LITTELFUSE REPORTS FOURTH QUARTER AND 2004 RESULTS
2005-02-10 08:00:00
Littelfuse, Inc. (NASDAQ/NMS:LFUS) today reported sales and earnings for the fourth quarter and full year 2004.
Sales for the fourth quarter of 2004 were $124.1 million, a 22% increase from sales of $102.0 million in the fourth quarter of 2003. The acquisition of a majority interest in Heinrich Industrie accounted for $22.1 million or the entire increase from the same quarter in the prior year. Diluted earnings per share were $0.21 in the fourth quarter of 2004, including a $2.2 million ($0.10 per share) non tax deductible charge to write-down a portion of the Semitron investment acquired in 2002. This compares to diluted earnings per share of $0.19 for the fourth quarter of 2003, which included a $0.09 charge related to downsizing the company’s Ireland operation. Earnings for the fourth quarter of 2004 benefited from a tax adjustment made to reduce the full year effective rate from 36.0% to 34.8%. Heinrich was approximately neutral to earnings for the fourth quarter of 2004.
Sales for the full year 2004 were $500.2 million, a 47% increase from sales of $339.4 million for the full year 2003. Heinrich accounted for $60.1 million of the sales increase. Diluted earnings per share were $1.59 for the full year 2004, compared to $0.70 for the full year 2003.
“As we announced on December 21, 2004, our fourth quarter suffered from a slowdown in orders and shipments, coupled with higher operating expenses in part related to Sarbanes-Oxley compliance as well as increased consulting, marketing and legal costs,” said Gordon Hunter, Chief Executive Officer. “Although our year ended on a weak note, it was a year of many achievements for Littelfuse. We had major strategic accomplishments including the purchase of Heinrich and the full integration of Teccor, and our initiatives in the areas of solution selling and new product development gained momentum. Our financial performance for the year was outstanding and included record sales and free cash flow as well as earnings that were more than double 2003.”
By geographic segment and excluding Heinrich, sales for the fourth quarter of 2004 compared to the prior year period were down 2% in the Americas, down 2% in Europe and up 4% in Asia. By market and excluding Heinrich, sales for the fourth quarter of 2004 compared to the prior year period were up 2% for electronics, down 5% for automotive and up 1% for electrical. Favorable currency effects contributed four percentage points to the overall growth rate, with electronics and automotive benefiting three points and four points respectively.
By geographic segment and excluding Heinrich, sales for the full year 2004 compared to the prior year were up 27% in the Americas, 25% in Europe and 36% in Asia. By market and excluding Heinrich, sales for the full year 2004 compared to the prior year were up 45% for electronics, 5% for automotive and 8% for electrical. Favorable currency effects contributed four percentage points to the overall growth rate, with electronics and automotive benefiting four points and two points respectively.
“Our 45% growth in electronic sales in 2004 was driven by the first-half market recovery, a full year of Teccor sales and some early successes from our solution selling strategy,” said Hunter. “After a strong first half, our automotive business slowed as car build softened in the second half. Electrical sales continued to trend above last year, reflecting steady recovery in the industrial and non-residential construction markets.”
Cash from operating activities was $58.2 million for 2004 compared to $50.0 million in 2003. Net capital expenditures for 2004 were $22.1 million, compared to $14.0 million in 2003. Free cash flow (cash from operating activities minus net capital expenditures) was $36.1 million in 2004, compared to $35.9 million in 2003.
“Even after acquiring both Heinrich and Teccor within the last 18 months, our balance sheet remains strong, with a net debt to total capitalization ratio of 2%,” said Phil Franklin, Chief Financial Officer. “This is testimony to our strong free cash flow, which should allow us to continue to make strategic acquisitions and further consolidate our leadership position in the circuit protection segment.”
Littelfuse will host a conference call today, Thursday, February 10, 2005 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth 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 March 31, 2005 and can be accessed through the Web site listed above.
Littelfuse is a global company offering the broadest line of circuit protection products in the industry. In addition to its Des Plaines world headquarters, Littelfuse has manufacturing facilities in England, Ireland, Switzerland, Mexico, China, Germany, Hungary and the Philippines, as well as in Des Plaines and Arcola, Illinois and Irving, Texas. It also has sales, engineering and distribution facilities in the Netherlands, Singapore, Hong Kong, Korea, Taiwan, Japan and Brazil.
For more information, please visit Littelfuse’s Web site at
www.littelfuse.com.