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AVX Corporation Announces Second Quarter Results

AVX Corporation Announces Second Quarter Results

MYRTLE BEACH, S.C.--(BUSINESS WIRE)--Oct. 25, 2004--AVX Corporation (NYSE: AVX)
reported that net sales were $330.0 million in the second quarter ended
September 30, 2004. This was an increase of $62.7 million compared to the same
quarter last year.
Net income for the quarter was $18.6 million, or $0.11 per share.
Income from operations improved to $27.1 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.
Chief Executive Officer and President, John Gilbertson, stated, "The
restructuring actions implemented by AVX during the last two years have
resulted in improved operating results. Our financial position remains
exceptionally strong with $696.7 million in cash and investment securities. 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 Six Months Ended
September 30 September 30
2003 2004 2003 2004
--------- -------- --------- --------
Net sales $ 267,286 $329,983 $ 523,941 $675,001
Cost of sales 266,258 277,076 518,904 565,912
Materials Charge 87,720 - 87,720 -
--------- -------- --------- --------
Gross profit (86,692) 52,907 (82,683) 109,089
Selling, general & admin.
expense 19,910 25,877 40,977 51,338
Restructuring expense 1,652 - 4,463 -
--------- -------- --------- --------
Profit (loss) from operations (108,254) 27,030 (128,123) 57,751
Other income 2,395 3,105 5,823 8,152
--------- -------- --------- --------
Income (loss) before income
taxes (105,859) 30,135 (122,300) 65,903
Provision (benefit) for taxes (28,863) 11,520 (29,363) 24,396
--------- -------- --------- --------
Net income (loss) $ (76,996)$ 18,615 $ (92,937)$ 41,507
========= ======== ========= ========

Basic income (loss) per share $ (0.44)$ 0.11 $ (0.54)$ 0.24
Diluted income (loss) per share$ (0.44)$ 0.11 $ (0.54)$ 0.24

Weighted average common
shares outstanding:
Basic 173,598 173,661 173,649 173,658
Diluted 173,598 174,009 173,649 174,196

Results for the quarter ended September 30, 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 quarter ended September 30,
2003 include restructuring charges of $1.7 million, (or $1.3 million and $0.01
per share on an after-tax basis), related to worldwide headcount reductions
from employee terminations and additional costs related to a previous facility
closure.
Results for the six-month period ended September 30, 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 six-month period
ended September 30, 2003 include restructuring charges of $4.5 million, (or
$3.2 million and $0.02 per share on an after-tax basis), related to worldwide
headcount reductions from employee terminations and additional costs related to
a previous facility closure.

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

March 31, September 30,
2004 2004
-------------- -------------
Assets
Cash and cash equivalents $ 534,730 $ 537,695
Short-term investments in securities 30,000 -
Accounts receivable, net 162,683 181,279
Inventories 293,869 367,716
Other current assets 80,697 70,330
-------------- -------------
Total current assets 1,101,979 1,157,020
Long-term investments in securities 168,985 158,996
Property, plant and equipment, net 288,002 275,774
Other assets 108,911 103,868
-------------- -------------

TOTAL ASSETS $ 1,667,877 $ 1,695,658
============== =============

Liabilities and Stockholders' Equity
Short-term bank debt $ 26 $ -
Accounts payable 114,486 134,958
Income taxes payable and accrued
expenses 100,378 88,740
-------------- -------------
Total current liabilities 214,890 223,698
Other liabilities 66,443 57,087
-------------- -------------

TOTAL LIABILITIES 281,333 280,785

TOTAL STOCKHOLDERS' EQUITY 1,386,544 1,414,873
-------------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,667,877 $ 1,695,658
============== =============

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.