LFUS - Earnings call transcript Q3 2017

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Operator

Good day everyone and welcome to the Littelfuse Inc.

Third Quarter 2017 Conference Call. Today's call is being recorded. At this time, I will turn the call over to President and CEO, Mr. Dave Heinzmann. sir. ahead go Please

David Heinzmann

good call. to and quarter Littelfuse XXXX conference morning. you, the Welcome third Thank

Meenal our always, the As Sethna, call. me is on joining Chief Financial Officer,

third a We Revenues segments. earnings, for performance momentum our XX% adjusted all with grew quarter. continued in of positive and the the quarter both our across three strong

our solid In addition, a $XX operating Electronics increase of margins. from last over record segment once XX% Industrial margins industrial. quarter. segment cash Adjusted The achieved with quarter note, particular of crossed for we million generated strong again and automotive the double-digit our led and year's contributions XX% a operations, flow performance third operating from this company

our in overall our where see get how third strategic can the strategy we the the into quarter, review Before you progress aligns of objectives. details with quarter our I'd to like

top is a and of to acquisitions achieve goal Our growth double-digit through profitability and combination growth. sustained organic line

such the later growth our positioned the focus initiatives have We of strategic call. world to are to with three our I'll focused take margin comes the some these on highlight segments megatrends business all energy higher in a growth of advantage and benefit these from efficiency, down and All connected megatrends. areas global of as to It safety, in execution.

we will of global results results. to our Our the over diversified teams strong third around brief I'll give the discussing of relationships turn an presence, a summary that industry-leading overview, Meenal and well-established products, call excellent world leveraging are quarter doing today. and the customer job who our With markets, are

Meenal Sethna

Thanks Dave.

our risks XX-K make forward-looking results and from Form company's that differ call not to the detail everyone of statements expectations. important on materially uncertainties. about significant other this These for performance well forward-looking we to Before contain as XX-Q and could you let refer cause proceed, that remind involve and future certain guarantees risks are statements. may SEC filings comments me we as more We actual

non-GAAP reconciliation financial addition, measures to directly GAAP adjusted share, measures most non-GAAP comparable In measure our tax financial substitute operating adjusted are website. is our margin, non-GAAP These in of remarks comparable per not but on earnings today adjusted the refer for on supplement measures, the these directly to and intended today earnings third release the most and A our provided to measures. GAAP Form X-K available filed quarter rate.

our from highlights some third Now, XXXX. of quarter

earnings for momentum our excludes above XXXX sales closed and quarter, XX sales over foreign X% and e-house in adjusted Sales year. in We Organic million, in from the effects. revenue the quarter up midpoint third both third continued per finishing months, last guidance XX% which past divestiture, the growth currency the was our the $XXX share. range strong acquisitions of were

finished XX.X% basis improvement operating margin year. operating the same adjusted over XX.X%, at and our point last GAAP margin was Our a XXX quarter

to diluted the included related operating restructuring Our positive and of up strong acquisitions over over creating year, and was our last adjusted was $X.XX costs after-tax million sales GAAP growth. $X XX% income EPS leverage activity. primarily

increased was these adjusted XX% $X.XX EPS diluted year. which Excluding last items, over

our Our in tax difference an tax The rates quarter versus XX.X% the third effect last unfavorable quarter XX.X% rate was in this on had EPS year. adjusted growth.

flat EPS third XX% a at adjusted tax year been Our year over quarter would've growth rate.

finished activities $XX Cash quarter was at the driven despite $XX continued headwinds at by quarter. last and were margins XX.X% and sequentially were of cash capital year revenue operating of for electronics' by record for growth operating strong increases. XX.X% continued margins $XX business, over by operating provided performance quarter. our industrial levels million up our CapEx, and operational third continued of performance. 'XX Automotive double-digit commodity flow million the double-digit XX.X% price expenditures segment Most finishing from achieved record margin a both the at expectation, the at million. for notably, Looking Free

the which across nine of For of what first million in $XXX flow is cash months cash all free generated XXXX. we this generated in free year we've

target of flow through cash year. from at We this continued operations free net to and income excess in months nine are XXX%

we the expanded On capital in front, allocation our amended credit facility and October.

initiatives Our long-term electronics unsecured in $XXX the In to continued performance $XXX trends. that, summary, loan across and color revolving facility capital includes organic This turn company the back our new with the accessibility Dave million business term five-year drove $XXX And us performance it to for with more market execution a business operational strength gives a I'll million on credit million line. quarter. credit fund solid and record growth along for and acquisitions.

David Heinzmann

with markets I'll million, of increase begin organic all were of Meenal. lines. we and electronics end building product electronic cycle. In We've and automation, sales one LED segment. and electronics. Thanks, robust strong quarter mark saw growth an the a led the Asia by telecom, our with third automotive and Europe across major including regions, Sales and in variety XX% saw growth. of $XXX geographic crossed the lighting, year We across most data of XX% now home

sales. times lead remained and are generally channel growing stable Our in inventories with have line

four correction. like and reasonable our the rates we've inventory customers are levels. cycles monitoring to channel in have We pullback corrected Strong sales distributor electronics they growth closely end believe with in quarters a past seen historically at order are and

the have finished include growth strategic signs the to of fourth levels third continue industrial our exceptional electronics, our and focus this. However run and electronics book provide These We continuing areas of automotive IoT, that quarter. X.X appliances, computing. with cloud We're segment. for quarter far seasonal electronics, bill opportunities seen a at to we not we believe so the in on also

automotive than Many that of electric revenues electric business our the will in wins quarter. are use of these inverters, U.S. million OEM has been electronics monitor with The third battery vehicle that an vehicle at the their new win to and peak China. million qualified inverter converters. will customers products systems beginning $XXX,XXX $X for automotive for Chinese chargers, Our electric factor with power system will form vehicles win used contribute annual a use wins new in includes $X circuits. related the applications. new revenues a quarter. for in for electronic and be and It continues by more the a grow about of business The business small to fourth in in are

LED wins design are wins contact. automotive electronic and in in many that for applications lighting utilized IGBTs and of programs in design and the systems. opportunities presents Korea The for and We resettable include ignition coil systems. grid infotainment electronics also Automotive secured vehicle Europe safety including for users. U.S. general plug smart recent protection advanced and improve management unit growth unit. Korea smart door fuses deployments We've and Smart technology by grids two for use circuit a utility energy for to card, providers digital one applications, had protection, providing connecting and between a to concentration data modem real-time provide increased wins in end data two-way sensor grid communication for in one

electronics of developed and end continues computing. of Things new steady Internet part the stream Our from the cloud to of as product being segment benefit

leveraging greater personal a increased today's bandwidth fiber. solution used One DSL are G.fast of of We our to Things features and copper lines leverages that the are growing and those and existing in devices infrastructure typically lines is data transmission in equipment. brings speeds originally up functions and market seen driver support the sales. and important the the new need to all in of this of is business technologies capabilities for well-positioned into Internet and a

Overall our we Here used million are protect protection that thyristor in more digital anticipate than $X equipment devices G.fast sales in the for the being signals. applications to transmits XXXX.

can there's for and standard charging consumer more for related industry towards move to need smartphones, other USB As devices mobile equipment products. a type together. electronics the power cables at connect various continues tablets, of currents C higher pieces These cables provide the and in

$XXX,XXX new result, China. protection mobile additional a as more to for growing leading about are penetrate PTC with further protect anticipated they charging market. As resettable this the in and cables wins prevent maker a recent phone win overheating business require for that this revenues will Annual in fuse we robust

business power series provides solar devices launch electric exciting semiconductor This and and further The systems. systems, such faster power silicon this traditional for our compared in applications in switching Progress Asia with was applications. vehicle more switch. level technology and Moving will the control silicon the position to reached our product supports inverters, first a motor of speeds be quarter space. fluid supply carbide market and the of power Semiconductor MOSFET a launch the sensor sensor in with wins successful of Monolith new appliance on range has category, third significant with used as our accelerating growth in to a power power quarter new for drives, goal milestone the carbide control

excited of first our the long-term an in the pilot more new customers I've received than electric broad across highlighted order and vehicle already of line. wins for XXX,XXX industries. production base charging many are few for about have product this changing a of We our business game just opportunities station a range

line, on margins sales our in the increase key behind customer and strong Our growth in best drivers and relationships, in extensive electronic class focus segment. our product targeted are areas

construction. mining, flash from where XX% industrial number We as markets Next grew arc and end newest our products wins in of quarter major revenue continued is high-speed came increasing industrial third sales manufacturing, protection million segment motor saw fuses, the such relays. improvement $XX organically. general relays, and of non-residential An including and

increased our making this also quarter of business strategy North to reach sales with progress geographic the on outside of another are of America. We good expand

strong third particularly the in in charging. business of quarter New our market vehicle was target electric

wins beginning fuses Our us line year. manufacturers helped two Europe secure relays fault leading in ground with charging high-speed electrical with shipments expanded vehicle and of next to

we back quarter lower The segment a industrial of structure and double-digit This this margins. combination has revenues, the improved achieved to get operational on of goal to track. operating enabled returning cost us segment execution also higher our

maintain We expect operating double-digit moving forward. to margins

sales solid progress making performance. reach our on which are operating and our to contributing geographic target and stronger We expanding are markets

believe our million a also our programs. in lower good industrial exit up overall were products opportunities in by long-term X% segment level we due our of automotive good offers sales growth offsets vehicle higher products third year's We more The the passenger continue last to Littelfuse. car below and driven margin business growth X% organically, sensor This $XXX to Sales indicated sales be segment of would than legacy quarter. commercial low for fuse had businesses. which and

strong VW, car local with exceeded OEMs. Volvo, all as for fuse and global programs Our ongoing to passenger buses build China in growth the sales across up due car commercial well demand of with GM, as number increased were in Sales X% and sales a trucks regions.

than more $XX program automotive with in of quarter. segment sales short-term portion contributed new solid loads business the wins to Daimler third Our million The significant new to electrical today's America. this North is generated in of A related in higher business vehicles. growth

add performance specific current our As combines higher requirements. most more because higher growth for and successful vehicles, OEMs one customized opportunities and their to several fuse current high to line. is need fuses capabilities into our to the global can be voltage Masterfuse features continue for one provides meet power electrical customers' of and it high fuses unit each

have We totally in Masterfuse $X and customers on business with far nearly XXXX new secured work to several we million wins new our continue so projects.

electric our automotive China slowing In are for seating our to timing new in growth. that fuses used the customers' passenger return resettable will won to also sensor delays windows. our adjust protect business, business power in launches PTC and We motors

we business anticipated, had in the low XXXX. lower sales legacy of margin As resulting exit from also

peak However, a One areas in will manufacturer focus safety. for key win convenience, during add to quarter oil efficiency, of a occupant continues transmission for Chinese temperature be cluster that revenue with million in at the wins our pipeline of business and speed our new $X was robust and sensors production.

manufacturer with will revenues application a for fuel car of heater manufacturer. a of systems peak Japanese Another generate win approximately That treatment a million. annual is with $X

seatbelt who a more in also revenue will $X peak OEM in sensor with growing China add new than won a business at We for production. million

double with last quarter strong another sales year. increases had over business digit products vehicle commercial Our

trucks equipment. construction Our particularly CVP strong end heavy markets and duty were overall,

a number annual agriculture than million beginning XXXX. new win OEM on program will won continued programs new modules a peak $X customer with focus product business includes strategic and $X with generate Europe more revenues will relationship. at results. in in Our who power to than yield Other million of new a built distribution a global in the America had solid successful latest North equipment with global add on this with production We our more We've in peak. revenue strong that of launches manufacturer

and technology Our established success drivers leadership of relationships automotive key behind customer the the are the segment.

largest power communications, medical company vehicle, CVP with of end as an electrification I sales planned combined to Corporation opportunities content of product mindshare The our value its acquisitions of to strategy acquisition complements opportunities as we to our our on and a The with of accelerate power vehicles portfolio, part grow to strategy targeted expansion, growth our a will about in the strategy higher that of In a sales acquisition capitalizing Under the pioneer access. the innovation, our businesses. product high to into access control through IXYS the market business adjusted integrated is a channel markets IXYS better has and our company industrial OEM organically. terms announced margin market. enterprise major he increase deep cash is in all automotive in acquisition and in are and agreement semiconductor which and Earlier automotive contributing global market and well XX.X%. position an August Our selling industrial, $XXX and as per the consumer, control the EBITDA IXYS drive sensor represents medium step revenues the technology acquire we of semiconductor XXXX on complementary mentioned had in its market circuit capability controlled million strong of cross stock of the the and we will power customers. $XXX approximately and enable the of in power the in drive will semiconductors be for history. IXYS at and transaction the The to outstanding greater across our channel in attractive shares value markets. forward highly fiscal time focus million is our voltage our a announcement. of

innovation. and We underway approvals our preliminary and long our and also successful believe from from well. completed regulatory our of cultures The companies feedback is Integration an planning have U.S. excellent foundation positive. strategy next filing. initial match the histories going and are values has conditions in shareholder of year, and Operational the as closing regulatory both received excellence our strong We distributors SEC and Germany the been approval to close first and on are to of financial We're transaction approval. including success. customers very subject IXYS quarter overall and track customary the and execution

back and received plants pleased year to receive row the our awards year value recognized for our two I'll Meenal take will China. testament During provide for then to operations second the recognition. outlook we received a Wuxi our to quarter our to have this The questions. the call have in teams in customers. The Last our third major awards improvement continuous manufacturing and Association lean business. fourth the in were this is the Excellence who the of your provide from and positive quarter demonstrated implementing operations work client Manufacturing The Suzhou, plants and principles we'll This driving news that manufacturing that excellence in awards for turn China for are With across a our Dongguan in award. Sethna,

Meenal Sethna

Dave. Thanks

As noted the cycle. last quarter fourth growth beginning was earlier electronics the year of the robust

quarter. fourth end in is electronic at demand levels bill our book While to running the seasonal at this market point strong, remained

year. million in XXXX the sales margin over of quarter quarter the decline As reflects of the X% to of environment, typical exchange organic million. guidance businesses. and is expecting sales reported growth revenue a across fourth on midpoint and $XXX with our rates $XXX the current last we're we X% to regulatory Based the growth sequential The range seasonality, our fourth of expect be foreign and for all

product auto the XX% year in also sales fourth some over the $X.XX in be product due is On as XXXX Our our growth from diluted adjusted our segment last midpoint well sensor year. X% at electronic across during last of per sales segment by earnings, quarter by to range growth affected impacted as year, New guidance earlier in earnings exit versus auto Organic $X.XX. customer The a sales partially we represents the additional has to delays current customer to of share unfavorably comparisons Chinese Growth growth year. the line expect been launches. Year. peaked last

in fourth to interest quarter rise bottom to the expect margin expense by operating to expect quarter versus interest our We unfavorably EPS our rates strong remain impacted we typical with leverage. higher last But due year. our line fourth growth be

Our adjusted the fourth rate Overall, The of performance equates of globally. XX%. guidance pleased a year, rate with XX%. quarter year our of execution to this strong forecast effective of we're tax a also approximately to assumes our result midpoint XX% rate full full tax year a

and total revenue Looking we at midpoint three XX% the fourth forecast, results of revenue quarter organic first and our of growth. the year our quarters of in XXXX X% a the expect growth

to expect We remarks of questions. Michelle? earnings concludes a adjusted our of the start $X.XX last growth for XX% year. at goals open up EPS over our now a generate revenue This and terrific We're it to off of growth. midpoint, delivering prepared like we'd and to double-digit

Operator

question [Operator of first Instructions] from & Company Sheerin Our Nicolaus Matthew Stifel, comes

Matthew Sheerin

morning, Good and you. Dave Meenal. Thank

David Heinzmann

morning. Good

Matthew Sheerin

to which year A XX% or for into over back be growth looks I of the maybe trying guide question know, guidance, modest, down, business to year. electronics, to very the on don't revenue so like electronics X% and sort equates it it's the sequentially going or X%

looked back I'm XX% down out, or X 'XX were like So to 'XX it figure sequentially. around going years X you trying in to back

sound that suppliers are return of other is although more terms seasonality. optimistic guiding and levels you to if more that bit little perhaps So seasonal to they QX semiconductor a in component a at look

that to different you're what be from trying it others? is seeing figure out I'm that may So

David Heinzmann

looks we for time robust question issue. we all to it What lot A a and extremely of last of market say Okay, fourth is fundamental an would great quarter us. a Matt, lot spent robust still around obviously end first year. of demands this back goes pretty

of pulled demand electronic to this New business was remember not in. early you little constrained. was particularly overall compared kind a demand If well and space others our was the year capacity Chinese of earlier so in as Year some that the upcycle

respond to strong. ability was pretty that our demand So increased, to

the so okay. was an downturn had look into three imperative. of we organic is It's abnormal of last normal. growth overall XX% we range in fourth lot normal market I a through think to is - in what normal say So seasonal don't Yeah. we which and would think in seen of it the above the quarter is end years to electronics it exceptionally with rates strong fourth a to it's an and year well again we've certainly rates still situation try When is growth a at that the looks we quarter? little last hard but It's say two that demand what and over the sell

Matthew Sheerin

Is on That's quarters, margin electronics, flat segment, very margin, year to comps? you're margin tough strong, the like margin function of that it a it record of year. off operating coming two and also like really it helpful. into electronic for the And be could then the looks the just Okay. down like looks in that over backing looks

Meenal Sethna

from declining, about talked Yes. and contribution profitable, when function you margins asked That up growth being the top the line. sequential growth we've ends about got very also you've always sequential coming when a positive

in or going so with any business. the that that resets It's of bulk not really declines the sales would the we're sequentially, on it. looking explain unusual anything And at

Matthew Sheerin

know automotive a of wins and Okay. And Dave, that had several exposure business the the and acquisition traditionally, the much about in I fuse customers me, of you you for with just side Japanese presence particularly you there. PolySwitch on terms talked just lastly haven't the I know as solid business, gave

in in are and So customer opportunities see you terms traction into cross starting relationships Japan? base to there some selling that of

David Heinzmann

really that to one wins Japanese and progress good a couple ability so the into relationship I was there. significantly couple the there's our talked we application. our business engineer say OEM actually has sensor an with to Matt ability years, in is Japanese certainly improved about, would the engage A What our of OEMs a sell in in last that

start but has penetrating would is takes years a level some particularly but on to say So if see OEMs fuse there revenues. Japanese the the business really wins it's certainly and you time couple as I even bit activity beginning we coming still you some long-term, - side. the a we're that the seeing of Progress view increased win to it the out before a

things we we're engagement. with are level as progressing pleased and the think expected of increased I

Matthew Sheerin

right, all much. thanks Okay, very

David Heinzmann

Thanks Matt.

Operator

Our of Glynn next question comes from Christopher Oppenheimer.

Your line open. is

Christopher Glynn

morning. good Thanks,

Meenal Sethna

Good morning.

David Heinzmann

morning. Good

Christopher Glynn

that segment sensors little helping if might wonder and a we is when for the emerge pathway just pull could bit about organic? Hey, the as talk transitions product that the something automotive

David Heinzmann

we lot growth how key seen had is What the Sure, return systems. Chris. well be and exit timing kind who the quarters side of as we that business launching talked a their to on a story a over their We've had that on expected. down the of actually unfolded legacy few a is couple last and products of their dragging know business little to customers so we about have that and going in that's our delays bit

is little this year had level to a for planned but or And we maybe designing activity and growth to continues our the extremely from robust. what slowed for return be during activity so hoped

design and So winning new think expected. and as winning I as of anticipated going the business is

expect to the would would a automotive we next growth year in So I we yeah, return seeing think, side. start to begin sensor

Christopher Glynn

in XXXX? for wins you in overall of look to platform and at do position launches, your corridor automotive as kind the the you expect be of automotive then long-term matrix segment And Okay.

David Heinzmann

I piece That didn't sorry. last catch,

Christopher Glynn

sensors growth investor laid that next organic do automotive corridor the in expect you just at year out the be to day? long-term given you the wondering Yes commentary, for

David Heinzmann

X% car continue Certainly next certainly see build Yes, segment growth. X%, We in we're growth for automotive us. be looking sure. be good a the on opportunity year long-term to to at very

think a very not the robust growth it's It's closely commercial continue next So that Will watching side. vehicles. in particularly car next very commercial not see. still is and driving year I robust. been robust, the balance commercial it automotive as so of a less rate surprised year for drag year build North next this in were year? on growth same kind the us sensor on year was in perhaps the big We we'll vehicle America a at between being of

continue of our may anticipate. of overall and believe than it sensors the be we're number of vehicles, vehicles, well-positioned all So longer we and to in very the But we fundamentals strong electrification the ability the for us long-term it. trends continue for

certainly not So from away automotive. long-term of view we're our backing growth in

Christopher Glynn

thank Great, you.

Operator

Our of comes next Cross Fox question from Research. Steven

is line open. Your

Steven Fox

couple Thanks, me of from questions morning. good first. A

Meenal Sethna

Good morning.

Steven Fox

Good morning.

side a I have of vehicle the to your on years to that some terms I in segment we've pickup wins all, out wins but the there vehicles seems to electric the see the new and cited, was curious given out, news about seen for start are whether months side? you've related the programs what charging seen the amount vehicle last of or of all electric of you filter the and to know would charging through be First kind either fair over that a timing technology revenues? also side couple we infrastructure. of how charging just of more flow

David Heinzmann

Steve. question, and vehicle quite to electric near- Good the long-term be in continue good. opportunities Certainly

many with many, Europe, America. and activity I we think tremendous on of in our Asia, OEMs view amount of North vehicle, have

they're counts are level when high. still launching there low. the vehicle So is And extremely and the relatively activity

What beginning on it's that there. to see that going activity of it's little there's going a So to particularly side kind positive be are but and that's quite There's America seeing and time. as growth North Europe in - the there, hit some in of charging lot we Asia and rate a is our Asia. high a faster, we over to activity be of strong levels we're activity push see in also but

it's Our for on charging in that acquisition, us able when as is well. strong close the quite content IXYS in space we're complementary to and quite EV

So opportunity we're that area a us. think excited about solid and that's pretty growth for

Steven Fox

citing for is puts doing or And bit you at of helpful. this maybe side sort quarter, on there are that QX seasonality anything as the of of leave to guys flip is you fourth maybe little and more some through the seasonal very That's go and Great. understanding all specific the room point? issues takes for your quarter momentum better in the relative a the assumption

David Heinzmann

I certainly already, so Yes, is our quarter we're into the think mean well I visibility reasonable.

I think get surprised a see levels could particular that areas are But any we than drivers some don't demand anticipated. with I higher that. for in now right little

heavy when look stable in in the turns in a electronics XXXX. It's really positions model a and very know business fourth a there. you the We're have our some inventory inventories our channel, place our actually As basis of through And turns far year. we we turns saw at there pretty reduction is and distribution centric in electronics. meaning been in this quarter watching turns, inventory the reality increases so took that quarter we

through inventories see we're are we although is sell what So it. pretty with comfortable is bit, up up and a

Steven Fox

so Great, that's much. very helpful. Thanks

Operator

Harrison Shawn Research. Longbow of question next from comes Our

Your line open. is

Shawn Harrison

kind away now right the Good after if what way of margin was wondering some business is of size from a was sensors there business? morning. to I that the auto transitioning low

Meenal Sethna

Sure, million on $XXX about then like $XXX the But an $XXX basis. $XXX so puts or over it, had sensor or overall electronics entire include at it historically you million, sensor say, more if so. being annual platform million the our million, piece, Shawn. talked let's the call business We platform

Shawn Harrison

you non-US represent or US and and Is but industrial it Got to guess, then sub-XX% outside hear business, the now? dynamic? I Is Canada Canada, number? what and that guess is sales type good meaningful you a the international, it continue of of to expand I right

David Heinzmann

from of is it so the it's small industrial. a Yes, revenues base in sub-XX%

growth but high it's coming there in it's a off percentage percentage a small activity base. our quite from So growth

those news good presence is in strong some sales particularly a begin to our applicability in and the that of with So have applications customers. electronics have international our force we to very ability have products reaching

progress So that we're we think excited making early it's about but of days there.

Shawn Harrison

mining like rebound, mouth. I within want to guess, Canada words potash to you it I sounded but were seeing in your don't And begin put

David Heinzmann

products rebounding some I potash by if Yes, strong what less mining days, any a X% pretty business gear don't We revenues demand any our with okay of would But our application general general size the dramatically that. that is pickup We is into applications. that and these relay more not kind than changing mining, that aside and would so improvement - the I the so general way. mining of some and electrical so seen of meaningful out say we soon. doing say that. time custom custom which have of not it's have see in our way mining you piece, we've set some for is seen in

Shawn Harrison

and $X.X lastly, this if quarter? September Meenal. probably a a of quarter? the expense for December I good Perfect then billion Is clarification, may, run that interest rate for

Meenal Sethna

That be a would Yes. good rate. run

Shawn Harrison

you. thank Perfect,

Operator

Our next question comes Baird. from David Leiker of

Your line open. is

Joe Vruwink

this Vruwink for Hi, Joe David. is

Meenal Sethna

Joe. Hi

David Heinzmann

Joe. Hi

Joe Vruwink

single digit an or size companies sensors had where in type with put automotive impact it automotive going I'm in see growth this tended the to for Is double electrical growth infrastructure or supply maybe quarter. the on chain possible And what high number digit, to low quarter? other a this,

that to quarter. And rate I'm growth maybe rate seen Littelfuse that being mid-single bridge to just industry of the growth reported this so trying of digit across the

David Heinzmann

Yes, Joe.

drag rough We the number say you probably at growth overall organic the decline automotive the about our - has decline, on that's if will, business sensor the looking of business. intentional in of X% automotive a put would rate a think of good way I it.

you're it seeing from probably think that if I math, closer So others. you what gets into do probably

Joe Vruwink

to makers the on auto then which a helpful. mark do in if There's some your the presumably launch, into X% interim would as to the be argue actually programs water plan future get product delay platform. expect introduce That's X% still parameter, just sensor on above been XXXX, automotive high you And X% maybe to the these would growth guidance? we

David Heinzmann

happens business, they're changes. by specific often our customers design selection indication of options lost with we've little model impacted our who no be in products can end even They a is our that that sensor take business business into customers where we by opportunities What different Certainly into there's fuse designed designed mid-model rate our in, differently. have platforms. than impacted sensor can be is our fuse systems the

predictable what been little our a So has less than it's core maybe historically.

do to our we look delayed our that you from think those we through give to side overall next course there. are get of what only return year. how will launch. The to couple it's growth will sure is of So a the We'll commercial If launch. expect I some vehicle would caution visibility customers, demand key rate I'm on is the like not going the good growth here of they patterns

Joe Vruwink

margin the in a last got maybe auto, good that incremental sensor this quarter for future quarter. company of guidance the I margin. about If a the that margin? is right incremental and a on on maybe is kind which it type but mix above as my generating normalizing good basis was Okay, of is product what forward gone business incremental - Is you, improvement portfolio just XX% of for the question looks of then legacy I I that's think that go provided that has like know capable indication the you've the

Meenal Sethna

about that Yes, profile end growing. to the be and as our mid- as fuse We've around we working at commercial maybe Joe. invest vehicle legacy in always to business, higher fairly profitability made end tends we're on our higher that business up comes that's our I'd to business, reasonable. sensor, automotive our choices it when still we're with historically say front talked business of that of the heavily margin along to automotive the

if the fuse any all where than of particular sensors, we period better I comes from one a more like, would or a incremental bit on is vehicle out reason automotive the growth in have quarter depending point time, lower that it's a product hey, commercial So be the something good in quarter.

Joe Vruwink

Okay, much. great. Thank very you

Operator

call the There Dave questions. no to turn for any like to over back remarks. Heinzmann closing Instructions] are [Operator further I'd

David Heinzmann

the talking day, quarter. you thanks. XXXX be expect momentum successful We next Thank forward look we today for first us Littelfuse. Have strong three on quarters to a that to again joining With you today's for in good our will year call. another

Operator

disconnect. participating in day. all conference. great you today's program and Everyone have thank gentlemen, may and you Ladies conclude This does a for the

Littelfuse (LFUS) 3 Nov 172017 Q3 Earnings call transcript