AVX Corporation Announces Charge for Tantalum Material.Business Editors MYRTLE BEACH, S.C.--(BUSINESS WIRE)--Sept. 19, 2003 During fiscal 2001, in order to reduce the risk of interruption in tantalum tantalum (tăn`tələm) [from Tantalus], metallic chemical element; symbol Ta; at. no. 73; at. wt. 180.9479; m.p. 2,996°C;; b.p. 5,400±100°C;; sp. gr. 16.65 at 20°C;; valence +2, +3, +4, or +5. supplies, AVX AVX Adult Video XXX AVX Avid Visual Extensions AVX anti Virus Expert (NYSE NYSE See: New York Stock Exchange : AVX) entered into a long-term agreement for the supply of a portion of its anticipated annual tantalum material requirements. The Company values inventory at the lower of cost or market lower of cost or market A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. (realizable value). The Company has determined, due to the current mix of tantalum components produced and decreased sales prices for such components, that the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of its current inventory received under the supply agreement exceeds its realizable value. In addition, the Company has estimated that accruals are necessary for estimated losses in connection with the future commitment to purchase tantalum materials under the supply agreement. Accordingly, an estimated $80 to $90 million charge will be recorded in cost of sales in the quarter ending September 30, 2003. As previously disclosed, AVX filed a complaint in July 29, 2002 against Cabot Corporation in U.S. District Court for the Commonwealth of Massachusetts with respect to the supply agreement. Those claims are now pending in the Superior Court for the Commonwealth of Massachusetts. AVX claims unfair and deceptive trade practices by Cabot, breach of contract and other related matters. AVX is seeking injunctive relief injunctive relief n. a court-ordered act or prohibition against an act or condition which has been requested, and sometimes granted, in a petition to the court for an injunction. , actual and treble damages in amounts to be determined at trial and attorneys' fees. CAUTION REGARDING FORWARD LOOKING STATEMENTS This press release contains forward-looking statements, including information about management's view of AVX's future expectations, plans and prospects regarding the tantalum material adjustment within the safe harbor provisions under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of AVX to be materially different than those expressed or implied in such statements. These risks and others are included from time to time in documents AVX files with the Securities and Exchange Commission, including but not limited to its Form 10-Ks, Form 10-Qs and Form 8-Ks. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion