EXHIBIT 99.1
AVX Corporation Announces First Quarter Results
MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 26, 2006 --
AVX Corporation (NYSE: AVX) reported that net sales improved to $366.4 million in the first quarter ended June 30, 2006 from $319.8 million in the first quarter last year. This was an increase of $46.6 million, or 14.6%, from the previous year.
Chief Executive Officer and President, John Gilbertson, stated, “The sales growth in the current quarter indicates that end market growth is continuing. We saw a positive book to bill during each month of the quarter and this is a strong indicator for the balance of the year.”
Net income for the quarter improved $26.0 million to $36.2 million, or $0.21 per share, compared to net income of $10.2 million, or $0.06 per share for the same quarter last year.
The improved operating profit of $47.0 million for the quarter resulted from increased sales, reduced operating costs and enhanced production capabilities, as well as a favorable mix of value added component and connector sales.
The Quarter’s highlights:
| ▬ | Revenue up 14.6% compared to last year and up 8.3% sequentially from the most recent quarter. |
| ▬ | Gross profit margin of 20.6%. Margins have increased in each of the last five quarters. |
| ▬ | Earnings per share of $0.21, up $0.15 from last year. |
| ▬ | Dividends paid of $0.0375 per share. |
Cash, including short and long-term investments in securities, increased $63.5 million during the June quarter and totaled $862.9 million at June 30, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $2.4 million was used to purchase AVX shares on the market, now held as treasury stock.
John Gilbertson went on to state, "Our continuing efforts to reduce our cost structure in addition to the growth of innovative advanced products to provide unique solutions for our customers have resulted in sequentially improved operating results. Our financial position remains exceptionally strong and we continue to be optimistic about this year 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 |
| | | June 30 |
| | | 2005 | | 2006 |
| Net sales | $ | 319,814 | $ | 366,408 |
| Cost of sales | | 281,961 | | 291,081 |
| Gross profit | | 37,853 | | 75,327 |
| Selling, general & admin. expense | | 27,771 | | 28,374 |
| Profit (loss) from operations | | 10,082 | | 46,953 |
| Other income | | 6,157 | | 6,725 |
| Income (loss) before income taxes | | 16,239 | | 53,678 |
| Provision (benefit) for taxes | | 6,009 | | 17,445 |
| Net income (loss) | $ | 10,230 | $ | 36,233 |
| | | | | |
| Basic income (loss) per share | $ | 0.06 | $ | 0.21 |
| Diluted income (loss) per share | $ | 0.06 | $ | 0.21 |
| | | | | |
| Weighted average common | | | | |
| shares outstanding: | | | | |
| Basic | | 172,515 | | 172,281 |
| Diluted | | 172,796 | | 173,096 |
AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)
| | | | March 31, | | | June 30, |
| | | | 2006 | | | 2006 |
| Assets | | | | | |
| Cash and cash equivalents | $ | 505,326 | | $ | 568,853 |
| Short-term investments in securities | | 158,995 | | | 185,000 |
| Accounts receivable, net | | 177,448 | | | 192,153 |
| Inventories | | 307,653 | | | 307,252 |
| Other current assets | | 54,350 | | | 55,385 |
| | Total current assets | | 1,203,772 | | | 1,308,643 |
| Long-term investments in securities | | 135,004 | | | 109,000 |
| Property, plant and equipment, net | | 232,950 | | | 234,164 |
| Other assets | | 103,482 | | | 103,951 |
| | | | | | | |
| | TOTAL ASSETS | $ | 1,675,208 | | $ | 1,755,758 |
| | | | | | | |
| Liabilities and Stockholders' Equity | | | | | |
| Accounts payable | $ | 105,011 | | $ | 115,056 |
| Income taxes payable and accrued expenses | | 66,019 | | | 82,825 |
| | Total current liabilities | | 171,030 | | | 197,881 |
| Other liabilities | | 56,069 | | | 55,961 |
| | | | | | | |
| | TOTAL LIABILITIES | | 227,099 | | | 253,842 |
| | | | | | | |
| | TOTAL STOCKHOLDERS' EQUITY | | 1,448,109 | | | 1,501,916 |
| | | | | | | |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,675,208 | | $ | 1,755,758 |
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
