EXHIBIT 99.1
AVX Corporation Announces Third Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) - January 26, 2005 --
AVX Corporation (NYSE: AVX)reported that net sales were $302.2 million in the third quarter ended December 31, 2004. This was an increase of $5.4 million, or 1.8%, compared to the same quarter last year.
Net income for the quarter was $7.6 million, or $0.04 per share.
Compared to the same quarter last year, profit from operations improved to $8.3 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.
Cash, cash equivalents and long-term investments in securities increased $9.2 million during the December quarter and totaled $705.9 million at December 31, 2004. During the quarter, $6.4 million of dividends to stockholders were paid, and $5.9 million was used to purchase AVX shares on the market, now held as treasury stock.
Chief Executive Officer and President, John Gilbertson, stated, "The sales level in the December quarter reflects the effect of an inventory correction occurring in various portions of the electronics supply chain. End market demand appears to have held up well during the quarter. Our financial position remains strong and we continue to be optimistic about the future for electronic components."
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.
AVX CORPORATION
Consolidated Condensed Statements of Income
(unaudited)
(in thousands, except per share data)
| | | Three Months Ended | | Nine Months Ended | |
| | | December 31 | | December 31 | |
| | | 2003 | | 2004 | | 2003 | | 2004 | |
| Net sales | | $ | 296,831 | | $ | 302,233 | | $ | 820,772 | | $ | 977,234 | |
| Cost of sales | | | 278,939 | | | 266,894 | | | 797,843 | | | 832,806 | |
| Materials Charge | | | - | | | - | | | 87,720 | | | - | |
| Gross profit | | | 17,892 | | | 35,339 | | | (64,791 | ) | | 144,428 | |
| Selling, general & admin. expense | | | 22,572 | | | 27,024 | | | 63,549 | | | 78,362 | |
| Restructuring expense | | | 7,072 | | | - | | | 11,535 | | | - | |
| Profit (loss) from operations | | | (11,752 | ) | | 8,315 | | | (139,875 | ) | | 66,066 | |
| Other income | | | 2,041 | | | 3,761 | | | 7,864 | | | 11,913 | |
| Income (loss) before income taxes | | | (9,711 | ) | | 12,076 | | | (132,011 | ) | | 77,979 | |
| Provision (benefit) for taxes | | | (1,234 | ) | | 4,456 | | | (30,597 | ) | | 28,852 | |
| Net income (loss) | | $ | (8,477 | ) | $ | 7,620 | | $ | (101,414 | ) | $ | 49,127 | |
| | | | | | | | | | | | | | |
| Basic income (loss) per share | | $ | (0.05 | ) | $ | 0.04 | | $ | (0.58 | ) | $ | 0.28 | |
| Diluted income (loss) per share | | $ | (0.05 | ) | $ | 0.04 | | $ | (0.58 | ) | $ | 0.28 | |
| | | | | | | | | | | | | | |
| Weighted average common | | | | | | | | | | | | | |
| shares outstanding: | | | | | | | | | | | | | |
| Basic | | | 173,602 | | | 173,433 | | | 173,633 | | | 173,583 | |
| Diluted | | | 173,602 | | | 173,839 | | | 173,633 | | | 174,072 | |
Results for the quarter ended December 31, 2003 include restructuring charges of $7.1 million (or $6.4 million and $0.04 per share on an after-tax basis), related to worldwide headcount reductions from employee terminations and manufacturing facility closures in Mexico and Taiwan.
Results for the nine-month period ended December 31, 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 nine-month period ended December 31, 2003 include restructuring charges of $11.5 million, (or $9.6 million and $0.06 per share on an after-tax basis), related to worldwide headcount reductions and manufacturing facility closures.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | March 31, | | December 31, | |
| | | 2004 | | 2004 | |
| Assets | | | | | | | |
| Cash and cash equivalents | | $ | 534,730 | | $ | 501,906 | |
| Short-term investments in securities | | | 30,000 | | | 20,000 | |
| Accounts receivable, net | | | 162,683 | | | 164,624 | |
| Inventories | | | 293,869 | | | 386,628 | |
| Other current assets | | | 80,697 | | | 73,964 | |
| Total current assets | | | 1,101,979 | | | 1,147,122 | |
| Long-term investments in securities | | | 168,985 | | | 183,997 | |
| Property, plant and equipment, net | | | 288,002 | | | 281,771 | |
| Other assets | | | 108,911 | | | 108,397 | |
| | | | | | | | |
| TOTAL ASSETS | | $ | 1,667,877 | | $ | 1,721,287 | |
| | | | | | | | |
| Liabilities and Stockholders' Equity | | | | | | | |
| Short-term bank debt | | $ | 26 | | $ | - | |
| Accounts payable | | | 114,486 | | | 118,310 | |
| Income taxes payable and accrued expenses | | | 100,378 | | | 88,037 | |
| Total current liabilities | | | 214,890 | | | 206,347 | |
| Other liabilities | | | 66,443 | | | 54,792 | |
| | | | | | | | |
| TOTAL LIABILITIES | | | 281,333 | | | 261,139 | |
| | | | | | | | |
| TOTAL STOCKHOLDERS' EQUITY | | | 1,386,544 | | | 1,460,148 | |
| | | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | | $ | 1,667,877 | | $ | 1,721,287 | |
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 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
