Exhibit 99.1
AVX Corporation Announces First Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 25, 2003 --
AVX Corporation (NYSE: AVX) reported that net sales were $256.7 million in the first quarter ended June 30, 2003. Chief Executive Officer and President, John Gilbertson, stated, "The sales declined 2% compared to the previous quarter as a result of weaker than expected demand in June. Pricing as a result continued to be under pressure during the quarter."
The operating results include restructuring charges of $2.8 million, or $0.02 per diluted share, related to worldwide headcount reductions accomplished during the quarter.
Mr. Gilbertson went on to state, "We will continue to address the level of our costs in reaction to the economic and business environment. We expect to record additional restructuring and other charges in the future resulting from further global workforce reductions and facility reorganizations."
The results of the Company's European operations were impacted by the continued weakening of the U.S. dollar, thereby increasing the reported net loss for the quarter by approximately $1.9 million, or $0.01 per diluted share, when compared to the previous quarter.
Excluding the negative effects of restructuring charges and currency movements described above, the net loss for the quarter was $11.2 million. Including these items, the net loss for the quarter ended June 30, 2003 was $15.9 million, or $0.09 per diluted share.
AVX, headquartered in Myrtle Beach, South Carolina, is a leading manufacturer and supplier of a broad line of passive electronic components and related products.
Please visit our website at www.avxcorp.com
AVX Corporation
Consolidated Condensed Statements of Operations
(unaudited)
(in thousands, except per share data)
| | Three Months Ended |
| | June 30 |
| | 2002
| | 2003
|
Net sales | $ | 294,879 | $ | 256,655 |
Cost of sales | | 273,682
| | 252,646
|
Gross profit | | 21,197 | | 4,009 |
Selling, general & administrative expense | | 23,038 | | 21,067 |
Restructuring expense | | -
| | 2,811
|
Profit (loss) from operations | | (1,841) | | (19,869) |
Other income | | 3,937
| | 3,428
|
Income (loss) before income taxes | | 2,096 | | (16,441) |
Provision (benefit) for taxes | | 786
| | (500)
|
Net income (loss) | $ | 1,310
| $ | (15,941)
|
| | | | |
Basic income (loss) per share | | $0.01 | | ($0.09) |
Diluted income (loss) per share | | $0.01 | | ($0.09) |
| | | | |
Weighted average common shares outstanding: | | | | |
Basic | | 174,740 | | 173,701 |
Diluted | | 175,686 | | 173,701 |
AVX Corporation
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | March 31, | | June 30, |
| | 2003
| | 2003
|
Assets | | | |
Cash and cash equivalents | $ | 504,866 | | $ | 488,284 |
Short-term investments in securities | - | | 60,000 |
Accounts receivable, net | 128,019 | | 127,019 |
Inventories | 358,739 | | 379,783 |
Other current assets | | 86,333
| | | 85,665
|
| Total current assets | 1,077,957 | | 1,140,751 |
Long-term investments in securities | 210,631 | | 134,617 |
Property, plant and equipment, net | 327,700 | | 324,665 |
Other assets | | 84,225
| | | 89,461
|
| | | | |
| TOTAL ASSETS | $ | 1,700,513
| | $ | 1,689,494
|
| | | | |
Liabilities and Stockholders' Equity | | | |
Short-term bank debt | $ | 3,422 | | $ | 3,520 |
Accounts payable and accrued expenses | | 182,135
| | | 166,327
|
| Total current liabilities | 185,557 | | 169,847 |
Other liabilities | | 51,800
| | | 44,049
|
| | | | |
| TOTAL LIABILITIES | | 237,357
| | | 213,896
|
| | | | |
| TOTAL STOCKHOLDERS' EQUITY | | 1,463,156
| | | 1,475,598
|
| | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,700,513
| | $ | 1,689,494
|
Certain statements contained above may be "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Risk factors relating to such statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2003. Actual events, results, and/or timing may differ from the events, results, and/or timing as projected, estimated, or described above.
Contact: AVX Corporation, Myrtle Beach
Kurt Cummings, 843/946-0691
finance@avxus.com
