Littelfuse, Inc. Revised Earnings Guidance for the Third Quarter and Full Year of 2016; Provides Effective Tax Rate Guidance for the Full Year of 2017; Provides Pretax Special Charges Guidance for the Third Quarter of 2016
October 24, 2016 at 04:15 pm
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Littelfuse Inc. revised earnings guidance for the third quarter of 2016. For the period, the company sales expected to be in the range of $279 million to $281 million, compared to previous guidance of $262 million to $272 million. The revision in the guidance is primarily due to demand exceeding the forecast in the automotive segment and higher than expected PolySwitch business revenue. The revised guidance also includes approximately $5.5 million in revenue from the acquisition of the ON Semiconductor portfolio announced on August 29, 2016. Excluding certain special items, the adjusted diluted earnings per share guidance range is now expected to be in the range of $1.85 to $1.89, compared to previous guidance of $1.36 to $1.50. The revision in the third quarter guidance is primarily due to the following: Operating contributors including earnings from the higher revenue noted above and higher gross margins in the electronics segment due to favorable product mix, strong operational performance and currency benefits. In addition, accelerated PolySwitch integration activities are expected to drive higher cost savings than anticipated. These items are expected to have an approximate benefit of $0.22 per share in the third quarter.
For the full year of 2016, the company is revising its forecasted adjusted effective tax rate to 18% compared to a prior full year forecasted adjusted effective tax rate of 22%. The year-to-date tax rate adjustment in the third quarter is expected to have an approximate benefit of $0.22 per share.
The company also expects its forecasted adjusted effective tax rate for 2017 to be in the range of 17% 19%.
For the third quarter of 2016, the company expects to recognize pretax special charges in the range of $15 to $20 million not included in the adjusted diluted earnings per share guidance noted above. The primary special charge is a non-cash impairment charge related to the custom business within the industrial segment, due to continued end market softness in the potash mining industry.
Littelfuse, Inc. is an industrial technology manufacturing company. It designs, manufactures, and sells electronic components, modules, and subassemblies throughout the world. Its segments include Electronics, Transportation and Industrial. Its Electronics segment consists of product offerings in the industry, including fuses and fuse accessories, positive temperature coefficient (PTC) resettable fuses and polymer electrostatic discharge (ESD); semiconductor products, such as discrete transient voltage suppressor (TVS) diodes, silicon and silicon carbide metal-oxide-semiconductor field effect transistors and diodes, and insulated gate bipolar transistors (IGBT) technologies. Its Transportation segment consists of circuit protection, power control and sensing technologies for global original equipment manufacturers. Its Industrial Segment consists of industrial circuit protection (industrial fuse), industrial controls (protection relay, contactors, transformers) and temperature sensors.
Littelfuse, Inc. Revised Earnings Guidance for the Third Quarter and Full Year of 2016; Provides Effective Tax Rate Guidance for the Full Year of 2017; Provides Pretax Special Charges Guidance for the Third Quarter of 2016