EX-99.1 2 ex99_1.htm EXHIBIT 99.1 Exhibit 99.1

EXHIBIT 99.1


AVX Corporation Announces Third Quarter Results


MYRTLE BEACH, S.C. -- (BUSINESS WIRE) - January 26, 2005 --

AVX Corporation (NYSE: AVX) reported that net sales were $302.2 million in the third quarter ended December 31, 2004. This was an increase of $5.4 million, or 1.8%, compared to the same quarter last year.

Net income for the quarter was $7.6 million, or $0.04 per share.

Compared to the same quarter last year, profit from operations improved to $8.3 million for the quarter reflecting a lower cost structure resulting from the actions that AVX has taken to streamline operations, reduce operating costs and enhance production capabilities in low cost regions.

Cash, cash equivalents and long-term investments in securities increased $9.2 million during the December quarter and totaled $705.9 million at December 31, 2004. During the quarter, $6.4 million of dividends to stockholders were paid, and $5.9 million was used to purchase AVX shares on the market, now held as treasury stock.

Chief Executive Officer and President, John Gilbertson, stated, "The sales level in the December quarter reflects the effect of an inventory correction occurring in various portions of the electronics supply chain. End market demand appears to have held up well during the quarter. Our financial position remains strong and we continue to be optimistic about the future 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
  
Nine Months Ended
  
   
December 31
  
December 31
  
   
2003
  
2004
  
2003
  
2004
  
Net sales
  
$
296,831
  
$
302,233
  
$
820,772
  
$
977,234
  
Cost of sales
    
278,939
    
266,894
    
797,843
    
832,806
  
Materials Charge
    
-
    
-
    
87,720
    
-
  
Gross profit
   
17,892
    
35,339
    
(64,791
)
  
144,428
  
Selling, general & admin. expense
    
22,572
    
27,024
    
63,549
    
78,362
  
Restructuring expense
    
7,072
    
-
    
11,535
    
-
  
Profit (loss) from operations
    
(11,752
)
  
8,315
    
(139,875
)
  
66,066
  
Other income
   
2,041
    
3,761
    
7,864
    
11,913
  
Income (loss) before income taxes
    
(9,711
)
  
12,076
    
(132,011
)
  
77,979
  
Provision (benefit) for taxes
    
(1,234
)
  
4,456
    
(30,597
)
  
28,852
  
Net income (loss)
  
$
(8,477
)
$
7,620
  
$
(101,414
)
$
49,127
  
                           
Basic income (loss) per share
  
$
(0.05
)
$
0.04
  
$
(0.58
)
$
0.28
  
Diluted income (loss) per share
  
$
(0.05
)
$
0.04
  
$
(0.58
)
$
0.28
  
                           
Weighted average common
                          
shares outstanding:
                          
Basic
    
173,602
    
173,433
    
173,633
    
173,583
  
Diluted
    
173,602
    
173,839
    
173,633
    
174,072
  

Results for the quarter ended December 31, 2003 include restructuring charges of $7.1 million (or $6.4 million and $0.04 per share on an after-tax basis), related to worldwide headcount reductions from employee terminations and manufacturing facility closures in Mexico and Taiwan.

Results for the nine-month period ended December 31, 2003 include a materials charge of $87.7 million (or $61.4 million and $0.35 per share on an after-tax basis), for the write-down of current tantalum materials and future tantalum purchase commitments. In addition, operating results for the nine-month period ended December 31, 2003 include restructuring charges of $11.5 million, (or $9.6 million and $0.06 per share on an after-tax basis), related to worldwide headcount reductions and manufacturing facility closures.



  
     
 

AVX CORPORATION
Consolidated Condensed Balance Sheets
(unaudited)
(in thousands)

   
March 31,
  
December 31,
  
   
2004
  
2004
  
Assets
              
Cash and cash equivalents
  
$
534,730
  
$
501,906
  
Short-term investments in securities
    
30,000
   
20,000
  
Accounts receivable, net
    
162,683
   
164,624
  
Inventories
    
293,869
    
386,628
  
Other current assets
    
80,697
    
73,964
  
Total current assets
    
1,101,979
    
1,147,122
  
Long-term investments in securities
    
168,985
   
183,997
  
Property, plant and equipment, net
    
288,002
   
281,771
  
Other assets
    
108,911
    
108,397
  
               
TOTAL ASSETS
  
$
1,667,877
  
$
1,721,287
  
               
Liabilities and Stockholders' Equity
              
Short-term bank debt
  
$
26
  
$
-
  
Accounts payable
    
114,486
    
118,310
  
Income taxes payable and accrued expenses
    
100,378
    
88,037
  
Total current liabilities
    
214,890
   
206,347
  
Other liabilities
    
66,443
   
54,792
  
               
TOTAL LIABILITIES
    
281,333
   
261,139
  
               
TOTAL STOCKHOLDERS' EQUITY
    
1,386,544
   
1,460,148
  
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
1,667,877
  
$
1,721,287
  

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