Littelfuse Inc (LFUS) 2016 Q3 法說會逐字稿

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  • Operator

    Operator

  • Welcome to the Littlefuse, Inc. third quarter fiscal 2016 conference call. My name is Jason and I will be your Operator. At this time all participants are in a listen only mode. Later we will conduct a question and answer session. And please note this conference is being recorded. I will now turn the call over to Chairman, President, and Chief Executive Officer, Mr. Gordon Hunter. Please go ahead, sir.

    歡迎參加 Littlefuse, Inc. 2016 財年第三季電話會議。我的名字是傑森,我將成為您的接線生。此時所有參與者都處於只聽模式。稍後我們將進行問答環節。請注意,本次會議正在錄製中。我現在將把電話轉給董事長、總裁兼執行長戈登‧亨特先生。請繼續,先生。

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Thank you and good morning and welcome to Littlefuse third quarter 2016 conference call. Joining me today are Meenal Sethna, our Executive Vice President and Chief Financial Officer, and Dave Heinzmann our Chief Operating Officer. We are doing this call from our headquarters here in Chicago this morning and this is a very happy Chicago this morning after the Cubs' tremendous performance. We announced revised third quarter guidance on October 24, 2016 our third quarter sales and earnings finished at the midpoint of this revised guidance. Beyond the specific factors that contributed to the revised guidance it was another solid quarter. Our electronics and automotive segments performed well. The industrial segment was down due to weakness in several end markets and we continue to take actions to further reduce our cost structure in this segment.

    謝謝大家,早安,歡迎參加 Littlefuse 2016 年第三季電話會議。今天加入我的有我們的執行副總裁兼財務長 Meenal Sethna 和我們的營運長 Dave Heinzmann。今天早上,我們在芝加哥總部打了這個電話,在小熊隊取得了出色的表現之後,今天早上的芝加哥非常高興。我們於 2016 年 10 月 24 日宣布了修訂後的第三季指引,我們的第三季銷售額和收益達到了修訂後指引的中點。除了導致修訂後的指引的具體因素之外,這又是一個穩健的季度。我們的電子和汽車業務表現良好。由於幾個終端市場的疲軟,工業細分市場出現下滑,我們繼續採取行動進一步降低該細分市場的成本結構。

  • I will now turn the call over to Meenal, who will give a brief summary of the news release.

    我現在將把電話轉給米納爾,他將對新聞稿進行簡要總結。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Great, thanks, Gordon. Before we proceed let me remind everyone that certain comments we make on this call contain forward-looking statements. These forward-looking statements are not guarantees of future performance and may involve significant risk and uncertainties. We refer you to the forms 10-K and 10-Q as well as other SEC filings for more detail about important that could cause actual results to differ materially from our expectations. In addition, our remarks today refer to the non-GAAP financial measures, adjusted earnings per share and adjusted tax rate.

    太好了,謝謝,戈登。在我們繼續之前,讓我提醒大家,我們在這次電話會議中發表的某些評論包含前瞻性陳述。這些前瞻性陳述並非對未來績效的保證,可能涉及重大風險和不確定性。我們建議您參閱 10-K 和 10-Q 表格以及其他 SEC 文件,以了解有關可能導致實際結果與我們的預期產生重大差異的重要事項的更多詳細資訊。此外,我們今天的言論還涉及非公認會計準則財務指標、調整後每股盈餘和調整後稅率。

  • These non-GAAP measurer are intend to supplement but not substitute to the most directly comparable GAAP measures. A reconciliation of these financial measures to the most directly comparable GAAP measure is provided in our third quarter earnings release available on our website.

    這些非公認會計準則衡量指標旨在補充但不能取代最直接可比較的公認會計準則衡量指標。我們網站上發布的第三季財報中提供了這些財務指標與最直接可比較的公認會計準則指標的調節表。

  • Now some highlights from our third quarter, sales in the third quarter of 2016 were $280 million. Sales were up 30% year-over-year and up 2% excluding revenue from acquisitions. GAAP diluted earnings per share was $1.35, and adjusted diluted EPS was $1.87. GAAP earnings included $17 million in pre tax special charges driven by non cash impairment charge related to the custom business within the industrial segment.

    現在是我們第三季的一些亮點,2016 年第三季的銷售額為 2.8 億美元。銷售額年增 30%,不包括收購收入則成長 2%。 GAAP 攤薄每股收益為 1.35 美元,調整後稀釋每股收益為 1.87 美元。 GAAP 收益包括 1700 萬美元的稅前特殊費用,該費用是由與工業部門定制業務相關的非現金減損費用驅動的。

  • Excluding the special items, adjusted earnings per share increased 31% year-over-year. As we mentioned in our October 25th call, our full year adjusted tax rate is now projected to be 18% versus the prior estimate of 22%. The third quarter adjusted tax rate of 11.2% which includes a year to date adjustment to an 18% effective tax rate. Interest expense in the quarter was $900,000 higher versus the second quarter due in part to the additional draw down from our credit facility of $104 million purchase of the ON product portfolio in August.

    不計特殊項目,調整後每股盈餘較去年同期成長31%。正如我們在 10 月 25 日的電話會議中所提到的,我們的全年調整後稅率目前預計為 18%,而先前的估計為 22%。第三季調整後稅率為 11.2%,其中包括年初至今對 18% 有效稅率的調整。本季的利息支出比第二季高出 90 萬美元,部分原因是我們在 8 月購買了 ON 產品組合的 1.04 億美元信貸額度中額外提取了資金。

  • Cash from operating activities was $65 million for the third quarter of 2016. This was a $13 million increase versus last year and we have continued our focus on working capital. Capital expenditures were $14 million for the quarter which was about $5.5 million higher than last year, lead by capital spending for recent acquisitions in integration activities, primarily (inaudible).

    2016 年第三季經營活動產生的現金為 6,500 萬美元。與去年相比增加了 1,300 萬美元,我們繼續關注營運資本。本季資本支出為 1,400 萬美元,比去年增加約 550 萬美元,主要是最近整合活動收購的資本支出(聽不清楚)。

  • In summary, we had a strong third quarter across the business as well as the benefit from our 400 basis point tax rate reduction in our full year forecasted tax rate. Now, I will turn it back to Gordon for more color on business performance and market trends.

    總而言之,我們的第三季整個業務表現強勁,並且受益於我們全年預測稅率下調 400 個基點。現在,我將把它轉回給戈登,以獲取有關業務績效和市場趨勢的更多資訊。

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Thanks, Meenal. Starting with the electronic segment third quarter sales of $148 million were up 44%. Excluding acquisitions sales increased 4%. As we have seen this year sales were strong in Europe and China and stable in North America. Japan and Korea remain sluggish. Margins improved in the third quarter. This was driven by favorable product and regional mix and strong operational performance at our plants in Asia, particularly our China semiconductor (inaudible) and some additional currency benefits.

    謝謝,米納爾。從電子部門開始,第三季銷售額達 1.48 億美元,成長 44%。不包括收購的銷售額成長了 4%。正如我們所看到的,今年歐洲和中國的銷售強勁,北美的銷售穩定。日本和韓國依然低迷。第三季利潤率有所改善。這是由於我們亞洲工廠的有利產品和區域組合以及強勁的營運業績,特別是我們的中國半導體(聽不清楚)以及一些額外的貨幣優勢。

  • Electronics channel inventories were fairly stable versus the second quarter and are in line with our expectations at this point in the year. We saw a strong order rate in the third quarter that has continue so far into the fourth quarter. In Europe we saw increased demand for our products as part of the smart meter roll back and in applications for cell phone base stations, automotive electronics and led lighting. Our products were also selected for a smart meter program in South Africa that includes 500,000 meters. In China our fuses and custom [BARISTA] were selected for a data center power system, and as part of a large HVAC program.

    電子通路庫存與第二季相比相當穩定,符合我們今年此時的預期。我們看到第三季的強勁訂單率一直持續到第四季。在歐洲,隨著智慧電錶回滾以及手機基地台、汽車電子和 LED 照明應用的一部分,我們的產品需求不斷增加。我們的產品也被選用於南非的一個智慧電錶項目,該項目包括 50 萬台電錶。在中國,我們的保險絲和客製化 [BARISTA] 被選用於資料中心電力系統,並作為大型 HVAC 專案的一部分。

  • Battery's and appliances are two vertical markets we've targeted for growth. We have a significant opportunity in the battery category with the move towards USB type-C connectors for charging Smart phones, tablets and other consumer electronics products. The new connector types provide more power at higher currents and can connect various pieces of equipment together, therefore requiring more robust protection to prevent over heating. This is a big change in the industry that will ultimately impact all of us as the new connector design is a more and more new product.

    電池和電器是我們瞄準的兩個垂直市場成長目標。隨著為智慧型手機、平板電腦和其他消費性電子產品充電的 USB Type-C 連接器的發展,我們在電池類別中面臨著巨大的機會。新的連接器類型可以在更高的電流下提供更多的功率,並且可以將各種設備連接在一起,因此需要更強大的保護來防止過熱。這是產業的一個巨大變化,最終將影響我們所有人,因為新的連接器設計是越來越新的產品。

  • While this evolution in the early stages we are well positioned and believe it will be very good for us in the months and years ahead. For example, last quarter we mentioned a new PTC device that was selected by a major producer of smart charging cable. Shipment started in the third quarter and sales are expected to be about $1 million in 2017.

    雖然這種演變還處於早期階段,但我們已經做好了充分的準備,並相信在未來的幾個月和幾年裡,這對我們來說將是非常有利的。例如,上個季度我們提到了一款新型 PTC 元件,該元件被一家智慧充電電纜主要生產商選中。第三季開始出貨,預計2017年銷售額約100萬美元。

  • In the appliance category we recently designed a custom sensor package for a commercial refrigerator produced by a large appliance manufacturer based in North America. In August we announced our acquisition of a select product portfolio from ON Semiconductor. The portfolio enhances our existing semiconductor capabilities, with TVS diodes, switching thyristors, and IGBTs for the power and automotive markets. The annual sales of this product portfolio are expected to be about $55 million. We plan to invest approximately $30 million over the next few years in our semiconductor capabilities including adding capacity in our semiconductor fabrication locations. The integration is going well, and the business is off to a strong start in the third quarter.

    在家電類別中,我們最近為北美一家大型家電製造商生產的商用冰箱設計了客製化感測器套件。八月,我們宣布收購安森美半導體的精選產品組合。此產品組合增強了我們現有的半導體能力,包括適用於電力和汽車市場的 TVS 二極體、開關閘流管和 IGBT。該產品組合的年銷售額預計約為 5,500 萬美元。我們計劃在未來幾年投資約 3000 萬美元來增強我們的半導體能力,包括增加我們的半導體製造工廠的產能。整合進展順利,第三季業務開局良好。

  • We continued our growth strategy in the TVS diode market with another win for our high powered TVS diodes that are used to protect the power in cell phone base stations. In the Chinese electric vehicle market our fuses will be used in a battery pack program that will include more than 100 fuses per vehicle. Also in China, we got a leading market position for high-voltage fuses used in electric vehicles charging stations. As we've discussed on prior calls, automotive electronics is a targeted growth area for us that provides opportunities for several of our products lines in a variety of applications. We recently won new business with a major Japanese automotive electronics manufacturer for our small form factor chip fuse that will be used on a Heads Up instrument cluster display that shows speed, navigation and other information in the drivers field of view.

    我們持續實施 TVS 二極體市場的成長策略,用於保護手機基地台電源的高功率 TVS 二極體再次取得勝利。在中國電動車市場,我們的保險絲將用於電池組項目,每輛車將包含 100 多個保險絲。同樣在中國,我們在電動車充電站使用的高壓熔斷器方面取得了領先的市場地位。正如我們在先前的電話會議中所討論的那樣,汽車電子是我們的目標成長領域,它為我們的多個產品線在各種應用中提供了機會。我們最近贏得了一家日本大型汽車電子製造商的新業務,我們的小型晶片保險絲將用於平視儀表組顯示屏,在駕駛員視野中顯示速度、導航和其他資訊。

  • We had a significant design win for our new TVS load dump diode that protect automotive electrical systems from large voltage spikes from the alternator when the battery is disconnected. This initial success is being followed by growing interest from customers in Japan and Korea and our new devices are under qualification with Tier1 suppliers. We are also gaining approvals for diode array products for ESD and fast transient protection in automotive entertainment, communication networks and GPS antenna applications. We believe our broad product line and emphasis on faster growing markets will continue to drive the future of the electronic segment.

    我們的新型 TVS 負載轉儲二極體在設計上取得了重大勝利,該二極管可以在電池斷開連接時保護汽車電氣系統免受來自交流發電機的大電壓尖峰的影響。在初步成功之後,日本和韓國客戶的興趣日益濃厚,我們的新設備正在接受一級供應商的認證。我們的二極體陣列產品也獲得了批准,該產品可用於汽車娛樂、通訊網路和 GPS 天線應用中的 ESD 和快速瞬態保護。我們相信,我們廣泛的產品線和對快速成長市場的重視將繼續推動電子領域的未來。

  • I will now turn the call over to Dave who will cover our industrial and automotive segment and provide an update on PolySwitch.

    我現在將把電話轉給 Dave,他將負責我們的工業和汽車領域並提供 PolySwitch 的最新資訊。

  • Dave Heinzmann - COO

    Dave Heinzmann - COO

  • Thanks, Gordon. I'll start with our industrial segment where third quarter sales of $26 million were down 16%. This was due to weakness across many of our key end markets including solar, mining and oil and gas. Looking at the fuse business we mentioned last quarter the extension of the solar patch credit stimulus in the US is driving many solar OEMs to push out their projects. The weakness in the solar market was more pronounced in the third quarter then it was in the second, and we expect this to continue.

    謝謝,戈登。我將從我們的工業部門開始,該部門第三季的銷售額為 2,600 萬美元,下降了 16%。這是由於我們許多主要終端市場的疲軟,包括太陽能、採礦以及石油和天然氣。看看我們上季度提到的熔斷器業務,美國太陽能補丁信貸刺激的延長正在推動許多太陽能原始設備製造商推出他們的專案。太陽能市場的疲軟在第三季比第二季更為明顯,我們預計這種情況將持續下去。

  • On a positive side we had a very nice win during the quarter for our new high speed Q-series fuses for a new electric vehicle charging being manufactured by one of the industry leaders in electric vehicle charging here in North America. This is our first major design win for this new fuse line and an encouraging start.

    從積極的方面來看,我們在本季度獲得了非常好的勝利,我們的新型高速 Q 系列保險絲用於由北美電動車充電行業領先者之一製造的新型電動車充電。這是我們在這款新熔斷器系列中的第一個重大設計勝利,也是一個令人鼓舞的開始。

  • As part of our strategy into expand globally and into more attractive markets our Arc-Flash Relay was recently selected by a leading specialty glass manufacturer for the Company's plant in Japan. With the sustained weakness in the major end markets for our protection relay's and custom products we have been taking actions to resize these businesses, reduce cost and improve profitability.

    作為我們全球擴張和進入更有吸引力的市場策略的一部分,我們的弧閃繼電器最近被一家領先的特種玻璃製造商選擇用於該公司在日本的工廠。由於我們的保護繼電器和客製化產品的主要終端市場持續疲軟,我們一直在採取行動調整這些業務規模、降低成本並提高獲利能力。

  • Last quarter we announced a restructuring of the business that is expected to generate approximately $1 million in savings by the end of the year, and $2.5 million annually going forward. In October we took another step to improve profitability with the sale of the portable electric E-House business located in Canada that primarily serves the mining and utility markets. As we discussed previously this business was lower in profitability and not consistent with our margin profile expectation. We expect the sale of this business to reduce revenue about $2 million in the fourth quarter and about $10 million for 2017. The earnings impact is not material.

    上季我們宣布了業務重組,預計到年底將節省約 100 萬美元,今後每年將節省 250 萬美元。 10 月份,我們採取了進一步提高獲利能力的舉措,出售了位於加拿大的便攜式電動 E-House 業務,該業務主要服務於採礦和公用事業市場。正如我們之前討論的,該業務的盈利能力較低,並且與我們的利潤率預期不符。我們預計出售該業務將導致第四季度收入減少約 200 萬美元,2017 年收入減少約 1,000 萬美元。獲利影響並不重大。

  • Overall, we are committed to our industrial segment. We have a solid well established fuse business and differentiated niche products in our relay business. We are focusing on more attractive end markets and are taking decisive actions to improve the profitability of the segment. While the current market head winds are challenging we believe the industrial segment will continue to provide good, long-term growth opportunities.

    總的來說,我們致力於我們的工業領域。我們在繼電器業務中擁有穩固完善的保險絲業務和差異化的利基產品。我們專注於更具吸引力的終端市場,並採取果斷行動來提高該領域的獲利能力。儘管當前的市場逆風具有挑戰性,但我們相信工業領域將繼續提供良好的長期成長機會。

  • That brings us to the automotive segment where third quarter sales of $106 million were up 31% over the prior year quarter which was primarily due to the stronger than anticipated demand in our passenger car fuse business. Excluding acquisition sales grew 7%. Passenger car fuse sales were up 11% with particular strength in the Americas and China. During the quarter we won new business that will generate approximately $19 million of revenue during the life of the program. Our sales in the Americas benefited from the continued growth of pick up trucks and SUV.

    這將我們帶到了汽車領域,第三季銷售額為 1.06 億美元,比去年同期成長 31%,這主要是由於我們的乘用車保險絲業務的需求強於預期。不包括收購的銷售額成長了 7%。乘用車保險絲銷量成長了 11%,尤其是美洲和中國。在本季度,我們贏得了新業務,在該計劃實施期間將產生約 1900 萬美元的收入。我們在美洲的銷售受益於皮卡和SUV的持續成長。

  • New Cadillac and GMC models ramped up during the quarter as did sales of Chevrolet S-10 and Trailblazer products in Brazil. Asia was again our strongest performer. We benefited from the Chinese governments tax incentives for smaller cars which are scheduled to expire at the end of the year. Sales of several GM platforms where we have high content also ramped up, as well as new platforms introduced by two chinese OEM's, (inaudible) and Great Wall Motors. High current fuses including our master fuse continue to be a very successful market for us.

    新凱迪拉克和 GMC 車型在本季度的銷量有所增加,雪佛蘭 S-10 和 Trailblazer 產品在巴西的銷量也有所增加。亞洲再次成為我們表現最強勁的地區。我們受惠於中國政府針對小型汽車的稅收優惠政策,預計今年底到期。我們擁有高含量的幾個通用汽車平台的銷量也有所增加,以及兩家中國整車廠(聽不清楚)和長城汽車推出的新平台。大電流保險絲(包括我們的主保險絲)對我們來說仍然是一個非常成功的市場。

  • New master fuse programs in the third quarter include a win in Brazil for the new Ford, Ka compact car and a win for two compact vehicles produced by Opel in Europe. Another growth area is battery management systems. Our high current (inaudible) fuse is being used in a large program for a lithium ion battery protection and our low current high voltage fuses will be used in power converters produced by a major systems supplier in China for dual voltage hybrid vehicles.

    第三季的新主熔絲計畫包括在巴西贏得新款福特 Ka 小型車的勝利,以及在歐洲贏得歐寶生產的兩款小型車的勝利。另一個成長領域是電池管理系統。我們的大電流(聽不清楚)保險絲正在用於鋰離子電池保護的大型專案中,而我們的低電流高壓保險絲將用於中國一家主要係統供應商生產的雙電壓混合動力汽車電源轉換器。

  • This was also another good quarter for the automotive sensor business with a 12% increase in sales. This was slightly lower than the second quarter, but was stronger than we expected as some customers transitions from the low margin legacy project are taking longer than we anticipated.

    這也是汽車感測器業務的另一個好季度,銷售額成長了 12%。這略低於第二季度,但強於我們的預期,因為有些客戶從低利潤遺留專案的過渡所需的時間比我們預期的要長。

  • The higher third quarter sensor sales were driven primarily by stronger sales into occupant safety markets in Europe, and North America as well as strong sales of speed, position and direction sensors into transmission manufacturers in China. 12 new sensors designs were launched in the third quarter that will deliver nearly $4 million of new revenue at peak production. One of these is for the new water and fuel technology that was part of the (inaudible) acquisition last year. We continued our success in winning new higher margin business. This includes sensors for two new transmission applications in China and fluid level sensors for truck applications in Europe.

    第三季感測器銷售額的成長主要是由於歐洲和北美乘員安全市場的銷售強勁以及中國變速箱製造商的速度、位置和方向感測器的強勁銷售所推動的。第三季推出了 12 種新感測器設計,在生產高峰期將帶來近 400 萬美元的新收入。其中之一是新的水和燃料技術,這是去年(聽不清楚)收購的一部分。我們繼續成功贏得新的利潤率更高的業務。其中包括用於中國兩種新型變速箱應用的感測器和用於歐洲卡車應用的液位感測器。

  • Looking to the fourth quarter we expect to see a year-over-year decline in automotive sensor revenue based on our current projections for customer transitions out of the low margin legacy business. Sales of our commercial vehicle products, or CVP, were up 25% in the third quarter including the Menber's acquisition completed in early April. Excluding the acquisitions, sales were down about 3% reflecting the continued downturn in the North America heavy truck market as well as the general global softness in agriculture, construction and mining.

    展望第四季度,根據我們目前對客戶從低利潤傳統業務轉型的預測,我們預計汽車感測器收入將年減。我們的商用車產品 (CVP) 的銷售額在第三季成長了 25%,其中包括 4 月初完成的 Menber 收購。不包括收購在內,銷售額下降了約3%,反映出北美重型卡車市場的持續低迷以及全球農業、建築和採礦業的普遍疲軟。

  • As in our electronics and automotives fuse businesses, battery management is also a growth area for CVP products. During the quarter we won two new programs for our Liftgate battery charger that will add peak annual revenue of $400,000 beginning in 2017. In summary, our passenger car fuse business remains strong. Automotive sensors are growing and improving profitability and we are leveraging the Menber's to expand our CVP sales.

    與我們的電子和汽車保險絲業務一樣,電池管理也是 CVP 產品的成長領域。本季度,我們贏得了 Liftgate 電池充電器的兩個新項目,將從 2017 年開始將年收入峰值增加到 40 萬美元。總而言之,我們的乘用車保險絲業務仍然強勁。汽車感測器正在不斷增長並提高盈利能力,我們正在利用 Menber's 來擴大我們的 CVP 銷售。

  • Next is the update on PolySwitch. As we mentioned on our October 25th call our revenue exceeded our original forecast expectations. We saw solid demand in our distribution channels in the quarter. In addition, TE connectivity recognized a 53rd week during our third quarter. We have not factored this additional revenue into our forecast with our estimated timing of systems conversions off of TE's IT platform.

    接下來是 PolySwitch 的更新。正如我們在 10 月 25 日的電話會議上提到的,我們的收入超出了我們最初的預測預期。本季我們的分銷通路需求強勁。此外,TE Con​​nectivity 在第三季度迎來了第 53 週。我們尚未將這筆額外收入納入我們對 TE IT 平台系統轉換的預期時間的預測中。

  • Our combined product line is being well received by customers. New business in the third quarter includes a win for our surface mount polymer technology and a charging cable for a wearable device. We are also ramping up an earlier design win for a small PTC product and a power tool battery pack. Both wins combined will add about $1 million in sales in 2017. We completed our last major IT system conversion at the end of October, a quarter ahead of our initial plan. This was a significant effort across our teams as we migrated the worldwide PolySwitch business onto our IT system within seven months after closing the transaction.

    我們的組合產品線深受顧客好評。第三季的新業務包括我們的表面貼裝聚合物技術和穿戴式裝置充電電纜的勝利。我們也正在加快小型 PTC 產品和電動工具電池組的早期設計。這兩場勝利加起來將使 2017 年的銷售額增加約 100 萬美元。我們在 10 月底完成了最後一次重大 IT 系統轉換,比最初計劃提前了四分之一。這是我們團隊付出的巨大努力,因為我們在交易完成後七個月內將全球 PolySwitch 業務遷移到我們的 IT 系統上。

  • The accelerated system conversions allowed us to exit several transition services agreements earlier than anticipated giving us additional cost-savings in Q3 and Q4 of this year. We have a few remaining integration activities to complete over the next few months and expect to complete a full integration in the first quarter of 2017. As part of our fourth quarter earnings call we will provide an update on our annualized synergy expectations which we have said we will be greater than $10 million. We believe the efficient integration of PolySwitch once again highlights our track record of successfully bringing new product lines into Littlefuse ensuring a smooth transition for customers, employees and distributors. We have built this expertise over many years and many acquisitions and we believe this is one of our core strengths.

    加速的系統轉換使我們能夠比預期更早退出多項過渡服務協議,從而在今年第三季和第四季節省更多成本。我們還有一些剩餘的整合活動需要在接下來的幾個月內完成,並預計在2017 年第一季完成全面整合。作為我們第四季財報電話會議的一部分,我們將提供我們已經說過的年化協同效應預期的最新資訊我們的規模將超過 1000 萬美元。我們相信 PolySwitch 的高效整合再次凸顯了我們成功地將新產品線引入 Littlefuse 的記錄,確保了客戶、員工和經銷商的順利過渡。我們經過多年和多次收購積累了這種專業知識,我們相信這是我們的核心優勢之一。

  • We would like to thank our associates around the globe for their hard work and dedication during this integration process. That concludes the business review. I will now turn the call back over to Gordon for some additional updates.

    我們要感謝全球各地的員工在此整合過程中的辛勤工作和奉獻精神。業務審查到此結束。我現在將把電話轉回戈登以獲取一些額外的更新。

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Thanks, Dave.

    謝謝,戴夫。

  • Recently our semiconductor manufacturing plant in Wuxi, China received the 2016 Manufacturing Excellence Award from the Association for Manufacturing Excellence. The Award recognizes manufacturing plants for continuous improvement, best practices, creativity and innovation. Our Wuxi facility is the first plant outside North America to win this award. This is a tremendous accomplishment for the Wuxi that has done an outstanding job in developing Best In Class systems and processes. We are confident we are well positioned for the future investments we will be making in this facility.

    最近,我們位於中國無錫的半導體製造工廠榮獲卓越製造協會頒發的 2016 年度卓越製造獎。該獎項旨在表彰製造工廠的持續改進、最佳實踐、創造力和創新。我們的無錫工廠是北美以外第一家獲得此獎項的工廠。對於無錫在開發一流系統和流程方面表現出色的無錫來說,這是一項巨大的成就。我們相信,我們已經為未來對該設施的投資做好了準備。

  • A few weeks ago we celebrated the opening of our new Silicon Valley Technology Center in Fremont, California. This facility is located close to many of our customers, and will enable us to accelerate the development and validation of the next generation materials and products for the automotive and electronics market. One final note, we are hosting an analyst day on Friday, December 9th in New York City. We look forward to sharing an update on our strategy at that time. I will now turn the call back to Meenal who will provide the outlook for the fourth quarter, and then we will take your questions.

    幾週前,我們慶祝了位於加州弗里蒙特的新矽谷技術中心的開幕。該工廠靠近我們的許多客戶,將使我們能夠加快汽車和電子市場下一代材料和產品的開發和驗證。最後一點,我們將於 12 月 9 日星期五在紐約舉辦分析師日活動。我們期待屆時分享我們策略的最新資訊。現在我將把電話轉回給 Meenal,他將提供第四季度的前景,然後我們將回答您的問題。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Thanks, Gordon. As a reminder the fourth quarter of 2015 included an extra week. The impact of that week to our earnings was $9 million in additional sales and $0.02 of earnings per share in last years fourth quarter results. So far in the fourth quarter we are seeing solid demand in the electronic segment and continued softness in end markets impacting our industrial segments. Our automotive business remains strong with continued content growth and design wins. As we noted in our press release we expect Q4 auto revenue to be flat to last year. Largely based on expected timing for customer transitions out of some legacy auto sensor business.

    謝謝,戈登。提醒一下,2015 年第四季多了一周。那週對我們收益的影響是去年第四季業績增加了 900 萬美元的銷售額和每股收益 0.02 美元。到目前為止,第四季度我們看到電子領域的強勁需求和終端市場的持續疲軟影響了我們的工業領域。隨著內容的持續成長和設計的成功,我們的汽車業務依然強勁。正如我們在新聞稿中指出的那樣,我們預計第四季度汽車收入將與去年持平。很大程度上是基於客戶從某些傳統汽車感測器業務轉型的預期時間。

  • Based on the current economic environment in foreign exchange rates we expect the following for the fourth quarter 2016. Sales are expected to be in the range of $270 million to $280 million. Excluding acquisitions, the impact of the E-House business sale and the Q4 2015 extra week, sales growth over last year would be 3%, at the mid point of the range. Fourth quarter adjusted earnings per diluted share are expected to be in the range of $1.45 to $1.59. This assumes an adjusted effective tax rate of 18%. At the mid point of the range EPS growth would be 26% growth over last year.

    根據目前外匯匯率的經濟環境,我們對 2016 年第四季的預期如下。銷售額預計在 2.7 億美元至 2.8 億美元之間。排除收購、易居業務出售和2015年第四季額外一週的影響,銷售額較去年成長將為3%,處於區間中點。第四季調整後每股攤薄收益預計在 1.45 美元至 1.59 美元之間。假設調整後的有效稅率為 18%。每股收益成長範圍的中點將比去年增長 26%。

  • The fundamentals of our business remain strong despite top line head winds from a few of our end markets. We remain focused on margin improvements in those areas of our core business while continuing to drive integration efforts on acquisitions to bring margins in line with our long term expectations. We are committed to sustaining our strong operating margins and cash flow and focusing on improvements when market and business conditions change. Now, we will open the call for questions. I will turn it back to the Operator. Jason?

    儘管來自一些終端市場的頂線逆風,但我們業務的基本面仍然強勁。我們仍專注於核心業務這些領域的利潤率提高,同時繼續推動收購整合工作,使利潤率符合我們的長期預期。我們致力於維持強勁的營業利潤和現金流,並在市場和業務條件變化時專注於改善。現在,我們將開始提問。我會將其返還給操作員。傑森?

  • Operator

    Operator

  • Thank you. (Operator Instructions). Our first question is from Shawn Harrison from Longbow Research.

    謝謝。 (操作員說明)。我們的第一個問題來自 Longbow Research 的 Shawn Harrison。

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • Good morning, everybody.

    大家早安。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Good morning.

    早安.

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • There is no joy in Mudville, here in Cleveland this morning. With that aside I have a two part question on auto, if I may. On the China incentive dynamic, how much of a drag, if any do you think that will be in 2017? And then just, a clarification, the inorganic contribution to revenue in auto for the fourth quarter will be about $40 million give or take year-over-year?

    今天早上在克利夫蘭的穆德維爾沒有任何歡樂。除此之外,如果可以的話,我有一個關於汽車的兩部分問題。就中國的激勵動態而言,您認為 2017 年會產生多大的拖累(如果有的話)?然後澄清一下,第四季汽車收入的無機貢獻將約為 4000 萬美元,比去年同期?

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Let me take the question on the China incentives. As we talked about obviously in the third quarter we saw performance driven out of the program and fourth quarter and so far still pretty strong but that may tail off towards the end of the quarter.

    讓我回答有關中國激勵措施的問題。正如我們在第三季度顯然談到的那樣,我們看到業績超出了計劃和第四季度,到目前為止仍然相當強勁,但可能會在本季度末逐漸減弱。

  • There is mixed opinions on the impact and what it will look like going into 2017. But our view would be that growth in car build in China will certainly soften the amount of growth we have seen in the last couple years due to the incentive, most likely rolling off.

    對於其影響以及進入 2017 年的情況,人們的看法不一。但我們認為,由於激勵措施,中國汽車製造的增長肯定會削弱我們在過去幾年看到的增長量。可能會滾落。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • And then, Shawn on the second part of your question if I understood it correctly, you were asking about the inorganic, or the acquisition impact year-over-year in automotive. For automotive, we have both the PolySwitch acquisition, and then our Menber's acquisition. Both which really only would have impacted the first quarter. So, for 2017. So really, once we get into the second quarter of next year, we will have lapsed both acquisitions.

    然後,肖恩,關於你問題的第二部分,如果我理解正確的話,你問的是汽車行業的無機物或收購的逐年影響。對於汽車產業,我們收購了 PolySwitch,然後又收購了 Menber。這兩者實際上只會影響第一季。所以,對於 2017 年來說。實際上,一旦進入明年第二季度,我們的兩項收購就會失效。

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • Maybe the way I was trying to look at it, if organic was flat in the fourth quarter, just wondering how much acquisition will contribute to the auto business for the fourth quarter of this year?

    也許我試著看待它的方式,如果第四季的有機成長持平,只是想知道今年第四季的汽車業務將貢獻多少收購?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • You know, let me just come back to you on that one.

    你知道,讓我回到你的問題。

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • Okay. And then the second part, on the acquisition beyond business, I know it was highlighted as neutral to EPS this year but is there a way we can describe maybe what you anticipate the EPS contribution will be next year knowing that you're investing in the business, but there is probably some expected contribution?

    好的。然後是第二部分,關於業務以外的收購,我知道今年它被強調為對每股收益中性,但我們是否可以通過某種方式來描述您預計明年每股收益的貢獻是什麼,因為您知道您正在投資業務,但可能有一些預期的貢獻?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • It is not going to be substantially different until we really get through the integrations of the ON business. So, over the course of 2017, and I'd say later in 2017, but into 2018 is when the integration of the manufacturing out of, ON's manufacturing footprint into ours, it's going to take, we've talked about two or three years. We will start to see some benefits probably later 2017, but it will be 2018 before we will start to see that ramp up a little bit.

    在我們真正完成 ON 業務的整合之前,情況不會太大不同。因此,在 2017 年期間,我想說的是 2017 年晚些時候,但到 2018 年,ON 的製造足跡中的製造將整合到我們的製造足跡中,這需要我們談論過的兩三年時間。我們可能會在 2017 年稍後開始看到一些好處,但要到 2018 年我們才會開始看到這種好處增加。

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • What is the EBIT margin profile currently in the business, if I may ask?

    請問,目前該企業的息稅前利潤率是多少?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • We haven't really said. We've just said that going forward it would be 30%, 30% plus EBITDA margin. I think what we have talked about is the gross margins are lower in our normal margin profile right now and then when you add in amortization expense which is about $5 million on an annualized basis, the additional interest expense that we have taken on, it is definitely a lower margin profile business right now.

    我們還沒有真正說過。我們剛剛說過,未來將是 30%,加上 EBITDA 利潤率 30%。我認為我們所討論的是,我們目前正常利潤率狀況中的毛利率較低,然後當您添加按年化計算約為 500 萬美元的攤銷費用時,我們承擔的額外利息費用是目前肯定是利潤率較低的業務。

  • Shawn Harrison - Analyst

    Shawn Harrison - Analyst

  • That's very helpful. Thanks. And, we all say congratulations to the CUBS!!

    這非常有幫助。謝謝。而且,我們都祝賀小熊隊!!

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Thanks, Shawn.

    謝謝,肖恩。

  • Operator

    Operator

  • Thank you. Our next question comes from Matt Sheerin, from Stifel.

    謝謝。我們的下一個問題來自 Stifel 的 Matt Sheerin。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Good morning and congratulations on the results and to your Chicago Cubs. Regarding your electronics business, it looks like you are backing into the number given what you are talking about for automotive. It looks it's going to be down only 1% or 2% sequentially. And it looks like that is better than seasonal. I know that you've some incremental revenue from ON. And it looks like that is going to be, what, an incremental $6 million, or $7 million a quarter, but you also have one less selling week from the PolySwitch business. A, is my math correct? And B, why do you think you are seeing a little bit better than a seasonal demand here?

    早安,恭喜你的成績以及芝加哥小熊隊。關於您的電子業務,考慮到您所談論的汽車業務,您似乎正在支持這個數字。看起來它只會比上一季下降 1% 或 2%。看起來這比季節性的要好。我知道您從 ON 獲得了一些增量收入。看起來這將是,什麼,增量 600 萬美元,或每季 700 萬美元,但 PolySwitch 業務的銷售週也會減少。 A、我的數學正確嗎? B,為什麼您認為這裡的需求比季節性需求好一些?

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Yes, I think it is a phenomenon that's a little unusual, we do feel the business is stronger, as I pointed out. We saw good orders throughout the third quarter, continuing into the fourth quarter. So it is a year of seeing strength, which we've sometimes in past years seen. Usually there is more of a decline and maybe it is also the timing of Chinese New Year that will impact the business a little bit this year. But it is strong in Europe for some of the reasons I mentioned, and the programs we have there and strong in China and north America is very solid, too. So globally it is holding up very well and it's across multiple segments.

    是的,我認為這是一種有點不尋常的現象,正如我指出的那樣,我們確實覺得業務更強大了。我們在整個第三季都看到了良好的訂單,並持續到第四季。因此,這是看到力量的一年,我們在過去幾年中有時會看到這種力量。通常會有更多的下降,也許農曆新年的時間也會對今年的業務產生一些影響。但由於我提到的一些原因,它在歐洲很強大,而且我們在中國和北美擁有的強大項目也非常可靠。因此,在全球範圍內,它的表現非常好,並且跨越多個細分市場。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I was going to add, Matt, on ON, what we talked about for the third quarter, it was about $6 million in revenue, but that was only one month of revenue. That was really a five-week month, on top of that. So what we had talked about on an annualized basis for ON, was about $55 million, for the business. And then, also, you talked about PolySwitch. What we have generally said, and we haven't come off of this is, in the fourth quarter expect somewhere in the neighborhood of for total PolySwitch, about $40 million in revenue.

    馬特,我想補充一點,關於 ON,我們談到的第三季的收入約為 600 萬美元,但這只是一個月的收入。除此之外,那真的是為期五週的一個月。因此,我們討論過的 ON 年化業務約為 5500 萬美元。然後,您還談到了 PolySwitch。我們通常所說的(但我們還沒有得出結論)是,預計第四季度 PolySwitch 總收入約為 4000 萬美元。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • That's why I came up with the incremental $6 million or $7 million, or so, for ON, based on just partial results for the September quarter. And the PolySwitch is two-thirds electronics and one-third automotive, right?

    這就是為什麼我根據 9 月季度的部分結果,為 ON 提出了 600 萬美元或 700 萬美元左右的增量。 PolySwitch 三分之二是電子產品,三分之一是汽車產品,對吧?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Yes.

    是的。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • So we are right there. And then on the margins in the Electronics, I think that was close to a record quarter for operating margins and I know you had good growth and obviously you have good mix there. I know it is going to be down with the business as it is seasonally, but it still looks like it is significantly year-over-year. Is that sustainable? Those margins? Is it just the mix and the efficiencies of your, the semiconductor consolidations over the years, PolySwitch and just a combination of those things?

    所以我們就在那裡。然後在電子產品的利潤率方面,我認為該季度的營業利潤率接近創紀錄的水平,我知道你們有良好的成長,顯然你們在那裡有很好的組合。我知道它會隨著業務的季節性而下降,但看起來仍然同比顯著。這是可持續的嗎?那些利潤?這只是您多年來的半導體整合、PolySwitch 的組合和效率以及這些東西的組合嗎?

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • That's a good question. I think that is a record, 23%. We have never said that we think the business would be running consistently at 23%. We've sort of said high teens, around 20% has been the long-term for the business and for the Company. I think that as we do further acquisitions it would not be surprising that acquisitions have a lower margin profile than the existing business.

    這是個好問題。我認為這是一個記錄,23%。我們從未說過我們認為業務將持續以 23% 的速度運行。我們已經說過,大約 20% 是業務和公司的長期目標。我認為,當我們進行進一步收購時,收購的利潤率低於現有業務也就不足為奇了。

  • But our current passive business and semiconductor business, we are running it extremely efficiently, our plants in China and the Philippines, in particular, are doing extremely well. So at the moment we are very confident about the level of that business. But as we add-in acquisitions we would be very comfortable taking acquisitions with lower margin profile. And having that business running about 20% we'd be very happy with that. We're not trying to drive the operating margin to a peak into the mid20s. We want to invest in this business. We think it's got very good growth prospect and we continue to expect to invest in it.

    但我們目前的無源業務和半導體業務,我們運作得非常高效,特別是我們在中國和菲律賓的工廠,做得非常好。所以目前我們對該業務的水平非常有信心。但當我們增加收購時,我們會非常樂意進行利潤率較低的收購。如果該業務的運作率達到 20% 左右,我們會非常高興。我們並不試圖將營業利潤率推向 20 世紀中期的高峰。我們想投資這項業務。我們認為它有非常好的成長前景,我們繼續期望對其進行投資。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Okay. And just lastly, in the automotive margins with the legacy, I guess, the Cole Hersee sensor revenue rolling off, are you expecting margins to start improving in December quarter or will it take a couple quarters for us to see that mix, help the margins?

    好的。最後,在傳統的汽車利潤率方面,我想,Cole Hersee 感測器的收入正在下降,您是否預計利潤率將在12 月季度開始改善,或者我們需要幾個季度才能看到這種組合,從而幫助提高利潤率?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • There are a couple of elements on the margin. One, it's that auto sensor business dropping off from the Hamlin acquisition, actually.

    邊緣有幾個元素。第一,實際上是汽車感測器業務因哈姆林收購而下降。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Hamlin, That's right.

    哈姆林,沒錯。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Yes, That's where that came from. But I would say the other phenomenon, our commercial vehicle business, you know, there has been a lot of discussion these days on, still, the heavy truck market and construction in AG and that just doesn't seem to be recovering. So, we're still seeing softness on the top line there.

    是的,這就是它的來源。但我想說的是另一個現象,我們的商用車業務,你知道,這些天仍然有很多關於重型卡車市場和 AG 建設的討論,而且似乎還沒有恢復。因此,我們仍然看到營收疲軟。

  • The team has done a nice job managing margins but we are some lower margins in that part of the business along with the acquisition that we did earlier this year, also in the commercial vehicle space. As we've talked about, when acquisitions come into our portfolio early on, they tend to be at lower margins until we get some operational improvement from that as well as the amortization expense tends to depress margins a bit as well. So, that's what's tempering margins.

    該團隊在利潤管理方面做得很好,但隨著我們今年稍早在商用車領域的收購,我們在這部分業務的利潤率有所下降。正如我們所討論的,當收購早期進入我們的投資組合時,它們的利潤率往往較低,直到我們從中獲得一些營運改善,而且攤銷費用也往往會稍微壓低利潤率。所以,這就是利潤率的緩和。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Thanks for clarifying.

    感謝您的澄清。

  • Operator

    Operator

  • Thank you. Our next question comes from Christopher Glynn from Oppenheimer.

    謝謝。我們的下一個問題來自奧本海默的克里斯托弗·格林。

  • Christopher Glynn - Analyst

    Christopher Glynn - Analyst

  • Thanks. World Series and your earnings call is going nicely here. Does it get any better?

    謝謝。世界職棒大賽和您的財報電話會議進展順利。情況有好轉嗎?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Could be here in Chicago.

    可能在芝加哥。

  • Christopher Glynn - Analyst

    Christopher Glynn - Analyst

  • Talking about industrial. I think that's one main area not covered yet, but--for the time being is 3Q now, is this result kind of a normalized result barring a macro inflection in the mid 20's and kind of break even? Or was it a soft spot even within the overall soft trend?

    談論工業。我認為這是一個尚未涵蓋的主要領域,但是,目前是第三季度,這個結果是否是一種標準化結果,除非在 1920 年代中期出現宏觀拐點並且達到收支平衡?或者說,即使在整體疲軟的趨勢中,它也是一個弱點?

  • Dave Heinzmann - COO

    Dave Heinzmann - COO

  • Yes. It was a bit of a soft spot in the overall trends. I think you will see some improvement from the third quarter. However, we do see the end markets continuing to be challenged. We will continually monitor how that business from a revenue perspective is going and if we need to take further actions to make sure our costs align properly, we will. But I do think we probably hit a bit of soft quarter on the margin profile, industrial. It should have some improvement from that moving forward.

    是的。這是整體趨勢中的一個弱點。我認為你會看到第三季有所改善。然而,我們確實看到終端市場繼續面臨挑戰。我們將從收入角度持續監控該業務的進展情況,如果我們需要採取進一步行動以確保我們的成本適當調整,我們會的。但我確實認為我們的工業利潤率可能會出現一些疲軟的季度。今後應該會有一些改進。

  • Christopher Glynn - Analyst

    Christopher Glynn - Analyst

  • Okay and is it a little early at this point to talk about what a longer term normalized profile might be?

    好的,現在談論長期標準化概況可能是什麼還為時過早嗎?

  • Dave Heinzmann - COO

    Dave Heinzmann - COO

  • I think we have to work through the lull and the end markets and kind of get the normalized into a more normal growth pattern in the business. We still do believe the industrial segment is a nice place for us in the long term. But clearly, there are some challenges and we have time to work through that.

    我認為我們必須度過平靜期和終端市場,並使業務正常化為更正常的成長模式。我們仍然相信,從長遠來看,工業領域對我們來說是一個不錯的地方。但顯然,存在一些挑戰,我們有時間來解決這些挑戰。

  • Christopher Glynn - Analyst

    Christopher Glynn - Analyst

  • And then automotives has a lot of things below the surface right now. I just want to hit on automotive margins directionally into 2017 where you have the new centers ramp might help, acquisition integrations, not hurting and then maybe some carry over impact. You had elevated margins in the first quarter. How should we net all of those thoughts?

    汽車現在還有很多隱藏在表面下的東西。我只是想在 2017 年定向提高汽車利潤率,新中心的擴建可能會有所幫助,收購整合不會造成傷害,然後可能會產生一些延續影響。第一季的利潤率有所提高。我們應該如何收集所有這些想法?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I would say for 2017 we are not offering a view right now on margins. I would say stay tuned on that.

    我想說,對於 2017 年,我們目前不提供利潤率的觀點。我想說請繼續關注。

  • Christopher Glynn - Analyst

    Christopher Glynn - Analyst

  • Okay. I'll stay tuned. Thanks.

    好的。我會繼續關注。謝謝。

  • Operator

    Operator

  • Thank you. Our next question comes from Tim Wojs from Robert W. Baird.

    謝謝。我們的下一個問題來自 Robert W. Baird 的 Tim Wojs。

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • Hey, everybody, good morning.

    嘿,大家早安。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Good morning.

    早安.

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • I guess going back to the automotive business and I know people ask a lot about margins, but maybe just on the dollar EBIT this quarter versus last year it is kind of flattish even though you saw a pretty good organic growth. I guess what is embedded in the Q4 guidance? Should we see another flattish year-over-year EBIT contribution? Why aren't we seeing a little more leverage on the organic sales growth this quarter?

    我想回到汽車業務,我知道人們對利潤率有很多疑問,但也許僅就本季度的息稅前利潤而言,與去年相比,它有點持平,儘管你看到了相當不錯的有機增長。我猜第四季指南包含了什麼內容?我們是否應該看到息稅前利潤的年比貢獻再次持平?為什麼我們沒有看到本季的有機銷售成長有更多的槓桿作用?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I would go back to one of the earlier questions. Our commercial vehicle product business, even though we are seeing sales growth, a chunk of that is coming out of an acquisition we made in the commercial vehicle business earlier this year that is really not dropping through much from a profit perspective and definitely not at the automotive segment margin trend. That's one of the issues.

    我想回到之前的問題之一。我們的商用車產品業務,儘管我們看到銷售成長,但其中很大一部分來自我們今年稍早對商用車業務的收購,從利潤角度來看,這實際上並沒有下降太多,而且絕對不會在汽車細分市場利潤率趨勢。這是問題之一。

  • And then, also, our commercial vehicle business has been generally flattish down a little bit. And we have seen a little bit of a margin dip there. That's what was driving the third quarter. As we work on-- as we do with all of the acquisitions as we work on the integration and work on margin improvement there, we will start to see the margin get back to a little better level. Those are some of the issues right now with commercial vehicles space.

    此外,我們的商用車業務總體上略有下降。我們看到利潤率略有下降。這就是第三季的推動因素。當我們致力於整合和提高利潤率時,我們將開始看到利潤率恢復到更好的水平。這些是目前商用車空間面臨的一些問題。

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • Okay. So EBIT in those businesses it is definitely down year-over-year?

    好的。那麼這些業務的息稅前利潤一定會比去年同期下降嗎?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Well for the third quarter it has really been generally flattish or so, but that's not our intent going forward.

    第三季的情況確實整體持平,但這不是我們未來的意圖。

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • Okay. And then Gordon just on a book to bill on the demand environment, what -- I mean it is really encouraging to see a lot of good activity there and good order growth. Is there any change in how distributors are ordering at all? And I am asking it from the perspective of if demand starts to take off a little bit and the distributors start to stock more inventory? What typically do you look for to think that maybe there is some inventory stocking versus sell through demand?

    好的。然後戈登剛剛寫了一本關於需求環境的書,我的意思是看到那裡有很多良好的活動和良好的訂單增長確實令人鼓舞。分銷商的訂購方式是否有任何變化?我問這個問題的角度是,需求是否開始回升,經銷商是否開​​始儲備更多庫存?您通常會尋找什麼來認為可能存在一些庫存庫存而不是透過需求銷售?

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • We have taken that up to some hard lessons over the last 10 years of times when we have seen corrections. We really monitor that globally very carefully with our distributors. The inventory level and their sell through and we feel that it is in pretty good shape right now. I think maybe some years ago we saw more of a peak in the third quarter of a lot of building for the holiday season of consumer electronics. I think our business is just much more distributed across many more end segments. Like we talked about lightning and smart meters and industrial applications.

    在過去的十年裡,當我們看到糾正時,我們已經學到了一些慘痛的教訓。我們確實與我們的分銷商在全球範圍內非常仔細地監控這一情況。庫存水準及其銷售情況,我們認為目前狀況非常好。我想也許幾年前,我們在第三季看到了消費性電子產品假日季大量建築的高峰。我認為我們的業務更加分佈在更多的終端領域。就像我們談論閃電、智慧電錶和工業應用一樣。

  • I think our business is a little different profile. So maybe the peak can fall off in the fourth quarter and maybe changing from historical times. There is the timing of Chinese New Year that impacts things. But I think that we have very close relationships to our distribution channels and we monitor carefully their inventory and we are always on the lookout for business growing more in the channel than the end markets. And so monitoring their sell through is a critical part of our working with our channels. I think we feel pretty good about the business right now.

    我認為我們的業務有點不同。因此,高峰可能會在第四季度下降,並且可能會改變歷史時間。中國新年的時間會影響事情。但我認為我們與分銷管道有著非常密切的關係,我們仔細監控他們的庫存,我們總是在尋找通路中比終端市場成長更多的業務。因此,監控他們的銷售情況是我們與通路合作的關鍵部分。我認為我們現在對這項業務感覺很好。

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • Great. And then just on free cash flow for the year, any update on what we should expect for, I guess, free cash flow conversion as a percentage of earnings?

    偉大的。然後就今年的自由現金流而言,我想我們應該預期自由現金流佔收益的百分比有什麼更新嗎?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Yes, what we talked about back in the second quarter was a little bit lower level on free cash this year. We were looking at cash flow from operations and we typically talked about that normally being in the 16% to 18% range and this year we said that would be a bit lower, more in the 12% to 14% range just with all the integration activity and one-time things going on. CapEx levels we also talked about, being in the $50 million to $55 million range. I would say it will probably a little closer to the $50 million range, but that's what I would say for this year.

    是的,我們在第二季討論的是今年的自由現金水準略低。我們正在研究營運現金流,我們通常談到的現金流量通常在16% 至18% 範圍內,今年我們說這個數字會低一些,更多地在12% 至14% 範圍內(僅考慮到所有整合)活動和一次性發生的事情。我們也談到了資本支出水平,在 5000 萬美元到 5500 萬美元之間。我想說它可能會更接近 5000 萬美元的範圍,但這就是我今年的說法。

  • Tim Wojs - Analyst

    Tim Wojs - Analyst

  • Great. Good luck for the rest of the year.

    偉大的。祝今年剩下的時間一切順利。

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Thank you.

    謝謝。

  • Operator

    Operator

  • Thank you. Our next question comes from John Franzreb, from Sidoti & Company.

    謝謝。我們的下一個問題來自 Sidoti & Company 的 John Franzreb。

  • John Franzreb - Analyst

    John Franzreb - Analyst

  • Yes, in your prepared commentary you mentioned that one of the fuses went up 11% in the third quarter. It seemed like a surprisingly strong number. How much is that attributed to China versus say more confidence on the platforms?

    是的,在您準備的評論中,您提到其中一個保險絲在第三季上漲了 11%。這似乎是一個令人驚訝的強勁數字。這在多大程度上歸因於中國,而不是對平台的更多信心?

  • Dave Heinzmann - COO

    Dave Heinzmann - COO

  • What I would say, John, is certainly China had a pretty meaningful impact to that, but we had design-ins on platforms that were launching in the back half of this year. Often that can exaggerate as they pull an inventory for their launch, can exaggerate that take rate, if you will, for our products. So, yes. It was a very strong organic growth in that area. It is driven a little by the launch of the new platforms we are on and the continued success of pick up trucks and SUVs in North America. By the way, smaller SUVs in China are a huge drivers as well which were well positioned in. However, it is certainly public that Ford in North America will be shutting down for a week or two in the fourth quarter to kind of burn down some of their vehicle inventory. We haven't seen others, but we will see that. There may be a little softening on that demand because of both actions.

    約翰,我想說的是,中國肯定對此產生了相當有意義的影響,但我們在今年下半年推出的平台上進行了設計。通常,當他們為產品發布而拉動庫存時,這可能會被誇大,如果你願意的話,可能會誇大我們產品的接受率。所以,是的。該領域的有機成長非常強勁。我們所使用的新平台的推出以及皮卡車和 SUV 在北美的持續成功在一定程度上推動了這一趨勢。順便說一句,小型 SUV 在中國也是一個巨大的推動者,而且定位良好。然而,眾所周知,福特在北美將在第四季度關閉一兩週,以燒毀一些汽車。他們的車輛庫存。我們還沒有看到其他人,但我們會看到。由於這兩項行動,這項需求可能會減弱。

  • John Franzreb - Analyst

    John Franzreb - Analyst

  • Got it. Got it. Can you clarify the electronics book to bill, if you kind of take out the impact of the acquisitions, was it more in line with normal seasonal trends, just marginally above? It sounds like it is a little better, but not much better.

    知道了。知道了。您能否澄清一下要計費的電子書籍,如果您排除了收購的影響,它是否更符合正常的季節性趨勢,略高於?聽起來好像好一點,但也好不了多少。

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • It is a little better, but not anything we are concerned. As I mentioned earlier we get enough data we analyze from the distribution channels and we think the book to bill is healthy.

    稍微好一點,但不是我們所關心的。正如我之前提到的,我們從分銷管道獲得了足夠的數據進行分析,我們認為該書的帳單是健康的。

  • John Franzreb - Analyst

    John Franzreb - Analyst

  • All right. And one last question, just your thoughts about the capital structure and debt repayment. How aggressive are you going to be paying down debt give the free cash flow from the firm?

    好的。最後一個問題,您對資本結構和債務償還的看法。考慮到公司的自由現金流,您將如何積極地償還債務?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Typically Q3 and Q4 tend to be our strongest cash flow generating quarters. When we take a look, it is hard to tell in the netting, we did draw down more debt this quarter because in the third quarter related to the product acquisition business. At the same time we also pay back a little debt. Where we can, where we have strong cash generation, that's something we look at.

    通常,第三季和第四季往往是我們現金流產生最強勁的季度。當我們看一下時,很難從淨額結算中看出,我們本季確實減少了更多債務,因為第三季與產品收購業務相關。同時我們也還了一點債務。只要我們有能力,只要我們有強大的現金產生能力,這就是我們所關注的。

  • John Franzreb - Analyst

    John Franzreb - Analyst

  • How much free cash is overseas?

    海外有多少閒置現金?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I would say the bulk of it.

    我想說的是大部分。

  • John Franzreb - Analyst

    John Franzreb - Analyst

  • Thanks for taking my questions. That's all I got.

    感謝您回答我的問題。這就是我得到的。

  • Dave Heinzmann - COO

    Dave Heinzmann - COO

  • Thanks, John.

    謝謝,約翰。

  • Operator

    Operator

  • Thank you. We have an additional question from Matt Sheerin.

    謝謝。我們還有一個來自馬特謝林的問題。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Thanks. A quick follow-up question regarding the OpEx in the quarter which was up significantly. I imagine some of that was due to the ON acquisition and amortization? Or was there more to it than that?

    謝謝。關於本季營運支出大幅成長的快速後續問題。我想其中一些是由於 ON 收購和攤銷造成的?或者有比這更多的事情嗎?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • Are you looking at sequentially or year-over-year? So year-over-year, yes, we have done a lot of acquisitions so OpEx was definitely up as was amortization expense, absolutely. On a sequential basis it was up a little, but some of that is also amortization expense.

    您是按順序查看還是逐年查看?因此,是的,我們進行了大量收購,因此營運支出肯定有所上升,攤銷費用也絕對上升。環比略有上升,但其中一部分也是攤銷費用。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • What was the amortization in the quarter, total amortization expense?

    本季的攤銷總額是多少?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I believe it is a little over $4 million.

    我相信這個數字略高於 400 萬美元。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • $4 million, okay. And then in terms of for the December quarter, you expect that OpEx number to be sort of flattish or up a little bit with the full quarter?

    400萬美元,好吧。然後就 12 月季度而言,您預計營運支出數字與整個季度持平或略有上升?

  • Meenal Sethna - EVP & CFO

    Meenal Sethna - EVP & CFO

  • I think right now Q3 is a reasonable run rate. I guess one thing I would add is with ON coming on board we will have a full quarter of amortization expense. I would think of amortization expense in the neighborhood of about $25 million on an annualized basis. That includes now PolySwitch as well as the ON acquisition.

    我認為現在第三季的運行率是合理的。我想我要補充的一件事是,隨著 ON 的加入,我們將有整整一個季​​度的攤銷費用。我認為年化攤銷費用約為 2500 萬美元。其中包括現在的 PolySwitch 以及對 ON 的收購。

  • Matt Sheerin - Analyst

    Matt Sheerin - Analyst

  • Okay, thanks a lot.

    好的,非常感謝。

  • Operator

    Operator

  • Thank you. That will conclude our question-and-answer session. I will now turn the call back to Gordon Hunter for closing comments.

    謝謝。我們的問答環節就到此結束。我現在將把電話轉回戈登·亨特以徵求結束意見。

  • Gordon Hunter - Chairman, President & CEO

    Gordon Hunter - Chairman, President & CEO

  • Thank you for joining us on today's call, and with our strong year to date performance we expect 2016 to be an excellent year for Littelfuse. We look forward to updating you again next quarter. Thank you and have a good day.

    感謝您參加今天的電話會議,憑藉我們今年迄今為止的強勁表現,我們預計 2016 年對於 Littelfuse 來說將是輝煌的一年。我們期待下個季度再次為您提供最新消息。謝謝你,有美好的一天。

  • Operator

    Operator

  • Thank you, ladies and gentlemen. This concludes today's conference. Thank you for participating. You may now disconnect.

    謝謝你們,女士們、先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。