Littelfuse Updates Outlook for Third Quarter

    DES PLAINES, Ill.--Oct. 3, 2001--Littelfuse, Inc. today revised its outlook for the third quarter of 2001.
    Sales for the third quarter of 2001 are expected to be down approximately 4% from second quarter 2001 sales of $69.0 million. Diluted earnings per share for the third quarter are expected to be approximately $0.05 before restructuring charges of $0.04 per share related to the closure of a manufacturing facility in the U.K.
    "Lower sales expectations for the third quarter are the result of weaker-than-expected demand for both electronic and electrical products," said Howard B. Witt, Chairman, President and Chief Executive Officer. "Our electronic markets continue to be broadly impacted by this downturn and our electrical markets have also softened," added Witt.
    "As part of an aggressive plan to bring inventories in line with demand, we reduced production rates at most of our electronic and electrical factories this quarter," said Phil Franklin, Vice President, Treasurer and Chief Financial Officer. "These actions to reduce inventories are having a negative effect on gross margins. Gross margins were also affected this quarter by inventory returns and adjustments and severance costs related to workforce reductions," added Franklin.
    "In this difficult economic environment, our organization is more focused than ever on tightly managing working capital and capital expenditures," said Witt. "As a result of these efforts, free cash flow for the quarter is expected to be in excess of $9 million."
    "Cost take-out continues to be a high priority," said Franklin. "The U.K. plant closure, which will be completed before the end of 2002, is part of a larger manufacturing rationalization strategy. While the full plan has not yet been finalized, implementation of phase one began early this year, and further actions will likely continue through late 2002 or early 2003. Savings from the entire program are expected to be well over $10 million annually."

    Littelfuse will host a conference call today, October 3, 2001, at 11:00 a.m. Eastern / 10:00 a.m. Central time to discuss the third quarter update. The call will be broadcast live over the Internet and can be accessed through the company's Web site: www.littelfuse.com or through www.streetevents.com. Listeners should go to the Web site at least 15 minutes prior to the call to download and install any necessary audio software. The call will be available for replay through Wednesday, October 10, 2001 on the company's Web site: www.littelfuse.com.