DES PLAINES, IL -- Littelfuse has reported sales and earnings for the first quarter of 2005. Sales for the first quarter of 2005 were $121.7 million, a 9 percent increase from sales of $111.4 million in the first quarter of 2004. The company's May 2004 acquisition of Heinrich Industrie AG accounted for $22.6 million of sales in the first quarter. Excluding Heinrich, sales for the first quarter of 2005 were down 11 percent from the prior year quarter. Diluted earnings per share were 20 cents for the first quarter of 2005. Excluding a $1.7 million pre-tax charge for plant rationalization and staff reductions, diluted earnings per share were 24 cents for the first quarter of 2005. This compares to diluted earnings per share of 43 cents for the first quarter of 2004.

"Our first quarter performance was consistent with our expectations of sales and earnings similar to the fourth quarter," said Gordon Hunter, CEO. "Sales for our base business were below last year's first quarter due primarily to inventory correction in the electronic distribution channels and softness in the telecom end markets in North America and China."

Excluding Heinrich, sales for the first quarter of 2005 compared to the prior year period were down 11 percent, with the Americas down 9 percent, Europe down 15 percent and Asia down 12 percent. By market and excluding Heinrich, sales for the first quarter of 2005 compared to the prior year period were down 16 percent for electronics, down 7 percent for automotive and up 15 percent for electrical.

"Our automotive business, while up 4 percent sequentially in the first quarter, declined from last year's strong first quarter due to incremental sales to support an OEM recall program in 2004 and lower car build in both the U.S. and Europe in 2005. Electrical sales continue to trend above last year, reflecting improved fundamentals in the industrial and non-residential construction sectors," said Hunter. "Heinrich sales for the first quarter of 2005 showed a similar decline to the Littelfuse base business, primarily driven by weakness in the electronics markets."

Cash from operating activities was $0.1 million for the first quarter of 2005, compared to $2.9 million for the same period in 2004. Net capital expenditures for the first quarter of 2005 were $8.7 million, compared to $3 million in the first quarter of 2004.

"The increase in capital spending for the quarter relates primarily to manufacturing process improvements, new product introductions and future capacity increases," said Phil Franklin, CFO. "It is typical in our business for most of our cash flow to be generated in the second half of the year, and it is expected that this year will follow the same pattern."

For more information about Littelfuse, visit: www.littelfuse.com.

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