Passives and semiconductor supplier Vishay Intertechnology Inc., Malvern, Pa., posted third quarter net earnings of $6.8 million, or 4 cents per share on sales of $533.2 million, compared to earnings of $13.1 million, or 8 cents per share, on sales of $471.4 million in the same quarter a year ago.
Earnings were negatively impacted by restructuring expenses of $6.3 million, a loss on extinguishment of debt of $9.9 million, a loss on long-term purchase commitments of $11.4 million, and a write-down of inventories on hand to market value of $4.2 million.
Vishay's subsidiary Siliconix Inc. earned $9.6 million, or 32 cents per share on sales of $97.4 million, compared to $13.3 million, or 45 cents per share on sales of $96.1 million a year ago.
"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," said Felix Zandman, chairman and chief executive of Vishay, in a statement. "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."
Vishay had $529.4 million in cash at the end of the third quarter, up from $340 million a year ago, and total long-term debt of $835.1 million, compared to $706.3 million at the end of the third quarter in 2002.