AVX Gross Profit Increases 22% in 2017 Fiscal Second Quarter
According to the company, its results reflect improving global market conditions for its components and interconnect devices.
AVX Corp. recently reported preliminary unaudited results for its fiscal second quarter ended September 30, 2017. For the three and six month periods ended September 30, 2017, net sales were $352.7 million and $684.0 million, respectively, compared to net sales of $327.5 million and $642.3 million, respectively, for the same period last year. According to the company, its results reflect improving global market conditions for its components and interconnect devices.
“We completed the second quarter of our fiscal year with net sales of $352.7 million, reflecting an increase over both the previous quarter and the same quarter in the prior year,” said John Sarvis, CEO and president. “Our gross profit of $77.3 million, or 21.9%, reflects solid operating performance. These results are reflective of new design wins, along with increased demand from our customers for value-added components and interconnect devices in addition to our continued focus on manufacturing efficiencies and cost reductions. We continue to be optimistic about future activity as we saw a build in our order backlog during recent quarters and our distribution channel continues to experience favorable trends with increasing demand. In addition to our acquisition of the TS&C division of TT Electronics completed earlier this month, we have continued to make significant investments in manufacturing plant expansion and product line rationalizations to support our customers’ growing requirements. We are optimistic that the continuing evolution of new electronic devices and content will provide growth opportunities going forward.”
On October 2, announced it had completed its acquisition of the Transportation, Sensing and Control (TS&C) division of TT Electronics, PLC, a UK company, for approximately $156 million in cash. In the financial year ended December 31, 2016, the TS&C business generated approximately $300.0 million of revenue.
“The purchase of the TS&C division from TT Electronics enhances our position in the automotive business and provides further opportunities for expansion,” said Sarvis. “We are confident that the combination presents a great opportunity for further growth.”
For more information, visit www.avx.com.