DES PLAINES, Illinois, December 19, 2008 -Littelfuse, Inc. (NASDAQ:LFUS) today announced revised guidance for the fourth quarter of 2008 as follows:
o Sales for the fourth quarter are now expected to decline 25-29% compared to third-quarter sales of $141.4 million.
o As a result of the large revenue decline, the company now expects a fourth-quarter loss in the range of ($0.15) to ($0.25) per diluted share, which includes restructuring charges of approximately $3.2 million (pre-tax) primarily from the write-down of manufacturing assets, or approximately $0.10 per diluted share.
o Free cash flow (cash provided by operating activities less investing activities associated with the purchase of property, plant & equipment) is expected to be approximately $5 million for the fourth quarter, despite continued high levels of capital expenditures and severance payments related to manufacturing transfers. The company anticipates cash provided by operating activities will be approximately $15 million for the fourth quarter. The company expects to end the year with a strong balance sheet and $75 million of available borrowing capacity under its revolving credit facility.
"Electronic and automotive sales dropped off sharply in November and have declined further in December," said Gordon Hunter, Chief Executive Officer. "After a weak third quarter, automotive sales fell again in the fourth quarter as OEMs slashed production rates and shut down assembly lines for much of the month of December. Most electronics end-markets have also weakened substantially in the fourth quarter. We have been further impacted by electronics distributors reducing inventories in reaction to slowing end demand and the highly uncertain 2009 outlook. Our electrical business has held up well all year, but it too began to show signs of slowing late in the quarter."
"All of our manufacturing transfers remain on or ahead of schedule, and we still expect to achieve at least $20 million of savings from these programs in 2009," said Phil Franklin, Chief Financial Officer. "In response to the revenue decline and in anticipation of further top-line challenges in 2009, we plan to reduce operating expenses by an additional $10 million as well as take steps to further reduce manufacturing expenses."
Conference Call Webcast Information
Littelfuse will host a conference call today, Friday, December 19, 2008 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the revised guidance. The call will be broadcast live over the Internet and can be accessed through the company's Web site by selecting this link. 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 January 16, 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 $536.1 million in 2007, 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.