EX-99.1 3 exhibit991.htm AVX CORPORATION EXHIBIT 99.1 exhibit991.htm
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