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LITTELFUSE REPORTS SECOND QUARTER NET; ALL-TIME HIGH IN SALES

 LITTELFUSE REPORTS SECOND QUARTER NET; ALL-TIME HIGH IN SALES
 CHICAGO, July 22 /PRNewswire/ -- Littelfuse Inc. of suburban Des Plaines today reported $1.1 million net income and all-time record sales for the three months ended June 30, the second quarter of its first year as an independent, publicly owned corporation following its former parent company's reorganization.
 Howard B. Witt, president and chief executive officer, said net sales grew more than 12.6 percent to $39.1 million in the second quarter, from $34.7 million a year ago. Volume gains were fairly well balanced throughout the company's electronic, automotive and power fuse market segments, he noted, with particularly strong increases in Europe and Singapore. Despite the fresh start balance sheet asset writeups, operating income exceeded 11 percent of second quarter sales.
 The second quarter's $1.1 million net income is not comparable with year-ago results prior to reorganization, when Littelfuse was a subsidiary of Tracor Inc. However, second quarter net income partially offsets a $2.7 million first-quarter loss resulting from the amortization of a one-time inventory writeup of approximately $5 million and other non-cash charges from reorganization accounting.
 For the six months, net sales were up 13.4 percent to $76.2 million, from $67.2 million a year ago. The net loss for the six months was reduced to less than $1.6 million. The strong operating performance and cash flow enabled Littelfuse to repay $6.7 million of debt in the first quarter and $6.4 million in the second, well ahead of the required six month paydown of $1.6 million.
 "All of this is good to report," Witt said, "but we want to caution everyone against simply extrapolating these first-half results into the second half for several reasons. The global economic recovery is still uneven and somewhat tentative. Our company's sales are not seasonal, but they are not perfectly even from quarter to quarter. The first half is typically somewhat stronger than the second, and the third quarter is typically somewhat stronger than the fourth.
 "We also were able to bring inventories down in the first half," Witt noted, "but we must maintain our outstanding customer service levels and increasing sales may mean holding or increasing inventory levels."
 James F. Brace, vice president, treasurer and chief financial officer, said second-half cash flow will not have the same degree of benefit as was realized in the first half from approximately $5 million in inventory and other working capital reductions plus the starting cash balance. "We can expect to continue prepaying debt, but not at the $13 million pace we were able to manage in the first half," Brace said.
 The amortization effect of fresh-start accounting adjustments, which exceeds $17 1/2 million on a pre-tax basis in 1992, will drop to less than $12 million pre-tax in 1993 and succeeding years, with a substantial portion of it being tax deductible, Brace noted.
 Littelfuse is the leading producer of advanced circuit protection devices for the electronic and automotive industries worldwide, and is extending its technological leadership to innovative new fuses for the power equipment industry. In addition to its Des Plaines world headquarters, Littelfuse has research and manufacturing facilities in England, Switzerland and Mexico, as well as in Centralia, Arcola and Watseka, Ill. It also has sales, engineering and distribution facilities in The Netherlands, Singapore and Farmington Hills, Mich., near Detroit. The company employees approximately 1,200 people in the U.S. and 600 in other countries. Many are engineers and management to develop advanced fuses and processes for new product applications.
 LITTELFUSE INC.
 Statements Of Operations
 (In thousands except per share data - Unaudited)
 Periods ended June 30, 1992 Three Months Six Months
 Net sales $ 39,102 $ 76,246
 Cost of sales (Note) 24,928 53,938
 Gross profit 14,174 22,308
 Selling, administrative, and general
 expenses 7,944 15,311
 Amortization of reorganization value
 and other intangibles 1,768 3,536
 Operating income 4,462 3,461
 Interest expense 1,929 4,101
 Other (income) expense 89 41
 Income (loss) before income taxes 2,444 (681)
 Income taxes 1,310 871
 Net income (loss) $ 1,134 $ (1,552)
 Net income (loss) per share: $ .11 $ (.16)
 (A) Cost of sales for the three months and the six months ended June 30, 1992 includes amortization of the one time "fresh start" inventory write-up of $198 and $5,110, respectively.
 -0- 7/22/92
 /CONTACT: Jim Brace, vice president, treasurer & CFO, or Art Skwerski, 708-824-1188, both of Littelfuse/ CO: Littelfuse Inc. ST: Illinois IN: SU: ERN


SM -- NY017 -- 1725 07/22/92 09:29 EDT
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Date:Jul 22, 1992
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