Vishay Intertechnology Inc., Malvern, Pa., announced that net earnings for the first quarter ended March 31 increased to $90.1 million or 65 cents per share, 21% over the comparable period last year when earnings were $74.2 million, or 56 cents per share.
Net earnings for the quarter include restructuring charges of $5.9 million, or 3 cents per share related to cost reduction programs presently being implemented by the company. Before restructuring charges, net earnings were $94.0 million, or 68 cents per share.
Sales for the first quarter were $558.4 million, 4% higher than the $538.8 million in the year-ago quarter.
"We continue to have slowness in orders, order cancellations and orders pushed out from several end markets that the company serves," said Felix Zandman, chairman and chief executive, in a released statement.
"As a result, we are accelerating cost reductions throughout the company, and anticipate that this cost reduction program will result in the company taking additional restructuring charges during 2001, presently estimated at $30 million."
Zandman added, "Vishay 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.''
Earlier this week, Vishay sent a letter to General Semiconductor, urging the Melville, NY-based semiconductor supplier to reconsider its earlier acquisition bid of a one-for-two stock swap.
In response, General Semiconductor yesterday reiterated its rejection of Vishay's takeover bid, restating in a letter to Vishay that the proposed acquisition is not in the best interests of its shareholders.
Commenting on the remainder of 2001, Zandman said, ``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.''