Demand for tantalum capacitors and advanced electronic components in the United States and abroad gave AVX Corp. the highest sales in the company's history during its first quarter of fiscal 2001.
The quarter that ended June 30, boosted AVX's net income 59% to $120.4 million, or 69 cents a share, compared with $17.4 million, or 10 cents a share, in the year ago quarter. The recent quarter brought the Myrtle Beach, S.C. passives maker sales that climbed 75% to $602.4 million, compared with $343.1 million a year ago.
AVX officials credited their decision to expand production capacity and the favorable pricing environment with the company's success despite the current tight market for tantalum capacitors that are used in mobile phones and many other electronic products.
"Demand for our products remain strong...We continue to work with our customers to provide unique advanced products need to meet their product design goals, and to expand our production capacity in North America, Europe and Asia in order to satisfy their growing need for passive components and interconnect products," said Dick Rosen, AVX's chairman and chief executive.
During a telephone conference with analysts today, Rosen said he expected Asian cell phone and related infrastructure companies to enter into long term agreements with AVX to secure allocation of hard to find components.