Manufacturers

Littelfuse Misses Q2 Earnings, Revenue Estimates

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CHICAGO — Littelfuse, Inc. today reported financial results for the second quarter ended June 29, 2019:

“We continue to work through the challenging business cycles in the electronics and automotive end markets which we expect to persist through this year,” said Dave Heinzmann, Littelfuse Chief Executive Officer. “We are actively managing costs while remaining focused on long-term growth drivers. During the quarter, we saw solid design activity and won business across a number of high-growth applications. With the strength of our core business and execution by our global teams, we are navigating the current environment as we deliver on our five-year growth strategy.”

For the third quarter of 2019:

  • Net sales are expected to be in the range of $362 to $374 million
  • Adjusted diluted EPS is expected to be in the range of $1.50 to $1.64
  • Adjusted effective tax rate is expected to be in the range of 20% – 21%

Dividend

The company’s Board of Directors approved a 12% increase in the quarterly cash dividend from $0.43 to $0.48. This equates to an annualized dividend of $1.92 per share. The dividend will be paid on September 5, 2019 to shareholders of record as of August 22, 2019.

Highlights

  • Net sales of $397.9 million were down 13% versus the prior year period, and down 11% organically, primarily due to ongoing global trade uncertainties, continued efforts by distribution partners to reduce excess electronics channel inventories and further declines in global auto production, especially in China
  • Segment performance versus the prior year period:
    • Electronics sales decreased 13% (down 11% organically)
    • Automotive sales decreased 15% (down 12% organically)
    • Industrial sales decreased 9% due to the exit of the Custom business in 2018 (up 1% organically)
  • GAAP diluted EPS was $1.75 and adjusted diluted EPS was $1.91. EPS was significantly impacted by lower volumes and associated leverage versus the prior year
  • GAAP effective tax rate was 18.2% and the adjusted effective tax rate was 17.3%
  • Cash flow from operations was $49.2 million and free cash flow was $38.0 million
  • the second quarter and through July 26, 2019, the company repurchased 188,214 and 49,816 shares of common stock, respectively, under its share purchase authorization
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Marie Jakle

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