Littelfuse, Inc.

Good day, and thank you for standing by. Welcome to the Little Fuse Second Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you'll need to press star 1 on your telephone. Please be advised that today's conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Tricia Tuntland, Head of Investor Relations. Please go ahead.

Good morning, and welcome to the Little View Second Quarter 2021 Earnings Conference Call. With me today are Dave Hinesman, President and CEO, Amino Sethna, Executive Vice President and CFO. This morning we reported results for our second quarter, and a copy of our earnings release and slide presentation is available in the Investor Relations section of our website. A webcast of today's conference call will also be available on our website. Please advance to slide two for our disclaimers. Our discussions today will include forward-looking statements. These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our forms 10-K and 10-Q for more detail about important risks that could cause actual results to differ maturely from our expectations. We assume no obligation to update any of this forward-looking information. Also, our remarks today refer to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measure is provided in our earnings release available in the Investor Relations section of our website. I will now turn the call over to Dave.

Thank you, Tricia. Good morning, and thanks for joining us today. Let's start with slide four. I am pleased to share that we continue to demonstrate strong execution within a highly dynamic environment, Building on our strength over the past several quarters, we are focused on support of our customers while navigating a complex global supply chain environment and continuing our efforts to mitigate the impact of higher input costs on our business. Through exceptional teamwork and strong business fundamentals, we achieved second quarter sales of $523 million, representing record revenues for us. Despite facing significant input cost headwinds, we delivered adjusted operating margins of 19.5% and record-adjusted EPS of $3.41. MENA will provide additional color on our strong financial performance. During the quarter, we saw ongoing strong demand across most of our electronics, transportation, and industrial end markets. The slope of the global demand recovery has caused unprecedented of both LittleFuse and our customers. While we do not see our distribution partners building inventory, we are seeing evidence of some OEMs attempting to build inventory where possible, while extended shipping times added to inventory levels. As we work to manage our business, we are adding capacity, driving productivity improvements, working through material and component shortages, and managing logistics constraints. I'm extremely proud of our global teams and their daily focus on execution to meet stakeholder commitments while continuing to deliver on the strategic initiatives within our five-year strategy. Moving on to performance within our segments. During the second quarter, our electronics product segment experienced strong demand in all regions. Our revenue growth was driven by our operational execution and strength across data center and communications infrastructure, factory, building, and home automation, and continued demand for consumer electronics. As we manage through supply chain disruptions, our lead times have increased for most of our products. As a result, exiting the second quarter, our electronics book-to-bill remain well above 1.0, and weeks of inventory for our products at our channel partners continue to be lean. Moving on to our automotive product segment, we're operating with a noisy landscape plagued by ongoing material and component shortages at our customers. Our performance during the second quarter reflects the hard work of our global teams to meet demand, and we had content gains higher than our expected long-term forecast rate, driven by growth of electric vehicles and a favorable mix of higher-end vehicles. Additionally, The well-known supply chain dynamic of unfinished cars may be clouding global vehicle build and our short-term content growth. While our order patterns remain healthy, we see some risk of future demand due to ongoing supply shortages at both passenger car and commercial vehicle OEMs, resulting in additional shutdowns. Longer term, we expect the growth of our automotive segment to continue outpacing global vehicle build with our expanding content opportunity. Turning to our industrial product segment, a number of our core markets showed strength during the second quarter, including HVAC, renewables, energy storage, and general industrials. While mining is showing initial signs of recovery, non-residential construction and North America oil and gas markets remain sluggish. Going forward, we expect continued solid demand across several of our industrial pin markets. Now let's move on to key design wins in the end markets we serve. In industrial end markets, on slide five, our integration of Heartland Controls is going very well. We are capitalizing on strong HVAC demands, and we're seeing our combined businesses unlock other opportunities across industrial applications. We are seeing ongoing design activity across the HVAC market and one new business in North America for refrigerated storage applications. Our focus on industrial automation continues to be a key driver for design wins. During the second quarter in North America, we had a design win for a manufacturer of factory automation equipment and a win for a warehouse conveyor system. In Japan, we had a design win for an industrial motor drive application. Renewable energy and energy storage systems continue to drive new business. We had key design wins for solar applications in the U.S. and an energy storage system in China. Within our transportation end markets, on slide six, design activity continues at a robust pace as our technical expertise and close customer relationships help drive dozens of key design wins in the second quarter. In our traditional passenger vehicle business, we want new business for a Growth in electric vehicles and the ongoing electronification of transportation continues to be a driver of new business as we make investments across our overall e-mobility strategies. We secured key design wins for battery management system applications with a manufacturer in North America and had a position sensor win with a manufacturer's new electrically powered heavy-duty truck line. We secured a win for a power conversion application with a European EV manufacturer, and in Korea, we secured a design win for high-voltage protection. In China, we had a design win for an EV charging infrastructure application. We continued to generate new business for automotive electronics during the quarter, gaining new design wins across the Americas and Asia, ranging from powertrain systems to navigations. Material handling remains a good pipeline of design win opportunities for a commercial vehicle business. We had two key design wins in the quarter in Europe, where we leveraged our technical support and showcased our strong execution capability to deliver a complex product solution to meet a customer's tight delivery window. We also had wins for conventional heavy-duty truck applications in both China and North America. Across electronics and markets, on slide 7, we are leveraging our leadership and differentiated global access and reach. Our design win activity remains strong, and we continue to secure a broad range of new business opportunities. With new cloud and video streaming services continuing to come on board, a good source of design activity remains the data center applications, where we secured key wins in the quarter in the U.S., Taiwan, and Southeast Asia. We also secured design wins in China for battery protection and charging applications for notebook computers. And we had a win in Japan for an electric bicycle application. Our new business opportunity pipeline includes a broad range of high-growth industrial, transportation, and electronics applications that will support and sustain our long-term growth strategy. And I'm confident in our forward focus and capabilities to secure these prospects. I will now turn the call over to Minal to provide additional color on our financial performance and outlook.