DES PLAINES, IL -- Littelfuse, Inc. recorded a 2005 second quarter sales figure of $123.9 million, a four percent decrease from its $128.8 million posting in the second quarter of 2004. Heinrich Industrie AG, acquired in May 2004, accounted for $20.9 million of second quarter 2005 sales. Diluted earnings per share were $0.19 for the second quarter of 2005, compared to $0.46 for the second quarter of 2004.

Excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 10 percent, with the Americas down 12 percent, Europe down 21 percent and Asia down 1 percent. By market and excluding Heinrich, sales for the second quarter of 2005 compared to the prior year period were down 14 percent for electronics, down 5 percent for automotive and up 8 percent for electrical.

Electronic sales declined compared to the prior year quarter due to weakness in telecom end markets and lower distributor sales in both North America and Europe. The automotive sales decline reflected one-time sales in the prior year quarter related to an OEM recall program and slightly lower car build in North America. Electrical sales increased due to higher prices and strength in the non-construction segments of the market.

Sales for the first six months of 2005 were $245.6 million, up 2 percent from sales of $240.2 million for the first six months of 2004. Diluted earnings per share were $0.38 for the first six months of 2005, compared to $0.89 per diluted share for the prior year period. Excluding Heinrich, sales for the first six months of 2005 were down 10 percent compared to the same period in the prior year.

"Our second quarter performance, although well below the prior year, was similar to the first quarter and consistent with our most recent guidance." said Gordon Hunter, chief executive officer. "While we are disappointed in our financial results for the first half of 2005, we believe the business is now well positioned for improved performance in the second half of the year."

"Gross margin for the quarter was negatively impacted by $1.6 million of inventory and asset write-downs and an automotive quality charge of $0.5 million," said Phil Franklin, chief financial officer. "Operating expenses were higher than the second quarter of the prior year due to only a partial quarter of Heinrich in 2004."

Cash from operating activities was $12.1 million for the second quarter of 2005, compared to $16.1 million for the same period in 2004, due to the lower net income. Net capital expenditures for the second quarter of 2005 were $8.3 million, compared to $6.1 million in the second quarter of 2004, reflecting increased spending related to new products.

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