Littelfuse (LFUS) 8-K Littelfuse Reports Fourth Quarter and Full Year Results

Exhibit 99.1

NEWS RELEASE Littelfuse Inc.
8755 West Higgins Road, Suite 500
Chicago, Illinois 60631
p: (773) 628-1000 f: (773) 628-0802
www.littelfuse.com

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

LITTELFUSE REPORTS FOURTH QUARTER AND FULL YEAR RESULTS

          CHICAGO, February 8, 2010 —Littelfuse, Inc. (NASDAQ:LFUS) today reported sales and earnings for the fourth quarter and full year of 2009.

Fourth Quarter Highlights

• Sales for the fourth quarter of 2009 were $127.9 million, a 21% increase compared to the fourth quarter of 2008 and a 10% increase from the third quarter of 2009. As indicated in the company’s third quarter press release, the fourth quarter of 2009 included 14 weeks instead of the normal 13.

• Electronics sales increased 19% year over year and 11% sequentially, due to increased demand across all geographies and end markets and replenishment of inventories throughout the supply chain.

• Automotive sales increased 32% year over year and 11% sequentially, due to strong growth in Asia, continued rebound in Europe and some recovery in the U.S.

• Electrical sales increased 12% year over year and 2% sequentially, due to increased Startco sales. The base electrical business declined 9% year over year due primarily to weakness in the non-residential construction market.

• On a GAAP basis, diluted earnings per share for the fourth quarter of 2009 were $0.53, which was above the company’s latest guidance of $0.49 to $0.52 due primarily to a more favorable tax rate. In the fourth quarter of 2008, the company recorded a loss of $0.42. The sharply improved earnings compared to the prior year were the result of higher sales, a significantly improved cost structure and fewer restructuring charges.

• Cash provided by operating activities was $28.9 million for the fourth quarter of 2009, due to strong earnings and excellent working capital performance. Accounts receivable days sales outstanding improved to 61 compared to 63 in the third quarter of 2009. Inventory turns increased to 6.0 for the fourth quarter compared to 5.9 for the third quarter.

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• Capital expenditures were $2.2 million for the fourth quarter of 2009.

• At the end of the fourth quarter of 2009, the company had cash net of debt of $7.2 million compared to a net debt position of $20.1 million at the end of the third quarter of 2009.

• The book-to-bill ratio for electronics for the fourth quarter of 2009 was 1.15.

Full Year Highlights

• Sales of $430.1 million for 2009 were down 19% compared to 2008, due to declines in all market segments and all geographies reflecting the global economic downturn compounded by distributor de-stocking.

• On a GAAP basis, diluted earnings per share were $0.43 for 2009 compared to $0.37 for 2008, as cost reductions and fewer restructuring charges more than offset lower sales volume.

• Cash provided by operating activities was $29.6 million for 2009 compared to $40.7 million in 2008. Cash flow in 2008 benefited from a sharp sales decline and the resulting working capital liquidation at the end of 2008.

• Capital expenditures were $15.5 million in 2009 compared to $51.3 million in 2008, as a result of significant 2008 spending on facilities and equipment related to manufacturing transfer programs.

          “We had a remarkably strong finish to an incredibly challenging year,” said Gordon Hunter, Chief Executive Officer. “To finish as we did after starting the year with the worst quarter in the company’s history is a great testament to the Littelfuse team. We not only delivered on all of our cost reduction initiatives, but we were able to ramp-up production to meet the sharp demand increases in the latter part of the year, giving us a delivery advantage over many competitors. Additionally, we had several important design wins that will benefit us in 2010 and beyond.”

          “Our fourth quarter financial performance offers a preview of Littelfuse’s earnings power and cash generating capability as sales continue to recover and manufacturing transfers near completion,” said Phil Franklin, Chief Financial Officer. “With our semiconductor consolidation completing later this year, our target of a 15% pre-tax operating margin is clearly within sight.”

Outlook

• Sales for the first quarter of 2010 are expected to be in the range of $130 to $138 million, which would represent 54% to 64% growth over the first quarter of 2009.

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• In some areas, costs are expected to be higher than the fourth quarter of 2009, due to higher commodity prices, less favorable exchange rates, and approximately $0.6 million of one-time expenses related to relocation of R&D labs to the company’s new technical center in Urbana-Champaign, Illinois.

• Earnings for the first quarter of 2010 are expected to be in the range of $0.50 to $0.62 per diluted share, assuming a tax rate of 29%.

• Capital spending for 2010 is expected to be in the range of $16 to $19 million.

          “With our strong balance sheet, much-improved cost structure, leading market positions and exciting growth opportunities, we are building the foundation for superior financial performance in the years to come,” said Hunter.

Conference Call Webcast Information

          Littelfuse will host a conference call today, Monday, February 8, 2010 at 11:00 a.m. Eastern/10:00 a.m. Central time to discuss the fourth 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 March 31, 2010 and can be accessed through the Web site listed above.

About Littelfuse

          As the worldwide leader in circuit protection products and solutions with annual sales of $430.1 million in 2009, 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, Japan, Korea, Mexico, the Netherlands, the Philippines, Singapore, Taiwan and the U.S.

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

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“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)

	Fourth Quarter							Year-to-Date
	2009		2008		%Change			2009		2008		%Change
Business Unit
Electronics	$	79.2	$	66.3		19	%	$	263.0	$	342.5		(23	%)
Automotive		30.0		22.8		32	%		98.5		126.9		(22	%)
Electrical*		18.8		16.8		12	%		68.6		61.5		12	%
Total	$	127.9	$	105.9		21	%	$	430.1	$	530.9		(19	%)

	Fourth Quarter							Year-to-Date
	2009		2008		%Change			2009		2008		%Change
Geography
Americas*	$	49.2	$	45.0		9	%	$	166.1	$	201.8		(18	%)
Europe		24.3		20.5		19	%		83.4		118.6		(30	%)
Asia-Pacific		54.5		40.4		35	%		180.6		210.5		(14	%)
Total	$	127.9	$	105.9		21	%	$	430.1	$	530.9		(19	%)

* Startco Engineering, acquired at the beginning of the fourth quarter 2008, added $7.1 million and $3.9 million in net sales for the quarter and $23.7 million and $3.9 million in net sales for the fiscal year ended January 2, 2010 and December 27, 2008, respectively, to the Electrical business unit and Americas region.

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

	January 2, 2010			December 27, 2008
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	70,354		$	70,937
Accounts receivable, less allowances		79,521			62,126
Inventories		52,567			66,679
Deferred income taxes		13,804			11,693
Prepaid expenses and other current assets		18,196			17,968
Assets held for sale		7,343			—
Total current assets		241,785			229,403
Property, plant and equipment:
Land		7,808			11,089
Buildings		56,916			68,165
Equipment		280,928			301,835
		345,652			381,089
Accumulated depreciation		(207,500	)		(220,939	)
Net property, plant and equipment		138,152			160,150
Intangible assets, net of amortization:
Patents, licenses and software		12,451			8,077
Distribution network		10,837			11,577
Customer lists, trademarks and tradenames		13,363			2,954
Goodwill		94,986			106,961
		131,637			129,569
Investments		11,742			3,436
Deferred income taxes		8,460			15,235
Other assets		1,351			1,135
Total Assets	$	533,127		$	538,928
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	23,646		$	18,854
Accrued payroll		13,291			17,863
Accrued expenses		8,561			17,220
Accrued severance		11,418			8,393
Accrued income taxes		4,525			2,570
Current portion of long-term debt		14,183			8,000
Total current liabilities		75,624			72,900
Long-term debt, less current portion		49,000			72,000
Accrued severance		421			7,200
Accrued post-retirement benefits		18,271			41,637
Other long-term liabilities		11,212			11,340
Total shareholders’ equity		378,599			333,851
Total Liabilities and Shareholders’ Equity	$	533,127		$	538,928
Common shares issued and outstanding of 21,792,241 and 21,719,734, at January 2, 2010, 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 Twelve Months Ended
	Jan. 2, 2010*		Dec. 27, 2008			Jan. 2, 2010*		Dec. 27, 2008
Net sales	$	127,928	$	105,887		$	430,147	$	530,869
Cost of sales		82,871		84,061			304,786		387,200
Gross profit		45,057		21,826			125,361		143,669
Selling, general and administrative expenses		22,044		28,023			88,506		107,239
Research and development expenses		4,379		5,968			18,134		24,069
Amortization of intangibles		1,394		943			5,026		3,866
		27,817		34,934			111,666		135,174
Operating income (loss)		17,240		(13,108	)		13,695		8,495
Interest expense		533		2,392			2,377		3,440
Other (income) expense, net		949		(2,678	)		481		(5,568	)
Income (loss) before income taxes		15,758		(12,822	)		10,837		10,623
Income taxes		4,037		(3,597	)		1,426		2,607
Net income (loss)	$	11,721	$	(9,225	)	$	9,411	$	8,016
Net income (loss) per share:
Basic	$	0.54	$	(0.42	)	$	0.43	$	0.37
Diluted	$	0.53	$	(0.42	)	$	0.43	$	0.37
Weighted average shares and equivalent shares outstanding:
Basic		21,772		21,717			21,743		21,722
Diluted		21,982		21,733			21,812		21,826

* 2009 had 53 and 14 weeks for the fiscal year and quarter, respectively as compared to 52 and 13 weeks for the 2008 fiscal year and quarter, respectively.

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

	For the Twelve Months Ended
	January 2, 2010			December 27, 2008
OPERATING ACTIVITIES:
Net income	$	9,411		$	8,016
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		31,596			28,333
Impairment of assets		829			3,169
Impairment of investments		—			2,787
Amortization of intangibles		5,026			3,866
Provision for bad debts		319			286
Loss (gain) on sale of property, plant and equipment		703			(511	)
Stock-based compensation		5,503			5,058
Excess tax benefit on share-based compensation		15			172
Deferred income taxes		(2,905	)		(3,947	)
Pension settlement expenses		—			5,725
Changes in operating assets and liabilities:
Accounts receivable		(15,569	)		23,080
Inventories		15,549			(6,593	)
Accounts payable and accrued expenses*		(7,934	)		(3,129	)
Accrued payroll and severance		(9,018	)		(15,705	)
Accrued taxes		(3,322	)		(3,462	)
Prepaid expenses and other		(577	)		(6,398	)
Net cash provided by operating activities		29,626			40,747
INVESTING ACTIVITIES:
Purchase of property, plant and equipment		(15,536	)		(51,288	)
Purchase of businesses, net of cash acquired		(920	)		(47,465	)
Proceeds from sale of investment		133			—
Proceeds from sale of property, plant and equipment		1,558			4,479
Net cash used in investing activities		(14,765	)		(94,274	)
FINANCING ACTIVITIES:
Proceeds from debt		32,374			190,500
Payments of debt		(50,076	)		(123,912	)
Proceeds from exercise of stock options		1,505			1,857
Notes receivable, common stock		—			5
Purchases of common stock		—			(6,623	)
Net cash (used in) provided by financing activities		(16,197	)		61,827
Effect of exchange rate changes on cash		753			(2,306	)
(Decrease) increase in cash and cash equivalents		(583	)		5,994
Cash and cash equivalents at beginning of period		70,937			64,943
Cash and cash equivalents at end of period	$	70,354		$	70,937

* Includes contributions to the Company’s U.S. pension fund

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