EXHIBIT 99.1
AVX Corporation Announces First Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 28, 2004 --
AVX Corporation (NYSE: AVX)reported that net sales increased $88.3 million to $345.0 million in the first quarter ended June 30, 2004 compared to the same quarter last year. President and CEO John Gilbertson stated, "The continued expansion of our businesses has allowed AVX to grow and improve profitability during the recovery in the electronics markets."
Net income for the quarter was $22.9 million, or $0.13 per share. The current quarter's results include a $2.8 million pre-tax and after-tax gain on the sale of a previously closed facility in Taiwan in connection with the Company's exit from the unprofitable ferrite component business.
Income from operations improved to $30.7 million for the quarter reflecting a lower cost structure resulting from the actions that AVX has taken to streamline operations, reduce operating costs and enhance production capabilities in low cost regions, as well as lower material costs.
Mr. Gilbertson went on to state, "The restructuring actions implemented by AVX during the last two years have resulted in greatly improved operating results. Our financial position remains exceptionally strong with $728 million in cash investments and 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.avx.com.
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AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
| | | | | Three Months Ended |
| | | | | June 30 |
| | | | | | | 2003
| | 2004
|
Net sales | | | | | | $ | 256,655 | $ | 345,018 |
Cost of sales | | | | | | | 252,646
| | 288,836
|
Gross profit | | | | | | | 4,009 | | 56,182 |
Selling, general & admin. expense | | | | | | | 21,067 | | 25,461 |
Restructuring expense | | | | | | | 2,811
| | -
|
Profit (loss) from operations | | | | | | | (19,869) | | 30,721 |
Other income | | | | | | | 3,428
| | 5,047
|
Income (loss) before income taxes | | | | | | | (16,441) | | 35,768 |
Provision (benefit) for taxes | | | | | | | (500)
| | 12,876
|
Net income (loss) | | | | | | $ | (15,941)
| $ | 22,892
|
| | | | | | | | | |
Basic income (loss) per share | | | | | | $ | (0.09) | $ | 0.13 |
Diluted income (loss) per share | | | | | | $ | (0.09) | $ | 0.13 |
| | | | | | | | | |
Weighted average common | | | | | | | | | |
shares outstanding: | | | | | | | | | |
Basic | | | | | | | 173,701 | | 173,655 |
Diluted | | | | | | | 173,701 | | 174,345 |
The operating results for the quarter ended June 30, 2003 include restructuring charges of $2.8 million, or $0.02 per diluted share, related to worldwide headcount reductions accomplished during the quarter.
The sales in the quarter ended June 30, 2004 include $24.3 million of sales of crystal components resulting from the previously announced acquisition, effective April 2, 2004, of certain sales and marketing subsidiaries from Kinseki Ltd. of Japan, a wholly owned subsidiary of our majority stockholder, Kyocera Corporation.
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AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | March 31, | | | June 30, |
| | | 2004
| | | 2004
|
Assets | | | | | |
Cash and cash equivalents | $ | 534,730 | | $ | 569,189 |
Short-term investments in securities | | 30,000 | | | - |
Accounts receivable, net | | 162,683 | | | 186,192 |
Inventories | | 293,869 | | | 330,874 |
Other current assets | | 80,697
| | | 82,736
|
| Total current assets | | 1,101,979 | | | 1,168,991 |
Long-term investments in securities | | 168,985 | | | 158,996 |
Property, plant and equipment, net | | 288,002 | | | 284,464 |
Other assets | | 108,911
| | | 109,037
|
| | | | | | |
| TOTAL ASSETS | $ | 1,667,877
| | $ | 1,721,488
|
| | | | | | |
Liabilities and Stockholders' Equity | | | | | |
Short-term bank debt | $ | 26 | | $ | - |
Accounts payable and accrued expenses | | 214,864
| | | 252,372
|
| Total current liabilities | | 214,890 | | | 252,372 |
Other liabilities | | 66,443
| | | 63,370
|
| | | | | | |
| TOTAL LIABILITIES | | 281,333 | | | 315,742 |
| | | | | | |
| TOTAL STOCKHOLDERS' EQUITY | | 1,386,544
| | | 1,405,746
|
| | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,667,877
| | $ | 1,721,488
|
| | | | | | |
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, 2004. 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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