Passive-components manufacturer AVX Corp. said its fiscal 2001 second-quarter profits rose almost 500%, lifted by surging demand and a better pricing environment.
The Myrtle Beach, S.C., company said it earned $156.2 million, or 89 cents per share, during the quarter ended Sept. 30. That was up from $26.1 million, or 15 cents a share, in the year-ago period. The company's sales went up 87%, to $695.3 million from $371.6 million.
AVX attributed the strong profits-which exceeded analysts' expectation by 14 cents per share, or 19%-to the expansion of its manufacturing capacity to meet higher demand from telecommunication OEMs and across the industry. The company's average selling prices also went up sharply, helping to lift AVX's gross profit margin to 38.5% from18.1% in the year-ago quarter.
"AVX's investments to expand production capacity and the industry's favorable pricing environment resulted in record sales and gross margins for this quarter," said Dick Rosen, AVX's chairman and chief executive, in a statement. "The outlook for the remainder of the year continues to look good."
Analysts said continued shortages of components such as tantalum and ceramic capacitors used in making wireless handsets helped AVX during the quarter and bode well for competitors like Vishay Intertechnology Inc.