Despite signs of an uptick, Kemet Electronics Corp. reported a net loss of $26.9 million or 31 cents per diluted share in its third fiscal 2002 quarter ended December 31, after a $38.5 million pretax restructuring charge to streamline manufacturing facilities, accelerate productivity improvement programs, and reduce its workforce by another 1,600 employees.
The Greenville, SC, capacitor supplier's unit sales increased in the quarter for the first time in four quarters, according to David E. Maguire, chairman and chief executive. During a conference call with analysts, Maguire said he expected shipments to continue rising as customers continue depleting their inventories and place new orders to meet consumption levels.
However, Maguire added that revenues for the quarter were flat because average selling prices declined 10% from the previous quarter. Maguire added this was not unusual because prices were at high levels a year ago because of material shortages, mostly in tantalum.
He expects prices to fall another 10% in the March quarter before beginning to stabilize later in the year.
Prior to the restructuring charge, net earnings in the quarter were $0.8 million or 1 cent per diluted share, down from $97.4 million or $1.10 per diluted share in the year-ago quarter, and equal to the 1 cent per diluted share in the second fiscal 2002 quarter ended September 30.
The company recorded net sales of $117.3 million in the December 2001 quarter, down 69% compared with $374.9 million for the December 2000 quarter, and down sequentially 3% from the $120.6 million reported for the September 2001 quarter.
Kemet's revenues for its fourth 2002 fiscal quarter ended March 31 are projected to be flat compared to the December quarter, with net income positive.