AVX Corporation Form 8-K, July 28, 2004 EXHIBIT 99.1

EX-99 2 avx8kjul2804ex991.htm AVX CORPORATION FORD 8-K JULY 28, 2004 EXHIBIT 99.1 AVX Corporation Form 8-K, July 28, 2004 EXHIBIT 99.1 EXHIBIT 99.1

AVX Corporation Announces First Quarter Results

MYRTLE BEACH, S.C. -- (BUSINESS WIRE) -- July 28, 2004 --

AVX Corporation (NYSE: AVX) reported that net sales increased $88.3 million to $345.0 million in the first quarter ended June 30, 2004 compared to the same quarter last year. President and CEO John Gilbertson stated, "The continued expansion of our businesses has allowed AVX to grow and improve profitability during the recovery in the electronics markets."

Net income for the quarter was $22.9 million, or $0.13 per share. The current quarter's results include a $2.8 million pre-tax and after-tax gain on the sale of a previously closed facility in Taiwan in connection with the Company's exit from the unprofitable ferrite component business.

Income from operations improved to $30.7 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, as well as lower material costs.

Mr. Gilbertson went on to state, "The restructuring actions implemented by AVX during the last two years have resulted in greatly improved operating results. Our financial position remains exceptionally strong with $728 million in cash investments and no debt."

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
		2003		2004
Net sales	$	256,655	$	345,018
Cost of sales		252,646		288,836
Gross profit		4,009		56,182
Selling, general & admin. expense		21,067		25,461
Restructuring expense		2,811		-
Profit (loss) from operations		(19,869)		30,721
Other income		3,428		5,047
Income (loss) before income taxes		(16,441)		35,768
Provision (benefit) for taxes		(500)		12,876
Net income (loss)	$	(15,941)	$	22,892

Basic income (loss) per share	$	(0.09)	$	0.13
Diluted income (loss) per share	$	(0.09)	$	0.13

Weighted average common
shares outstanding:
Basic		173,701		173,655
Diluted		173,701		174,345

The operating results for the quarter ended June 30, 2003 include restructuring charges of $2.8 million, or $0.02 per diluted share, related to worldwide headcount reductions accomplished during the quarter.

The sales in the quarter ended June 30, 2004 include $24.3 million of sales of crystal components resulting from the previously announced acquisition, effective April 2, 2004, of certain sales and marketing subsidiaries from Kinseki Ltd. of Japan, a wholly owned subsidiary of our majority stockholder, Kyocera Corporation.

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

			March 31,		June 30,
			2004		2004
Assets
Cash and cash equivalents		$	534,730	$	569,189
Short-term investments in securities			30,000		-
Accounts receivable, net			162,683		186,192
Inventories			293,869		330,874
Other current assets			80,697		82,736
	Total current assets		1,101,979		1,168,991
Long-term investments in securities			168,985		158,996
Property, plant and equipment, net			288,002		284,464
Other assets			108,911		109,037

	TOTAL ASSETS	$	1,667,877	$	1,721,488

Liabilities and Stockholders' Equity
Short-term bank debt		$	26	$	-
Accounts payable and accrued expenses			214,864		252,372
	Total current liabilities		214,890		252,372
Other liabilities			66,443		63,370

	TOTAL LIABILITIES		281,333		315,742

	TOTAL STOCKHOLDERS' EQUITY		1,386,544		1,405,746

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,667,877	$	1,721,488

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 Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2004. 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