UPDATE 2-Littelfuse ups Q2 outlook; shares rise

Fri Jun 11, 2010 10:25am EDT

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* Sees Q2 EPS $0.78-$0.88 vs prior view of $0.69-$0.77

* Sees Q2 rev $155-$160 mln vs $148-$153 mln

* Lowered production to constrain Q3 sales marginally

* Shares rise 12 pct (Recasts; adds share movement, background)

June 11 (Reuters) - Circuit protection products maker Littelfuse Inc (LFUS.O) raised its second-quarter outlook as electronics demand continued to grow, sending its shares up as much as 12 percent.

The company, however, said its third-quarter sales would be hit by $2 million to $3 million as it lowered production at its Taiwan facility after a fire caused by equipment failure.

"Production has resumed, but we will be operating this facility below full capacity for a few months," Chief Executive Gordon Hunter said in a statement.

Littelfuse said electronics demand continues to exceed its own outlook and its electrical fuse business is also "steadily" improving.

Industry tracker Gartner expects global PC shipments to rise 22 percent this year, up from its March forecast of 20 percent, driven by strong consumer demand and companies replacing aging computers. [ID:nN26206972]

Littelfuse -- whose customers include Ford Motor Co (F.N), Hewlett-Packard Co (HPQ.N) and Dow Chemical Co (DOW.N), makes products that are used in automobiles, computers, consumer electronics products, and industrial equipment.

The company raised its second-quarter earnings outlook to 78 cents to 88 cents a share, up from its prior view of 69 cents to 77 cents a share.

It now expects revenue of $155 million to $160 million. The company had previously forecast revenue of $148 million to $153 million.

For the second quarter, analysts on average were expecting earnings of 74 cents a share, on revenue of $150.9 million, according to Thomson Reuters I/B/E/S. They expect the company to report a revenue of $152.7 million for the third quarter.

Shares of the company were trading up 8 percent at $33.96 in morning trade on Nasdaq. They rose to $35.30 earlier in the session. (Reporting by Bijoy Koyitty in Bangalore; Editing by Aradhana Aravindan)

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