AVX has rough quarter as orders fall, inventories rise

Components supplier AVX Corporation earned $33.5 million, or 20 cents per diluted share, on sales of $377.3 million in its second 2020 fiscal quarter ended September 30, compared to $72.1 million, or 43 cents per diluted share, on sales of $456.3 million, in the year-ago fiscal quarter.

“Our global distribution channel activity declined again this quarter as inventories remained extended,” said AVX president and chief executive John Sarvis, in a statement. “Overall orders in the industry also declined again this quarter, reflecting the higher channel inventories and weaker global demand. Our gross profit of $79.5 million, or 21.1%, reflects solid operating performance in tighter market conditions. The economic environment remains suppressed, and uncertainties with respect to international relations and trade regulations continue to put pressure on the global economy.“

Operating profit for the September quarter was $37.4 million, compared to $85.6 million for the same period last year. Operating profit for the six month period ended September 30, 2019 was $96.2 million compared to $153.7 million for the same period last year.

Net income for the six month period ended September 30, 2019 was $88.1 million, or 52 cents per diluted share, compared to net income of $128 million, or 76 cents per diluted share, for the same period a year ago.