Littelfuse, Inc. has recently released its 10-Q report, detailing its operations in the Americas, Asia-Pacific, and Europe. The company operates through three segments: Electronics, Transportation, and Industrial, offering a range of electronic components and modules. Littelfuse serves various markets, including industrial motor drives, automotive electronics, electric vehicles, and renewable energy.
The report also delves into the company's financial performance. For the third quarter of 2024, Littelfuse recognized net sales of $567.4 million, a decrease of 6.5% compared to the same period in 2023. The company reported net income of $58.1 million, or $2.32 per diluted share, in the third quarter of 2024. Net cash provided by operating activities was $207.0 million for the nine months ended September 28, 2024, compared to $313.1 million for the nine months ended September 30, 2023.
Littelfuse also entered into a definitive agreement to purchase a group annuity contract, which will reduce the company’s outstanding pension benefit obligation by approximately $23 million. However, the company expects to record a one-time non-cash settlement charge in 2026, estimated between $6 million and $8 million, related to this transaction.
The report also highlights potential risks related to market conditions. Littelfuse conducts its goodwill impairment tests annually and has identified the Industrial controls and sensors reporting unit within the Industrial segment as at risk for future impairment due to lower expectations for future revenue and profitability, primarily in the electric vehicle end market.
Additionally, the report mentions that the company has been notified by one of its customers of a product recall potentially due to certain fuses provided by Littelfuse. The ultimate costs of the recall and the range of potential loss cannot be determined at this time.
The report provides a detailed breakdown of the company's unaudited condensed consolidated results of operations for the third quarter of 2024, including net sales, cost of sales, and gross profit. It also compares these figures to the third quarter of 2023, highlighting changes and their impact on the company's financial performance.
Following these announcements, the company's shares moved -2.7%, and are now trading at a price of $252.19. For the full picture, make sure to review Littelfuse's 10-Q report.
