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[August 2007]
KEMET Reports Quarterly Results
KEMET Corporation (Greenville, SC, USA) has reported that net sales for the quarter ended 30 June 2007, were US$183.1 million which represents an 8% increase over the same quarter last year and a 16.5% increase over the prior quarter. Net income before special charges was US$9.7 million (including a $2.5 million tax benefit) compared to US$7 million last quarter and US$8.1 million for the same quarter in the prior year."During the June quarter, the Company made progress toward meeting our financial and operational goals," stated Per Loof, CEO. "Revenues from our base Tantalum and Ceramic businesses were up 2% on strength in the OEM markets and recovery in Asia. Gross margin grew from 20.6% in the prior quarter to 21.6% this quarter, reflecting sales growth as well as our ongoing cost reduction efforts. We realized the benefits of our balanced strategy across geographic markets. Net income before special charges was $9.7 million, or $0.12 per share, up 39% over the previous quarter on a comparable basis.
"We are also encouraged by the initial results from our recent acquisition of Evox Rifa, now the Film and Electrolytic Business Group. Net sales were $22.7 million since the acquisition on April 24, 2007, and operating income was over 5.0% of sales, exceeding our expectations and making a positive contribution to our results. Our recent experience with the European tantalum business will be a valuable asset as we integrate this business into KEMET. We remain confident that this acquisition will create new opportunities for KEMET and yield additional benefits for our shareholders."
www.kemet.com
ENDS