Kemet's Sales Rise 12.5% Sequentially
GREENVILLE, SC -- Kemet Corp. today June quarter net income of $3 million on net sales of $114.1 million. The company's net loss before special items was $300,000, with the difference made up by a one-time tax benefit of $3.3 million.
Sales at the maker of passive chips were down 6.8% from last year and up 12.5% sequentially.
Per Loof, chief executive, said, "The increase in sales was driven primarily through distribution where end market demand continued to grow. The significant improvement in net income over previous quarters reflects our recent cost reduction actions and decisions to restructure.
"Pricing continues to be an issue for the industry, although the erosion slowed down somewhat compared to last quarter," Loof said.
Capacity utilization was flat at 85%, with utilization rates for ceramic chips running slightly higher than tantalum, the company said. Demand for tantalum polymer products continues to grow, especially in Asia.
Kemet is opening of its second plant in Suzhou, China, in September, to meet higher demand for tantalum polymer.
As of June 30 Kemet had $218.6 million in cash and short and long- term investments in marketable securities, $100 million in debt, and $520.9 million in stockholders' equity.
