Littelfuse Reports Second Quarter Results
CHICAGO, August 5, 2010 - Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the second quarter of 2010.
Second Quarter Highlights
* Sales for the second quarter of 2010 were $157.5 million, a 55% increase compared to the second quarter of 2009 and a 9% increase from the first quarter of 2010.
* Electronics sales increased 68% year over year and 17% sequentially due to continued strength across all geographies and end markets.
* Automotive sales increased 38% year over year due to strong growth in all regions. As expected, sales declined 8% sequentially due to pipeline fill for programs in China in the first quarter of 2010, a 3% reduction in global car production and decline in the value of the euro.
* Electrical sales increased 31% year over year due to continued strong growth for protection relays and steady improvement in power fuse demand. Electrical sales increased 4% sequentially due to seasonal increases in power fuse volume.
* Operating margin for the second quarter of 2010 improved to 17.5% compared to 15.0% in the first quarter of 2010 due to operating leverage on higher sales and the beginning of savings from the last phase of manufacturing transfers.
* Diluted earnings per share for the second quarter of 2010 were $0.90 compared to a loss of $0.12 per diluted share for the second quarter of 2009. The large improvement in earnings compared to the prior year was due to significantly higher sales and a much-improved cost structure as well as one-time charges in the prior-year quarter.
* Cash provided by operating activities increased to $19.2 million in the second quarter of 2010, compared to $6.9 million in the first quarter of 2010. Accounts receivable days sales outstanding were 62 compared to 59 in the first quarter of 2010. Inventory turns increased to 6.5 from 6.4 in the first quarter of 2010.
* The book-to-bill ratio for electronics for the second quarter of 2010 was 1.1.
"We are pleased with our performance for the first half of 2010," said Gordon Hunter, Chief Executive Officer. "We are having success with key organic growth initiatives; we have ramped up production to meet increased demand and maintain competitive lead times; and we remain on track with our manufacturing transfers which are delivering savings on or ahead of schedule. This crisp execution has enabled us to overachieve our 15% operating margin target in the second quarter with significant cost savings yet to come over the next three quarters."
Outlook
* Sales for the third quarter of 2010 are expected to be in the range of $156 to $164 million, which represents over 50% growth year over year.
* The Taiwan factory has mostly recovered from the recent fire, but the guidance assumes that fire-related production constraints will have up to a $2 million negative impact on sales in the third quarter.
* Earnings for the third quarter of 2010 are expected to be in the range of $0.92 to $1.04 per diluted share reflecting additional transfer-related savings in the third quarter.
* Capital spending for 2010 is expected to be approximately $20 million. Cash from operating activities is expected to continue to improve over the next two quarters.
"Even as growth begins to slow in the next few quarters, we are confident that our new cost structure will enable us to continue to deliver superior financial results," said Hunter.
Conference Call Webcast Information
Littelfuse will host a conference call today, Thursday, August 5, 2010 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, 2010 and can be accessed through the Web site listed above.
About Littelfuse
Littelfuse is the worldwide leader in circuit protection, offering the industry's broadest and deepest portfolio of circuit protection products and solutions. Backed by industry-leading technical support, design and manufacturing expertise Littelfuse products are vital components in virtually every product that uses electrical energy, including portable and consumer
