EXHIBIT 99.1
AVX Corporation Announces Fourth Quarter and Full Year Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- May 14, 2004 --
AVX Corporation (NYSE: AVX)reported that net sales were $315.8 million in the fourth quarter ended March 31, 2004 and $1,136.6 million for the fiscal year ended March 31, 2004. Chief Executive Officer and President, John Gilbertson, stated, "Sales continued to improve compared to the previous quarter and exceeded the same quarter last year by 20% reflecting the continuing improvement in the electronics industry. Incoming orders have remained strong compared to the previous quarter and selling prices are stabilizing. The gross book to bill ratio continues to be positive in the components business."
The net loss for the quarter was $8.0 million, or $.05 per share. Results for the quarter were negatively affected by restructuring charges of $17.5 million, primarily related to a manufacturing facility closure in France and other world wide headcount reductions, partially offset by recoveries of $1.8 million related to previous restructuring charges. The net after-tax impact of restructuring for the quarter was $15.9 million or $.09 per share.
Operating profit margins for the current quarter improved when compared to the previous quarter as a result of higher sales, a richer mix of value added parts and the impact of cost reductions.
Mr. Gilbertson went on to state, "There continue to be positive signs of improving market conditions for many of the end markets we serve. The actions that AVX has taken to streamline operations and reduce operating costs have enhanced our production capabilities in lower cost areas and have put us in a strong position to continue to improve our results as the recovery in the electronics industry continues. AVX's net cash position increased $53.2 million during the quarter. AVX now has $733.7 million of cash and investments in securities, and virtually no debt."
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.
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AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
| | Three Months Ended | | | Twelve Months Ended |
| | March 31 | | | March 31 |
| | 2003
| | 2004
| | | 2003
| | 2004
|
Net sales | $ | 261,182 | $ | 315,805 | | $ | 1,134,111 | $ | 1,136,577 |
Cost of sales | | 252,342 | | 283,768 | | | 1,067,939 | | 1,081,611 |
Materials Charge | | -
| | -
| | | -
| | 87,720
|
Gross profit | | 8,840 | | 32,037 | | | 66,172 | | (32,754) |
Selling, general & admin. expense | | 22,105 | | 21,979 | | | 92,041 | | 85,528 |
Restructuring expense | | -
| | 15,678
| | | -
| | 27,213
|
Profit (loss) from operations | | (13,265) | | (5,620) | | | (25,869) | | (145,495) |
Other income | | 3,715
| | 3,240
| | | 15,431
| | 11,104
|
Income (loss) before income taxes | | (9,550) | | (2,380) | | | (10,438) | | (134,391) |
Provision (benefit) for taxes | | 4,498
| | 5,577
| | | 2,000
| | (25,020)
|
Net income (loss) | $ | (14,048)
| $ | (7,957)
| | $ | (12,438)
| $ | (109,371)
|
| | | | | | | | | |
Basic income (loss) per share | $ | (0.08) | $ | (0.05) | | $ | (0.07) | $ | (0.63) |
Diluted income (loss) per share | $ | (0.08) | $ | (0.05) | | $ | (0.07) | $ | (0.63) |
| | | | | | | | | |
Weighted average common shares outstanding: | | | | | | | | | |
Basic | | 173,904 | | 173,637 | | | 174,325 | | 173,634 |
Diluted | | 173,904 | | 173,637 | | | 174,325 | | 173,634 |
Results for the fourth quarter ended March 31, 2004 include restructuring charges of $17.5 million, primarily related to a manufacturing facility closure in France and other world wide headcount reductions, partially offset by recoveries of $1.8 million related to previous restructuring charges. The net after-tax impact of restructuring for the quarter was $15.9 million or $.09 per share. Results for the fourth quarter ended March 31, 2003 include special charges of $2.9 million, or $.02 per share, in cost of sales related to the completion of restructuring activities that were initiated during fiscal 2002.
Results for the year include a materials charge related to the write-down of then current tantalum raw materials and work in process inventories and future purchase commitments under a long-term supply agreement of $87.7 million (or $61.4 million or $.35 per share on an after tax basis) and restructuring charges of $27.2 million (or $25.5 million or $.15 per share on an after-tax basis) related to worldwide headcount reductions from employee terminations and facility closures in France, Mexico and Taiwan.
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AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | March 31, | | March 31, |
| | | 2003
| | 2004
|
Assets | | | | |
Cash and cash equivalents | $ | 504,866 | $ | 534,730 |
Short-term investments in securities | | - | | 30,000 |
Accounts receivable, net | | 128,019 | | 162,683 |
Inventories | | 358,739 | | 291,149 |
Other current assets | | 86,333
| | 84,941
|
| Total current assets | | 1,077,957 | | 1,103,503 |
Long-term investments in securities | | 210,631 | | 168,985 |
Property, plant and equipment, net | | 327,700 | | 288,002 |
Other assets | | 84,225
| | 107,906
|
| | | | | |
| TOTAL ASSETS | $ | 1,700,513
| $ | 1,668,396
|
| | | | | |
Liabilities and Stockholders' Equity | | | | |
Short-term bank debt | $ | 3,422 | $ | 26 |
Accounts payable and accrued expenses | | 182,135
| | 217,148
|
| Total current liabilities | | 185,557 | | 217,174 |
Other liabilities | | 51,800
| | 66,443
|
| | | | | |
| TOTAL LIABILITIES | | 237,357 | | 283,617 |
| | | | | |
| TOTAL STOCKHOLDERS' EQUITY | | 1,463,156
| | 1,384,779
|
| | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,700,513
| $ | 1,668,396
|
| | | | | |
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
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