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Vishay Reports Q1

MALVERN, Pa. — Dr. Felix Zandman, Executive Chairman of the Board, and Dr. Gerald Paul, President and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH), announced today that revenues for the fiscal quarter ended April 2, 2011 were $695.2 million, compared to $640.5 million for the fiscal quarter ended April 3, 2010. The net earnings attributable to Vishay stockholders for the fiscal quarter ended April 2, 2011 were $75.3 million, or $0.43 per diluted share, compared to $45.4 million, or $0.24 per diluted share for the fiscal quarter ended April 3, 2010.

As anticipated in our fourth fiscal quarter of 2010 earnings release, the fiscal quarter ended April 2, 2011 includes $10.0 million of one-time tax expense related to the write-down of deferred tax assets in Israel to reflect the lower corporate income tax rate enacted in January 2011 on certain types of income earned after December 31, 2010. Adjusted net earnings per diluted share, which excludes this item, were $0.49 for the fiscal quarter ended April 2, 2011. There were no such reconciling items for the fiscal quarter ended April 3, 2010.

On July 6, 2010, Vishay Intertechnology successfully completed the spin-off of Vishay Precision Group, Inc. (“VPG”) to its stockholders as an independent, publicly-traded company. Until July 6, 2010, VPG was part of Vishay Intertechnology and its assets, liabilities, results of operations, and cash flows are included in the amounts reported in the consolidated financial statements through the date of the spin-off, including the fiscal quarter ended April 3, 2010, presented on the accompanying tables. Net earnings of VPG, included in the results of Vishay Intertechnology, were $1.8 million for the fiscal quarter ended April 3, 2010.

Commenting on the results for the first quarter 2011, Dr. Paul, President and Chief Executive Officer, stated, “The first quarter of 2011 was a good start to another promising year. Our order intake recovered more quickly than anticipated. We report a book-to-bill ratio of 1.01 at still very high backlogs. The sale of our products to end customers by distributors increased 8% compared to the fourth quarter 2010, reaching record levels. Most markets continue to be strong, especially the automotive and industrial end markets. To enable Vishay to benefit from the stronger than originally anticipated business climate we now expect capital expenditures of $175 million in 2011, approximately 16% higher than originally forecast, with a focus on capacity expansion for innovative technologies and products at MOSFETs, Trench diodes, power film capacitors and power inductors.”

Dr. Paul continued, “The first quarter of 2011 demonstrated that we are able to keep our fixed costs and break-even point at the levels we targeted after a deep restructuring in 2009. This forms a solid basis for entering a new phase of accelerated internal growth for Vishay, leading to increasing profitability.”

Commenting on the outlook for the second quarter 2011 Dr. Paul stated, “We anticipate revenues of between $695 and $735 million at similar margins.”

Commenting on the Company's strategy, Dr. Felix Zandman, Executive Chairman of the Board and Chief Technical and Business Development Officer, stated, “Traditionally we have grown our business both organically and through acquisitions. This will not change. Organically, we see growth potential with our broad product line of leading specialty products that support the development of renewable energies and increase the efficiency of conventional technologies. We also have a proven track record of acquiring companies whose earnings are accretive to our bottom line. We will continue to look for acquisitions of small to mid-size companies that fit our product and financial profile.”

Dr. Zandman continued, “Additionally, we are focused on enhancing shareholder value by buying back our stock and improving earnings per share. In the fourth quarter of last year, we completed the repurchase of 21.7 million shares of our common stock for $275 million. Should circumstances be advantageous, we would consider another stock buy-back.”

Dr. Zandman concluded, “In pursuing organic growth, acquisitions, and share buy-backs, we will be very mindful to maintain our prudent capital structure.”

The Company expects to file its Quarterly Report on Form 10-Q for the first fiscal quarter of 2011 with the Securities and Exchange Commission after the close of the markets on Tuesday, May 3, 2011. This financial report will be available for viewing and download at ir.vishay.com.

A conference call to discuss first quarter financial results is scheduled for Tuesday, May 3, 2011 at 10:00 AM ET. The dial-in number for the conference call is 877-589-6174 (+1 706-643-1406 if calling from outside the United States or Canada) and the conference ID is #56346287.

There will be a replay of the conference call from 2:00 PM ET on Tuesday, May 3, 2011 through 11:59 PM ET on Sunday, May 8, 2011. The telephone number for the replay is 800-642-1687 (+1 706-645-9291 if calling from outside the United States or Canada) and the access code is #56346287.

There will also be a live audio webcast of the conference call. This can be accessed directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

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