EXHIBIT 99.1
AVX Corporation Announces Third Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- January 25, 2006 --
AVX Corporation (NYSE: AVX) reported that Net Sales were $349.1 million in the third quarter ended December 31, 2005. This was an increase of $23.1 million, or 7.1%, from the previous quarter ended September 30, 2005, and represents an increase of $46.8 million from the same quarter last year.
Chief Executive Officer and President, John Gilbertson, stated, “The sales increase during the latest quarter reflects the continuing strong end market demand experienced by our customers. This continuing trend has resulted in our highest quarterly revenue since the quarter ended June 2001.”
Income from operations improved sequentially to $30.5 million for the quarter, and net income for the quarter was $24.4 million, or $0.14 per share.
John Gilbertson went on to state, "We have been able to improve profit margins during the past three quarters on rising sales while also reducing inventory levels $70.3 million. We believe that inventory throughout the supply chain remains low, which is positive for AVX and the industry. The improved results have increased cash flow and we currently have $773.1 million in cash and investment securities, 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 web site 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 |
| | | 2004 | | 2005 | | | 2004 | | 2005 |
| Net sales | $ | 302,233 | $ | 349,068 | | $ | 977,234 | | 994,813 |
| Cost of sales | | 266,894 | | 290,646 | | | 832,805 | | 853,481 |
| Gross profit | | 35,339 | | 58,422 | | | 144,429 | | 141,332 |
| Selling, general & admin. expense | | 27,024 | | 27,972 | | | 78,362 | | 81,616 |
| Profit (loss) from operations | | 8,315 | | 30,450 | | | 66,067 | | 59,716 |
| Other income | | 3,762 | | 5,873 | | | 11,912 | | 16,803 |
| Income (loss) before income taxes | | 12,077 | | 36,323 | | | 77,979 | | 76,519 |
| Provision (benefit) for taxes | | 4,457 | | 11,909 | | | 28,852 | | 24,850 |
| Net income (loss) | $ | 7,620 | $ | 24,414 | | $ | 49,127 | $ | 51,669 |
| | | | | | | | | | |
| Basic income (loss) per share | $ | 0.04 | $ | 0.14 | | $ | 0.28 | $ | 0.30 |
| Diluted income (loss) per share | $ | 0.04 | $ | 0.14 | | $ | 0.28 | $ | 0.30 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 173,433 | | 172,654 | | | 173,583 | | 172,621 |
| Diluted | | 173,839 | | 173,204 | | | 174,072 | | 173,064 |
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | December 31, |
| | | | 2005 | | | 2005 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 490,470 | | $ | 479,065 |
| Short-term investments in securities | | 36,000 | | | 148,995 |
| Accounts receivable, net | | 156,065 | | | 179,631 |
| Inventories | | 379,630 | | | 309,315 |
| Other current assets | | 55,971 | | | 56,351 |
| | Total current assets | | 1,118,136 | | | 1,173,357 |
| Long-term investments in securities | | 193,997 | | | 145,003 |
| Property, plant and equipment, net | | 265,892 | | | 229,873 |
| Other assets | | 111,724 | | | 101,915 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,689,749 | | $ | 1,650,148 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 116,452 | | $ | 106,053 |
| Income taxes payable and accrued expenses | | 80,120 | | | 70,347 |
| | Total current liabilities | | 196,572 | | | 176,400 |
| Other liabilities | | 53,926 | | | 51,183 |
| | | | | | | |
| | TOTAL LIABILITIES | | 250,498 | | | 227,583 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,439,251 | | | 1,422,565 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,689,749 | | $ | 1,650,148 |
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
