GSA Daily Staff Report
Published July 29, 2010

Kemet Corp. on Wednesday reported a 62.3% year-over-year increase in net sales for its fiscal first quarter ended June 30 at $243.8 million.

Still, the Simpsonville-based company reported a net loss of $20.1 million, or 25 cents per share, compared to net income of $25.1 million, or 31 cents per shares, during the same quarter last year.

Results include a $38.2 million non-cash loss on early extinguishment of debt and $1.8 million of restructuring charges primarily associated with the relocation of equipment. Conversely, the first quarter last year included a $38.9 million non-cash gain on early extinguishment of debt.

Despite the loss, gross margin rose from 20.2% to 25.0% during the quarter.

"It was a great quarter as we saw our revenue return to pre-recession levels and our gross margins increase significantly," said CEO Per Loof. "Our efforts to improve operating efficiencies, maintain our cost controls established over the past year, reestablish a strong balance sheet, and our ability to meet the strong volume demands of our customers have combined to drive our financial results.”

Kemet shares were down 20 cents in early trading at $3.38. The company was re-listed on the New York Stock Exchange in June, after being delisted in 2009 because its share price was too low.

Kemet manufactures tantalum, multilayer ceramic, solid aluminum, film, paper and aluminum electrolytic capacitors.

Previous Coverage
Kemet returns to NYSE
Kemet sales up 56%, profits return
Kemet completes $40.5M tender offer
Kemet taps into alternative energy market
Kemet bringing back manufacturing presence