(NASDAQ:LFUS) today reported sales and earnings for the fourth quarter and full year of 2011.
Fourth Quarter Highlights
Full Year Highlights
- Sales were $147.2 million for the fourth quarter of 2011, a 3% increase compared to the fourth quarter of 2010. Excluding the Cole Hersee and Selco acquisitions, sales declined 6% year over year due primarily to inventory de-stocking in the electronics supply chain.
- On a GAAP basis, diluted earnings per share for the fourth quarter of 2011 were $0.70 compared to $0.88 in the fourth quarter of 2010.
- Adjusted (non-GAAP) earnings for the fourth quarter were $0.67 per share (see Supplemental Schedule on page 8). The adjustments to GAAP earnings were to remove a $1.7 million tax benefit and a $0.7 million pre-tax purchase accounting charge related to the Selco acquisition.
- Sales and order trends by business unit were as follows:
- Automotive sales increased 37% year over year. Cole Hersee contributed $10.9 million for the quarter. Excluding Cole Hersee, automotive sales increased 4% driven by growth in the U.S. and Asia.
- Electrical sales increased 27% year over year due to double digit organic growth across all product lines and the addition of $2.2 million of Selco sales.
- Electronics sales declined 16% year over year and 25% sequentially due to channel inventory de-stocking in addition to slowing end demand.
- The electronics book-to-bill ratio for the fourth quarter was 0.96 and is running significantly above 1.0 so far for the first quarter of 2012.
- Cash provided by operating activities was $36.8 million for the fourth quarter of 2011, while capital expenditures were $5.2 million.
- Sales were $665.0 million for 2011, a 9% increase compared to sales of $608.0 million for 2010. Excluding the acquisitions of Cole Hersee and Selco, sales increased by 1% year over year, as strong organic growth in electrical (15%) and automotive (8%) was mostly offset by a 5% decline in electronics. Electrical growth in 2011 was driven primarily by protection relays and custom products which grew 69% and 29% respectively. All regions contributed to the growth in automotive. While electronics sales grew in the first half of 2011, sales in the second half were impacted by the channel inventory correction.
- On a GAAP basis, diluted earnings per share for 2011 increased 11% to $3.90 compared to $3.52 in 2010.
- Cash provided by operating activities was $120.8 million for 2011 compared to $104.1 million in 2010.
- Capital expenditures were $17.6 million in 2011 compared to $22.4 million in 2010.
“The fourth quarter came in consistent with our guidance with weak electronics sales, solid automotive performance and continued strong growth in electrical,” said Gordon Hunter, Chief Executive Officer. “Notwithstanding the slow finish to the year, we were encouraged by our performance in 2011 and proud of achieving a second consecutive year of record sales, earnings and cash flow. We made good progress on our growth initiatives, executed well operationally and the integrations of Cole Hersee and Selco are on track.”