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[February 2009]
AVX Corp Announces Preliminary Third Quarter Results
AVX Corporation (Myrtle Beach, SC, USA) has reported net sales of US$320.6 million for the quarter ended 31 December 2008 and US$1.117.8 billion for the nine months ended 31 December 2008.
CEO and President John Gilbertson stated: "The December quarter was difficult but in this challenging time our operations were able to improve the overall profit margin primarily as a result of tight cost control around the world.
"By moving quickly to address these market changes, the business groups have made adjustments to their cost structure and will emerge stronger in the quarters to come. We have additional plans for further cost reduction measures that will enhance our competitiveness going forward. The company has a solid balance sheet and is proud of its ability to continue to pay a cash dividend."
On a US GAAP basis (including special charges), net income was US$23.9 million, or US$0.14 per diluted share, for the current quarter.
Non-GAAP net income excluding special charges was US$27.7 million, or US$0.16 per diluted share, for the current quarter. During the current quarter, the company incurred US$2.8 million of pre-tax restructuring costs related to global actions to realign production capabilities and reduce costs. In addition, AVX recorded a US$2.0 million pre-tax impairment charge during the current quarter related to the decline in value of its available-for-sale securities transferred to the company from an impaired Bank of America enhanced cash investment fund as a result of the current economic turmoil in the financial markets around the world.
Chief Financial Officer Kurt Cummings stated: "The company's strong financial position provided us with the flexibility to act swiftly when the economy faltered and the financial strength to maintain our competitive position. The company's financial position remains exceptionally strong with cash and cash equivalents and short and long-term investments in securities of $766.3 million and no debt at December 31, 2008. During the quarter, the company paid $6.8 million of dividends to stockholders and spent $2.4 million to repurchase shares of AVX stock on the open market which are held as treasury stock".
ENDS