STOCK TITAN

Vishay Intertechnology Reports Second Quarter 2024 Results

Rhea-AI Impact
(Neutral)
Rhea-AI Sentiment
(Neutral)
Tags

Vishay Intertechnology (NYSE: VSH) reported its Q2 2024 results with revenues of $741.2 million and EPS of $0.17. The gross margin was 22.0%, including a negative impact of about 170 basis points from the Newport acquisition. The book-to-bill ratio was 0.86, with 0.82 for semiconductors and 0.90 for passive components. The backlog at quarter-end stood at 4.6 months.

CEO Joel Smejkal noted progress on the Vishay 3.0 strategic plan and silicon carbide strategy. However, the industry recovery is slower than expected, leading to adjustments in the Itzehoe, Germany expansion project. For Q3 2024, Vishay expects revenues of $745 million ± $20 million and a gross profit margin of 21.0% ± 50 basis points.

Vishay Intertechnology (NYSE: VSH) ha riportato i risultati del secondo trimestre del 2024, con ricavi di 741,2 milioni di dollari e un utile per azione (EPS) di 0,17 dollari. Il margine lordo è stato del 22,0%, comprendente un impatto negativo di circa 170 punti base derivante dall'acquisizione di Newport. Il rapporto book-to-bill è stato di 0,86, con 0,82 per i semiconduttori e 0,90 per i componenti passivi. Il portafoglio ordini a fine trimestre era di 4,6 mesi.

Il CEO Joel Smejkal ha evidenziato i progressi nel piano strategico Vishay 3.0 e nella strategia del carburo di silicio. Tuttavia, la ripresa del settore è più lenta del previsto, portando a aggiustamenti nel progetto di espansione di Itzehoe, in Germania. Per il terzo trimestre del 2024, Vishay prevede ricavi di 745 milioni di dollari ± 20 milioni di dollari e un margine di profitto lordo del 21,0% ± 50 punti base.

Vishay Intertechnology (NYSE: VSH) reportó sus resultados del segundo trimestre de 2024 con ingresos de 741.2 millones de dólares y una utilidad por acción (EPS) de 0.17 dólares. El margen bruto fue del 22.0%, incluyendo un impacto negativo de aproximadamente 170 puntos básicos por la adquisición de Newport. La relación book-to-bill fue de 0.86, con 0.82 para semiconductores y 0.90 para componentes pasivos. La cartera de pedidos al final del trimestre era de 4.6 meses.

El CEO Joel Smejkal destacó el progreso en el plan estratégico Vishay 3.0 y la estrategia de carburo de silicio. Sin embargo, la recuperación de la industria es más lenta de lo esperado, lo que ha llevado a ajustes en el proyecto de expansión en Itzehoe, Alemania. Para el tercer trimestre de 2024, Vishay espera ingresos de 745 millones de dólares ± 20 millones de dólares y un margen de beneficio bruto del 21.0% ± 50 puntos básicos.

비샤이 인터테크놀로지 (NYSE: VSH)는 2024년 2분기 결과를 보고하며, 수익이 7억 4,120만 달러, 주당 순이익(EPS)이 0.17달러라고 발표했습니다. 총 이익률은 22.0%로, 뉴포트 인수에서 약 170 베이시스 포인트의 부정적인 영향을 포함하고 있습니다. 주문-출하 비율은 0.86이며, 반도체는 0.82, 수동 부품은 0.90입니다. 분기 말 시점의 백로그는 4.6개월입니다.

CEO 조엘 스메이칼은 비샤이 3.0 전략 계획과 탄화규소 전략의 진전을 언급했습니다. 그러나 업종의 회복이 예상보다 느려 독일 이체호의 확장 프로젝트에 조정이 이루어졌습니다. 2024년 3분기에는 비샤이가 7억 4,500만 달러 ± 2,000만 달러의 수익과 21.0% ± 50 베이시스 포인트의 총 이익률을 예상하고 있습니다.

Vishay Intertechnology (NYSE: VSH) a annoncé ses résultats pour le deuxième trimestre 2024, avec des revenus de 741,2 millions de dollars et un bénéfice par action (EPS) de 0,17 dollar. La marge brute était de 22,0 %, y compris un impact négatif d'environ 170 points de base en raison de l'acquisition de Newport. Le ratio commandes sur factures était de 0,86, avec 0,82 pour les semi-conducteurs et 0,90 pour les composants passifs. Le carnet de commandes à la fin du trimestre était de 4,6 mois.

Le PDG Joel Smejkal a souligné les progrès du plan stratégique Vishay 3.0 et de la stratégie du carbure de silicium. Cependant, la reprise du secteur est plus lente que prévu, ce qui a conduit à des ajustements dans le projet d'expansion à Itzehoe, en Allemagne. Pour le troisième trimestre 2024, Vishay prévoit des revenus de 745 millions de dollars ± 20 millions de dollars et un bénéfice brut de 21,0 % ± 50 points de base.

Vishay Intertechnology (NYSE: VSH) hat seine Ergebnisse für das zweite Quartal 2024 veröffentlicht, mit einem Umsatz von 741,2 Millionen Dollar und einem Gewinn je Aktie (EPS) von 0,17 Dollar. Die Bruttomarge betrug 22,0 %, einschließlich eines negativen Einflusses von etwa 170 Basispunkten durch die Übernahme von Newport. Das Buch-zu-Rechnung-Verhältnis lag bei 0,86, mit 0,82 für Halbleiter und 0,90 für passive Komponenten. Der Auftragsbestand am Ende des Quartals betrug 4,6 Monate.

CEO Joel Smejkal wies auf Fortschritte im strategischen Plan Vishay 3.0 und in der Siliziumkarbidstrategie hin. Allerdings ist die branchenweite Erholung langsamer als erwartet, was zu Anpassungen im Expansionsprojekt in Itzehoe, Deutschland, führt. Für das dritte Quartal 2024 erwartet Vishay Umsätze von 745 Millionen Dollar ± 20 Millionen Dollar und eine Bruttogewinnmarge von 21,0 % ± 50 Basispunkten.

Positive
  • Revenues remained stable at $741.2 million quarter-over-quarter, including a full quarter of Newport
  • Backlog at quarter-end was 4.6 months, indicating sustained demand
  • Company is progressing on its Vishay 3.0 strategic plan and silicon carbide strategy
  • Maintaining planned capital investment of $2.6 billion between 2023 and 2028
Negative
  • EPS decreased to $0.17
  • Gross margin negatively impacted by approximately 170 basis points due to Newport acquisition
  • Book-to-bill ratio declined to 0.86, indicating potential future revenue challenges
  • Industry recovery taking longer than expected, leading to project adjustments
  • Q3 2024 guidance suggests continued margin pressure with expected gross profit margin of 21.0% ± 50 basis points

Insights

Vishay's Q2 2024 results paint a mixed picture. Revenues of $741.2 million and EPS of $0.17 suggest stability, but the gross margin of 22.0% includes a significant negative impact from the Newport acquisition. The book-to-bill ratio of 0.86 indicates softening demand, particularly in semiconductors (0.82).

The company's backlog of 4.6 months provides some near-term visibility, but the lowered capex guidance for 2024 ($360-390 million) signals caution. The delayed Itzehoe expansion reflects a slower-than-expected industry recovery, which could impact growth prospects. Investors should monitor the integration of Newport and the progress of Vishay's silicon carbide strategy as potential catalysts for future performance.

Vishay's Q2 results reflect broader industry trends. The flat quarter-over-quarter revenue and reduced automotive demand highlight ongoing challenges in the semiconductor sector. The book-to-bill ratio below 1.0 suggests a potential slowdown, aligning with the company's cautious outlook.

However, Vishay's focus on e-mobility and sustainability positions it well for long-term growth. The company's $2.6 billion capital investment plan through 2028 demonstrates commitment to future expansion, despite near-term headwinds. Investors should watch for signs of recovery in key markets, particularly automotive and industrial, which could drive Vishay's performance in the coming quarters.

Vishay's Q2 results underscore the challenges and opportunities in the discrete semiconductor and passive component markets. The company's strategic focus on silicon carbide technology is crucial, given the growing demand in e-mobility and power management applications. However, the delayed Itzehoe expansion raises questions about the timing of Vishay's capacity ramp-up relative to market demand.

The integration of Newport will be key to watch, as it impacts margins and potentially opens new market opportunities. Vishay's ability to navigate the current demand softness while positioning for future growth in emerging technologies will be critical for long-term success. Investors should monitor the company's progress in high-growth segments and its ability to improve margins as the Newport integration progresses.

MALVERN, Pa., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Vishay Intertechnology, Inc., (NYSE: VSH), one of the world's largest manufacturers of discrete semiconductors and passive electronic components, today announced results for the fiscal second quarter ended June 29, 2024.

Highlights

  • 2Q 2024 revenues of $741.2 million
  • Gross margin was 22.0% and included the negative impact of approximately 170 basis points related to the addition of Newport
  • EPS of $0.17
  • 2Q 2024 book-to-bill of 0.86 with book-to-bill of 0.82 for semiconductors and 0.90 for passive components
  • Backlog at quarter end was 4.6 months

“During the second quarter, we executed well on our Vishay 3.0 strategic plan, deepening our customer engagements supported by capacity that has landed and that we will continue to expand, and advancing our silicon carbide strategy as we prepare for the megatrends in sustainability and e-mobility,” said Joel Smejkal, President and CEO. “Revenue, including a full quarter of Newport, was flat quarter over quarter, primarily reflecting schedule agreement adjustments by automotive Tier 1 customers. At mid-year 2024, it is apparent that the industry recovery is taking longer than we had expected at the beginning of the year. As a result, we are adjusting the timetable of the Itzehoe, Germany expansion project beyond 2024 while holding to our planned capital investment of $2.6 billion between 2023 and 2028. For 2024, we now plan to invest between $360 million to $390 million in capex.”

3Q 2024 Outlook
For the third quarter of 2024, management expects revenues in the range of $745 million +/- $20 million, with gross profit margin in the range of 21.0% +/- 50 basis points, including the negative impact of approximately 175 to 200 basis points from the addition of Newport.

A conference call to discuss Vishay’s second quarter financial results is scheduled for Wednesday, August 7, 2024 at 9:00 a.m. ET. To participate in the live conference call, please pre-register at https://register.vevent.com/register/BI38004aee85364014b94cacc38200c3f4. Upon registering, you will be emailed a dial-in number, and unique PIN.

A live audio webcast of the conference call and a PDF copy of the press release and the quarterly presentation will be accessible directly from the Investor Relations section of the Vishay website at http://ir.vishay.com.

There will be a replay of the conference call available on the Investor Relations website approximately one hour following the call and will remain available for 30 days.

About Vishay
Vishay manufactures one of the world’s largest portfolios of discrete semiconductors and passive electronic components that are essential to innovative designs in the automotive, industrial, computing, consumer, telecommunications, military, aerospace, and medical markets. Serving customers worldwide, Vishay is The DNA of tech®. Vishay Intertechnology, Inc. is a Fortune 1,000 Company listed on the NYSE (VSH). More on Vishay at www.Vishay.com.

This press release includes certain financial measures which are not recognized in accordance with U.S. generally accepted accounting principles ("GAAP"), including free cash; earnings before interest, taxes, depreciation and amortization ("EBITDA"); and EBITDA margin; which are considered "non-GAAP financial measures" under the U.S. Securities and Exchange Commission rules. These non-GAAP measures supplement our GAAP measures of performance or liquidity and should not be viewed as an alternative to GAAP measures of performance or liquidity. Non-GAAP measures such as free cash, EBITDA, and EBITDA margin do not have uniform definitions. These measures, as calculated by Vishay, may not be comparable to similarly titled measures used by other companies. Management believes that such measures are meaningful to investors because they provide insight with respect to intrinsic operating results of the Company. Although the terms "free cash" and "EBITDA" are not defined in GAAP, the measures are derived using various line items measured in accordance with GAAP. The calculations of these measures are indicated on the accompanying reconciliation schedules and are more fully described in the Company's financial statements presented in its annual report on Form 10-K and its quarterly reports presented on Forms 10-Q.

Statements contained herein that relate to the Company's future performance, including forecasted revenues and margins, capital investment, capacity expansion, stockholder returns, and the performance of the economy in general, are forward-looking statements within the safe harbor provisions of Private Securities Litigation Reform Act of 1995. Words and expressions such as "intend," "suggest," "guide," "will," "expect," or other similar words or expressions often identify forward-looking statements. Such statements are based on current expectations only, and are subject to certain risks, uncertainties and assumptions, many of which are beyond our control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance, or achievements may vary materially from those anticipated, estimated or projected. Among the factors that could cause actual results to materially differ include: general business and economic conditions; manufacturing or supply chain interruptions or changes in customer demand (including due to political, economic, and health instability and military conflicts and hostilities); delays or difficulties in implementing our cost reduction strategies; delays or difficulties in expanding our manufacturing capacities; an inability to attract and retain highly qualified personnel; changes in foreign currency exchange rates; uncertainty related to the effects of changes in foreign currency exchange rates; competition and technological changes in our industries; difficulties in new product development; difficulties in identifying suitable acquisition candidates, consummating a transaction on terms which we consider acceptable, and integration and performance of acquired businesses; that the Newport wafer fab will not be integrated successfully into the Company’s overall business; that the expected benefits of the acquisition may not be realized; that the fab’s standards, procedures and controls will not be brought into conformance within the Company’s operation; difficulties in transitioning and retaining fab employees following the acquisition; difficulties in consolidating facilities and transferring processes and know-how; the diversion of our management’s attention from the management of our current business; changes in U.S. and foreign trade regulations and tariffs, and uncertainty regarding the same; changes in applicable domestic and foreign tax regulations, and uncertainty regarding the same; changes in applicable accounting standards and other factors affecting our operations that are set forth in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K and our quarterly reports on Form 10-Q. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The DNA of tech® is a trademark of Vishay Intertechnology.

Contact:                                                   
Vishay Intertechnology, Inc.
Peter Henrici
Executive Vice President – Corporate Development
+1-610-644-1300


VISHAY INTERTECHNOLOGY, INC.      
Summary of Operations      
(Unaudited - In thousands, except per share amounts)      
       
 Fiscal quarters ended 
 June 29, 2024 March 30, 2024 July 1, 2023 
       
Net revenues$741,239  $746,279  $892,110  
Costs of products sold 578,369   575,872   634,637  
Gross profit 162,870   170,407   257,473  
Gross margin 22.0%  22.8%  28.9% 
       
Selling, general, and administrative expenses 124,953   127,736   122,857  
Operating income 37,917   42,671   134,616  
Operating margin 5.1%  5.7%  15.1% 
       
Other income (expense):      
Interest expense (6,657)  (6,496)  (6,404) 
Other 5,011   8,087   5,257  
Total other income (expense) - net (1,646)  1,591   (1,147) 
       
Income before taxes 36,271   44,262   133,469  
       
Income tax expense 12,391   12,819   38,054  
       
Net earnings 23,880   31,443   95,415  
       
Less: net earnings attributable to noncontrolling interests 347   519   377  
       
Net earnings attributable to Vishay stockholders$23,533  $30,924  $95,038  
       
Basic earnings per share attributable to Vishay stockholders$0.17  $0.22  $0.68  
       
Diluted earnings per share attributable to Vishay stockholders$0.17  $0.22  $0.68  
       
Weighted average shares outstanding - basic 137,326   137,726   139,764  
       
Weighted average shares outstanding - diluted 138,084   138,476   140,478  
       
Cash dividends per share$0.10  $0.10  $0.10  
       


VISHAY INTERTECHNOLOGY, INC.    
Summary of Operations    
(Unaudited - In thousands, except per share amounts)    
     
 Six fiscal months ended 
 June 29, 2024 July 1, 2023 
     
Net revenues$1,487,518  $1,763,156  
Costs of products sold 1,154,241   1,226,970  
Gross profit 333,277   536,186  
Gross margin 22.4%  30.4% 
     
Selling, general, and administrative expenses 252,689   243,002  
Operating income 80,588   293,184  
Operating margin 5.4%  16.6% 
     
Other income (expense):    
Interest expense (13,153)  (11,524) 
Other 13,098   8,586  
Total other income (expense) - net (55)  (2,938) 
     
Income before taxes 80,533   290,246  
     
Income tax expense 25,210   82,642  
     
Net earnings 55,323   207,604  
     
Less: net earnings attributable to noncontrolling interests 866   785  
     
Net earnings attributable to Vishay stockholders$54,457  $206,819  
     
Basic earnings per share attributable to Vishay stockholders$0.40  $1.48  
     
Diluted earnings per share attributable to Vishay stockholders$0.39  $1.47  
     
Weighted average shares outstanding - basic 137,525   140,201  
     
Weighted average shares outstanding - diluted 138,279   140,865  
     
Cash dividends per share$0.20  $0.20  
     


VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Balance Sheets    
(Unaudited - In thousands)    
     
 June 29, 2024 December 31, 2023 
     
Assets    
Current assets:    
  Cash and cash equivalents$672,731  $972,719  
  Short-term investments 15,320   35,808  
  Accounts receivable, net 424,512   426,674  
  Inventories:    
    Finished goods 172,353   167,083  
    Work in process 280,490   267,339  
    Raw materials 218,480   213,098  
  Total inventories 671,323   647,520  
     
  Prepaid expenses and other current assets 213,331   214,443  
Total current assets 1,997,217   2,297,164  
     
Property and equipment, at cost:    
  Land 84,036   77,006  
  Buildings and improvements 752,194   719,387  
  Machinery and equipment 3,226,301   3,053,868  
  Construction in progress 283,024   290,593  
  Allowance for depreciation (2,888,004)  (2,846,208) 
  1,457,551   1,294,646  
     
Right of use assets 124,878   126,829  
Deferred income taxes 135,752   137,394  
Goodwill 250,580   201,416  
Other intangible assets, net 86,895   72,333  
Other assets 99,828   110,141  
     Total assets$4,152,701  $4,239,923  
     


VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Balance Sheets (continued)   
(Unaudited - In thousands)    
     
 June 29, 2024 December 31, 2023 
     
Liabilities and equity    
Current liabilities:    
  Trade accounts payable$198,527  $191,002  
  Payroll and related expenses 152,423   161,940  
  Lease liabilities 27,502   26,485  
  Other accrued expenses 241,961   239,350  
  Income taxes 49,546   73,098  
Total current liabilities 669,959   691,875  
     
Long-term debt less current portion 820,622   818,188  
U.S. transition tax payable -   47,027  
Deferred income taxes 108,886   95,776  
Long-term lease liabilities 98,907   102,830  
Other liabilities 85,306   87,918  
Accrued pension and other postretirement costs 187,575   195,503  
Total liabilities 1,971,255   2,039,117  
     
Equity:    
Vishay stockholders' equity    
  Common stock 13,358   13,319  
  Class B convertible common stock 1,210   1,210  
  Capital in excess of par value 1,296,721   1,291,499  
  Retained earnings 1,068,351   1,041,372  
  Treasury stock (at cost) (186,816)  (161,656) 
  Accumulated other comprehensive income (loss) (16,969)  10,337  
  Total Vishay stockholders' equity 2,175,855   2,196,081  
Noncontrolling interests 5,591   4,725  
Total equity 2,181,446   2,200,806  
Total liabilities and equity$4,152,701  $4,239,923  
     


VISHAY INTERTECHNOLOGY, INC.    
Consolidated Condensed Statements of Cash Flows    
(Unaudited - In thousands)  
 Six fiscal months ended 
 June 29, 2024 July 1, 2023 
Operating activities    
Net earnings$55,323  $207,604  
Adjustments to reconcile net earnings to net cash provided by operating activities:    
      Depreciation and amortization 101,677   87,694  
      Gain on disposal of property and equipment (1,091)  (495) 
      Inventory write-offs for obsolescence 19,051   18,023  
      Stock compensation expense 9,293   6,082  
      Change in U.S. transition tax liability (37,622)  (27,670) 
      Change in repatriation tax liability (15,000)  -  
      Deferred income taxes 5,589   16,166  
      Other (632)  (811) 
      Changes in operating assets and liabilities (81,107)  (69,461) 
Net cash provided by operating activities 55,481   237,132  
     
Investing activities    
Purchase of property and equipment (115,648)  (117,250) 
Proceeds from sale of property and equipment 1,265   1,013  
Purchase and deposits for businesses, net of cash acquired (200,185)  (5,003) 
Purchase of short-term investments (59,638)  (41) 
Maturity of short-term investments 80,110   293,282  
Other investing activities (1,220)  (892) 
Net cash provided by (used in) investing activities (295,316)  171,109  
     
Financing activities    
Net proceeds on revolving credit facility -   143,000  
Debt issuance costs -   (6,120) 
Dividends paid to common stockholders (25,033)  (25,538) 
Dividends paid to Class B common stockholders (2,419)  (2,419) 
Repurchase of common stock held in treasury (25,160)  (40,399) 
Distributions to noncontrolling interests -   (867) 
Cash withholding taxes paid when shares withheld for vested equity awards (4,058)  (3,653) 
Net cash provided by (used in) financing activities (56,670)  64,004  
Effect of exchange rate changes on cash and cash equivalents (3,483)  6,350  
     
Net increase (decrease) in cash and cash equivalents (299,988)  478,595  
     
Cash and cash equivalents at beginning of period 972,719   610,825  
Cash and cash equivalents at end of period$672,731  $1,089,420  
     


VISHAY INTERTECHNOLOGY, INC.          
Reconciliation of Free Cash          
(Unaudited - In thousands)          
 Fiscal quarters ended Six fiscal months ended 
 June 29, 2024 March 30, 2024 July 1, 2023 June 29, 2024 July 1, 2023 
Net cash provided by operating activities$(24,730) $80,211  $107,239  $55,481  $237,132  
Proceeds from sale of property and equipment 514   751   687   1,265   1,013  
Less: Capital expenditures (62,564)  (53,084)  (71,676)  (115,648)  (117,250) 
Free cash$(86,780) $27,878  $36,250  $(58,902) $120,895  
           



VISHAY INTERTECHNOLOGY, INC.          
Reconciliation of EBITDA          
(Unaudited - In thousands)          
 Fiscal quarters ended Six fiscal months ended 
 June 29, 2024 March 30, 2024 July 1, 2023 June 29, 2024 July 1, 2023 
           
GAAP net earnings attributable to Vishay stockholders$23,533  $30,924  $95,038  $54,457  $206,819  
Net earnings attributable to noncontrolling interests 347   519   377   866   785  
Net earnings$23,880  $31,443  $95,415  $55,323  $207,604  
           
Interest expense$6,657  $6,496  $6,404  $13,153  $11,524  
Interest income (6,663)  (9,053)  (6,292)  (15,716)  (12,236) 
Income taxes 12,391   12,819   38,054   25,210   82,642  
Depreciation and amortization 52,150   49,527   44,393   101,677   87,694  
EBITDA$88,415  $91,232  $177,974  $179,647  $377,228  
           
           
EBITDA margin** 11.9%  12.2%  19.9%  12.1%  21.4% 
           
** EBITDA as a percentage of net revenues          
           



FAQ

What were Vishay Intertechnology's (VSH) Q2 2024 revenue and EPS?

Vishay Intertechnology (VSH) reported Q2 2024 revenues of $741.2 million and EPS of $0.17.

What was Vishay's (VSH) book-to-bill ratio for Q2 2024?

Vishay's (VSH) overall book-to-bill ratio for Q2 2024 was 0.86, with 0.82 for semiconductors and 0.90 for passive components.

How has Vishay (VSH) adjusted its expansion plans due to market conditions?

Vishay (VSH) is adjusting the timetable of the Itzehoe, Germany expansion project beyond 2024 due to slower-than-expected industry recovery.

What is Vishay's (VSH) revenue guidance for Q3 2024?

Vishay (VSH) expects revenues in the range of $745 million ± $20 million for Q3 2024.

Vishay Intertechnology, Inc.

NYSE:VSH

VSH Rankings

VSH Latest News

VSH Stock Data

2.08B
123.18M
0.45%
107.24%
8.16%
Semiconductors
Electronic Components & Accessories
Link
United States of America
MALVERN