News

Littelfuse Moving Forward with Power Control Strategy

November 01, 2017 by Paul Shepard

Littelfuse, Inc. today reported financial results for the third quarter ended September 30, 2017. Net sales were $317.9 million, up 13% versus the prior year period. Organic revenue growth was 9%, excluding revenue from acquisitions closed in the past 12 months, the e-house business divestiture and foreign currency effects.

Growth by segment versus the prior year period: Electronics sales increased 19% (up 11% organically); Automotive sales increased 7% (up 5% organically); and Industrial sales increased 7% (up 15% organically).

Additional highlights:

  • GAAP diluted EPS was $1.87; Adjusted EPS of $2.11 increased 13% over last year
  • The GAAP effective tax rate was 22.9% and adjusted effective tax rate was 22.4%
  • Cash flow from operations was a record $87.7 million, up 36% from the prior year period
  • The electronics segment book-to-bill ratio for the third quarter was 1.00
  • On August 28, the company announced it had entered into a definitive agreement to acquire all of the outstanding shares of IXYS Corporation in a cash and stock transaction. The transaction represented an enterprise value of approximately $655 million at announcement. (Based on Littelfuse closing stock price on August 25, 2017 per Bloomberg. Enterprise value inclusive of approximately $95 million net cash position for IXYS Corporation as of June 30, 2017.)
  • In October, the company amended and expanded its unsecured credit facility to $900 million

“We continued our positive momentum, as our team delivered another quarter of strong sales, earnings and cash flow growth coupled with quality execution,” said Dave Heinzmann, Littelfuse Chief Executive Officer. “While our sales growth was led again by electronics, both our automotive and industrial businesses performed well, delivering the margin expansion we expected.

“We also took a significant step forward in our power control strategy with the pending acquisition of IXYS Corporation. The combination of our talented employees, customer relationships and technological capabilities will create a strong power semiconductor player in the industry.

“While we are seeing a typical seasonal slowdown in order rates, end market demand remains strong across electronics,” continued Heinzmann. “We expect continued top line growth in the fourth quarter across all of our businesses, with normal sequential declines in both sales and margins for the quarter.

For the fourth quarter of 2017:

  • Net sales are expected to be in the range of $292 to $304 million, up 5% on a reported basis and up 2% organically at the midpoint, versus the prior year quarter
  • Adjusted diluted earnings per share are expected to be in the range of $1.58 to $1.72