- THE MAGAZINE
Non-GAAP net income (excluding special charges) was $18.7 million, or $0.11 per diluted share, for the quarter ended March 31, 2009. “The fourth quarter continued to be challenging, however the gross profit margin held up and several restructuring and cost reduction actions are expected to improve results going forward,” said John Gilbertson, chief executive officer and president. “Encouraging signs late in the quarter indicate that consumer demand may soon rebound. The company has worked hard to maintain a solid balance sheet and is proud of its ability to continue to pay a quarterly cash dividend.”
During the current quarter, the company incurred $10.5 million of pre-tax restructuring charges related to global actions to realign production capabilities and reduce personnel costs, as well as a pre-tax charge of $0.5 million related to the decline in fair value of its available-for-sale securities transferred from an impaired Bank of America enhanced cash investment fund.
In addition, the company recorded an $18.2 million pre-tax environmental charge as an estimate of our potential liability related to the performance of certain environmental remediation actions at an abandoned facility in New Bedford, Mass., once used by Aerovox Corp., a predecessor of the company. Aerovox sold this facility to another company in 1973. A subsequent unrelated owner, Aerovox Inc., the last manufacturer to own and operate in the facility, filed for bankruptcy in 2001 and abandoned the facility without cleaning it up. AVX is discussing this matter with the U.S. Environmental Protection Agency (EPA), the Commonwealth of Massachusetts and the City of New Bedford. AVX never actually operated in the facility.
For the full fiscal year ended March 31, 2009, net sales were $1,389.6 million. On a U.S. GAAP basis, unaudited net income (including special charges and gains) was $80.8 million, or $0.47 per diluted share. Non-GAAP net income (excluding special charges and gains) was $108.2 million, or $0.63 per diluted share, for the full fiscal year.
The company incurred pre-tax restructuring charges of $18.6 million related to global restructuring actions and a pre-tax charge of $4.2 million related to the decline in fair value of its available-for-sale securities. In addition, the company recorded an $18.2 million pre-tax environmental charge as discussed above. Special charges and gains also reflect a pre-tax gain of $4.0 million related to the sale of corporate assets during the 12 months ended March 31, 2009.
“By moving quickly to address market conditions, we are using AVX’s broad product offering and financial resources to enhance our manufacturing and sales organizations,” said Kurt Cummings, chief financial officer. “The company’s financial position remains exceptionally strong, with cash and cash equivalents and short- and long-term investments in securities of $762.5 million and no debt at March 31, 2009. During the quarter, the company paid $6.8 million of dividends to stockholders and spent $1.9 million to repurchase shares of AVX stock on the open market that are held as treasury stock.”
Additional details are available at www.avx.com.