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Littelfuse Inc. Reports Operating Results (10-Q)

May 06, 2010 | About:
10qk

10qk

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Littelfuse Inc. (LFUS) filed Quarterly Report for the period ended 2010-04-03.

Littelfuse Inc. has a market cap of $889.8 million; its shares were traded at around $40.67 with a P/E ratio of 67.8 and P/S ratio of 2.1. LFUS is in the portfolios of John Rogers of ARIEL CAPITAL MANAGEMENT LLC, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Europe sales increased $12.1 million or 68% to $29.8 million in the first quarter of 2010 compared to $17.7 million in the first quarter of 2009 mainly due to increased automotive and electronics sales. The Europe region also experienced $1.4 million in favorable foreign currency effects in the first quarter of 2010 as compared to the first quarter of 2009. This increase primarily resulted from sales denominated in the euro.

Asia-Pacific sales increased $31.4 million or 105% to $61.3 million in the first quarter of 2010 compared to $29.9 million in the first quarter of 2009 primarily due to stronger demand for consumer electronic products and restocking by distributors. The first quarter of 2009 reflected weak demand for consumer electronics and inventory reductions by distributors. The Asia-Pacific region also experienced $1.1 million in favorable foreign currency effects in the first quarter of 2010 as compared to the first quarter of 2009. This increase primarily resulted from sales denominated in the Korean won.

Interest expense was $0.4 million in the first quarter of 2010 compared to $0.7 million for the first quarter of 2009. Interest expense decreased in the first quarter of 2010 compared to the same quarter last year due to lower amounts of outstanding debt (primarily the Term Loan) in the first quarter of 2010. Other expense (income), net, consisting of interest income, royalties, non-operating income and foreign currency items was $0.1 million of expense for the first quarter of 2010 compared to $0.9 million of income in the first quarter of 2009. The results for 2009 were primarily due to the impact from foreign exchange revaluation.

Income before income taxes was $21.1 million for the first quarter of 2010 compared to a loss before income taxes of $9.9 million for the first quarter of 2009. Income tax expense was $5.6 million with an effective tax rate of 26.7% for the first quarter of 2010 compared to income tax benefit of $2.1 million with an effective tax rate of 21.3% in the first quarter of 2009. The change in effective tax rate is due to the positive impact of a change in the statutory rate in China offset by the mix of income (loss) by jurisdiction.

Net income for the first quarter of 2010 was $15.5 million or $0.69 per diluted share compared to net loss of $7.8 million or $0.36 per diluted share for the same quarter of 2009.

The company started 2010 with $70.4 million of cash and cash equivalents. Net cash provided by operating activities was approximately $6.9 million for the first quarter of 2010 reflecting $15.5 million in net income and $9.3 million in non-cash adjustments (primarily $8.8 million in depreciation and amortization and $1.1 million in stock-based compensation) offset by $17.9 million in net changes to various operating assets and liabilities. Changes in various operating assets and liabilities (including short-term and long-term items) that impacted cash flows for the first quarter 2010 consisted of net increases in accounts receivables ($13.9 million), inventory ($4.5 million), prepaid expenses and other ($1.2 million), accrued payroll and severance ($2.1 million), accounts payable and accrued expenses ($2.0 million), partially offset by a decrease in accrued income taxes ($5.9 million). The company also made a $6.0 million contribution to its domestic pension plan during the first quarter of 2010.

Read the The complete Report

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