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AVX Corporation Announces Third Quarter Results

Submitted by: John Warner on Jan 24, 2007 at 3:50 pm Tagged with: Miscellany Source:

MYRTLE BEACH, S.C.--(BUSINESS WIRE)--AVX Corporation (NYSE: AVX) reported that net sales increased over the previous quarter and over the same quarter last year. The net sales improved to $378.1 million in the third fiscal quarter ended December 31, 2006 from $349.1 million in the same quarter last year. This was an increase of $29.0 million, or 8.3%, from the previous year and also represents an increase over the September quarter. During the first nine months ended December 31, 2006, net sales increased to $1.1 billion, up $124.3 million, or 12.5%, compared to the first nine months of last year.

Chief Executive Officer and President John Gilbertson stated, “The sales level for our third quarter continues the positive trend seen throughout this fiscal year and reflects the continuing strong end market demand experienced by our customers.”

Net income for the quarter improved $11.4 million to $35.8 million, or $0.21 per share, compared to net income of $24.4 million, or $0.14 per share for the same quarter last year. Net income for the first nine months improved $59.2 million to $110.8 million, or $0.64 per share, compared to net income of $51.7 million, or $0.30 per share, during the first nine months of the prior year.

The improved operating profit this year resulted from higher sales, reduced operating costs and enhanced production capabilities in lower cost regions, as well as a favorable mix of value added component and connector sales.

The Quarter’s highlights:

* Revenue up 8.3% compared to the same quarter last year.
* Gross profit margin of 19.2%, a 2.5% improvement compared to the same quarter last year.
* Diluted earnings per share of $0.21 up $0.07 from last year.
* Dividends paid of $0.0375 per share.

Cash, including short and long-term investments in securities, increased $56.1 million during the December quarter and totaled $941.7 million at December 31, 2006. During the quarter, $6.5 million of dividends to stockholders were paid, and $3.4 million was used to purchase AVX shares on the market, now held as treasury stock.

John Gilbertson went on to state, "The favorable market conditions throughout this fiscal year have led to increased capacity utilization contributing to a more stable pricing environment. In addition, our efforts to provide unique solutions for our customers through the development of innovative advanced products, and our continuing efforts to reduce our cost structure have resulted in improved operating results. Our financial position remains exceptionally strong and we continue to be optimistic about the next calendar year 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.