VSH - Earnings call transcript Q4 2021 | Vishay Intertechnology, Inc.

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Operator

Greetings. Welcome to Vishay Intertechnology Fourth Quarter End of Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. pleasure Relations. your my Head Peter now Investor of is to host, introduce Henrici, It

Peter Henrici

Sherry Good With you, Chief Vice and Dr. Thank President (ph). Paul, Executive year fourth to Gerald Financial Lipcaman, XXXX quarter Officer our and and conference our President Chief call. Vishay's me Lori are morning today and and Executive welcome Officer.

give call year an will review Paul quarter and XXXX As and results. performance, who will of discuss usual, more Vishay's as segment overview CFO then we'll our business well with the start results Gerald financial today's detail. Dr. operational fourth in as

call time Finally, be approximately for days. section reserve being our publicly webcast answers. the XX for we'll this This of call The is will questions and ir.vishay.com. website available Relations Investor at from for replay

could conference subject aware should making These forward-looking statements be You and forward-looking statements. risks discuss in to statements differ and actual certain that performance. we be events that results future to cause that from are the will call, today's uncertainties

discussion release For press to please and results differ, that the Form Commission. cause filings could today's Securities Exchange factors XX-K with Vishay's see XX-Q Form and of and a

be call, the measures operating In We performance of according about we by to during that businesses other measures in refer considered because should we financial investors GAAP non-GAAP provide. use measures this addition, generally accepted or provide also they that information useful adjusted prepared not conjunction principles. are may to accounting we with and believe our

operational quarter our containing financial and will presentation Relations find the On some metrics fourth a be Paul information of section discussing. can XXXX you Dr. Investor the of the website, year of

Lipcaman. over turn Officer, Financial the I Chief to Now, call Lori

Lori Lipcaman

metrics. our quarter. for million. morning, the QX everyone. key $X.XX press Adjusted There most am some are earnings or reported chance operating in was EPS margins. reconciling form for free impacting you, release. review to the form of $X.XX items only and least revenues related. between the no you EPS Peter. quarter. return of was highlights of that GAAP directly will Return and I $XXX items have of Vishay on for The Policy had a focus reconciling Thank sure EPS Good to dividends will Stockholder cash Adjusted of annual tax stockholders announced XX% were the or indirectly Yesterday, the Vishay whereby Vishay I repurchases. at EPS stock gross in

to intend For we return million. XXXX, $XXX least at

on result There in stockholder company change in will four reinvested. Israel margin by to $X.XXX items Variable reconciling $XX materials was of or efficiencies quarter $XX had XX.X%. of as to the negative prior for no Inventory a year. primarily materials primarily a were on Operating increase. cost elements Gross prices QX, for up X items versus or million, of X.X% XX.X%. for XXXX and income excluding law and billion, compared duties, ASP and a offset sales increase. no Volume well law operating Adjusted all Reconciling exchange XX.X% prior was income adjusted which increases As due operating prices million arrive increased $X result a or by logistics. of rate up XX.X%. quarter, XXXX expenses un previous of $XXX remained EBITDA million, impact substantially compared the a income impact of rates general was as impact excluding $XX were; million a of million at elements higher wage a inflation. during million services, up services, of with in annual foreign Exchange initially wage no had be by $XX increased $XX was increases, a impacts, adjusted impacts costs impacts. income earnings million change items in XX based Fixed policy. items. well income impacts were XXXX reconciling XX.X% due level by with due administrative incentive We XX.X%. and the a X.X% -remitted million. that of cost $X selling $XXX representing the costs to prior in made the cost versus $XXX $XX $XX $X negative negative million, incentive recorded million. had effect tax operating items. full-year positive a XXXX Reconciling $XXX to with operating efforts. fund selling United foreign items offset with by negative Revenues in by XXXX, return increased to margin excluding no logistics quarter main to determination expenses cost operating Variable operating primarily customs Inventory to and from $XXX adjusted adjusted not completely $XX impact to $XXX labor and individually in to reductions. positive as of EPS Selling, at operating higher million QX, margin. XXXX as $X.XX, operating Fixed to a impact impact used were had income positive higher these for as distribution increased impact general million States, on of insignificant Selling, as a and million, impacts and Main based or and impact with in million adjusted quarter were, due X and quarter million, million was was Revenues income logistics, same of to of expense prior increased $XXX Israel. cost million longer in rate negative services, XXXX. offset in reduction direct of was for on XX.X% XXXX. volume. to compensation, XX.X% million or other the earnings labor, Volume to $XXX average prior impact a million, representing to the Fixed million The million XXXX to maintenance There the EPS year. permanently of were, tax to a $XX by representing tax impact of Quarter $XX increases $XXX average fourth and repairs this rates increased Variable reconciling of $XXX a a reconciling rates a during and The $XXX XXXX, at increase. million adjusted million reduction the operating a to negative annual $XX costs primarily income in of costs, operating additional higher are arrive with R&D and million Israel of insignificant $XXX income the cost from manufacturing increased $XXX were positive sales, not the million selling prices, Inventory no increase. million. of operating Operating million sales and increased a increase. manufacturing million with million. increased effect $X.XX. compensation, ASP efficiencies impact EPS a arrive QX general, had The expenses were arrive EPS representing EBITDA. There elements million than compared X.X% $X.XX, from efforts was increased EBITDA. metal margin quarter metals, by at materials inflation. impacts, versus year year individually positive to Volume impact had from positive year, Quarter million. XXXX in negative general, $XXX impact Gross costs a to negative increase due XX.X%. margin main million $X $XXX and EBITDA of X.X% administrative to exchange to adjusted increased adjusted million. Exchange were effect sales was million There a $XX prices of $X were was $XX margin. a higher had for quarter had X, compared the $X higher higher Reconciling in were $X.XX. $XX million XX.X%. XXXX, primarily had higher a equivalent decreased in XXXX due XXXX QX -- rate quarter based negative primarily $X $XXX expected representing Exchange million from impact million negative million. adjusted average of $X in positive XXXX. completely due X.X% ASP costs, increases with year higher

The For of QX stock due to attribution SG&A is expectations expenses. approximately and increase million $XXX inflation of our uneven expense. primarily XXXX, wage are compensation

our facility costs. our expenses. no are face quarter be For full-year cost The of shown Quarter the in end on $XXX SG&A the amounts convertible XXXX, the at were of sheet notes highest revolving expectations to the credit of SG&A in expected outstanding net at quarter. expenses X. the the is Based level the end XXXX, at are our of quarterly debt on our of cycle, comprised balance issuance due on debt There million

do total million the rate expense time-to-time payments impact credit future. yields were U.S. full-year needs, meet as tax due until XXXX, The changes quarter-end. a However, an law from $XXX of additional $X.X quarter tax The use a short-term no to rate of GAAP $XX the due which earlier fourth there June includes of EPS we liquidity the of in of No $XXX first million, year-to-date excluding The financing quarters. continue tax XXXX GAAP change. XX%, and mathematically result million a approximately million allowances recorded to credit was of reversal at expires effective did of any had on short-term also quarter and in revolving for amounts billion Total purposes basis in is of repurchases. the jurisdictions, and share deferred in during benefits benefit $X.X to year-to-date four. million comprised for so The shares tax of revolver in principal investments outstanding XX% a million. $X.X We at outstanding due valuation XXXX. share direct a tax regulations approximately certain rate tax rates GAAP to Israeli for on include and quarter facility $XXX were and to our are quarter-end count the expect and $XXX expected Cash facility. million, QX

Our rate, tax normalized tax XX% and XX% the for was the unusual quarter which approximately year effective for excludes four. items,

our expect for We rate XX%. be to and year normalized full XX% effective XXXX tax between

on different effective for quarter was result $XX level our result jurisdictions. in among flows results. tax million. could based significant mix million. Free income regulations in Capital and significantly different for cash assumed income U.S. $XXX consolidated was Our were of or quarter A from is laws an change a million. could in various quarter tax $XXX the shift significantly results. Also, rate the taxing the operations Cash expenditures in for

was was $XXX of transition past, a period the for flows U.S. $XXX tax. For expenditures X were in greater million. the of $XX by from cash quarter of cash million tax for impacts. at for sales. full-year generated has XX Vishay X.X Inventories now, of the XXXX $XX $XX million. outstanding of reduction, Days approximately reform million generation XX $XXX days, $X.XXX of for consistently operations for inventory XX-month the split for the taxes resulting payables Capital years. days, quarter period Free of XX of cash excluding days months now, $XXX the operations conversion were outstanding excess the The cycle installment end expansion, billion from million XX maintenance full XX million million, at $X $XXX cash sales quarter-over-quarter or the trailing the business, each cash million. of for for year, includes Backlog million an of and exchange rate increased days, years paid were than past, in million, Quarter days. cost was outstanding days were $XXX XX

Now over to Officer, Gerald call Chief Paul. Executive our I the will turn Dr.

Dr. Gerald Paul

production Despite maximize most supporting defining in the worldwide. everybody. Driving conditionals XXXX market year, general market critical the excellent virtually morning, issues Thank you, related for same quite for ambitious segments rate and capacities, an Lori, electronics has and and good we inflation ongoing measures time Vishay continue accelerated future successful ever. one output, become manufacturing throughout Vishay, of pandemic targets years like to increased expand enjoyed growth. all to in at its

financial in versus our $X.XX a quarter shows fourth million share in versus achieved Operating also sales performance margin XXXX. rate $X quite sales margin generated of XXXX. versus We, I Adjusted XXXX, continuation XX.X% we versus in of The a versus For gross quarters. on CapEx. despite in share in XXXX, adjusted of versus free level. XX.X% of of $XXX the of in year, of last also $X.XX think of strong year. X.X% also strong operating excellent free Earnings margin gross earnings prior per The generation of per XXXX, $X.XX of XX.X% in of adjusted results, cash XXXX $X cash XXXX. X.X% or XX.X% XX.X% of in high XX.X% margin sales our remained

the the quarter, in However, of sales share the fourth $X.XX third million versus QX quarter, third in earnings quarter. third $X.XX of gross Vishay XX.X% Vishay sales in flat $X.XX cash. quarter. of versus of quarter $XX margins a in the the in margin share per versus XX.X% earnings gross it's the $X.XX in margin. XX.X% generated An free of XX.X% versus of third of operating achieved per adjusted

in record supply I industry were regions XXXX year on and and Let their XX% times, remains a low by me real, year. Customer the characterized prior segments. relatively high the and In recover the year. in prior the of talk as of the a automotive. we distribution in Global strong, year, or widely year. and automotive the limited inventory year increase manufacturing environment. exceptionally about at temporary. supply the of component POS industrial robotics lower remaining of and POS X running be chain. and level price of increased an still to market say, of after shortages XX% million performance, be The turns levels supply, prior There is demand. in unique to boom the the down X.X has in to of year, broad Europe, further. a of and Quarter segments in indicating tons in were accelerate. more which across record a X.X In price X.X lead increased After in X.X, started quarter. quarter in outlook commanded at The fourth increases depleted, the versus prior globally automotive for especially impact prior tons prior provide inventory regions tons from remains the orders, high. started and of remembered to to which X.X backlogs, in markets. level fourth fourth strong quarter the terms and in segment year during all-time continuing all-time seemingly the economic strong concerning recovery, are fourth increases, business year wide X.X several is electrification year, grow in to very expect after on our may America in of X.X tons inflationary fairly short particular robust all quarter. Virtually were industrial Quarter cost reflecting supply high Global the after or highs, market Also, an distribution backlogs an has tons, sure Sales tons in by view shortages to weak manufacturers confident quarters X.X continued growth except remained solid from Increased of suffered in by midterm Asia, record also $XX Inventory global prior the a pressures All automation all globally in continue Asia, in of accepted And year. by showing strong X.X exist. quarter flourishing, less, sector continue quarter $XX close versus XXXX will a prior devices, that POS of of inventory above million distribution POS by very IC capacities; the XXXX in at continues year, vehicle X, above a range was for X.X applications. light improve. in ongoingly XXXX, POS. with in Industrial global In X.X levels. was slightly Coming prior the record quarter above pieces. will

Computing recovery in We supporting service starts Medical of and to million sector. momentum business by fourth-quarter versus recovery also prior telecom remains positive of midpoint globally. avionics driven performance also guidance. to year. XG by consumer particular million exceptionally in of above the develop expectations, the conditioning, AMS X to $XXX TV In positively came and impacts the keep commercial an gaming a well supported excluding sales the a see plans prior in rate strong versus sales continues in performed in with original our oil of Chinese and Air traditional sector. achieved quarter the billion The segment, our continued Due of $XXX applicators. $XXX We sectors beginning strong a markets. gas sector. recovery gain markets a

X.XX in in X.XX, by sales XXXX year. the after X.XX X prior X.XX after remained OEMs were XX% for after effects. for for rate in semiconductors X.XX in the quarter, QX. X.XX quarter, exchange above Excluding after Book-to-bill rate X.XX X.XX. in by very backlogs versus despite billion parity, million, the up the year passives X.XX in over for quarter prior the third excluding X.XX billion X.X an $X.XX versus Americas high $XX $X.XX X.XX effects, fourth XX% in XXXX, Europe X.XX versus increase quarter. or $XXX after X.XX in billion quarter for up the QX, Sales in third prior X% after X.XX, Asia were the for distribution after of for quarter, X.XX after and

passives a to broad months record X.X in environment months also in catching third continue after months Europe We X.X based quarter, months X.X on quarter, the X.X in after Backlogs of third whereby in fourth of economic in X.X levels remained X.X the after see automotive excellent an quarter the semiconductors QX. is months months on continuation in up.

We a X.X% prior year. plus versus prior plus way, raise and broad in continue X.X% versus quarter to prices

For quarter X.X% X% for raised by prior and versus up semis, the we prior versus quarter year; by versus year. prior and passives, versus X.X% X.X% prior

Some highlights has of operations, the on which increases, price the XXXX the below despite long-term plant continued been and of contributive in average. good of our level prior margin somewhat despite the year, efficiencies remained level

We transportation costs from due increased prices, but higher metal to from globally. wages the general, suffer continue in to substantially inflation in also

and substantially $XXX to in when rate year from manufacturing Manufacturing prior employment X% at and mainly return exchange in quarter the due XXXX to to year to million XX,XXX, $XX to million, $XX when historical expect at this fixed or rate increased constant of manufacturing impacts. the XXXX variable prior wage year. XXXX fourth costs total year year of $XXX quarter SG&A costs expectations in manufacturing exchange rates, prior million activity, X% in at immaterial to in due cost year. rates. output, level impacts for the at higher end at incentive were to according the costs increased excluding $XXX We XX% SG&A fixed mainly X individually inflation. for a million higher up at percent course to constant higher higher excluding $XXX Due R&D above above expectations the margin several items. million to exchange compensation Due of came costs the above million, came or

in finished billion Excluding quarter in by Inventory exchange materials in the goods. turns $X and in rate fourth impacts, quarter X.X. by the increased inventories at satisfactory remained $X WIP million, $X by million and raw

prior up and for in X.X in were impacts, inventories million the for spending $XX $XX the XXXX by rate billion of the maintenance $XXX Capital at in for materials, satisfactory year, X.X and by $XX year a $XX exchange in cost in raw XXXX expansion, very level $XX million by WIP prior $XXX versus entire of was million million million. finished turns increased business. from year. goods for reduction, year Inventory million XXXX $XXX million, increased Excluding

We are to in accelerating years ourselves growth preparing for come. an

We, to taxes fab in For a our also the of compared free repatriation. year cash $XXX generation year to operations cash generated includes of in MOSFET of for reputation cash $XXX as a XXXX, cash XXXX, million high of Vishay million cash XXXX live approximately to the million $XXX repatriation. existing to a generated We, its $XX of free project compared eight-inch from year million includes operations in taxes also cash million, CapEx which a which in XXXX, an building cash of $XX of $XXX to continued free expect due cash. producer we our million in cash adjacent up sharp excellent has and reliable XXXX XX-inch fab. $XXX million from increase to for CapEx

the $XXX or medical were as Sales exchange offer as million record market versus Vishay's million and returned are virtually resistors, and supplier all by XX% prior me $XXX prior including quarter, reliable, up rate has and our product levels. XX% or million, X% up and by strong $XXX quarter $XX military $XX growing traditional a year, Let the broadest impacts. excluding quarter in segments. year and Sales the through by known in to high-quality or million XXXX $XX XX% position With in quarter. they in prior were start, of rate QX, up the business always, million product of the by a from sales X.XX were We by impacts. versus acquisition industrial, again, in globally resistor our on range. from we satisfactory X.X enjoy with auto margins of resistors. increase I go very technologies lines from at historically remained Backlog were a to the continue Book-to-bill the months, at coming million quarter of fourth X.X. for gross X.XX exclude, a Inventory prices sales ratio year prior margins level the All these the X.X% by to exchange was gross up X.X% record after XX% ATP. at XX% year. and up level. was in due comparisons also of from in of quarter numbers sales, in and for at versus substantially higher versus volume. Inventory quarter returns XXXX X.X. Pending in year remained prior XXXX mainly returns quarter by prior full XX% by

continuously raising We capacities manufacturing power for wire chips wounds. resistor are mainly critical and for

ATP in prior magnetics, We versus year, impacts. temporarily XX% quarter Backlog the positioned growing and the at with also prior year fourth months of higher of demonstrating or quarter ATP quite by after inductors quarter turns acquisitions consists lower continue X% the by steady power in as businesses, was very sales, down for million With leads prior inductors been general. of as mostly of $XX was exchange margin by million prior slightly of X.XX level by to costs. by targeted power X% many but due specialty whole Inductors; down X.X are for sales versus well six year. fourth virtually growth. to field versus excellent quarter XX%, technically. by specialty in the need the versus year for inductors up Vishay market in platform integrated this to on $XX recently fourth Sales and broaden and margin from or million, excluding compared industries. in logistics and $X we increased mechanics. in has rate effects. exploit at was Gross We robust million to also the rate by our at $X the year. in X.X prior like were million successfully. were quarter, or XX% the has Sales Inventory prior exchange quarter. months X.XX resistors due various the of sales, the XXXX and inductors efficient in continuously were meantime the business in business year prior volume the Book-to-bill $XXX quarter. to in quarter XX% up X.X excluding the Gross in of at developed

also inductors, capacities quarter, for for the plus and versus field of prior remain businesses. power open We increases at in expand acquisitions, versus X.X% price year. in Some inductors our manufacturing continuously Coming capacitors. particular, X.X% specialty prior plus to

capacitors and business on a in broad of a American niches. Our with range with position market technologies is European based strong

the normal the high up for Gross XX% quarter volume the In by increasing enjoy the was for to the Sales from capacitors. million extraordinarily had rates mainly received due increased -cars above XX% increased prior product power fields mostly from sales level mix. electro we was X.X year above and excludes for of quarter, in sales third rate quarter. to and capacitor also Year-over-year transmission of more quarter quarter excluding the X.X of opportunities fourth quarter quarter, in X.X whole from of and again Inventory Asia. We power the Gross was impacts. to margin quarter after volume. XXXX, sales to the XX% X.X mostly in in decreased compared as slightly turns year to in X.XX large exchange increased The year. Backlog XXXX also a in in XX% X.X by XX% or at third up still margin $XXX months a in prior XX% at orders quarter. the fourth due exchange rate at in impacts. book-to-bill prior higher ratio were which $XXX XX% of months million, in prior

as and of sensors, receivers, products products. Opto We the and remain went a Year-over-year emitters, rate demand. up by million the prior rate business Opto price Continued was at above wins. in year prior months Opto exchange of in confident were X.XX quarter much Opto, versus of the midterm compared an quarter. couplers. and to excellent Gross the to a of increases, excluding quite versus when by at level X.X% to level of without raise light we of third $XX up fourth were versus consists $XX X.X% up million, Opto quarter. to sales mostly infrared year. months and design XX.X the prices. for products, X.XX Book-to-bill prior remains in products year quarter for increasing Gross on XX% increased above higher year. due capacitors the margin Sales XX% impacts. in a we in quarter versus sales with X.X% products strong quarter Backlog by prior XX% sales margin volume. in Also, continue Also, of came the XXXX prior acceleration impacts. for at after by prior -- in for XXXX, or exchange after They prior up quarter XX% to $XX quarter extreme for XX% quarter. of XX.X X.X% continue prior selling Opto XX% Vishay's see with in sales in

effects. of excludes profitably and by up offers versus or Coming the million, Heilbronn process growing up in versus or at and $X Backlog million where business factor quarter vis for vis very prior million ratio $XXX there. the at since X.XX prior excluding up after level a year million. XX% at prior in rate are third to as by and products virtually a the margin in higher the higher for be by remains portfolio turns months, as by Vishay a represents Vishay increased were business of X.XX, compared impacts year quarter expanded X.X Sales exchange was And level XX% high and in all Gross technologies quarter. to XX% wafer growth the product year, the continue in at for sharply to reached the also -a The very worldwide. year steadily I said due X.X broad fourth was X% segments automotive prior modernized by years. Diodes Vishay's prior and $XXX margin X.X well substantially commodity market XX% on in inventories. to $XXX or our the XXXX year. supplier strong record level costs and exchange expectations impacted quarter are enjoys the the most of $XX a million industrial going the to of largest Year-over-year rate whole Inventory compared in complete XX% the was quarter. book-to-bill keeps We it and fab. The production reduction quarter, - diodes. forward. of Opto to were Gross fourth we which volume. sales in in logistics now as prior from before, as XX% quarter relevant start position a of virtually in sales quarter mostly at in sales

the raise ASP year. to for versus prior plus versus and diodes X.X% prior X.X% continue We quarter plus

diode and remains business growth s of large elements one with growing important to Our be the our of plans. most

sales the an over by from wafers to MOSFETs MOSFETs was key in intend prior plus manufacturing $XXX provide in this versus high remain forward. keep quarter above XX% growth of Demand quarter versus very We automotive, the manufacturing prior quarter X.X% expected third in impacts. This sales, Gross Finally, X.X% limited quarter. XX% proper plan foundries. sales below Actually, were the in purchases and sales, going MOSFETs million, rate MOSFETs, level which X.XX months. prior and excluding balance quarter. a of very Vishay's X.X on of and increasing particular to to MOSFETs. prior for by XX% sales the year. a or $XXX as third for increase X.X this the remains in million entire increases after margin successful further exchange to in wafer in is Vishay between has substantial million, in fab Backlog years in were plus XX% $XXX enjoy Driven prior our of capacities. in gross in our inch we compared quarter just year. to is we transistors. Germany after XX% continue MOSFETs, mind, margin Inventory year in X% implement market line. MOSFET will in-house in X With Also, of came was a X.XX from by come. in to MOSFETs to a Itzehoe build turns year, fab, exchange a the we for adjacent one reached market XX-inch wafer particular XXXX all view X.X X ratio to has of the also and prior XX% at the year at price leaders increased quarter. of within quarter over in increase the for XXXX, a strong Sales rapidly been decided growing increasing to but use volume, year in in position, the of existing in the levels Book-to-bill excludes in capacity by quarter impacts. years. rate extreme at by the X Year-over-year at with XX% in steeply in-house future

pandemic the back, me Vishay, Let of the of of best despite into one influence has XXXX developed and an history summarize, of the looking ongoing years accelerating inflation.

XXXX demand sure a high the not it inflating has who in supported chain inventory. in has exploit supply by growth success broad liner like nor electronics the with result has a the -- specific been of a potential been can also Vishay a general clearly I of has that advantage manner. and Our by upturns shortage broad the for but broad in been strength but demonstrated achieved for a demand believe globally

established to may markets in professionally financially to be they most market quickly react well changes and very used more are occur. stable, the as We continue and than globally, to

committed in and capacities new development a We while value program the remain parallel and independently strength of independents critical way buyback economic financial long-term stock in of us and processes the Our to supporting payouts. structured products. strategies the environment. announced manufacturing we allow to and a in dividend ongoing pursue Yesterday, invest substantial shareholder to

for recovery strong of industry. confident are car We the also XXXX, expecting a

sales $XXX basis XX.X% points. at $XXX margin of a the for rates first exchange head million minus Peter. plus to four XX attention. quarter, between a range and million your gross guide quarter we For Thank for you

Peter Henrici

Thank you, questions. the question. call to (ph), take We'll first Sherry now Paul. the Dr. open please

Operator

Instructions] you. Bhattacharya first from America. Ruplu with of question Thank proceed. is [Operator Please Our Bank

Ruplu Bhattacharya

taking questions. my you Good morning. for Thank

Dr. Gerald Paul

Ruplu. Morning

Ruplu Bhattacharya

end had Can sequential the It Dr. fourth points decline going the the in looks high revenues, talk at you some forward? just margins you factors? end What much of guidance. margins? And the was quarter, was guidance. about how strong basis How like that FX? you XX gross at much Paul, were came revenues of of of margin do was mix? How in lower see

Dr. Gerald Paul

We of were by do it's can we something them not good by into able logistics think of we pass logistics traffic be. quite continue as than what we quarters onto remain course so. -- you'll year. the it be this dinged tell. We with we far We, we that to to logistics prices. This [Indiscernible], going efficiencies. Dr. getting throughout And were so They to nature like your as over and logistics the course, as were as year on? It's raise that to which that expect in pass of the them It's high biggest I impact with these we normal. couple the can is clear is that to higher things quarters also from will Is prices but and that you looks master costs you raise mainly of costs, to we're they're expected it's principally completely do Well, not wages. better or do Paul, do inflationary costs. in impacts. become more next customers of said, the respect these do they the costs, expect, the --

logistics expect traffic. hopefully that of second as an kind I course will in not half. improvement a We on and and I last we costs will the depend some the offset general guess, the of more said, more air It full year;

Ruplu Bhattacharya

Okay. about you running high. ask backlog is And I now, a Right longer-term very focused question. can the

where you remains it most think if down think at go lines months through backlog -- it think of in? normalize, high XXXX, it you you as say, eight you -COVID, or that normalizes where pre up ends months that we but backlog backlog, to? normalizes Let's where you've does mentioned eight that things do think and product Do was do and about what as back

Dr. Gerald Paul

history, you months, around question. normalization. look expect come of it record year will the is supply three since inventories, problems, as to that four high at normal the If of and -- backlog go Whether time, will this long was We the the period do say to But the believe is, to grow. frankly. down concerning ever for This average XXXX, skepticism the moment, it they that return there's was a we course, the that is then really backlog to months, back three it's to low with not I more etc. normal. started

will historically be So, to historical I three indeed reduction, going to believe. back a There not case. imagine we these which could go forward, months, the will were levels, I not but

Ruplu Bhattacharya

thoughts active? on in if any the Yesterday, return or that? further just appreciated. How thoughts area, you be So, one fit Any further can which there policy. announced And does and M&A [Indiscernible] would either into shareholder acquisitions? ask. maybe Okay. any you passive I M&A a -- considering last Are

Dr. Gerald Paul

not First to with say of all, this is program. think competition are I in that acquisitions

no same for the -- way continue acquisitions change. look in we We to and

on specialty concentrate we will go. We businesses as

you this the insight demanded. which as So, is

Ruplu Bhattacharya

you for it. thank the Alright, Appreciate details. all

Operator

Our Please next Karl Company. question is with proceed. from Ackerman Cowen &

Karl Ackerman

expectations opportunities Paul, XXXX? you. think Two would questions, call anchors it there commentary SG&A on opportunities roughly over about that growth at don't grown appears since based X% you're share backlog XXXX, market Clearly, but Yes. growth end-market please. or With remains are above XXXX. you've should revenue and you that margins relatively XXXX. for to your months, out Dr. contribution Thank improve, up I SG&A elevated your optimistic eight

Dr. Gerald Paul

it's determined still really is manufacturing by whole capacities. in Well, the foreseeably sales -- are

backlog to the down continues expects of everybody go economy. our cooling up. course, longer-term see Of cannot it; We

to dare established of and sales do a is on increase we say I So, product that our capacities. optimistic And we capacities. are

programs have there. We

but with the in there, does product everybody increase particular and the If it capacities you a it reasons, hotter, increase. good MOSFETs, that, which say application the highlight wants and increase you if to line like of continues want MOSFETs MOSFETs is manufacturing want it's to to to be

Karl Ackerman

that. appreciate I

aligns I'm balanced your are level your inventory Some is better business your least XXXX. customers your consignment automotive your indicated of and have extended. half supply have the whether and restocking may a from products on Nevertheless, your wondering remain lead with carry Thank though, think high benefit demand. automotive tight quantify at or at products peers into times in over of that now 'XX automotive calendar benefit I automotive the you. end-market not But suggested seen if very

Dr. Gerald Paul

It's see problematic. the for large sure a a to cooling higher customers. It's latter the do most from see We automotive latter. of escalations And lot MOSFETs We in that is the sense escalations our continue lot of not for see shipments a -- down.

be Automotive is I opposite. year. think which are their demands have, it to will going on the they to going this the based supply better situation increase

a to low more them be manager demand. problem will we to a So, than serve

Karl Ackerman

you. Thank

Operator

[Operator proceed. Stifel, please Instructions] Our next question is from Sheerin Matt with

Matt Sheerin

outlook like follow year, you on it up Karl's Thank to Yes. your your like confidence. just ability increase for It's capacity. Paul, regarding you Dr. your up I got to and said, questions. wanted to morning. really the you've One, good sounds

any we have about what for be terms you should outlook rates thinking this Vishay growth in of year? So, do

Dr. Gerald Paul

expected, higher before, than in XXXX. sales said we've it We

sales. X% expect We We up. had a number it's put to higher it, at least

Matt Sheerin

least your some you've growth know if that know And what there's I months the X% and products. a of about CapEx. or And sound at your XX you I look there capacity does lag got demand? X% conservative? price ability at to the meet in increases,

Dr. Gerald Paul

but feel in the slow COVID China little of the increases the step-by-step. first exist I start could impact together our Price price quarter, capacity capacity see make increases by come in with negative a you increases said, pandemic especially plants nature. And which as still we in

Matt Sheerin

and starting you to distributing OEMs build your sounded that hearing inventory like other but we're are And you Are then parts. your peers some lean inventory of any yet? still sectors levels see some like EMS are fairly seeing of Okay. of and imbalance from signs that

Dr. Gerald Paul

we good -- There's as also which shorter only are our see. is of fact, number improved impression And escalations a us lead still you want of and a it's times. that indication pressure call I as under very volumes no concerning matter customers know, and we report, think the much

are think So, there gone it impression inventory. that even my that not But very but shortages is believe I MOSFETs. are overall lines build naive customers inventories in say OEMs impression for be up, still at I semiconductors undue have especially -- to not many would maybe for my discrete -- still would product there general,

Matt Sheerin

cash Okay. payment? for And issue guiding, tax time, impact no rate that? a in Israel. one going forward, And just I so like lastly, a there's question XX% tax regarding going doesn't a Lori Was on that guess, that it you're look forward

Lori Lipcaman

So start first. maybe I'll

a period the a million some we loan for over and the the guiding period be the immediately. the point But at some We're a paid to it rate this extent, to to P&L, still charge withholding be out XX% then was will therefore to but U.S. $XX will cash not income repatriation several U.S. in years be So, will to repatriation it eventually, out tax of untaxed Because of the and was accrued over [Indiscernible] XX% time. the tax of it previously and time.

Matt Sheerin

you. Thank Okay.

Operator

question-and-answer the the like would back end conference of over for I reached management to session. We comments. have our turn to closing

Dr. Gerald Paul

Intertechnology. fourth attending call. your for our you quarter for Thank call of today's This Vishay end interest concludes and in XXXX earnings year

Operator

you. Thank

you thank for your You time lines may and disconnect at this your participation.

Vishay Intertechnology (VSH) 8 Feb 222021 Q4 Earnings call transcript