EX-99.1 3 kl10032_ex99-1.txt PRESS RELEASE Exhibit 99.1 NEWS RELEASE Contact: Richard N. Grubb, Executive Vice President and Chief Financial Officer or Robert A. Freece, Executive Vice President 610/644-1300 FOR IMMEDIATE RELEASE VISHAY REPORTS RESULTS FOR THIRD QUARTER 2003 MALVERN, PENNSYLVANIA - October 29, 2003 - o Sales for Third Quarter 2003 increased 13% to $533,168,000 compared to Third Quarter 2002 o Bookings for Third Quarter 2003 increased 28% to $550,000,000 compared to Third Quarter 2002 o Book-to-Bill for Third Quarter 2003 was 1.03; Actives Book-to-Bill was 1.09 and Passives Book-to-Bill was 0.97 o Backlog increased by $14 million during Third Quarter 2003 to $434 million o Cash balance at September 30, 2003 was $529 million Dr. Felix Zandman, Chairman and Chief Executive Officer of Vishay Intertechnology, Inc. (NYSE: VSH), announced today that sales for the quarter ended September 30, 2003 were $533,168,000, a 13% increase as compared to sales of $471,419,000 for the quarter ended September 30, 2002. Net earnings for the quarter ended September 30, 2003 were $6,775,000 or $0.04 per share, compared with net earnings for the quarter ended September 30, 2002 of $13,114,000 or $0.08 per share. Earnings for the quarter were impacted by restructuring expense of $6,313,000, a loss on extinguishment of debt of $9,910,000, a loss on long-term purchase commitments of $11,392,000, and a write-down of inventories on hand to market value of $4,185,000, offset by a gain on an insurance claim of $30,361,000. These items and their tax related consequences had a negative $0.02 effect on earnings per share. The charge for early extinguishment of debt related to refinancing of debt during the third quarter of 2003. The September 2002 quarter included restructuring expenses of $2,567,000, resulting in a reduction of $0.01 in net earnings per share. Sales for the nine months ended September 30, 2003 were $1,603,398,000 compared to sales of $1,363,436,000 for the nine months ended September 30, 2002. Net earnings for the nine months ended September 30, 2003 were $16,503,000 or $0.10 per share, compared with net earnings for the nine months ended September 30, 2002 of $31,151,000 or $0.19 per diluted share. Earnings for the nine months ended September 30, 2003 were impacted by restructuring expense of $19,258,000, a loss on extinguishment of debt of $9,910,000, a loss on long-term purchase commitments of $11,392,000, and a write-down of inventories on hand to market value of $4,185,000, offset by a gain on an insurance claim of $30,361,000. These items and their tax related consequences had a negative $0.08 effect on earnings per share. The nine months ended September 30, 2002 included restructuring expenses of $7,498,000, resulting in a reduction of $0.04 in net earnings per share. - MORE - Commenting on the results for the third quarter of 2003, Dr. Zandman stated, "Although I am disappointed that we were not able to increase our sales and earnings on a sequential basis, I am quite optimistic in the overall market outlook for our business. I was very pleased to see an upturn in bookings for our semiconductor business with a book-to-bill of 1.09 for the third quarter 2003. As in the past, during this phase of the business cycle, the active business is leading the passive business, and I believe we will soon see a pick-up in the passive business as well. The sales increase for the quarter included $61 million of sales from the acquisition of BCcomponents in December 2002. We are on track with the integration of BCcomponents and the $70 million of cost savings related to this integration. Our financial position is strong and we continue to be confident in the prospects of our Company. We generated cash from operations during 2002 and continue to do so during the first nine months of 2003. Our cash position was $529 million at September 30, 2003." Dr. Zandman went on to announce, "Vishay has just entered into a technical and marketing cooperation agreement with Walsin Technology of Taiwan. Accordingly, Vishay will sell MLCC's (multi-layer ceramic capacitors) produced by Walsin for Vishay. This will allow us to penetrate the low-cost market for MLCC's in North America and Europe and will be a welcome addition to our high-reliability MLCC product line which is sold primarily to the automotive market." Dr. Zandman continued, "We believe that our strategy of a broad product line, opportunistic acquisitions and research and development efforts has enabled us to weather these difficult times in the industry better than our competitors. Approximately 50% of Vishay current sales (or over one billion dollars) have come from new products that didn't exist ten years ago and approximately 12% of current sales (or $200 million) have come from new products that didn't exist three years ago. The same analysis for our Siliconix business shows that approximately 88% of its current sales come from new products that didn't exist ten years ago and approximately 19% of current sales have come from products that didn't exist three years ago. Our research and development efforts, in addition to our acquisition activity, have materially contributed to the sales growth of the Company." Vishay, a Fortune 1,000 Company listed on the NYSE, is one of the world's largest manufacturers of discrete semiconductors (diodes, rectifiers, transistors, optoelectronics, and selected ICs) and passive electronic components (resistors, capacitors, inductors, and transducers). The Company's components can be found in products manufactured in a very broad range of industries worldwide. Vishay is headquartered in Malvern, Pennsylvania, and has operations in 17 countries employing over 25,000 people. Vishay can be found on the Internet at www.vishay.com. Statements contained herein that relate to the Company's future performance and outlook, including, without limitation, statements with respect to the Company's anticipated results of operations or level of business for 2003 or any other future period, including anticipated business improvements, 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; changes in the pricing for new materials used by the Company, particularly tantalum and palladium; 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; changes in laws, including trade restrictions or prohibitions and the - MORE - 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; 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, 2002 Report on Form 10-K/A 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. NOTE: A conference call for investors will begin Wednesday, October 29, 2003 at 11:00 a.m. eastern time. Participants can join the call by dialing 888-423-3273 (U.S. and Canada only). If you are outside the U.S. and Canada, the number you will need to use is 651-224-7582. The conference operator will require the two following pieces of information in order to admit you into the call: (1) Company Name - Vishay Intertechnology, Inc.; and (2) Moderators - Vishay Executives. A taped replay of the call will be available through 11:59 PM eastern time on Sunday, November 2, 2003. The phone number to hear the replay is 800-475-6701 (U.S. and Canada) or 320-365-3844 (if you are outside the U.S. and Canada). Refer to access code 702773 when calling to hear the recording. There will also be a live audio webcast of the conference call. This can be accessed directly from the investor relations section of the Vishay website (www.vishay.com). ### VISHAY INTERTECHNOLOGY, INC. AND SUBSIDIARIES Summary of Operations (In thousands, except per share amounts) (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 2003 (1) 2002 2003 (1) 2002 --------------- --------------- -------------- --------------- Net sales $ 533,168 $ 471,419 $ 1,603,398 $ 1,363,436 GROSS PROFIT 102,463 107,227 344,272 301,729 19.2% 22.7% 21.5% 22.1% Selling, general, and administrative expenses 91,993 78,247 284,538 228,583 Restructuring expense 6,313 2,567 19,258 7,498 --------------- --------------- -------------- --------------- OPERATING INCOME 4,157 26,413 40,476 65,648 0.8% 5.6% 2.5% 4.8% OTHER INCOME AND (EXPENSE): Interest expense (9,727) (7,166) (29,191) (21,156) Minority interest (1,944) (2,772) (5,839) (6,597) Loss on extinguishment of debt (9,910) - (9,910) - Gain on insurance claim 30,361 - 30,361 - Other (951) 2,126 (14) 4,755 --------------- --------------- -------------- --------------- 7,829 (7,812) (14,593) (22,998) --------------- --------------- -------------- --------------- EARNINGS BEFORE INCOME TAXES 11,986 18,601 25,883 42,650 Income taxes 5,211 5,487 9,380 11,499 --------------- --------------- -------------- --------------- NET EARNINGS $ 6,775 $ 13,114 $ 16,503 $ 31,151 =============== =============== ============== =============== 1.3% 2.8% 1.0% 2.3% Basic earnings per share $ 0.04 $ 0.08 $ 0.10 $ 0.20 Diluted earnings per share $ 0.04 $ 0.08 $ 0.10 $ 0.19 Weighted average shares outstanding - basic 159,610 159,525 159,585 159,371 Weighted average shares outstanding - diluted 160,356 160,303 160,168 160,725
(1) Gross profit for the quarter and nine months ended September 30, 2003 include a writedown of raw material inventory to lower of cost or market ($4,185,000) and an accrual of loss on long-term purchase commitments ($11,392,000). VISHAY INTERTECHNOLOGY, INC. AND SUBSIDIARIES Consolidated Condensed Balance Sheets (In thousands) (Unaudited)
September 30, December 31, September 30, December 31, ASSETS 2003 2002 LIABILITIES AND STOCKHOLDERS' EQUITY 2003 2002 -------------- -------------- ------------ ------------ CURRENT ASSETS CURRENT LIABILITIES Cash and cash equivalents $ 529,380 $ 339,938 Notes payable to banks $ 17,106 $ 18,161 Accounts receivable 391,252 343,511 Trade accounts payable 126,830 123,999 Inventories: Payroll and related expenses 119,009 103,184 Finished goods 180,266 219,769 Other accrued expenses 281,209 303,609 Work in process 155,928 142,846 Income taxes 13,788 8,734 Raw materials 177,017 191,451 Current portion of long-term debt 1,387 18,550 ----------- ----------- Deferred income taxes 45,554 47,297 TOTAL CURRENT LIABILITIES 559,329 576,237 Prepaid expenses and other current assets 151,398 188,881 ------------- ------------ TOTAL CURRENT ASSETS 1,630,795 1,473,693 LONG-TERM DEBT 835,134 706,316 DEFERRED INCOME TAXES 48,502 52,935 DEFERRED INCOME 30,359 42,345 PROPERTY AND EQUIPMENT - AT COST Land 106,744 118,000 MINORITY INTEREST 81,159 75,985 Buildings and improvements 344,848 339,869 Machinery and equipment 1,624,113 1,609,931 OTHER LIABILITIES 273,483 279,462 Construction in progress 70,072 61,830 Allowance for depreciation (972,105) (854,780) ACCRUED PENSION COSTS 239,119 223,092 ------------- ------------ 1,173,672 1,274,850 STOCKHOLDERS' EQUITY Common Stock 14,433 14,429 Class B Common Stock 1,538 1,538 GOODWILL 1,449,072 1,356,293 Capital in excess of par value 1,911,254 1,910,994 Retained earnings 539,857 523,354 OTHER INTANGIBLE ASSETS, NET 113,906 122,417 Accumulated other comprehensive loss (36,920) (91,115) Unearned compensation (265) (413) ------------ ------------- OTHER ASSETS 129,537 87,906 2,429,897 2,358,787 -------------- -------------- ------------ ------------- $ 4,496,982 $ 4,315,159 $ 4,496,982 $ 4,315,159 ============== ============== ============ =============