AVX Corporation Comments on Market Conditions
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P.O. Box 867
Myrtle Beach, SC, 29578
Press release date: December 8, 2008
MYRTLE BEACH, S.C. -- AVX Corporation (NYSE:AVX) expects that 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.
Chief Executive Officer and President, John Gilbertson stated, "The overall economic picture has deteriorated significantly, particularly during the past forty five days. 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 fifteen percent from current consensus estimates. "
John Gilbertson went on to state, "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 which are held as treasury stock".
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.
Contacts AVX Corporation Myrtle Beach Kurt Cummings 843-946-0691 firstname.lastname@example.org