AVX (AVX) 8-K AVX Corporation Announces First Quarter Results

EXHIBIT 99.1

AVX Corporation Announces First Quarter Results

MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 29, 2008 -- AVX Corporation (NYSE:  AVX)

Quarter highlights:

·   Revenue up almost 4.0%, or $13.7 million, to $396.9 million compared to the same quarter last year.

·   Earnings per share of $0.18 in the quarter

·   Dividends of $6.8 million, or $0.04 per share, paid during the first quarter of fiscal 2009.

·   Cash and cash equivalents and short and long-term investments in securities steady at $807.2 million.

Chief Executive Officer and President, John Gilbertson stated, "We are pleased to be able to report that sales for the June quarter were up about 4% compared to the same period last year. The market place remains consistant but cautious resulting from overall uncertainty in global economic conditions.”

Operating income for the quarter was $32.0 million. The decline, when compared to the same period last year, reflects higher costs for energy, metals and other materials used in production in addition to the negative impact on costs due to the weaker U.S Dollar. Operating results for the quarter ended June 30, 2008 include restructuring charges of $1.3 million related to worldwide headcount reductions during the quarter.

Mr. Gilbertson went on to state, “We believe that inventories remain lean throughout the supply chain and certain market segments, from medical to computers to telecommunications, continue to show demand strength.”

Net income for the quarter was $31.0 million, or $0.18 per share, compared to net income of $39.2 million, or $0.23 per share, in the same quarter last year.

Cash and cash equivalents and short and long-term investments in securities totaled $807.2 million at June 30, 2008. During the quarter $6.8 million of dividends to stockholders were paid.

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
		2007		2008
Net sales	$	383,158	$	396,889
Cost of sales		308,433		333,458
Restructuring charges		-		1,279
Gross profit		74,725		62,152
Selling, general & admin. expense		30,568		34,149
Restructuring charges		-		12
Other operating income		-		(4,051)
Profit from operations		44,157		32,042
Other income		10,996		8,376
Income before income taxes		55,153		40,418
Provision for taxes		15,994		9,413
Net income	$	39,159	$	31,005
Basic income per share	$	0.23	$	0.18
Diluted income per share	$	0.23	$	0.18
Weighted average common
shares outstanding:
Basic		171,797		170,976
Diluted		172,587		171,292

Net income for the quarter ended June 30, 2008 included an after tax restructuring charge of $934 thousand related to worldwide headcount reduction, and an after tax gain of $2.9 million related to the sale of excess assets. Additionally, for the quarter ended June 30, 2008, the provision for income taxes includes $2.0 million of benefits for the recognition of tax investment allowances related to additional capital investments made in our Penang, Malaysia facility.

AVX CORPORATION

Consolidated Condensed Balance Sheets

(unaudited)

(in thousands)

			March 31,		June 30,
			2008		2008
Assets
Cash and cash equivalents		$	568,864	$	561,885
Short-term investments in securities			50,000		-
Available-for-sale securities			44,790		45,005
Accounts receivable, net			203,762		207,105
Inventories			421,216		430,559
Other current assets			88,573		86,598
	Total current assets		1,377,205		1,331,152
Long-term investments in securities			108,999		169,001
Long-term available-for-sale securities			42,666		31,326
Property, plant and equipment, net			316,572		320,467
Goodwill and other intangibles			254,059		259,049
Other assets			9,577		9,507
	TOTAL ASSETS	$	2,109,078	$	2,120,502
Liabilities and Stockholders' Equity
Accounts payable		$	137,152	$	127,999
Income taxes payable and accrued expenses			83,364		81,065
	Total current liabilities		220,516		209,064
Other liabilities			59,211		58,044
	TOTAL LIABILITIES		279,727		267,108
	TOTAL STOCKHOLDERS' EQUITY		1,829,351		1,853,394
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	2,109,078	$	2,120,502

Contact:

AVX Corporation, Myrtle Beach

Kurt Cummings,

843-946-0691

finance@avxus.com