Some AVX CEO comments after earnings
radiowallstreet.com
Dick Rosen
- Communication is AVX largest market. Also miltary, data processing, medical, games, automotives too.
- Make 3-4 Billion of parts from one penny to $25.
- 70% of AVX is owned by Kiasara?
- Kirasara sold 5M shares in Feb, because they want more shares by the street.
- KEM and VSY are still competitors.
- Record sales - $700M, earnings - 0.89
- Fifth quarter setting records
- Electronic industry is cyclical. 1998 was a bad year due collapse of consumer electronics in Japan
- Future looks good. Not just to cell phone business. 40-50% growth in cellphone market inluding handsets, bases, and products CSCO and JNPR make.
- 10-15% growth in data processing. Automotive looks good next year.
- Digital TV is becoming affordable and consumer electronics is turning around. If you ever saw one, you would buy it.
- Still make parts for Playstations
- 40% US, 27% Europe, rest is Asia
- Europe has growth from NOK, ALA, ERICY, Siemens etc.
- Alot of customer buy in dollars or we hedge the currency at the point of sale
- EPS 3.40 for 2002, 3.55-4.00 for 2003. We got a shot at it. Optimistic for next year. Frustrating with price of stock is low. Our industry is socked hard in this year. Our PE is the lowest in history. Historically 15-17. Now PE is 6-6.5. Merrill Lynch looking at 17% for 5 year growth.
- Do alot of LU business and LU business is good and asking for more product. We see real strength in wireless next year.
- Automotive looking for 30% more parts next year. Cars are having more electronics next year.
- PALM PDA has alot of our parts in it.
- We are the cement of the industry.
- 75% of business is capacitors, other is connectors, fuses, suppression devices, oscillators.
- When someone sees MOT announces less phones next year. They get negative. MOT still looking at 30% growth in sales next year at the worst. Other phone companies think it low growth rate. As cellular phones increase frequency, they are going to have to five time as many base stations since transmission not go as far. We have alot of parts in the base stations.
- We have to believe that if we keep producing earnings like this, the price of the stock will reflect it.
Interesting interview. Almost like a crystal ball for next year. Just who else will benefit with more basestations being installed?
Jack |
