AVX Corporation Announces Preliminary Fourth Quarter and Full Year Res

    Business Editors/Technology Editors

    MYRTLE BEACH, S.C.--(BUSINESS WIRE)--April 26, 2005--AVX Corporation (NYSE: AVX) reported that unaudited net sales were $306.0 million in the fourth quarter ended March 31, 2005 and $1,283.2 million for the fiscal year ended March 31, 2005. Chief Executive Officer and President, John Gilbertson, stated "Sales improved $3.7 million over the third quarter of fiscal 2005 and $146.6 million (or 12.9%) over fiscal 2004 reflecting the continuing improvement in the electronics industry."
    The unaudited net income for the quarter was $5.4 million, or $.03 per share, compared to a net loss of $6.2 million, or $0.04 per share, for the same period last year. Unaudited net income for the full year was $54.5 million, or $0.31 per share, compared to a net loss of $107.6 million, or $0.62 per share, last year. These improvements reflect 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.
    Cash and cash equivalents, short term investments and long-term investments in securities increased $15.3 million during the March quarter and totaled $720.5 million at March 31, 2005. During the quarter, $6.5 million of dividends to stockholders were paid, and $2.3 million was used to purchase AVX shares on the market now held as treasury stock.
    Chief Executive Officer and President, John Gilbertson, stated, "The increase in sales in the March quarter reflects the favorable inventory position our customers experienced after the holiday season and continued growth in end market demand. Our financial position remains strong and we continue to be optimistic about this year's prospects for our industry."
    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 (preliminary and unaudited) (in thousands, except per share data)

Three Months Ended Twelve Months Ended March 31 March 31 2004 2005 2004 2005 -------- -------- ---------- ---------- Net sales $315,805 305,972 $1,136,577 $1,283,206 Cost of sales 281,048 273,087 1,078,891 1,105,893 Materials Charge - - 87,720 - -------- -------- ---------- ---------- Gross profit 34,757 32,885 (30,034) 177,313 Selling, general & admin. expense 21,978 29,838 85,528 108,200 Restructuring expense 15,678 - 27,213 - -------- -------- ---------- ---------- Profit (loss) from operations (2,899) 3,047 (142,775) 69,113 Other income 3,239 5,522 11,104 17,436 -------- -------- ---------- ---------- Income (loss) before income taxes 340 8,569 (131,671) 86,549 Provision (benefit) for taxes 6,532 3,170 (24,065) 32,022 -------- -------- ---------- ---------- Net income (loss) $ (6,192)$ 5,399 $ (107,606)$ 54,527 ======== ======== ========== ==========

Basic income (loss) per share $ (0.04)$ 0.03 $ (0.62)$ 0.31 Diluted income (loss) per share $ (0.04)$ 0.03 $ (0.62)$ 0.31

Weighted average common shares outstanding: Basic 173,637 173,046 173,634 173,450 Diluted 173,637 173,407 173,634 173,906
    Results for the fourth quarter ended March 31, 2004 include restructuring charges of $17.5 million, primarily related to a manufacturing facility closure in France and other world wide headcount reductions, partially offset by recoveries of $1.8 million related to previous restructuring charges. The net after-tax impact of restructuring for the quarter was $15.9 million or $.09 per share.
    Results for the year ended March 31, 2004 include a materials charge related to the write-down of then current tantalum raw materials and work in process inventories and future purchase commitments under a long-term supply agreement of $87.7 million (or $61.4 million or $.35 per share on an after tax basis) and restructuring charges of $27.2 million (or $25.5 million or $.15 per share on an after-tax basis) related to worldwide headcount reductions from employee terminations and facility closures in France, Mexico and Taiwan.

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

March 31, March 31, 2004 2005 ---------- ---------- Assets Cash and cash equivalents $ 534,730 $ 490,470 Short-term investments in securities 30,000 36,000 Accounts receivable, net 162,683 156,069 Inventories 293,869 379,630 Other current assets 80,697 57,472 ---------- ---------- Total current assets 1,101,979 1,119,641 Long-term investments in securities 168,985 193,997 Property, plant and equipment, net 288,002 265,892 Other assets 108,911 104,895 ---------- ----------

TOTAL ASSETS $1,667,877 $1,684,425 ========== ==========

Liabilities and Stockholders' Equity Short-term bank debt $ 26 $ - Accounts payable 114,486 116,452 Income taxes payable and accrued expenses 100,378 74,924 ---------- ---------- Total current liabilities 214,890 191,376 Other liabilities 66,443 53,926 ---------- ----------

TOTAL LIABILITIES 281,333 245,302

TOTAL STOCKHOLDERS' EQUITY 1,386,544 1,439,123 ---------- ----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,667,877 $1,684,425 ========== ==========

    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.

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CONTACT: AVX Corporation, Myrtle Beach Kurt Cummings, 843/946-0691 finance@avxus.com

KEYWORD: SOUTH CAROLINA NORTH CAROLINA INDUSTRY KEYWORD: MANUFACTURING SOFTWARE NETWORKING INTERNET E-COMMERCE EARNINGS SOURCE: AVX Corporation

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