EXHIBIT 99.1
AVX Corporation Announces Preliminary Fourth Quarter and Full Year Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) - April 26, 2006 --
AVX Corporation (NYSE: AVX) reported that unaudited net sales improved $32.4 million, or 10.6%, to $338.4 million in the quarter ended March 31, 2006 compared to net sales of $306.0 million in the quarter ended March 31, 2005. Unaudited net sales increased $50.0 million, or 3.9%, to $1,333.2 million for the fiscal year ended March 31, 2006 compared to net sales of $1,283.2 million for the fiscal year ended March 31, 2005.
Unaudited net income for the quarter was $27.4 million, or $0.16 per share, compared to $6.6 million, or $0.04 per share, for the same period last year. Unaudited net income for the full fiscal year was $79.1 million, or $0.46 per share, compared to $55.7 million, or $0.32 per share, last year.
Chief Executive Officer and President, John Gilbertson, stated “Our results for the year reflect the highest revenue and net income since the end of the tech bubble in fiscal 2001. Overall demand for our products has improved throughout the year and increased the industry capacity utilization, which in turn, has helped stabilize prices. Better pricing, coupled with our moves to lower the cost of manufacturing, have positively impacted our results.”
Fiscal Year highlights:
| · | Revenue up $50 million to $1 billion 333 million |
| · | Gross profit margin of 15.3% of sales, up 1.4% compared to last year. Margins have increased in each of the past four quarters. |
| · | Earnings per share of $0.46, up $0.14 from last year |
| · | Dividends paid of $0.15 per share |
| · | Reduced inventories $72 million during the year |
Cash and cash equivalents, short term investments and long-term investments in securities increased $26.3 million during the March quarter and totaled $799.3 million at March 31, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $2.7 million was used to purchase AVX shares on the market now held as treasury stock.
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
(preliminary and unaudited)
(in thousands, except per share data)
| | | Three Months Ended | | | Twelve Months Ended |
| | | March 31 | | | March 31 |
| | | 2005 | | 2006 | | | 2005 | | 2006 |
| Net sales | $ | 305,968 | $ | 338,395 | | $ | 1,283,202 | $ | 1,333,208 |
| Cost of sales | | 272,358 | | 276,293 | | | 1,105,164 | | 1,129,775 |
| Gross profit | | 33,610 | | 62,102 | | | 178,038 | | 203,433 |
| Selling, general & admin. expense | | 29,067 | | 29,494 | | | 107,429 | | 111,110 |
| Profit (loss) from operations | | 4,543 | | 32,608 | | | 70,609 | | 92,323 |
| Other income | | 5,522 | | 6,635 | | | 17,435 | | 23,439 |
| Income (loss) before income taxes | | 10,065 | | 39,243 | | | 88,044 | | 115,762 |
| Provision (benefit) for taxes | | 3,460 | | 11,861 | | | 32,312 | | 36,711 |
| Net income (loss) | $ | 6,605 | $ | 27,382 | | $ | 55,732 | $ | 79,051 |
| | | | | | | | | | |
| Basic income (loss) per share | $ | 0.04 | $ | 0.16 | | $ | 0.32 | $ | 0.46 |
| Diluted income (loss) per share | $ | 0.04 | $ | 0.16 | | $ | 0.32 | $ | 0.46 |
| | | | | | | | | | |
| Weighted average common | | | | | | | | | |
| shares outstanding: | | | | | | | | | |
| Basic | | 173,046 | | 172,262 | | | 173,450 | | 172,532 |
| Diluted | | 173,407 | | 173,152 | | | 173,906 | | 173,053 |
Net income for the quarter and fiscal year ended March 31, 2006 were favorably impacted by $1.4 million and $3.3 million, respectively, for the favorable settlement of certain income tax exposures related to prior years.
AVX CORPORATION
Consolidated Condensed Balance Sheets
(preliminary and unaudited)
(in thousands)
| | | | March 31, | | | March 31, |
| | | | 2005 | | | 2006 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 490,470 | | $ | 505,326 |
| Short-term investments in securities | | 36,000 | | | 158,995 |
| Accounts receivable, net | | 156,065 | | | 177,448 |
| Inventories | | 379,630 | | | 307,653 |
| Other current assets | | 55,971 | | | 57,993 |
| | Total current assets | | 1,118,136 | | | 1,207,415 |
| Long-term investments in securities | | 193,997 | | | 135,004 |
| Property, plant and equipment, net | | 265,892 | | | 229,092 |
| Other assets | | 111,724 | | | 97,736 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,689,749 | | $ | 1,669,247 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Short-term bank debt | $ | - | | $ | - |
| Accounts payable | | 116,452 | | | 105,011 |
| Income taxes payable and accrued expenses | | 80,120 | | | 62,759 |
| | Total current liabilities | | 196,572 | | | 167,770 |
| Other liabilities | | 53,926 | | | 56,069 |
| | | | | | | |
| | TOTAL LIABILITIES | | 250,498 | | | 223,839 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,439,251 | | | 1,445,408 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,689,749 | | $ | 1,669,247 |
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
