Littelfuse (LFUS) 30 Oct 242024 Q3 Earnings call transcript

Good day, everyone, and welcome to the Littelfuse Third Quarter 2024 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to Head of Investor Relations, David Kelly. Please proceed.

Good morning, and welcome to the Littelfuse Third Quarter 2024 Earnings Conference Call. Dave President and and are Sethna, and today Vice Executive CFO. me Heinzmann, CEO; President Meenal With Yesterday, we presentation reported website. a the copy results Relations for our our Investor release third earnings and of slide section is on of available our quarter, and webcast will be our conference available call today's of on A also website. X to Please Slide advance for disclaimers.

detail today involve release uncertainties. more and yesterday's obligation press important significant and XX-Q will the forward-looking A of measure Forms about the Dave. Please differ is most non-GAAP Also, forward-looking and information. our any expectations. These statements. release call today could remarks results include discussions provided We that financial risks in Our forward-looking this assume may our XX-K to reconciliation our refer cause in section no statements non-GAAP measures. these risks now Relations to earnings update the from review Investor to for to will actual turn over to comparable of of available our GAAP our measures I website. financial materially

today. Dave. us thanks Good and for morning, joining you, Thank

once the partnering balance strong to growth cash support as Let's our while segments. strategy. across business positioning We of start with our three unique leveraged the driving sales testament delivered wins agility quarter and execution. quarter. we diversified meaningful a new and sequentially expectations Slide free resiliency difficult range. teams customer The with again base We profitability remains guidance navigated in of strength global of earnings and the third our In demonstrated guidance technology our exceeding at our to record We our our end range well our positioned high to of third with was with our performance our highlights commitment generate experienced sheet results long-term are environment quarter, our and our businesses track our the to on ahead X. higher while business flow, ongoing an strong again

robust from quarter, activity our exposure saw conditions. end secular We and to themes the ordering a In design-in continuation customer broad our given market end we challenging also benefit continue across of cautious patterns to markets.

trends As expect observed sales than continuing our typical seasonality, be these quarter given we sequentially see to fourth and our third quarter levels. we lower

strategy Beyond performance provide macro our thank drive for will their global and the shareholder remain current on dynamic dedication, ability we seen in in and But the on to growth third long-term and confident teams to accomplishments color want our value our X. environment, hard answer Slide quarter. work I outlook. top-tier Meenal additional the meaningful

inventories into to partner market solid. to design In diving the our mostly continued specific ] to key we activity, highlight and believe inventory customer electronics, quarter, activity healthy I [ third a across trends levels. broadly observe order recover softened similar in patterns ongoing protection the We prior reflection China where customers, book-to-bill muted weakness quarter product from stabilized trends. from recent order particular meaningfully observed semiconductor to lines, the and canal trends. exposures while levels, Starting We our quarter. of Before few passive demand Europe with we in have end patterns wanted returned design from cautious a yet market have remains our and observed

with our let's design starting activity, to X. electronics and Now Slide on turn markets end

design appliances broader to to order center growth applications broadly broad growth. recover, in strong win demand for and continue and in see to in the set remain demand conversion technology were end significant win across rate design unchanged and healthy, the Consumer be another applications demands remains opportunity above-market Regardless remained in Third AI-driven from quarter long-term begins electronics products, quarter, for building data Medical electronics solid sales our activity subdued. again We trends, second robust. of drive ability was quarter. of to in while market near-term we trends meaningful the a we delivered once confident quarter. in market

design fuse application electronics in quarter, win momentum Turning we in end data wins on continuing center a in expanding a secured market. market for the North build to this to our our America,

power We led in for also a across secured wins a North that America. We North by in semiconductor for America meaningful the in medical gaming China customer utilize several application multiple customers wins will and delivered regions defibrillator our expertise. quarter,

business switch portfolio. secured also that application a European appliance product for our will We utilize

the secured expertise. Finally, for of electronics global a we a our win in demonstrates reach which India, application telecom

Moving both our markets again weaker observed our internal In vehicles. We production benefited leveraged Europe scale, X. electric wins OEMs relationships. and combustion despite we balanced customer and the expansion strong passenger North third from global growth our pruning EV to activities. exposure observed observed and meaningful we We declined on delivered offering continued low-volt well trends vehicle in China America core design transportation and with on local We growth. as Slide global in quarter, as production to but technology vehicle on growth ongoing slowing deliver and content production end passenger vehicle technology as expertise

of We customers and hybrid shifted in voltage solid from increasingly has low advanced are internal recent seeing production vehicles. that demand favor plans combustion

sales with quarter sensor product line. our were by also associated third passenger pruning impacted Our vehicle

back, global fourth we the production vehicle expect passenger in step Taking declines a quarter. continued

However, electrification to for we expansion continued X are opportunities pushing Tier a content suppliers, seeing OEMs next-generation key partner and and has innovations electronification advancements. global remained and

commercial exposure, confident vehicle quarter. in persisting conditions soft ability our by end-demand markets. our construction in and despite see trends fourth ongoing actions the We an remain execute Regarding fruit and to we end quarter, bear driven commercial the market agriculture pruning our soft Into vehicle continued pricing difficult to in continued environment.

customer and truck including design-in markets. and our we by commercial base. encouraged and broad with broad agriculture well construction Long and heavy-duty equipment innovations material are We deliver to bus vehicle term, are our activity positioned traction across exposures handling,

commercial meaningful new we the across passenger secured In South vehicles, end In markets. a in passenger and with the we opportunity current both sensor quarter, Korea. secured meaningful business vehicle transportation customer

China. OEMs secured will for China our fuse in offering. We charging for also utilize that wins delivered protection across We multiple Europe, extensive applications and circuit low-voltage local multiple wins onboard

secured we solar meaningful win a Europe. sensor application in for a customer Finally,

equipment we utilize vehicles, wins by customers North switch commercial highlighted several product will business in broad secured In that our for construction Japan offering. and America

for We also win voltage delivered a low in Europe. application agriculture an equipment

for specialty application circuit America. a Finally, customer North we in vehicle won protection business for

Industrial factory X, automation and equipment trends, continued charging Slide In activity. and applications, quarter, we our renewables. and the demand design to industrial Turning weakness drives infrastructure, for soft third observed markets including motor

business, industrial end outsized an have across meaningful exposure. power semiconductor where seeing we our impact are market We

are given We this position as our strong an industrial to drive continuing in market. safety innovator niche growth leadership

demand from rebounding date. albeit pace at a benefiting We moderate to are also HVAC

growing automation leverages as product believe opportunity and a third Looking will niche quarter, opportunity soft and highly our a attractive secured requirements solar decarbonization. demand circuit supported positioning global offering, utilize well our the application that infrastructure renewable in in solar end we forward, efficiency we by conditions in protection will our advancements current confident electrical capabilities. a broad ongoing semiconductor spend, as in in to In commitments Europe that through market, remain persist We industrial year-end. increasing

design to and continue strive and customer protection deliver our through while driving customer delivered remain an long-term set in to America. application across markets of our revenue expertise We HVAC Europe supporting positioned our to a safety further motor that growth, ongoing well We diversity as business opportunity innovations connectivity will charging also mega industrial North our utilize sensor North quarter. secured showcasing Across now performance over the temperature end double-digit trends. for our America annual broad a additional and in cycles provide drive for semiconductor in our to secured we for on operational the application financial sustainability, the businesses, We mining well leading diverse win will excellence offering, for win driven commercial color for execute EV and a by of We opportunity for base. in reach. meaningful in outlook. business Meenal our Europe turn bus as call circuit a I momentum,

about Dave. our year with Slide to Thanks, adjusted sequentially. quarter X% us and Revenue XXX in line our down line the in quarter. you discussed morning, today. with XX.X%, XX sales reduced Good were were product Please organically. X%, up at adjusted and on results. in million, in joining the start total versus last XX.X% XX.X%, prior and pruning GAAP quarter thank operating margins $XXX for points everyone, third and actions details XXX EBITDA was margins turn basis to we expectations operating The margins finished and

from benefited associated Third strong growth sequential quarter incrementals. as sales well margins as

impact an XX had Foreign margins exchange our and basis commodities relative to to expectations. favorable point also

adjusted and $X.XX, was share $X.XX. per earnings EPS diluted GAAP quarter Third diluted was

tax effective XX%, Our and was reported adjusted XX%. GAAP tax effective was rate rate

was favorable rate than to due deduction. lower slightly tax Our expected a

on Please capital turn to allocation. updates Slide XX for

year-to-date. to improvements flow, deliver million solid $XX cash to yielding strong drive performance. continued XXX% the generated flow was free free operating continue cash Year-to-date, $XXX million, cash we a rate. capital in cash in our $XX generated We flow. million flow and conversion generation We've working cash contributing quarter, we In to

the XXX% and full of targeted $XXX long-term million conversion quarter net for with the cash leverage on flow goals. cash We our debt-to-EBITDA ended on hand free year, deliver to of aligned expect We with X.Xx. our

to Year-to-date, million remain through flow to $XX sheet, allocation our balance we acquisitions. million maximize shareholders and we our dividends our for strength million our cash we we'll And returned quarter, continue dividend. capital our to shareholder million the and of capital our return In $XX cash capital capital strategy prioritize repurchases. share of buybacks. we've cash value. to opportunistic through the periodic strive Given long-term to to $XX through $XX shareholders continue disciplined of dividend via in share returned will as thoughtful shareholders, We'll free

at year. Electronics across Please segment semiconductor while our year, XX% improved quarter our margin products down points basis on were sales and last XX Reported Products Margins reflecting turn in were XX%. EBITDA Slide highlights, while products with the sequentially, Operating XX.X%. were XXX execution. versus flat focus finished segment. approximately versus last declined the to for XX.X%, continued passive Sales starting organic margins product

versus Transportation actions down negatively impacted we've vehicle were undertaking to Within came and Across market organically. Slide pruning Reported across organic and from quarter end Moving declined Products pruning vehicle offset our organically spread on lines. XX. were passenger as vehicles, year commercial our act. been pricing X% segment last and passenger by product in Sales vehicle X%. commercial our the flat our business, weakness X% sales business and sales sensor for ongoing sales were volume

strong quarter. XXX continued by led our and reflects positioning focus favorable-than-expected XX.X% For impact. on the the initiatives more segment, improvements and Margins currency operating as at actions focus well customers. pricing solid sequentially margins on XXX our finished global a year-to-date EBITDA operational progress and as believe cost balanced our XX% and points structural pricing margins were We pruning improved in basis margin and actions, with

segment sales represented year. Slide demand, Operating improvements Industrial strong first HVAC continued increased On and margins X% industrial In benefited and sequentially. Growing XX.X% mix. XXX of recovery, XX, reported last momentum data Products we EBITDA the volume and safety at basis quarter, since margins for favorable were time from These inorganically. the points center XXX finished solid XX.X%.

Favorable to benefited continue soft offsetting execution, in strong margins the end expectations versus quarter. currency We our movements conditions. demand also drive

forecast. Slide for the move to XX Please

quarter expect the from We with typical sequentially fourth third down quarter. sales seasonality

we've end markets. car trends our to muted industrial number production. additional And comments, weakening and seen earlier remain across global markets Demand on passenger Dave's across Following recently, certain of more end a

year. includes these versus XX%. headwind EPS fourth fourth X% in headwind a of projecting rate quarter to commodity range $X.XX the $X.XX expect EPS We're from the million. product to year. $XXX With be about At in includes expecting This range we pruning current of the sales $XXX last quarter $X.XX we of exchange prior versus about foreign assumptions, rates, to and are and a a tax million to

Please full turn year to Slide XX additional XXXX color. for

last our reduce year. growth about year, total and product actions sales we X% reduced [indiscernible] to transportation versus sales about expect X% For the line full

headwinds. reflecting seeing EPS. sales about to current margin segment challenging this of of also year, strong with operational net margin expect be At We've mitigating and currency through continued neutral execution those segment the We're and Products to are rates, customers, We traction with the commodity $X.XX initiatives. headwind through progression delivered positioning structural we resiliency environment. a and proud transportation our solid and Electronics to industrial ongoing

we our margin With for these are outlook undercurrents, XXXX. narrowing operating company

provided We expect at and XX%, consistent finish our estimates operational initiatives. to continued reflecting about execution with on in we focus July,

$XX operating Industrial margins operating for expect the in and margins we finish in Electronics in modeling year strategies. high transportation we amortization income of other items, digits cash expense the the interest for segments, our from year. offset full single in expect the million Across which mid-teens, $XX assuming our teens, low to million the expense, interest and X/X in are about we through On investment

we a in are We full and estimating invest expect expenditures. capital tax year million XX.X%, to of about about $XX rate

We coupled best-in-class broad execute environment with cash offering a delivering to customer actions, generation. relationships leading profitability to our through will technology while We for creation value and believe continue challenging stakeholders. drive our diverse top-tier our strong

tireless comments. the In Dave some for turn with I efforts thank global their closing, and unwavering And want to that, team dedication. to I'll final it Littelfuse for back

Thanks, Meenal.

will customer win XX. execution and Our of team. results the growth better-than-expected We to deliver testament our long-term drive to strong design us relationships third deep believe global on quarter further above-market are innovative position shown Slide momentum strong to our and continue solutions a

Our well-positioned provide sheet flexibility end All double-digit in as strong attractive path cash on through a we revenue annual we cycles. prioritize generation and in, markets. confident disciplined to considerable that are with growth but thoughtful us balance acquisitions we remain

global focus the long-term that, commitment earnings the also to deliver and operator track our on will leverage. I want unwavering we Littelfuse their effort our for unwavering We again remain maintain as on will I turn to to for With customers. meaningful team now Q&A. call back execution, to thank

Thank you. floor now is [Operator questions. open for The Instructions].

Baird. comes Luke first of the Your of question from line Junk

be of a what at in the orders maybe seeing well. just specifically would level through electronics, the Dave, with as as parse And factors I of power into for interested still well in in clues the out assumption on you could look guidance weakening terms between power some seasonal semi next you're we lens high early starters, and side. as specifically XQ year just semi hoping

Luke. Thanks, Sure.

two in of situations kind electronics going we have different segment. on So the

kind would in and is say healthy have of protection would that excesses our we of throw What of it semiconductor, So into partner channel as In point our reasonably I are our generally, And passives. stable. area. I there. kind lump sales is through worked demand inventories

So that good. pretty we see

as of year into geared in seasonality us applications that which kind Europe, kind know, demand with power of So normalization of also the . Where of fourth the business our on it's And the business. expect is normal we well. see bigger portion our heavily medical segment, next as we're strong that maybe really we we quarter. seeing of kind is particularly industrial into industrial of hitting part some semiconductor in challenge of kind towards going of of portion the kind as out business a the go that semiconductor slowing you

have like in slowed like activities machine things So a things meaningfully. automation that, that and

that we challenging, there. out on. seasonality improving see dynamics on that yes, great I of softness visibility end back, And pretty of than because more we wish kind therefore, Right now, see clarity is geopolitical could market when the demand you going XXXX. give so kind pulling normal maybe I of in

So don't the course we're of day, on lot visibility the a and looking the bottom the portion of end end and feel we the improvement that we kind of At have business like there, of then XXXX. of finding for market over that.

would July. in I all book-to-bill, to say core suggest semi? -- said you the was of would it in maybe on Did terms X closer In at backslide think you that had David that quarter,

Yes.

a QX. products of As softened and our would products, on the tale say, kind headed about again, two little electronics as that the just slightly What kind a under Yes, of I in protection segment it's of sides of the a we running passive one. talked remarks, overall of bit bit prepared we into book-to-bill

that semiconductor industrial parity near power a the that. portion just So of being Again, softer slightly POS seeing stable. reasonably under we're little on than the applications, other

in margins where that Got my the fourth out you things industrial shaking was upside it. square guidance then this and quarter with could we year for I hoping And saw us implies just follow-up, in the help just quarter. transportation

currency whatnot? XQ the temporary and suggesting both XQ into of shouldn't year. next then a industrial adjusting or be looking as any in we anything just Just reason stronger And view maybe just we XXXX, into for higher for transportation floor that impacts should in margins kind moving margins

Sure. Thanks, Luke.

on transportation on I industrial, We've transportation your different conviction of with QX one-offs, strong for good got for starting of few we're talked both a foreign been we've And actions but we've quarters. both feel from few questions sustainability both the the we industrial, we I say on progress first and so seen say, would past segments making. margins for those the the about would versus exchange. included about segments, the have as taking,

a some a about We both points saw Mexico in have foreign of We weaker segments of exchange with and presence for of segments. basis heavy tailwind very from nice peso. both margin those XXX the on

a So tailwind. be or And perspective from that continues seen. not that to was mains that whether

when take had the Even some of the coming industrial we out transportation mix good through that equation, from you side. and

was more Some look making as overall, good a maybe going in third the and But into we little that help us QX bit XXXX, of say, progress. quarter we're were we one-off expecting. I'd than also

XXXX and, around into help And really think that's volume expansion. to recovery we're actions growth of year. expect expansion -- make to some cost margin that, progress will the with we taking next We reduction continue course, around drive whether that on in good margin footprint,

line Your of Sheerin next from Matt the Stifel. comes of question

how give going for the And to the the you like in stable. days you're question, do channel It within are another more MOSFET So the long us normalize? a of like business? that's think business normal. channel take you semiconductors, the sounds POS inventory passive Dave, the that inventory weakness seeing. within and just is Can regarding sense the to the semiconductor

Yes.

do So semiconductor exposure. business. lot first a well, inventories distribution size the semi we think to of there. segment in side industrial in excess is less the finished have in business, I on power overhang of partners have power and our portion I'd mix even direct between all, in It's on and of see a our perhaps component the is dampening What both don't power and think we our distribution adding as channel inventory of good more industrial bit maybe the customers portion some the which customers we semi say

like was inventory down ago, year that a channel the where of driving more So in it little the really demand it's it's in side at in or bit end customers. not inventories semiconductor perhaps and a the to about dynamic so side passives a less excess power related

demand Okay. improvement back? of of wondering, pricing coming then margin some some and beginning the I comments, at environment all? Are that pricing the out environment? you I'm customers. seeing working at And think there the would the you volumes Dave, tough your see we would And pressure just pricing given as with about that is what talked from come

couple too talked changed it Certainly, from ago, much for past, really this years hasn't a of and we've the they've about changed in but it.

So last first years, of remain increases all, X or the there. the saw over we cost X

have pricing that increases had resilient. the place X years ago put so in we been And to X, meaningful pretty ones

from we're not -- things pull there So that. seeing back

been sticky pretty So stable. and pretty they've

We have environment. sort to of pricing a seen more kind of return normalized

at of certainly profitability address and drive is more level. on year-over-year seeing Matt, down we're Quite we've side to and in the approach, to cost actions up in concerns a taking a our the transportation pretty As and a concerns some common active you pricing the there. lower frankly, industrial know, been bit electronics that price

of see with markets seeing But be price we're than there. really a of transportation. we're couple that's couple So There seeing overall, in where in little erosion we comfortable normal But products bit pricing we're challenged. maybe where a in a less more abnormal. might not a pretty hanging

from of comes question next of Christopher Your Glynn Oppenheimer. the line

to growth? hear on wins. the wins. do and net do Or wins of about offset a on if had to markets robust pretty play of Just qualitative list commentary design those stay trading sort older they quarter, I'm platform question each we good a of kind curious, -- flattish,

that. Just curious about

Sure. of to across What activity I segments be in design would continues say is pretty all our solid.

So products away applications us. not new for back designing next-generation seeing and from customers we're

as outgrowth that on to do the and vehicle on those drive design good. So stabilize good We activity markets also automotive to feel about continue improvement. the continues and side be commercial side

think over slower to little they're electronics that growth the expansion people current And are I cleaned It's kind So they're ones. new as us time. we a design-in design some door of the been cautiousness sure side, activity. on that see say and products up getting launching We making really the typical. before there will out from than gives robust conversion production.

is to conversion add So growth But there to that well. longer. little our as see taking slowly maybe also market a continuing we in growth that to addition

So pretty us I for actually, the signs in design activities. are think positive

about expect and how Great. And then XXXX? you sizes allocation your curious I of there a capital and do was is pipeline mix activity good overall, looking in

Sure.

strategy. As of know, at our of long-term we very We're trajectories to higher for better properties organic us for and over the a long at active we think have critical And M&A a good drive into funnel growth part robust that long-term markets growth create will opportunities. that is diversification places pattern ultimately thoughtful time. be M&A, being healthy of a looking that continue looking our term spaces with you will

the we that find So yield we sure in to that. opportunities going . But making we're active returns are be continue appropriate. feel to also very we that are the

And times little on lumpy that. can that so be a at

we don't prepared acquisitions but talk add mix be So the to next to time, specific nothing this of if we shocked isn't we're I'd there don't find that to at announce but over XX to activity some some the have the months point certainly, course about. in anything

of Saree of comes Boroditsky Jefferies. the question next from Your line

on This Saree. for Smith is Grant

and sequential quarter, the imply margin So step commentary the the from margins industrial quarter. transportation third some segment and in guidance in seems year of full it by a the on fourth maybe in benefits down your to onetime

continued some some margin electronic you the for can revenue. drive lower maybe levers sequential expectation segment that that despite there's some on to maybe in curious pull the improvement side, Just

step Sure, volume. Grant. I general, very and back, I the volume, the drives if typically about a we talk can answer visible take factor is that that one. In quickest

in third the third sales in the they our were were been case the across volume. we back so we quarter do the of that. a And look highest strong actually, pretty had quarter, in as And X-quarter

from So that definitely versus -- QX biggest perspective, our some in we businesses helps look volume decline we you what's as the seasonal across so QX way a a Similarly, goes factor in And are the margin that the us about fourth when driving at talked a sales sales, about a that. that's of impact that really take perspective. from normal I other think and our guide down seeing quarter.

the includes as can reduction electronics, focused on do are control, that taking. and cost are on focusing some specifically actions we been footprint course, things activities we've electronics, that what can to well focus around and we in comments of on as costs just, which we we some We, continue reduction restructuring frankly, and cost work your ongoing

focused And expansion. into area expect as go to what again, we is that us, for see So margin we're another we on. XXXX,

you maybe then the there industrial impressive posted And pretty growth on this side, Understood. quarter.

mentioned, it data like and of the growth? of industrial provide kind you that safety if center, curious a of was Was data more or center little could on categories driven sort you driver Just fairly HVAC. bit across broad more the what

applications continued talked nice to niche us. That pointed out, segment, a robust. a we a of like which center lot our a that industrials our where growth industrial and driver position, growth have We've a you mix be for Industrial be well little we we've in be can and do on of particularly machine saw safety, I as broader-based drivers as slow. things would continue seen things, sell of to bit to peers, in we of a industrial tend those seeing Where as lot where, automation into previously the Yes. be that we're a with kind leadership there. data slower say, about

after HVAC opportunities although So industrial to strong being growth, I pretty as quarter the think those beginning for big that, some kind and and there in early areas. we term. kind several really for the of And us quarters in are a turn been both industrial, of residential see has show growth stages driver long on down

line Benchmark. your Williams question And comes of from next the David of

still the operating first, terms rate. the design maybe improvement across margin changes dollar kind you David, [indiscernible]. look win or maybe, anything are on like that those one some value dollar where meaningfully? curious kind the Is in you're are how average of of seeing robust, come about but the that each things seeing It as just seeing ratio? of of of same guess Has wins it I win in. growth it you sounds Congratulations value that in changed any you're

to and the be home my terminology. U.S. of singles doubles, a runs. with use backdrop And business start I'll let's We tend Sure. and not

our platforms what over large, and of of we the nature additive bulky how projects sorts our That's wins. winning So not time, just business operates. we're are get right? So that don't --

consistent. wins in electronic elongated continue expect shift size more the be that think to time. kind don't cycle little that's between that's design we don't to they would of So win we've bit production not being change think the I We over is right only to now. norm now. ongoing an or any pretty environmental situation little be we've of -- a bit opportunities, really size of seen that longer duration The a in seen say really I the the or shift

stable, generally, big it's there. pretty see So don't think. I changes I

Europe in on performing? of you're really -- cautiousness of been is market elongated more Or And can recovery any do those that where seeing bound you maybe impact? of you And cycle. this industrial demand-driven? just just if Great. Do curious then if segment it's is more you of you of it in that's biggest and in how and maybe just color give think of this you how terms the outside is customers? about it's Or the kind industrial see regions think America think kind from terms -- North maybe

In there's China, more America up too, talked by that it a stable industrial, say, is of bit softer the kind way, is environment. North Europe would about I we've dropping. a there. It's Yes. and lot industrial of showing where more demand stable. in a seeing not I we're say certainly would

of change kind has been the Asia. shift more the Europe or So and

cautiousness as things. far and As

it's for positive levels I point being time, necessarily -- people things and that. investment are in think certainly factories rates about like this that. interest are cautious At into not

also industrial kind on bit We are a sells on of in our applications business, cautious into little that electronics seeing the portion customers which of are orders.

we're late lot of end tied the the things through to there, they see do. and lead times with than inventory everything we which a of end operated of to a are year, they'd shorter their some the that. be booked less more where the further little Typically, companies cautiousness in I think we the opposed they've of think at else course of year. And orders equal, I year demonstrates up tend a So little -- prefer maybe out getting last-minute see the the orders, as year to ending have dropping typically fiscal of at

play think role those kind a that. I all things in of

closing will that I now remarks. questions, conference session. further no the concludes over With for Kelly back to Q&A David turn our

you again, Thanks, and Summit. Baird Virtual Global well everyone, the XX with as look day, XX Industrial December for Chicago Oppenheimer today. as a We have joining Conference speaking Thanks great in to November forward everyone. Midwest the at

conference call. concludes This today's

disconnect. now may You