Littelfuse, Inc. Business Report up until FY ended Dec. 31, 2011
Business Highlights
Recent Years
-The increase in Automotive sales for fiscal year 2011 was primarily due to an incremental 46.9 million dollars in sales related to Cole Hersee, organic growth in all regions and favorable currency effects. Excluding Cole Hersee, automotive sales increased 11.6 million dollars or 8.4% year over year. Currency effects added 4.3 million dollars to sales in 2011 compared to 2010 primarily due to the stronger euro.
<Americas>
-Automotive sales for fiscal year 2011 increased 46.8 dollars million or 100% primarily reflecting incremental sales from Cole Hersee. Excluding Cole Hersee, Automotive sales increased 2.7 million dollars or 6% reflecting increased demand in the passenger and commercial vehicle markets.
<Europe>
-Automotive sales for fiscal 2011 increased 7.2 million dollars or 12% in 2011 primarily reflecting increased end-market demand and favorable currency effects.
<Asia-Pacific>
-Automotive sales for fiscal year 2011 increased 4.4 million dollars or 14% reflecting continued increased demand for passenger vehicles in the developing Asian markets as well as gains in market share. Also contributing to the increase in Automotive sales was incremental sales from Cole Hersee. Excluding Cole Hersee, Automotive sales increased 2.3 million dollars or 7%.
-Revenues for fiscal 2012 are expected to be in the range of 680 million dollars to 720 million dollars.
-In May 2006, the Company announced that it has completed the previously announced acquisition of Concord Semiconductor and its major subsidiaries for 25 million USD in cash and the assumption of 1.4 million USD in net debt. Concord Semiconductor, which operates facilities in Taiwan and China, is a former supplier to Littelfuse. The company has annual sales of approximately 15 million USD, excluding sales to Littelfuse. The acquisition adds silicon wafer manufacturing to its capabilities in Asia and expands its presence in the TVS diode market. Concord Semiconductor designs and manufactures TVS diodes and other over voltage circuit protection products for the automotive, consumer electronics, computer, industrial and telecom markets.
-In May 2004, the Company acquired 82% of the common stock of Heinrich Industrie AG for Euro 39.5 million (approximately USD 47.1 million) in cash, plus the acquisition costs of approximately USD 1.8 million, and with the subsequent purchase of the additional shares total ownership amounted to 97.2% as of January 1, 2005. During 2005 the Company acquired the remaining outstanding shares for approximately USD 3.7million, bringing the total ownership to 100% as of December 31,2005. Heinrich is the holding company for the Wickmann Group of circuit-protection products, which has three business units: electronic, automotive and electrical and Heinrich continues to operate in such business units after the acquisition. The Heinrich acquisition expands the Company's product offerings and strengthens the Company's position in the circuit-protection industry.
Business Overview
-Net sales increased 57.0 million dollars or 9% to 665.0 million dollars for fiscal year 2011 due primarily to an incremental 50.1 million dollars from business acquisitions and growth in protection relays, custom mining products and automotive products, offset by lower electronics sales. The company also experienced 10.4 million dollars in favorable foreign currency effects. Excluding acquisitions and currency effects, net sales decreased 3.5 million dollars or 1% year over year.-The increase in Automotive sales for fiscal year 2011 was primarily due to an incremental 46.9 million dollars in sales related to Cole Hersee, organic growth in all regions and favorable currency effects. Excluding Cole Hersee, automotive sales increased 11.6 million dollars or 8.4% year over year. Currency effects added 4.3 million dollars to sales in 2011 compared to 2010 primarily due to the stronger euro.
<Americas>
-Automotive sales for fiscal year 2011 increased 46.8 dollars million or 100% primarily reflecting incremental sales from Cole Hersee. Excluding Cole Hersee, Automotive sales increased 2.7 million dollars or 6% reflecting increased demand in the passenger and commercial vehicle markets.
<Europe>
-Automotive sales for fiscal 2011 increased 7.2 million dollars or 12% in 2011 primarily reflecting increased end-market demand and favorable currency effects.
<Asia-Pacific>
-Automotive sales for fiscal year 2011 increased 4.4 million dollars or 14% reflecting continued increased demand for passenger vehicles in the developing Asian markets as well as gains in market share. Also contributing to the increase in Automotive sales was incremental sales from Cole Hersee. Excluding Cole Hersee, Automotive sales increased 2.3 million dollars or 7%.
-Revenues for fiscal 2012 are expected to be in the range of 680 million dollars to 720 million dollars.
Acquisition
-In Dec. 2010, the Company announced that it has purchased all the outstanding stock of Cole Hersee Co. for 50 million USD. Cole Hersee, which is headquartered in Boston, Massachusetts, U.S., is a supplier of electrical products for the truck and bus market. With annual revenues of approximately 43 million USD, the Company has a manufacturing facility in Muzquiz, Mexico. (From a press release on December 22, 2010)-In May 2006, the Company announced that it has completed the previously announced acquisition of Concord Semiconductor and its major subsidiaries for 25 million USD in cash and the assumption of 1.4 million USD in net debt. Concord Semiconductor, which operates facilities in Taiwan and China, is a former supplier to Littelfuse. The company has annual sales of approximately 15 million USD, excluding sales to Littelfuse. The acquisition adds silicon wafer manufacturing to its capabilities in Asia and expands its presence in the TVS diode market. Concord Semiconductor designs and manufactures TVS diodes and other over voltage circuit protection products for the automotive, consumer electronics, computer, industrial and telecom markets.
-In May 2004, the Company acquired 82% of the common stock of Heinrich Industrie AG for Euro 39.5 million (approximately USD 47.1 million) in cash, plus the acquisition costs of approximately USD 1.8 million, and with the subsequent purchase of the additional shares total ownership amounted to 97.2% as of January 1, 2005. During 2005 the Company acquired the remaining outstanding shares for approximately USD 3.7million, bringing the total ownership to 100% as of December 31,2005. Heinrich is the holding company for the Wickmann Group of circuit-protection products, which has three business units: electronic, automotive and electrical and Heinrich continues to operate in such business units after the acquisition. The Heinrich acquisition expands the Company's product offerings and strengthens the Company's position in the circuit-protection industry.
Restructuring
-In May 2009, the Company announced to close its Duensen, Germany site and transfer its manufacturing to Mexico. Research and development, sales and other functions will remain in Germany. Negotiations with the workforce will be launched regarding the closure of the Duensen plant. Also, the supplier will consolidate its semiconductor wafer fabrication in Taiwan into Waxy location, China. These activities are due to begin in the third quarter of 2009 and be fully complete by the end of 2010. The annual savings from these activities are expected to be approximately 7 million USD. (From a press release on May 19, 2009)Business Partnership
-In January 2006, the Company announced that it has signed a new business cooperation agreement with Polytronics Technology Corporation that expands the relationship between the two companies. The Company has a minority investment in Polytronics, a leader in polymer PTC circuit protection components. Headquartered in Taiwan, Polytronics has both design and manufacturing capabilities in China.(From a press release by the company on Jan. 27, 2006)R&D
R&D Expenditure |
(in million dollars) |
| FY2011 | FY2010 | FY2009 | FY2008 | |
| Overall | 19.4 | 17.6 | 18.1 | 24.1 |
R&D Structure
-During 2010, the Company completed moving R&D operations to lower cost locations closer to its customers. R&D operations are now in Canada, China, Germany, the Philippines and Mexico as well as the United States.-In April 2008, the Company opened a new Technical Center in its Wuxi, China complex to perform product evaluation and applications testing. As part of its growing plans to better serve customers doing businesses in the region, the center was opened to help shorten customer product time-to-market cycles. The Wuxi Technical Center offers Asia-Pacific OEMs local expertise in selecting the appropriate protection solutions for applications such as automobiles, computers, and consumer electronics. The lab is capable of performing customer tests to ANSI, EIA, IEC, Telcordia, CSA and UL performance standards. (From a press release on April 10, 2008)
Product Development
-The Company introduced its new MLA Automotive Series varistors for transient voltage protection of integrated circuits and other board-level components in automotive applications. These protectors will be used in air flow sensors, battery control units, DC/DC converters and inverters, engine control units (ECUs), temperature measurement, wiper modules, airbag control units, ABS/ESP, sun roofs, dashboard systems and other automotive applications. (From a press release on January 12, 2011)Investment Activities
Capital Expenditure |
(in million dollars) |
| FY2011 | FY2010 | FY2009 | |
| Total | 17.6 | 22.4 | 15.5 |
Investment Outside USA
<Germany>
-In 2011, the Company announced it has opened a new European Headquarters in Bremen, Germany, to support the company's electronic, automotive and electrical customers throughout Europe. The company's European sales and engineering teams are based at the new location to foster collaboration and enhance customer service. The facility also features a product development and testing lab. (From a press release on September 27, 2011)