AVX reports loss for December 2003 Quarter

AVX Corporation (NYSE: AVX) reported that net sales for the third quarter ended December 31, 2003 were $296.8 million. Chief Executive Officer and President, John Gilbertson, stated, "Sales increased 11.1% compared to the previous quarter and 5.0% compared to the same quarter last year. Unit volumes increased and selling prices stabilized. Incoming orders were strong, which reflects our customers' increased production plans." The net loss for the quarter ended December 31, 2003 was $8.5 million, or $0.05 per share. Results for the quarter were negatively impacted by restructuring charges of $7.1 million (or $6.4 million and $0.04 per share on an after-tax basis) related to worldwide headcount reductions from employee terminations and manufacturing facility closures in Mexico and Taiwan. Mr. Gilbertson went on to state, "There are a number of positive signs pointing to improving market conditions for many of the end markets we serve into calendar year 2004. Increases in information technology and communication infrastructure equipment spending will drive continued unit shipment growth. The operational reorganization that AVX has undertaken during the past several years has significantly reduced our operating costs and further enhanced our production capabilities in lower cost areas. These improvements, coupled with our strong financial base, have put us in a very good position to continue to improve our results during a recovery." The Asia region, where AVX has had a strong sales, marketing and manufacturing presence for over 20 years, continued to grow and sales in that region for the December 2003 quarter represented 43% of total sales. Profit margins improved when compared to the same period last year and when compared to the September 2003 quarter as a result of improved production leverage, overhead cost reductions and lower material costs. AVX's net cash position increased by $4.9 million during the December quarter and AVX now has $684.5 million in cash and investment securities and only $4 million of debt.Source: PCBnewsline