AVX Issues Comment on Market Conditions (posted 12/12/08)
AVX Corp. recently announced that it expects that its forecasted net sales for the quarter ending December 30, 2008, will be lower than originally anticipated as a result of weakening in the global marketplace and customer reluctance to take inventory beyond immediate demand.
“The overall economic picture has deteriorated significantly, particularly during the past 45 days,” said John Gilbertson, chief executive officer and president. “The financial crisis has spread throughout the world, and our customers are reducing their inventory to bare minimums. The overall demand visibility remains limited, and many customers have recently announced extended plant vacation shutdowns beyond normal holiday practice. In this dynamic environment, revenue levels cannot be predicted, but we feel that revenue in the December quarter could be down in the range of 15% from current consensus estimates.
“We put in place actions last quarter to reduce our operating costs in this difficult time. We are implementing further cost reductions during this quarter and anticipate additional actions next quarter. The company’s financial position remains exceptionally strong, with healthy cash balances and investments in securities and no debt, and we are well positioned to react to changing market conditions. We have maintained the payment of dividends to stockholders and have continued our program to repurchase shares of AVX stock on the open market that are held as treasury stock.”
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