Exhibit 99.1
AVX Corporation Reports Results for September 2003 Quarter
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- October 24, 2003 --
AVX Corporation (NYSE: AVX) reported that net sales were $267.3 million in the second quarter ended September 30, 2003. Chief Executive Officer and President, John Gilbertson, stated, "Sales increased 4% compared to the previous quarter and incoming orders were encouraging."
The net loss for the quarter ended September 30, 2003 was $77.0 million, or $0.44 per share. These results include pre-tax charges for restructuring expenses of $1.7 million (or $1.3 million and $0.01 per share on an after-tax basis) related to headcount reductions and adjustments to costs for a previous facility closure and $87.7 million (or $61.4 million and $0.35 per share on an after-tax basis) related to a previously announced charge recorded in cost of sales for the write-down of current tantalum materials and future tantalum purchase commitments to net realizable value.
Mr. Gilbertson went on to state, "Our financial position remains exceptionally strong with $678.1 million in cash and securities investments, and only $2.5 million of debt. We will continue to reduce our cost of production and administration which should lead to improved results."
AVX, headquartered in Myrtle Beach, South Carolina, is a leading international 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 | | Six Months Ended |
| | September 30, | | September 30, |
| | 2002
| | 2003
| | 2002
| | 2003
|
Net sales | $ | 295,425 | $ | 267,286 | $ | 590,304 | $ | 523,941 |
Cost of sales | | 272,853 | | 266,258 | | 546,535 | | 518,904 |
Materials charge | | -
| | 87,720
| | -
| | 87,720
|
Gross profit (loss) | | 22,572 | | (86,692) | | 43,769 | | (82,683) |
Selling, general & administrative expense | | 23,874 | | 19,910 | | 46,912 | | 40,977 |
Restructuring expense | | -
| | 1,652
| | -
| | 4,463
|
Profit (loss) from operations | | (1,302) | | (108,254) | | (3,143) | | (128,123) |
Other income | | 4,159
| | 2,395
| | 8,096
| | 5,823
|
Income (loss) before income taxes | | 2,857 | | (105,859) | | 4,953 | | (122,300) |
Provision (benefit) for taxes | | 1,863
| | (28,863)
| | 2,649
| | (29,363)
|
Net income (loss) | $ | 994
| $ | (76,996)
| $ | 2,304
| $ | (92,937)
|
| | | | | | | | |
Basic income (loss) per share | $ | 0.01 | $ | (0.44) | $ | 0.01 | $ | (0.54) |
Diluted income (loss) per share | $ | 0.01 | $ | (0.44) | $ | 0.01 | $ | (0.54) |
| | | | | | | | |
Weighted average common shares outstanding: | | | | | | | |
Basic | | 174,563 | | 173,598 | | 174,651 | | 173,649 |
Diluted | | 174,902 | | 173,598 | | 175,333 | | 173,649 |
| | | | | | | | |
Results for the quarter ended September 30, 2003 include a materials charge of $87.7 million, (or $61.4 million and $0.35 per share on an after-tax basis), for the write-down of current tantalum materials and future tantalum purchase commitments. In addition, operating results for the quarter ended September 30, 2003 include restructuring charges of $1.7 million, (or $1.3 million and $0.01 per share on an after-tax basis), related to worldwide headcount reductions from employee terminations and additional costs related to a previous facility closure.
Results for the six-month period ended September 30, 2003 include a materials charge of $87.7 million, (or $61.4 million and $0.35 per share on an after-tax basis), for the write-down of current tantalum materials and future tantalum purchase commitments. In addition, operating results for the six-month period ended September 30, 2003 include restructuring charges of $4.5 million, (or $3.2 million and $0.02 per share on an after-tax basis), related to worldwide headcount reductions from employee terminations and additional costs related to a previous facility closure.
AVX Corporation
Consolidated Condensed Balance Sheets
(in thousands)
| | March 31, | | September 30, |
| | 2003
| | 2003
|
| | | | (unaudited) |
Assets | | | | |
Cash and cash equivalents | $ | 504,866 | $ | 476,376 |
Short-term investments in securities | | - | | 60,000 |
Accounts receivable, net | | 128,019 | | 131,870 |
Inventories | | 358,739 | | 324,513 |
Other current assets | | 86,333
| | 99,182
|
Total current assets | | 1,077,957 | | 1,091,941 |
Long-term investments in securities | | 210,631 | | 141,695 |
Property, plant and equipment, net | | 327,700 | | 305,301 |
Other assets | | 84,225
| | 113,173
|
TOTAL ASSETS | $ | 1,700,513
| $ | 1,652,110
|
| | | | |
Liabilities and Stockholders' Equity | | | | |
Short-term bank debt | $ | 3,422 | $ | 2,487 |
Accounts payable and accrued expenses | | 182,135
| | 197,258
|
Total current liabilities | | 185,557 | | 199,745 |
Other liabilities | | 51,800
| | 67,484
|
TOTAL LIABILITIES | | 237,357
| | 267,229
|
TOTAL STOCKHOLDERS' EQUITY | | 1,463,156
| | 1,384,881
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,700,513
| $ | 1,652,110
|
| | | | |
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 included from time to time in documents AVX Corporation files with the Securities and Exchange Commission, including but not limited to its Form 10-Ks, Form 10-Qs and Form 8-Ks. 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
