EXHIBIT 99.1
AVX Corporation Announces Second Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- October 26, 2005 --
AVX Corporation (NYSE: AVX) reported that Net Sales were $325.9 million in the second quarter ended September 30, 2005. This was an increase of $6.1 million from the previous quarter ended June 30, 2005.
Chief Executive Officer and President, John Gilbertson, stated, “The sales increases during the last three quarters indicate that end market growth is continuing, and this is a positive sign for AVX and the industry.”
Net income for the quarter was $17.0 million, or $0.10 per share.
Income from operations improved sequentially to $19.2 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.
John Gilbertson went on to state, "We have been able to improve profit margins during the past two quarters while reducing inventory levels. We believe that inventory throughout the supply chain remains low, and improvements in end market demand quickly flow through as increased demand for AVX products. Our financial position remains exceptionally strong with $751.3 million in cash and investment securities.”
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 | | | Six Months Ended |
| | | September 30 | | | September 30 |
| | | 2004 | | 2005 | | | 2004 | | 2005 |
| Net sales | $ | 329,983 | $ | 325,931 | | $ | 675,001 | | 645,745 |
| Cost of sales | | 277,076 | | 280,875 | | | 565,912 | | 562,836 |
| Gross profit | | 52,907 | | 45,056 | | | 109,089 | | 82,909 |
| Selling, general & admin. expense | | 25,877 | | 25,873 | | | 51,338 | | 53,644 |
| Profit (loss) from operations | | 27,030 | | 19,183 | | | 57,751 | | 29,265 |
| Other income | | 3,105 | | 4,774 | | | 8,152 | | 10,931 |
| Income (loss) before income taxes | | 30,135 | | 23,957 | | | 65,903 | | 40,196 |
| Provision (benefit) for taxes | | 11,520 | | 6,932 | | | 24,396 | | 12,941 |
| Net income (loss) | $ | 18,615 | | 17,025 | | $ | 41,507 | $ | 27,255 |
| | | | | | | | | | |
| Basic income (loss) per share | $ | 0.11 | $ | 0.10 | | $ | 0.24 | $ | 0.16 |
| Diluted income (loss) per share | $ | 0.11 | $ | 0.10 | | $ | 0.24 | $ | 0.16 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 173,661 | | 172,691 | | | 173,658 | | 172,604 |
| Diluted | | 174,009 | | 173,203 | | | 174,196 | | 172,997 |
The three and six months ended September 30, 2005 results include a non-cash income tax benefit of $1.9 million for the favorable settlement of certain income tax exposures related to prior years partially offset by related interest expense of $1.0 million ($0.6 million net of tax) resulting in an increase to net income of $1.3 million or $0.01 per diluted share.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | September 30, |
| | | | 2005 | | | 2005 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 490,470 | | $ | 457,299 |
| Short-term investments in securities | | 36,000 | | | 148,995 |
| Accounts receivable, net | | 152,011 | | | 169,225 |
| Inventories | | 379,630 | | | 335,914 |
| Other current assets | | 60,025 | | | 62,903 |
| | Total current assets | | 1,118,136 | | | 1,174,336 |
| Long-term investments in securities | | 193,997 | | | 145,003 |
| Property, plant and equipment, net | | 265,892 | | | 236,789 |
| Other assets | | 111,724 | | | 105,775 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,689,749 | | $ | 1,661,903 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 116,452 | | $ | 119,059 |
| Income taxes payable and accrued expenses | | 80,120 | | | 73,972 |
| | Total current liabilities | | 196,572 | | | 193,031 |
| Other liabilities | | 53,926 | | | 50,965 |
| | | | | | | |
| | TOTAL LIABILITIES | | 250,498 | | | 243,996 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,439,251 | | | 1,417,907 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,689,749 | | $ | 1,661,903 |
| | | | | | | |
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
