DES PLAINES, IL -- Littelfuse has reported sales and earnings for the fourth quarter and full year 2004.

Sales for the fourth quarter of 2004 were $124.1 million, a 22 percent increase from sales of $102 million in the fourth quarter of 2003. The acquisition of a majority interest in Heinrich Industrie accounted for $22.1 million or the entire increase from the same quarter in the prior year. Diluted earnings per share were 21 cents in the fourth quarter of 2004, including a $2.2 million (10 cents per share) non tax deductible charge to write-down a portion of the Semitron investment acquired in 2002. This compares to diluted earnings per share of 19 cents for the fourth quarter of 2003, which included a 9 cent charge related to downsizing the company's Ireland operation. Earnings for the fourth quarter of 2004 benefited from a tax adjustment made to reduce the full year effective rate from 36 percent to 34.8 percent. Heinrich was approximately neutral to earnings for the fourth quarter of 2004.

Sales for the full year 2004 were $500.2 million, a 47 percent increase from sales of $339.4 million for the full year 2003. Heinrich accounted for $60.1 million of the sales increase. Diluted earnings per share were $1.59 for the full year 2004, compared to 70 cents for the full year 2003.

"As we announced on December 21, 2004, our fourth quarter suffered from a slowdown in orders and shipments, coupled with higher operating expenses in part related to Sarbanes-Oxley compliance as well as increased consulting, marketing and legal costs," said Gordon Hunter, CEO. "Although our year ended on a weak note, it was a year of many achievements for Littelfuse. We had major strategic accomplishments including the purchase of Heinrich and the full integration of Teccor, and our initiatives in the areas of solution selling and new product development gained momentum. Our financial performance for the year was outstanding and included record sales and free cash flow as well as earnings that were more than double 2003."

By geographic segment and excluding Heinrich, sales for the fourth quarter of 2004 compared to the prior year period were down 2 percent in the Americas, down 2 percent in Europe and up 4 percent in Asia. By market and excluding Heinrich, sales for the fourth quarter of 2004 compared to the prior year period were up 2 percent for electronics, down 5 percent for automotive and up 1 percent for electrical. Favorable currency effects contributed four percentage points to the overall growth rate, with electronics and automotive benefiting three points and four points respectively.

By geographic segment and excluding Heinrich, sales for the full year 2004 compared to the prior year were up 27 percent in the Americas, 25 percent in Europe and 36 percent in Asia. By market and excluding Heinrich, sales for the full year 2004 compared to the prior year were up 45 percent for electronics, 5 percent for automotive and 8 percent for electrical. Favorable currency effects contributed four percentage points to the overall growth rate, with electronics and automotive benefiting four points and two points respectively.

"Our 45 percent growth in electronic sales in 2004 was driven by the first-half market recovery, a full year of Teccor sales and some early successes from our solution selling strategy," said Hunter. "After a strong first half, our automotive business slowed as car build softened in the second half. Electrical sales continued to trend above last year, reflecting steady recovery in the industrial and non-residential construction markets."

Cash from operating activities was $58.2 million for 2004 compared to $50 million in 2003. Net capital expenditures for 2004 were $22.1 million, compared to $14 million in 2003. Free cash flow (cash from operating activities minus net capital expenditures) was $36.1 million in 2004, compared to $35.9 million in 2003.

"Even after acquiring both Heinrich and Teccor within the last 18 months, our balance sheet remains strong, with a net debt to total capitalization ratio of 2 percent," said Phil Franklin, CFO. "This is testimony to our strong free cash flow, which should allow us to continue to make strategic acquisitions and further consolidate our leadership position in the circuit protection segment."

For more information, please visit Littelfuse's Web site at www.littelfuse.com.

_______________________________________

Click here to view the rest of today's headlines.