Exhibit 99
VISHAY REPORTS RESULTS FOR FIRST QUARTER 2005
MALVERN, Pa., May 3 /PRNewswire-FirstCall/ --
-- Sales for first quarter 2005 increased 2.2% compared to fourth quarter
2004
-- Cost of products sold, as a percentage of sales, of 78.6% for first
quarter 2005 improved by 260 basis points compared to 81.2% in fourth
quarter 2004
-- Orders in first quarter 2005 increased 21% compared to fourth quarter
2004
-- Book-to-bill for first quarter 2005 was 1.06, actives book-to-bill was
1.01 and passives book-to-bill was 1.10
Dr. Felix Zandman, Chairman of the Board, and Dr. Gerald Paul, President
and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH),
announced today that sales for the quarter ended April 2, 2005 were $553,677,000
compared to sales of $640,921,000 for the first quarter of 2004, a 13.6%
decrease, and $541,636,000 for the fourth quarter of 2004, a 2.2% increase. Net
earnings for the quarter ended April 2, 2005 were $5,712,000, or $0.03 per
diluted share, compared with net earnings for the quarter ended April 3, 2004 of
$35,966,000 or $0.20 per diluted share and a net loss for the quarter ended
December 31, 2004 of $54,458,000 or $0.33 per share.
Net earnings of $5,712,000, or $0.03 per diluted share, for the quarter
ended April 2, 2005 were impacted by restructuring and severance costs of
$5,027,000 and by losses resulting from adjustments to previously existing
purchase commitments of $2,277,000. These items and their tax related
consequences had a negative $0.03 effect on earnings per diluted share. Net
earnings for the first quarter 2004 of $35,966,000, or $0.20 per diluted share,
were negligibly impacted by restructuring and severance costs.
Commenting on the results for the first quarter 2005, Dr. Paul stated, "We
are pleased to report the results of our efforts to reduce costs and to
restructure the Company. While our sales grew 2.2% in the first quarter 2005
compared to the previous quarter, our cost of products sold as a percentage of
sales improved by 260 basis points to 78.6% in the first quarter 2005 from 81.2%
in the fourth quarter 2004. Our cost cutting and restructuring will even be
accelerated in the quarters to come. We believe that our reduction of fixed
overhead will not impact our ability to introduce new products and to further
develop our processes. On the contrary, we are expanding capacities and
introducing next generations of processes. We will be prepared for the next
upturn, whenever it will take place."
Dr. Paul continued, "For the second quarter 2005, we expect sales to be in
the range of $570 million to $590 million. Due to the effects of the already
implemented cost cutting and restructuring, we expect a further improvement of
margins."
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 recently finalized the acquisition of SI Technologies. This
acquisition added the established brand name 'Revere' to our portfolio. We
expect to realize significant opportunities for synergies in R&D, manufacturing,
and marketing and sales. As always, we will continue our efforts to round out
our product lines and grow our high margin niche businesses by making smaller
acquisitions, whenever an opportunity arises. But at this time of low
valuations, we are intensifying our exploration of opportunities to acquire a
larger target."
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, an
inability to attract and retain highly qualified personnel, and other factors
affecting the Company's operations, markets, products, services, and prices that
are set forth in its December 31, 2004 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 and losses on purchase commitments is meaningful
to investors because it provides insight with respect to intrinsic operating
results of the Company.
NOTE: A conference call to discuss first quarter financial results is
scheduled for Tuesday, May 3, 2005 at 11:00 AM (ET). The dial-in number for the
conference call is 800-230-1766 (612-332-0636 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 (ET) on Tuesday,
May 3, 2005 through 11:59 PM (ET) on Sunday, May 8, 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 779818.
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)
Fiscal quarter ended
---------------------
April 2, April 3,
2005 2004
--------- ---------
Net sales $ 553,677 $ 640,921
Costs of products sold 435,270 481,210
Loss on purchase commitments 2,277 -
Gross profit 116,130 159,711
21.0% 24.9%
Selling, general, and administrative
expenses 96,340 97,329
Restructuring and severance costs 5,027 301
Operating income 14,763 62,081
2.7% 9.7%
Other income (expense):
Interest expense (8,053) (8,875)
Minority interest (2,652) (2,806)
Other 4,342 990
(6,363) (10,691)
Earnings before taxes 8,400 51,390
Income taxes 2,688 15,424
Net earnings $ 5,712 $ 35,966
Basic earnings per share $ 0.03 $ 0.22
Diluted earnings per share $ 0.03 $ 0.20
Weighted average shares outstanding -
basic 166,107 160,438
Weighted average shares outstanding -
diluted* 167,153 201,324
* - Diluted weighted average shares for the first quarter of 2004 include the
effects of convertible and exchangeable debt instruments. These debt instruments
were anti-dilutive for the first quarter of 2005.
VISHAY INTERTECHNOLOGY, INC.
Consolidated Condensed Balance Sheets
(Unaudited - In thousands)
April 2, December 31,
2005 2004
------------ -------------
Assets
Current assets:
Cash and cash equivalents $ 623,422 $ 632,700
Accounts receivable, net 357,779 351,710
Inventories:
Finished goods 155,836 155,195
Work in process 152,844 150,738
Raw materials 207,169 212,040
Deferred income taxes 43,097 43,786
Prepaid expenses and other current
assets 129,845 136,251
Total current assets 1,669,992 1,682,420
Property and equipment, at cost:
Land 95,790 97,398
Buildings and improvements 424,805 428,829
Machinery and equipment 1,660,568 1,668,225
Construction in progress 76,930 75,974
Allowance for depreciation (1,120,131) (1,098,611)
1,137,962 1,171,815
Goodwill 1,425,621 1,435,121
Other intangible assets, net 123,935 127,797
Other assets 216,960 221,437
Total assets $ 4,574,470 $ 4,638,590
Liabilities and stockholders' equity
Current liabilities:
Notes payable to banks $ 22,069 $ 3,727
Trade accounts payable 122,184 131,243
Payroll and related expenses 120,663 131,128
Other accrued expenses 198,340 221,958
Income taxes 31,299 29,631
Current portion of long-term debt 42 51
Total current liabilities 494,597 517,738
Long-term debt less current portion 767,795 752,145
Deferred income taxes 11,256 14,017
Deferred grant income 16,765 18,723
Other liabilities 224,230 235,923
Accrued pension and other
postretirement costs 225,320 232,142
Minority interest 96,936 94,567
Stockholders' equity:
Common stock 15,143 15,142
Class B common stock 1,468 1,468
Capital in excess of par value 2,028,594 2,028,253
Retained earnings 600,604 594,892
Unearned compensation (119) (152)
Accumulated other comprehensive income 91,881 133,732
2,737,571 2,773,335
$ 4,574,470 $ 4,638,590
Contact: Richard N. Grubb, Executive Vice President
and Chief Financial Officer, or
Peter G. Henrici, Senior Vice President
610-644-1300
SOURCE Vishay Intertechnology, Inc.
-0- 05/03/2005
/CONTACT: Richard N. Grubb, Executive Vice President and Chief Financial
Officer, or Peter G. Henrici, Senior Vice President, both of Vishay
Intertechnology, +1-610-644-1300/
/Web site: http://ir.vishay.com
http://www.vishay.com /