July 30, 2009 – Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the second quarter of 2009 that were in line with the company’s updated guidance issued on July 7, 2009.
Second Quarter Highlights
- Sales for the second quarter of 2009 were $101.4 million, a 20% sequential increase from the first quarter of 2009 and a 32% decline compared to the prior-year quarter.
- On a GAAP basis, the company had a loss of ($0.12) per diluted share, which included restructuring charges of $7.0 million (pre-tax) or approximately $0.22 per share. Adjusted diluted earnings per share (see Supplemental Information on page 8) were $0.10. The restructuring charges reflect the costs to further consolidate manufacturing and reduce operating expenses as announced on May 19, 2009.
- Capital expenditures for the second quarter of 2009 were $4.2 million, which was down from $7.2 million in the first quarter of 2009.
- Cash used in operating activities was ($2.3) million for the second quarter of 2009. The most significant factor negatively impacting cash flow was increased accounts receivable resulting primarily from accelerating sales. This was partially offset by continued inventory reduction.
- The company ended the second quarter of 2009 with $48.3 million in cash and $75.0 million of borrowing capacity under its revolving credit facility. At June 27, 2009, the company was in compliance with all debt covenants and expects to remain so for the foreseeable future.
- The book-to-bill ratio for electronics for the second quarter of 2009 was 1.07.
“The second quarter sequential sales increase was mostly driven by improvement in Asia for both electronics and automotive products, as well as improvement in the European automotive market. Increases in Startco sales also contributed, while electrical fuse sales increased in line with normal seasonality,” said Gordon Hunter, Chief Executive Officer.
“Compared to the first quarter of 2009, gross margin (excluding restructuring charges) improved by 720 basis points and operating expenses declined by $2.5 million,” said Phil Franklin, Chief Financial Officer. “This clearly indicates that our cost reductions are beginning to flow through the P&L. We have now reduced our breakeven point to $95 million in quarterly sales and expect further modest reductions in breakeven over the next year.”
- Sales for the third quarter of 2009 are expected to be in the range of $104 to $108 million, which represents 3-7% sequential growth over the second quarter.
- Earnings for the third quarter of 2009 are expected to be in the range of $0.14 to $0.21 per diluted share.
- Capital spending for 2009 is now expected to be approximately $21 million.
“In this challenging environment, we continue to execute well on the basics such as cost reduction, customer responsiveness, inventory control and price management,” said Hunter. “We believe this will be a slow, non-linear recovery, but as our markets improve, we will leverage our leaner processes and lower breakeven point. We are gaining confidence that in the second half of 2009 we will be solidly profitable and significantly free-cash-flow positive.”
Conference Call Webcast Information
Littelfuse will host a conference call today, Thursday, July 30, 2009 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, 2009 and can be accessed through the Web site listed above.
As the worldwide leader in circuit protection products and solutions with annual sales of $530.9 million in 2008, 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 Chicago, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, Canada, China, England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.
"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.