Business Services Industry

Vishay to Sell Automotive Modules and Subsystems Business Acquired from International Rectifier

Business Wire, July 25, 2007

MALVERN, Pa. -- Vishay Intertechnology, Inc. (NYSE:VSH) today announced Vishay's intent to sell the Automotive Modules and Subsystems Business Unit (ASBU) recently acquired from International Rectifier as part of the Power Control Systems (PCS) business. Dr. Felix Zandman, Executive Chairman of the Board and Chief Business Development Officer and Dr. Gerald Paul, President and Chief Executive Officer of Vishay Intertechnology, Inc., stated that after considerable evaluation both before and after the closing of the acquisition it was concluded that the ASBU business would not satisfactorily complement Vishay's operations.

Vishay had previously estimated that the entire PCS business in 2008 would have annual sales of $320 million. Without ASBU, annual sales for the remaining PCS business are now estimated to be $240 million. The reduction of the annual earnings estimates due this divestiture is projected to be $4 to $6 million.

An active program to locate a buyer has been initiated.

Vishay Intertechnology, Inc., a Fortune 1,000 Company listed on the NYSE (VSH), is one of the world's largest manufacturers of discrete semiconductors (diodes, rectifiers, transistors, and optoelectronics and selected ICs) and passive electronic components (resistors, capacitors, inductors, sensors, and transducers). These components are used in virtually all types of electronic devices and equipment, in the industrial, computing, automotive, consumer, telecommunications, military, aerospace, and medical markets. Its product innovations, successful acquisition strategy, and ability to provide "one-stop shop" service have made Vishay a global industry leader. Vishay can be found on the Internet at http://www.vishay.com.

Statements in this release concerning the disposition of the Automotive Modules and Subsystems Business Unit are forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations only, and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the anticipated benefits may not materialize or may vary materially from those that are currently expected. In particular, there is no assurance of the timeframe for the sale ASBU or that the sale will be consummated at all. Also, the revenues for the PCS business, both before and after the divestiture, and the reduction in annual earnings following divestiture will depend, among other things, upon general business and economic conditions, particularly in the markets served by the PCS business; the integration of the PCS business with the other businesses of Vishay; and other factors affecting the Vishay's operations generally. These general factors are discussed in Vishay's Annual Report on Form 10-K for the year ended December 31, 2006 filed with the Securities and Exchange Commission. Vishay does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

COPYRIGHT 2007 Business Wire
COPYRIGHT 2008 Gale, Cengage Learning
 

BNET TalkbackShare your ideas and expertise on this topic

Please add your comment:

  1. You are currently: a Guest |
  2.  

Basic HTML tags that work in comments are: bold (<b></b>), italic (<i></i>), underline (<u></u>), and hyperlink (<a href></a)

advertisement
advertisement
  • Click Here
  • Click Here
  • Click Here
  • Click Here
advertisement
Click Here

Content provided in partnership with Thompson Gale