Kemet Corp. said its fiscal 2001 first-quarter net income surged over 1,600%, driven sharply higher by a better pricing environment, improved margins, and high demand for its tantalum and ceramic capacitors.
The capacitor manufacturer said its profits rose to $80.2 million, or 90 cents per share, in the quarter ended June 30, from $4.7 million, or 6 cents per share in the first quarter of its fiscal 2000. The better results came largely from higher revenue, which rose 102.3%, to $329.2 million form $162.6 million, in the year-ago quarter.
The Greenville, S.C., company's revenues doubled on runaway demand for its capacitors. Kemet said concerns about a future shortage of tantalum and ceramic capacitors are driving prices skyward and leading to long-term supply agreements with OEMs.
"Kemet's sales, earnings, and bookings for the first quarter of our fiscal year 2001 were once again at all-time record levels," said David Maguire, Kemet's chairman and chief executive, in a statement. "Demand for tantalum and ceramic capacitors continues to exceed industry capacity, leading to ongoing customer concerns about our future capacity expansions."
Kemet's gross margin shot up to 48.4%, from 24.3% in the year-earlier quarter, while expenses fell to 3.9% of sales, from 6.7% in the first quarter of fiscal 2000.
"The outlook for our future business continues to be outstanding," Maguire said.