Grant Smith's questions to Littelfuse Inc (LFUS) leadership • Q3 2024
Question
Grant Smith, on for Saree Boroditsky, asked about the potential levers to drive sequential margin improvement in the Electronics segment despite lower expected revenue in Q4. He also asked for more detail on the specific drivers behind the impressive growth in the Industrial segment during the quarter.
Answer
EVP and CFO Meenal Sethna explained that margins are heavily influenced by volume, which is expected to decline seasonally in Q4, impacting profitability. However, she emphasized that the company is focused on cost reduction activities in electronics, including footprint optimization and restructuring, to support margins. President and CEO Dave Heinzmann attributed the Industrial segment's growth to robust demand in data center applications, continued momentum in industrial safety, and a nascent recovery in the HVAC market.