Vishay Reports a 21% Increase in Net Earnings for the First Quarter 2001
biz.yahoo.com
MALVERN, Pa., April 26 /PRNewswire/ -- Dr. Felix Zandman, Chairman and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH - news) announced today that net earnings for the first quarter ended March 31, 2001 increased by 21% over the comparable period last year. Net earnings for the quarter ended March 31, 2001 were $90,126,000 or $0.65 per share compared to net earnings of $74,271,000 or $0.56 per share for the quarter ended March 31, 2000. Sales for the quarter ended March 31, 2001 were $558,465,000 compared with sales of $538,894,000 in the quarter ended March 31, 2000, an increase of 4%.
Net earnings for the quarter ended March 31, 2001 include restructuring charges of $5,971,000 or $0.03 per share related to cost reduction programs presently being implemented by the Company. Net earnings for the quarter ended March 31, 2001 before restructuring charges were $94,050,000 or $0.68 per share.
Commenting on the results for the first quarter, Dr. Zandman stated, ``We are pleased to report a growth both in sales and net earnings this quarter in spite of the uncertainty regarding near-term market conditions. We continue to have slowness in orders, order cancellations and orders pushed out from several end markets that the Company serves. As a result, we are accelerating the reduction of costs throughout the Company. We anticipate that this cost reduction program will result in the Company taking additional restructuring charges during 2001, presently estimated at $30 million. We are vigorously pursuing our research and development programs and the introduction of new products. The Company continues to generate cash and is net debt free. This will enable the Company to pursue acquisition opportunities some of which may be substantial to facilitate the growth of our business and strengthen our position in the markets we serve.''
Commenting on the remainder of 2001, Dr. Zandman said, ``Based on present visibility, shipments for the year ended December 31, 2001 are difficult to predict. The Company expects shipments and earnings per share will be substantially below previous guidance of $2.4 billion in shipments and $2.50 to $2.75 for earnings per share. However, we believe shipments for the second quarter of 2001 will be in the range of $430 million to $450 million.''
Vishay, a Fortune 1,000 Company with year 2000 sales of $2.5 billion, is the largest U.S. and European manufacturer of passive electronic components (resistors, capacitors, inductors) and a major producer of discrete semiconductors (diodes, optoelectronics, transistors), IrDCs (infrared communication devices), and power and analog switching integrated circuits. The Company's components can be found in products manufactured in a very broad range of industries worldwide. With headquarters in Malvern, Pennsylvania, Vishay employs over 20,000 people in 66 plants in the U.S., Mexico, Germany, Austria, the United Kingdom, France, Portugal, the Czech Republic, Hungary, Israel, Taiwan, China and the Philippines. Vishay can be found on the Internet at vishay.com.
Statements contained herein that relate to the Company's future performance, including, without limitation, statements with respect to the Company's anticipated results of operations or level of business for 2001 or any other future period, including synergies and cost savings, are forward- looking statements within 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: changes in the demand for, or in the mix of the Company's products and services; recessionary trends in general or in the specific areas where the Company sells the bulk of its products; competitive pricing and other competitive pressures; cancellation of a material portion of the orders in the Company's backlog; difficulties in expansion and/or new product development, including capacity constraints and skilled personnel shortages; drops in average sales prices; changes in laws, including trade restrictions or prohibitions and the cancellation or reduction of government grants, tax benefits or other incentives; currency exchange rate fluctuations; labor unrest or strikes; underutilization of plants and factories in high labor cost regions and capacity constraints in low labor cost regions; difficulties in obtaining items needed for the production of the Company's products; quality deviations in raw materials; significant price increases in, or the inability to obtain adequate supplies of, tantalum or palladium; the availability of acquisition opportunities on terms considered reasonable by the Company; and such other factors affecting the Company's operations, markets, products, services and prices as are set forth in its December 31, 2000 Report on Form 10-K filed with the Securities and Exchange Commission. 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. |
