Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the third quarter of 2012.
Third Quarter Highlights
- Sales for the third quarter of 2012 were $172.7 million. This was a 1% decline year over year and 2% sequentially and consistent with third quarter guidance.
- Diluted earnings per share for the third quarter of 2012 were $1.08. This included $1.5 million of acquisition-related expenses and impairment charges which reduced earnings by $.05 per share.
- Sales and order trends by business unit were as follows:
- Electronics sales declined 9% year over year and 2% sequentially due to sluggish end markets globally and tight inventory management by distributors. The order rate softened during the quarter with the book-to-bill ratio ending the quarter at .89.
- Automotive sales increased 9% year over year due primarily to $5.1 million of sales from the recently-completed Accel acquisition. Excluding Accel, automotive sales declined 2% due to the effects of a weaker euro and slowing commercial vehicle sales partially offset by modest growth in passenger vehicles.
- Electrical sales increased 10% year over year due to continued growth in protection relays and custom products and an upturn in solar sales reflecting the success of new products.
- The effective tax rate dropped to 22.6% resulting from favorable book-to-provision adjustments and more income earned in low-tax jurisdictions.
- Cash provided by operating activities was $43.5 million for the third quarter of 2012 compared to $37.9 million for the third quarter of 2011. Through nine months of 2012 operating cash flow was $76.1 million and capital expenditures were $12.8 million.
- The company acquired the assets of Terra Power LLC on September 26, 2012. Terra Power provides power distribution and switching products to the commercial vehicle market and has a growing revenue base of approximately $7 million. It will be managed as part of the Cole Hersee business.
“We turned in solid financial performance for the quarter despite uncertain market conditions,” said Gordon Hunter, Chief Executive Officer. “As projected, the electronics business did not show typical seasonal strength and the commercial vehicle business softened considerably. On the other hand, the electrical business continues to grow and the passenger vehicle business is holding up reasonably well despite challenges in Europe.”