●

Sales for the first quarter of 2014 were $206.9 million, a 21% increase compared to the prior-year quarter. This excellent sales performance was due to the Hamlin and SymCom acquisitions as well as strong organic growth in automotive and electronics, partially offset by lower electrical sales reflecting weakness in the mining sector. Excluding acquisitions, sales increased 6% compared to the prior year.

●

On a GAAP basis, first quarter 2014 earnings were $1.12 per diluted share. This included $1.2 million of special, non-cash items primarily related to the SymCom acquisition. Excluding these special items, earnings for the first quarter of 2014 were $1.16 per diluted share.

●

Sales and order trends by business unit were as follows:

o

Electronics sales increased 21% year over year due primarily to strong growth for semiconductor products and the addition of the Hamlin electronic sensor business. Excluding acquisitions, electronics sales increased 9% compared to the prior year.

o

Automotive sales increased 39% year over year due to strong organic growth for passenger car fuses, commercial vehicle products and Accel sensors and the acquisition of Hamlin. Excluding acquisitions, automotive sales increased 18% compared to the prior year.

o

Electrical sales declined 11% year over year as the decline in sales into the mining market more than offset growth in electrical fuses and the addition of SymCom. Excluding acquisitions, electrical sales declined 25% compared to the prior year.

●

Cash provided by operating activities was $11.5 million for the first quarter of 2014 compared to $16.0 million for the first quarter of 2013. These cash flows included voluntary pension contributions which reduced operating cash by $9.9 million and $5.0 million respectively. All company pension plans are now close to fully funded on an accounting basis.

●

The previous share repurchase authorization expires on April 30, 2014 and has been replaced with a one million share repurchase authorization effective through April 30, 2015. No shares were repurchased during the last 12 months.

●

Sales for the second quarter of 2014 are expected to be in the range of $216 to $226 million which represents 18% year-over-year growth at the midpoint.

●

Earnings for the second quarter of 2014 are expected to be in the range of $1.23 to $1.37 per diluted share, excluding any special items.

“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995.

The statements in this press release that are not historical facts are intended to constitute “forward-looking statements” entitled to the safe-harbor provisions of the PSLRA. These statements may involve risks and uncertainties, including, but not limited to, risks relating to product demand and market acceptance, economic conditions, the impact of competitive products and pricing, product quality problems or product recalls, capacity and supply difficulties or constraints, coal mining exposures reserves, failure of an indemnification for environmental liability, exchange rate fluctuations, commodity price fluctuations, the effect of the company’s accounting policies, labor disputes, restructuring costs in excess of expectations, pension plan asset returns less than assumed, integration of acquisitions and other risks which may be detailed in the company’s other Securities and Exchange Commission filings. Should one or more of these risks or uncertainties materialize or should the underlying assumptions prove incorrect, actual results and outcomes may differ materially from those indicated or implied in the forward-looking statements. This report should be read in conjunction with information provided in the financial statements appearing in the company’s Annual Report on Form 10-K for the year ended December 28, 2013. For a further discussion of the risk factors of the company, please see Item 1A. “Risk Factors” to the company’s Annual Report on Form 10-K for the year ended December 28, 2013.

First Quarter

2014

2013

% Change

Net Sales

Electronics ⁽²⁾

Automotive ⁽³⁾

Electrical⁽⁴⁾

Total net sales ⁽¹⁾

First Quarter

2014

2013

% Change

Operating Income

Electronics

Automotive

Electrical

Other ⁽⁵⁾

Total operating income

Interest expense

Investment impairment ⁽⁶⁾

Foreign exchange (gain) loss

Other (income) expense, net

Income before taxes

GAAP EPS Reconciliation

Q1-14

Q1-13

GAAP diluted EPS

EPS impact of special items (below)

Adjusted diluted EPS

Year-over-year adjusted EPS growth

Special Items (income)/expense

Purchase accounting adjustment

Adjustment to Operating income

Impairment charges

Foreign exchange (gain)/loss

Adjustment to pre-tax income

EPS impact of above special items

EPS impact of Shocking tax adjustment

Total EPS impact

Operating margin reconciliation

Q1-14

Q1-13

Net sales

GAAP Operating income

Add back amortization

Add back special items

Operating income before amortization and special items

Operating margin before amortization and special items

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

Short-term investments

Accounts receivable, less allowances

Inventories

Deferred income taxes

Prepaid expenses and other current assets

Assets held for sale

Total current assets

Property, plant and equipment:

Land

Buildings

Equipment

Accumulated depreciation

Net property, plant and equipment

Intangible assets, net of amortization:

Patents, licenses and software

Distribution network

Customer lists, trademarks and tradenames

Goodwill

Investments

Deferred income taxes

Other assets

Total assets

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

Accrued payroll

Accrued expenses

Accrued severance

Accrued income taxes

Deferred income taxes

Current portion of long-term debt

Total current liabilities

Long-term debt, less current portion

Deferred income taxes

Accrued post-retirement benefits

Other long-term liabilities

Total equity

Total liabilities and equity

Common shares issued and outstanding of 22,534,655 and 22,467,491 at March 29, 2014 and December 28, 2013, respectively.

Net sales

Cost of sales

Gross profit

Selling, general and administrative

Research and development expenses

Amortization of intangibles

Operating expenses

Operating income

Interest expense

Impairment and loan loss in unconsolidated affiliate

Foreign exchange (gain) loss

Other (income) expense, net

Income before income taxes

Income taxes

Net income

Net income per share:

Basic

Diluted

Weighted average shares and equivalent shares outstanding:

Basic

Diluted

Diluted Net Income Per Share

Net income as reported

Less: income allocated to participating securities

Net income available to common shareholders

Weighted average shares adjusted for securities

Diluted net income per share

Comprehensive income

(Unaudited)

OPERATING ACTIVITIES:

Net income

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

Amortization of intangibles

Non-cash inventory charge ⁽¹⁾

Stock-based compensation

Excess tax benefit on stock-based compensation

Loss (gain) on sale of assets

Impairment and equity in net loss of unconsolidated affiliate

Changes in operating assets and liabilities:

Accounts receivable

Inventories

Accounts payable

Accrued expenses (including post retirement)

Accrued payroll and severance

Accrued taxes

Prepaid expenses and other

Net cash provided by operating activities

INVESTING ACTIVITIES:

Purchases of property, plant and equipment

Acquisition of businesses, net of cash acquired

Purchase of short-term investments

Proceeds from sale of assets

Net cash used in investing activities

FINANCING ACTIVITIES:

Proceeds of revolving credit facility

Payments of term loan

Payments of revolving credit facility

Debt issuance costs

Cash dividends paid

Proceeds from exercise of stock options

Excess tax benefit on stock-based compensation

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Increase in cash and cash equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period