Exhibit 99
VISHAY REPORTS RESULTS FOR THE YEAR AND FOURTH QUARTER 2004
MALVERN, Pa., Feb. 8 /PRNewswire-FirstCall/ --
-- Year 2004 was our second best year operationally after the record year
2000 despite a disappointing Fourth Quarter
-- Restructuring and alignment activities, which resulted in charges of
approximately $75 million, were undertaken in 2004 to better position
our operations for the future
-- Report January 2005 book-to-bill of 1.1
-- Cash balance at December 31, 2004 was $638 million up $82 million over
last year
Dr. Gerald Paul, President and Chief Executive Officer of Vishay
Intertechnology, Inc. (NYSE: VSH), announced today that sales for the year ended
December 31, 2004 were $2,413,576,000 compared to sales of $2,170,597,000 for
the year ended December 31, 2003. Net earnings for the year ended December 31,
2004 were $44,696,000 or $0.27 per diluted share, compared with net earnings for
the year ended December 31, 2003 of $26,842,000 or $0.17 per diluted share.
Sales for the quarter ended December 31, 2004 were $541,636,000, as
compared to sales of $567,199,000 for the quarter ended December 31, 2003. Net
loss for the quarter ended December 31, 2004 was $54,458,000 or $0.33 per
diluted share, compared with net earnings for the quarter ended December 31,
2003 of $10,339,000 or $0.06 per diluted share.
Earnings of $44,696,000 for the year ended December 31, 2004 were impacted
by restructuring and severance costs of $47,250,000, by write-downs of fixed
assets of $27,296,000, by write-downs of inventory on hand to market value of
$400,000, by losses resulting from adjustments to previously existing purchase
commitments of $16,613,000, and by a write-off of purchased in-process research
and development (IPR&D) of $1,500,000 related to our acquisition of RFWaves,
partially offset by a gain on settlement of a note receivable of $3,100,000.
These items and their tax related consequences, net of a favorable tax
settlement, had a negative $0.32 effect on earnings per diluted share. The year
ended December 31, 2003 included charges for restructuring and severance costs
of $28,546,000, a write-down of fixed assets of $1,014,000, a loss on
extinguishment of debt of $9,910,000, a loss on previously existing purchase
commitments of $11,392,000, and a write-down of tantalum inventories on hand to
market value of $5,406,000, offset by a gain on an insurance claim of
$33,906,000 resulting in a negative $0.11 effect on earnings per diluted share.
In summary, earnings per diluted share for the year 2004 were $0.27 and the
negative effect of all the above-mentioned items was $0.32 per diluted share.
The net loss of $54,458,000 for the quarter ended December 31, 2004 was
impacted by restructuring and severance costs of $40,193,000, by a write-down of
fixed assets of $27,296,000, by write-downs of inventory on hand to market value
of $400,000, and by losses resulting from adjustments to previously existing
purchase commitments of $16,613,000. These items and their tax related
consequences, net of a favorable tax settlement, had a negative $0.34 effect on
earnings per diluted share. Earnings for the quarter ended December 31, 2003
were impacted by restructuring and severance costs of $10,302,000 and a
write-down of tantalum inventories on hand to market value of $1,221,000, offset
by a gain on an insurance claim of $3,545,000 resulting in a negative $0.03
effect on earnings per diluted share. In summary, the net loss per diluted share
for the fourth quarter of 2004 was ($0.33) and the negative effect of the
above-mentioned items was $0.34.
Commenting on the results for the year and fourth quarter 2004, Dr. Paul
stated, "In spite of a disappointing fourth quarter, the year ended December 31,
2004 was Vishay's second best operational year in its history. Sales for the
full year of 2004 increased 11% as compared to 2003. Net earnings for 2004 and
2003 included restructuring, assets write-downs, inventory write- downs, losses
resulting from purchase commitments, write-offs of purchased IPR&D, and certain
one-time gains. Without these items, operational results more than doubled. We
continued to shape the Company for the future by starting to expand critical
capacities, by continuing cost reductions across the board and by introducing
new products and processes. Our fourth quarter was a difficult one in terms of
revenue and profits. We suffered from a severe drop in volume and selling
prices. In addition, a planned inventory reduction contributed to lower
profits."
Dr. Paul continued, "We are looking ahead with confidence. For January
2005, we are happy to report a book-to-bill of 1.1 and we expect sales in the
first quarter of 2005 to be in the range of $540 million to $560 million. In
addition to the expected annual savings of $23 million due to the restructuring
costs incurred in 2004, during 2005 we are implementing an aggressive program to
reduce our fixed costs by $50 million. Gross margins for the first quarter of
2005 compared to the fourth quarter of 2004 should improve as a result of the
above mentioned restructuring. Our financial position is strong and we are
confident in the future prospects of the Company. We continued to generate cash
from operations during 2004, and our cash position was $638 million at December
31, 2004."
Commenting on the Company's merger and acquisition activities, Dr. Felix
Zandman, Chairman of the Board and Chief Technical and Business Development
Officer, stated, "We expect the acquisition of SI Technologies, Inc. to be
finalized in the first half of 2005. I am pleased to note that the acquisitions
of RFWaves and of the MIC division of Aeroflex have been successfully
integrated. We anticipate increased M&A activities in the coming year. We
strongly emphasize our new product introduction in all of our divisions and in
particular, in our semiconductor activities. We will continue to seek
investments in start-up companies with advanced technologies related to our
product portfolio. Vishay will continue to focus and increase further its
efforts in these areas."
Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE
(VSH), is one of the world's largest manufacturers of discrete semiconductors
(diodes, rectifiers, transistors, and optoelectronics) and selected ICs, and
passive electronic components (resistors, capacitors, inductors, and
transducers). Vishay's components can be found in products manufactured in a
very broad range of industries worldwide. Vishay is headquartered in Malvern,
Pennsylvania, and has operations in 17 countries employing over 25,000 people.
Vishay can be found on the Internet at http://www.vishay.com.
Statements contained herein that relate to the Company's future
performance, including statements with respect to trends in revenues and
bookings and the anticipated future benefits of the Company's product,
acquisition and cost reduction strategies are forward-looking statements within
the safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Such statements are based on current expectations only, and are subject to
certain risks, uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated or
projected. Among the factors that could cause actual results to materially
differ include: general business and economic conditions, particularly in the
markets that we serve, the availability of appropriate acquisition opportunities
on terms that the Company considers attractive, difficulties in integrating
acquired companies, difficulties in implementing our cost reduction strategies
such as labor unrest or legal challenges to our lay-off or termination plans,
under-utilization of production facilities in lower-labor-cost countries,
operation of redundant facilities due to difficulties in transferring production
to lower-labor-cost countries, difficulties in new product development, and
other factors affecting the Company's operations, markets, products, services,
and prices that are set forth in its December 31, 2003 Report on Form 10-K filed
with the Securities and Exchange Commission. You are urged to refer to the
Company's Form 10-K for a detailed discussion of these factors. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or otherwise.
Management believes that stating the impact on net earnings of items such
as restructuring and severance, write-downs of fixed assets, write-downs of
inventory, losses on purchase commitments, and other items is meaningful to
investors because its provides insight with respect to ongoing operating results
of the Company.
NOTE: A conference call to discuss fourth quarter and year ending financial
results is scheduled for Tuesday, February 8, 2005 at 11:00 AM (EST). The
dial-in number for the conference call is 800-553-0329 (612-332- 0923 if calling
from outside the United States or Canada). The conference operator will require
the following information in order to admit you into the call: Company Name:
Vishay Intertechnology, Inc. and Moderators: Vishay Executives. There will be a
replay of the conference call from 2:30 PM (EST) on Tuesday, February 8, 2005
through 11:59 PM (EST) on Sunday, February 13, 2005. The telephone number for
the replay is 800-475-6701 (320-365-3844 if calling from outside the United
States or Canada). The access code is 766862.
There will also be a live audio webcast of the conference call. This can be
accessed directly from the Investor Relations section of the Vishay website at
http://ir.vishay.com.
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Year Ended December 31,
-----------------------------
2004 2003
------------ ------------
Net sales $ 2,413,576 $ 2,170,597
Costs of products sold 1,842,080 1,690,267
Loss on purchase commitments 16,613 11,392
Gross profit 554,883 468,938
23.0% 21.6%
Selling, general, and administrative
expenses 386,346 380,011
Purchased in-process research and
development 1,500 -
Restructuring and severance costs 47,250 28,546
Asset write-downs 27,296 1,014
Operating income 92,491 59,367
3.8% 2.7%
Other income (expense):
Interest expense (34,252) (39,226)
Loss on extinguishment of debt - (9,910)
Gain on insurance claim - 33,906
Minority interest (11,592) (8,056)
Other 11,778 2,289
(34,066) (20,997)
Earnings before taxes 58,425 38,370
Income taxes 13,729 11,528
Net earnings $ 44,696 $ 26,842
Basic earnings per share $ 0.27 $ 0.17
Diluted earnings per share $ 0.27 $ 0.17
Weighted average shares outstanding -
basic 163,701 159,631
Weighted average shares outstanding -
diluted 165,938 160,443
VISHAY INTERTECHNOLOGY, INC.
Summary of Operations
(Unaudited - In thousands except earnings per share)
Fiscal Quarter Ended
December 31,
-----------------------------
2004 2003
------------ ------------
Net sales $ 541,636 $ 567,199
Costs of products sold 439,753 442,533
Loss on purchase commitments 16,613 -
Gross profit 85,270 124,666
15.7% 22.0%
Selling, general, and administrative
expenses 93,776 96,274
Restructuring and severance costs 40,193 10,302
Asset write-downs 27,296 -
Operating (loss) income (75,995) 18,090
-14.0% 3.2%
Other income (expense):
Interest expense (8,091) (9,234)
Gain on insurance claim - 3,545
Minority interest (2,476) (2,217)
Other 3,338 2,303
(7,229) (5,603)
(Loss) earnings before taxes (83,224) 12,487
Income taxes (28,766) 2,148
Net (loss) earnings $ (54,458) $ 10,339
Basic (loss) earnings per share $ (0.33) $ 0.06
Diluted (loss) earnings per share $ (0.33) $ 0.06
Weighted average shares outstanding -
basic 166,099 159,767
Weighted average shares outstanding -
diluted 166,099 161,258
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
December 31, December 31,
2004 2003
------------ ------------
Assets
Current assets:
Cash and cash equivalents $ 637,782 $ 555,540
Accounts receivable, net 351,710 368,087
Inventories:
Finished goods 155,195 171,447
Work in process 150,738 154,532
Raw materials 212,040 189,413
Deferred income taxes 46,240 48,471
Prepaid expenses and other current
assets 136,286 143,610
Total current assets 1,689,991 1,631,100
Property and equipment, at cost:
Land 97,398 110,021
Buildings and improvements 428,829 375,178
Machinery and equipment 1,666,035 1,614,265
Construction in progress 75,974 85,169
Allowance for depreciation (1,098,611) (971,033)
1,169,625 1,213,600
Goodwill 1,429,193 1,466,714
Other intangible assets, net 137,204 135,150
Other assets 227,182 119,796
Total assets $ 4,653,195 $ 4,566,360
Continues on following page.
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets, continued
(Unaudited - In thousands)
December 31, December 31,
2004 2003
------------ ------------
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks $ 3,727 $ 17,511
Trade accounts payable 131,889 158,182
Payroll and related expenses 131,128 111,842
Other accrued expenses 225,617 282,279
Income taxes 29,631 10,112
Current portion of long-term debt 51 1,282
Total current liabilities 522,043 581,208
Long-term debt less current portion 752,145 836,606
Deferred income taxes 26,644 35,036
Deferred income 18,722 27,659
Other liabilities 234,801 248,652
Accrued pension and other
postretirement costs 232,143 239,950
Minority interest 94,567 83,215
Stockholders' equity:
Common stock 15,142 14,467
Class B common stock 1,468 1,538
Capital in excess of par value 2,028,253 1,918,785
Retained earnings 594,892 550,196
Unearned compensation (152) (306)
Accumulated other comprehensive
income 132,527 29,354
2,772,130 2,514,034
$ 4,653,195 $ 4,566,360
Contact:
Richard N. Grubb, Executive
Vice President and Chief Financial
Officer or Robert A. Freece,
Executive Vice President
610-644-1300
SOURCE Vishay Intertechnology, Inc.
-0- 02/08/2005
/CONTACT: Richard N. Grubb, Executive Vice President and Chief Financial,
or Robert A. Freece, Executive Vice President, both of Vishay Intertechnology,
Inc., +1-610-644-1300/
/Web site: http://www.vishay.com /