Littelfuse Lowers Guidance for First Quarter

    DES PLAINES, Ill.--March 14, 2001--Littelfuse, Inc. today revised its outlook for the first quarter of 2001.
    Sales for the first quarter of 2001 are expected to be approximately $75 to $77 million and diluted earnings per share for the first quarter are expected to be in the range of $0.10 to $0.14. Excluding one-time separation costs related to workforce reductions, earnings are expected to be $0.14 to $0.18. For the first quarter of 2000, Littelfuse reported sales of $95.3 million and diluted earnings per share of $0.46.
    "The primary factor behind the sales shortfall is reduced demand for electronic products resulting from weakness in the telecom and computer end markets and excess inventories at contract manufacturers and distributors," said Howard B. Witt, Chairman, President and Chief Executive Officer. "We now expect the electronics weakness to continue at least through the first half of the year. While we are hesitant to predict when the upturn will occur, we do expect our sales and margins to increase in the second half of the year as our new product programs ramp up and excess channel inventories are depleted."
    "In response to the revised sales expectations for 2001, we have taken steps to reduce our operating costs. These include a reduction in our workforce of approximately 350 jobs, or 9% of total employment, at an approximate cost of $1.4 million. In addition, we have accelerated other cost reduction programs, including movement of production to lower cost manufacturing sites," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer.