Littelfuse reported the company's year-end results that ended December 29, 2018, were net sales of $1.72 billion, up 41% versus the prior year period with the help of acquisitions and rose 8% from existing business.
For the year, electronics sales increased 70%. However, the company posted a moderate 11% growth from existing business. Automotive sales for the year increased 6%, up 4% organically, despite a small decline in global automotive sales. Industrial sales rose 8%, and industrial sales from existing business increased 13%.
The company's GAAP diluted earnings per share was $6.52, up 25% versus the prior year, and the adjusted diluted EPS of $9.44 increased 22% compared to the previous year. Annual cash flow from operations was $331.8 million, and free cash flow was $257.0 million, both records for the company
Quarterly results
- Net sales for the quarter rose 32% from the prior year to $402.3 million
- Net sales were $402.3 million, up 32% versus the prior year period. Revenue growth from existing business was a more modest 4%.
- The company's electronics sales increased 62%. Existing electronics business sales grew 7%.
- Automotive sales decline 3% and the company's existing automotive electronics sales were down 1%. The company pointed to a similar decrease in global auto production of 4%.
- Industrial sales for the quarter decreased 3% due to the company's exit from the custom business in 2018. However, the existing industrial sales business grew 11%.
- GAAP diluted earnings per share was $1.29, up from a loss of $0.48 in the prior year. This GAAP diluted EPS includes $14.7 million of after-tax charges primarily related to certain purchase accounting adjustments and integration costs for the IXYS business, and non-operating foreign exchange losses.
- The company posted adjusted diluted earnings per share of $1.87, an increase of 3% over the prior year.
Discussion
"2018 was an exceptional year for us," said Dave Heinzmann, Littelfuse Chief Executive Officer. "Full year organic sales growth of 8% and adjusted EPS growth of 22% reflects the strong execution of our strategy despite softening demand during the fourth quarter. During the year, we made significant progress integrating the company's largest acquisition, IXYS Corporation, and are seeing the benefits of our expanded portfolio and combined global teams. Across our segments, we captured many strategic wins in our target end markets. We remain confident that our leading technologies, global footprint, close customer relationships, and talented associates position us for continued content growth in excess of the markets we serve."
Projections for Q1 2019
For the first quarter of 2019, the company predicts a 2% decrease in net sales (4% organically) down to $404 to $416 million compared to the same quarter of 2018. Adjusted diluted earnings per share are expected to be in the range of $1.86 to $2.00.
The company will pay a cash dividend on its common stock of $0.43 per share on March 7, 2019 to shareholders of record as of February 21, 2019.
