Littelfuse (LFUS) Q4 1999 earnings summary

Executive summary

• FY1999 sales reached a record $296.4 million, up 10% YoY; diluted EPS rose 35% to a record $1.16.

• Q4 1999 sales were $82.0 million, operating income $13.2 million, net income $7.6 million and diluted EPS $0.35.

Financial highlights

• Gross profit increased 17% to $117.3 million; operating income rose 31% to $44.6 million and net income rose 27% to $25.2 million.

• EBITDA increased 25% to $70.2 million; operating cash flow was $38.9 million, versus $39.3 million in 1998.

• R&D spending increased 13% to $9.5 million; capital expenditures were $20.0 million, down 6% YoY.

• 1999 net income excludes no separately identified one-time benefit; 1998 included a $1.1 million one-time tax benefit from the Korean subsidiary liquidation.

Outlook and guidance

• 2000 sales growth was expected from continued electronics demand, 1999–2000 product introductions and a full year of suppression-product sales.

• Cost-reduction actions were expected to contribute a similar amount to 1999's close-to-$7 million bottom-line benefit in 2000, helping offset customer pricing pressure.

• 2000 capex was forecast at $22–$23 million, mainly for new-product tooling and production equipment; continued R&D and international market investment were planned.