Littelfuse (LFUS) 8-K Littelfuse Reports Second Quarter Results

Exhibit 99.1

CONTACT: Phil Franklin,
     Vice President, Operations Support, CFO and Treasurer (773) 628-0810

LITTELFUSE REPORTS SECOND QUARTER RESULTS

          CHICAGO, July 30, 2009 —Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the second quarter of 2009 that were in line with the company’s updated guidance issued on July 7, 2009.

Second Quarter Highlights

• Sales for the second quarter of 2009 were $101.4 million, a 20% sequential increase from the first quarter of 2009 and a 32% decline compared to the prior-year quarter.

• On a GAAP basis, the company had a loss of ($0.12) per diluted share, which included restructuring charges of $7.0 million (pre-tax) or approximately $0.22 per share. Adjusted diluted earnings per share (see Supplemental Information on page 8) were $0.10. The restructuring charges reflect the costs to further consolidate manufacturing and reduce operating expenses as announced on May 19, 2009.

• Capital expenditures for the second quarter of 2009 were $4.2 million, which was down from $7.2 million in the first quarter of 2009.

• Cash used in operating activities was ($2.3) million for the second quarter of 2009. The most significant factor negatively impacting cash flow was increased accounts receivable resulting primarily from accelerating sales. This was partially offset by continued inventory reduction.

• The company ended the second quarter of 2009 with $48.3 million in cash and $75.0 million of borrowing capacity under its revolving credit facility. At June 27, 2009, the company was in compliance with all debt covenants and expects to remain so for the foreseeable future.

• The book-to-bill ratio for electronics for the second quarter of 2009 was 1.07.

          “The second quarter sequential sales increase was mostly driven by improvement in Asia for both electronics and automotive products, as well as improvement in the European automotive market. Increases in Startco sales also contributed, while electrical fuse sales increased in line with normal seasonality,” said Gordon Hunter, Chief Executive Officer.

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          “Compared to the first quarter of 2009, gross margin (excluding restructuring charges) improved by 720 basis points and operating expenses declined by $2.5 million,” said Phil Franklin, Chief Financial Officer. “This clearly indicates that our cost reductions are beginning to flow through the P&L. We have now reduced our breakeven point to $95 million in quarterly sales and expect further modest reductions in breakeven over the next year.”

Outlook

• Sales for the third quarter of 2009 are expected to be in the range of $104 to $108 million, which represents 3-7% sequential growth over the second quarter.

• Earnings for the third quarter of 2009 are expected to be in the range of $0.14 to $0.21 per diluted share.

• Capital spending for 2009 is now expected to be approximately $21 million.

          “In this challenging environment, we continue to execute well on the basics such as cost reduction, customer responsiveness, inventory control and price management,” said Hunter. “We believe this will be a slow, non-linear recovery, but as our markets improve, we will leverage our leaner processes and lower breakeven point. We are gaining confidence that in the second half of 2009 we will be solidly profitable and significantly free-cash-flow positive.”

Conference Call Webcast Information

          Littelfuse will host a conference call today, Thursday, July 30, 2009 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the second quarter results. The call will be broadcast live over the Internet and can be accessed through the company’s Web site:www.littelfuse.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 September 30, 2009 and can be accessed through the Web site listed above.

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About Littelfuse

          As the worldwide leader in circuit protection products and solutions with annual sales of $530.9 million in 2008, the Littelfuse portfolio is backed by industry-leading technical support, design and manufacturing expertise. Littelfuse products are vital components in virtually every product that uses electrical energy, including automobiles, computers, consumer electronics, handheld devices, industrial equipment and telecom/datacom circuits. Littelfuse offers Teccor^®, Wickmann^®and Pudenz^® brand circuit protection products. In addition to its Chicago, Illinois, world headquarters, Littelfuse has sales, distribution, manufacturing and engineering facilities in Brazil, Canada, China, England, Germany, Hong Kong, India, Ireland, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.

          For more information, please visit Littelfuse’s web site atwww.littelfuse.com.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

The statements in this press release that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of the PSLRA. These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance, economic conditions, the impact of competitive products and pricing, product quality problems or product recalls, capacity and supply difficulties or constraints, coal mining exposures reserves, failure of an indemnification for environmental liability, exchange rate fluctuations, commodity price fluctuations, the effect of the company’s accounting policies, labor disputes, restructuring costs in excess of expectations, pension plan asset returns less than assumed, integration of acquisitions and other risks which may be detailed in the company’s other Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This report should be read in conjunction with information provided in the financial statements appearing in the company’s Annual Report on Form 10-K for the year ended December 27, 2008. For a further discussion of the risk factors of the company, please see Item 1A. “Risk Factors” to the company’s Annual Report on Form 10-K for the year ended December 27, 2008.

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LITTELFUSE, INC.
Net Sales by Business Unit and Geography
(In millions of USD, unaudited)

	Second Quarter							Year-to-Date
	2009		2008		% Change			2009		2008		% Change
Business Unit
Electronics	$	61.5	$	95.5		(36	%)	$	112.8	$	180.4		(37	%)
Automotive		23.2		38.9		(40	%)		41.6		75.2		(45	%)
Electrical*		16.7		15.4		8	%		31.4		27.9		13	%
Total	$	101.4	$	149.8		(32	%)	$	185.8	$	283.5		(34	%)

	Second Quarter							Year-to-Date
	2009		2008		% Change			2009		2008		% Change
Geography
Americas*	$	36.9	$	55.1		(33	%)	$	73.7	$	104.8		(30	%)
Europe		19.7		35.8		(45	%)		37.3		69.1		(46	%)
Asia-Pacific		44.8		58.9		(24	%)		74.8		109.6		(32	%)
Total	$	101.4	$	149.8		(32	%)	$	185.8	$	283.5		(34	%)

* Startco Engineering, acquired at the beginning of the fourth quarter 2008, added $5.3 million and $9.6 million in sales to the Electrical business unit and the Americas’ region in the three and six months ended June 27, 2009, respectively.

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LITTELFUSE, INC.
Condensed Consolidated Balance Sheets
(In thousands of USD)

	June 27, 2009			December 27, 2008
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	48,332		$	70,937
Accounts receivable, less allowances		68,568			62,126
Inventories		55,380			66,679
Deferred income taxes		11,342			11,693
Prepaid expenses and other current assets		19,016			17,968
Total current assets		202,638			229,403
Property, plant and equipment:
Land		11,121			11,089
Buildings		65,358			68,165
Equipment		296,567			301,835
		373,046			381,089
Accumulated depreciation		(217,136	)		(220,939	)
Net property, plant and equipment		155,910			160,150
Intangible assets, net of amortization:
Patents, licenses and software		12,113			8,077
Distribution network		11,577			11,577
Customer lists, trademarks and tradenames		12,831			2,954
Goodwill		95,052			106,961
		131,573			129,569
Investments		5,494			3,436
Deferred income taxes		13,077			15,235
Other assets		1,106			1,135
Total Assets	$	509,798		$	538,928
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	17,319		$	18,854
Accrued payroll		13,957			17,863
Accrued expenses		9,682			17,220
Accrued severance		10,663			8,393
Accrued income taxes		—			2,570
Current portion of long-term debt		13,621			8,000
Total current liabilities		65,242			72,900
Long-term debt, less current portion		60,000			72,000
Accrued severance		4,448			7,200
Accrued post-retirement benefits		31,192			41,637
Other long-term liabilities		12,811			11,340
Total shareholders’ equity		336,105			333,851
Total Liabilities and Shareholders’ Equity	$	509,798		$	538,928

Common shares issued and outstanding of 21,734,131 and 21,719,734, at June 27, 2009, and December 27, 2008, respectively.

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LITTELFUSE, INC.
Consolidated Statements of Income
(In thousands of USD, except per share data, unaudited)

	For the Three Months Ended					For the Six Months Ended
	June 27, 2009			June 28, 2008		June 27, 2009			June 28, 2008
Net sales	$	101,396		$	149,826	$	185,799		$	283,534
Cost of sales		75,982			102,364		142,111			197,591
Gross profit		25,414			47,462		43,688			85,943
Selling, general and administrative expenses		22,946			26,944		45,288			52,622
Research and development expenses		4,712			6,213		9,533			11,836
Amortization of intangibles		1,212			1,001		2,423			1,893
		28,870			34,158		57,244			66,351
Operating (loss) income		(3,456	)		13,304		(13,556	)		19,592
Interest expense		637			368		1,307			702
Other (income) expense, net		(237	)		43		(1,116	)		356
(Loss) income before income taxes		(3,856	)		12,893		(13,747	)		18,534
Income taxes		(1,272	)		3,752		(3,379	)		5,281
Net (loss) income	$	(2,584	)	$	9,141	$	(10,368	)	$	13,253
Net (loss) income per share:
Basic	$	(0.12	)	$	0.42	$	(0.48	)	$	0.61
Diluted	$	(0.12	)	$	0.42	$	(0.48	)	$	0.61
Weighted average shares and equivalent shares outstanding:
Basic		21,728			21,687		21,724			21,734
Diluted		21,748			21,869		21,735			21,880

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LITTELFUSE, INC.
Consolidated Statements of Cash Flows
(In thousands of USD, unaudited)

	For the Six Months Ended
	June 27, 2009			June 28, 2008
OPERATING ACTIVITIES:
Net (loss) income	$	(10,368	)	$	13,253
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:
Depreciation		15,592			13,725
Amortization of intangibles		2,423			1,893
Stock-based compensation		2,647			2,506
Loss (gain) on sale of property, plant and equipment		510			(305	)
Changes in operating assets and liabilities:
Accounts receivable		(5,878	)		(7,552	)
Inventories		11,508			(4,329	)
Accounts payable and accrued expenses		(6,554	)		(3,845	)
Accrued payroll and severance		(4,685	)		(784	)
Accrued taxes		(7,913	)		(3,246	)
Prepaid expenses and other		(1,489	)		3,208
Net cash (used in) provided by operating activities		(4,207	)		14,524
INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(11,399	)		(25,101	)
Purchase of business, net of cash acquired		(920	)		(9,280	)
Proceeds from sale of property, plant and equipment		71			3,384
Net cash used in investing activities		(12,248	)		(30,997	)
FINANCING ACTIVITIES:
Proceeds from debt		11,621			54,000
Payments of debt		(18,000	)		(43,412	)
Proceeds from exercise of stock options		183			(6,623	)
Purchases of common stock		—			1,187
Net cash (used in) provided by financing activities		(6,196	)		5,152
Effect of exchange rate changes on cash		46			1,636
Decrease in cash and cash equivalents		(22,605	)		(9,685	)
Cash and cash equivalents at beginning of period		70,937			64,943
Cash and cash equivalents at end of period	$	48,332		$	55,258

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LITTELFUSE, INC.
Supplemental Information
(In thousands of USD, except per share data, unaudited)

	For the Three Months Ended
	June 27, 2009
	U.S. GAAP			Special Items			Adjusted
Net sales	$	101,396		$	—		$	101,396
Cost of sales		75,982			(3,905	) (1)		72,077
Gross profit		25,414			3,905			29,319
% of sales		25.1	%					28.9	%
Total operating expenses		28,870			(3,139	) (1)		25,731
% of sales		28.5	%					25.4	%
Operating (loss) income		(3,456	)		7,044			3,588
% of sales		(3.4	%)					3.5	%
Interest/other expense (income), net		400			—			400
(Loss) income before income taxes		(3,856	)		7,044			3,188
Income tax (benefit) expense		(1,272	)		2,197			925
Effective tax rate		33.0	%					29.0	%
Net (loss) income	$	(2,584	)	$	4,847		$	2,263
Net (loss) income per diluted share:	$	(0.12	)	$	0.22		$	0.10
Weighted average shares and equivalent shares outstanding — diluted:		21,748			21,748			21,748

Note: The Company believes that adjusted operating income (loss) is more indicative of its ongoing operating performance than U.S. GAAP operating income since the former excludes special charges that are related to closure of legacy operations.

Special Items:

(1) Relates to severance and asset impairment charges for the U.S., Germany and Asia.

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