Vishay Reports Third Quarter Results
biz.yahoo.com
MALVERN, Pa., Nov. 5 /PRNewswire/ -- Dr. Felix Zandman, Chairman & Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH) announced today that sales for the quarter ended September 30, 2001 were $332,293,000 compared to sales of $669,784,000 for the quarter ended September 30, 2000. Before restructuring charges of $11,802,000 related to cost reduction programs being implemented by the Company and a $35,000,000 write-down of raw material inventory, the net loss for the quarter ended September 30, 2001 was $3,371,000 or $0.02 per share compared to net earnings of $171,111,000 or $1.22 per share for the quarter ended September 30, 2000. After the restructuring charges and inventory write-down, the net loss for the quarter ended September 30, 2001 was $39,152,000 or $0.28 per share.
Sales for the nine months ended September 30, 2001 were $1,274,195,000 compared to sales of $1,821,449,000 for the nine months ended September 30, 2000. Before restructuring charges of $47,078,000 and the raw material inventory write-down of $55,000,000, net earnings for the nine months ended September 30, 2001 were $129,629,000 or $0.94 per share compared to net earnings of $377,235,000 or $2.74 per share for the nine months ended September 30, 2000. After the restructuring charges and inventory write-down, net earnings for the nine months ended September 30, 2001 were $54,100,000 or $0.39 per share.
Commenting on the results for the third quarter, Dr. Zandman stated, ``We are very disappointed with the results for the past quarter. Although shipments were as we expected, gross margins before raw material write-down were 19.4% for the quarter as compared to 26.4% for June 2001 quarter and 44.7% for the quarter ended September 30, 2000. This was primarily a result of pricing pressure in our passive components business. As a result, we have accelerated our cost reduction programs throughout the Company. Personnel in the Company have been reduced by approximately 6,000 employees since January 1, 2001. The inventory write-down is non-cash related and a substantial amount of the restructuring charge is also non-cash related.''
Dr. Zandman continued, ``Bookings for the quarter ended September 30, 2001 were $256,000,000 and we have recently begun to see some improvements in orders in our discrete semiconductor (active) business. Our balance sheet is very strong and we continue to generate cash. We will vigorously pursue our research and development programs and continue our introduction of new products. The Company will continue to pursue acquisition opportunities, some of which may be substantial, to facilitate the growth of our business and to strengthen our position in the markets we serve.''
Commenting on the remainder of 2001, Dr. Zandman said, ``We are very excited about our acquisition of General Semiconductor, Inc. With this acquisition completed, Vishay becomes the #2 manufacturer of discrete semiconductors worldwide and the #1 manufacturer of diodes and rectifiers worldwide. The complementary nature of our product lines should result in substantial operational and marketing synergies and provide significantly more opportunities for additional substantial cost savings. Vishay's strong balance sheet, coupled with General Semiconductor's reputation and market presence, should create an ideal platform for further growth through acquisitions in the semiconductor components market. General Semiconductor's sales for the quarter ended September 30, 2001 were $80,659,000.''
With the addition of General Semiconductor, shipments for the fourth quarter of 2001 should be higher than the shipments in the third quarter of 2001 but still significantly below the fourth quarter of last year. Longer term, Vishay is well positioned for growth as the global economy recovers. |
