MALVERN, PA — Vishay Intertechnology, Inc. (NYSE: VSH) has announced its fiscal results for the fourth quarter and the year ending December 31, 2023, with the figures revealing a robust performance despite market challenges. The results underscore the company’s resilience and strategic approach to navigating fluctuations in demand across industrial end markets.
The Pennsylvania-based global manufacturer and supplier of discrete semiconductors and passive electronic components reported Q4 2023 revenues of $785.2 million and earnings per share (EPS) of $0.37. For the full fiscal year, the company invested $329.4 million in capital expenditure (capex) while maintaining a free cash flow of $37.4 million.
In a strong show of commitment to its stockholders, Vishay returned a total of $34.8 million in Q4 and a total of $134.3 million for FY 2023. The company’s backlog at the end of the quarter stood at 5.3 months, underlining its ability to meet future demand.
Despite the impressive figures, the company did not shy away from acknowledging the ongoing challenges in the market. “For the fourth quarter, the trends in inventory adjustments, contracting lead times, and softened demand in industrial end markets became more apparent,” said Joel Smejkal, President and Chief Executive Officer.
Mr. Smejkal further explained that while customers continue to grapple with higher inventory levels, Vishay is strategically broadening its participation with distribution partners. This approach, he said, positions the company favorably for a rebound in demand.
Looking ahead, the CEO anticipates dealing with an inventory digestion process for the first half of 2024. However, he also highlighted the company’s robust balance sheet and liquidity as key resources for continued investments in incremental capacity. These investments, he said, are aimed at preparing Vishay for long-term demand trends in e-mobility, sustainability, and connectivity.
For the first quarter of 2024, management expects revenues in the range of $735 million +/- $20 million and a gross profit margin in the range of 24.0% +/- 50 basis points. Despite the near-term challenges, Vishay appears poised to maintain its momentum and drive growth for its stockholders.
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