Kemet with 3% net sales decrease in 1Q

On a U.S. GAAP basis, for the fiscal year ended March 31, 2012, net income was $6.7 million, or $0.13 per diluted share compared to net income of $63.0 million or $1.22 per diluted share for fiscal year ended March 31, 2011. Non-GAAP adjusted net income for the fiscal year ended March 31, 2012 was $54.5 million, or $1.04 per diluted share compared to adjusted net income of $114.2 million or $2.22 per diluted share for the fiscal year ended March 31, 2011. Adjusted EBITDA for the fiscal year ended March 31, 2012 was $128.4 million which was within our forecasted range of $128-$132 million. On a U.S. GAAP basis, fiscal year 2012 net income includes a $15.8 million impairment charge related to the Tantalum Business Group. In addition, fiscal year 2012 net income includes $14.3 million of restructuring charges primarily comprised of termination benefits of $6.1 million related to planned facility closures in Italy and charges of $4.5 million to participate in a plan to save labor costs whereby a company may temporarily “lay off” employees while the government continues to pay their wages for a certain period of time. This restructuring activity is a continuation of the Company’s efforts to restructure its manufacturing operations within Europe, primarily within the Film and Electrolytic segment. Fiscal year 2012 net income also includes ERP integration costs of $7.7 million, plant start-up costs of $3.6 million and acquisition related fees of $1.5 million. Fiscal year 2011 net income includes a loss on early extinguishment of debt of $38.2 million, restructuring charges of $7.2 million and ERP integration costs of $1.9 million. Net sales for the quarter ended March 31, 2012 were $210.7 million which is a 19.4% decrease over the same quarter last fiscal year. On a U.S. GAAP basis, for the fourth fiscal quarter of fiscal year 2012, net loss was $(11.7) million, or $(0.26) per basic and diluted share compared to net income of $21.1 million or $0.40 per diluted share for the same quarter last year. On a U.S. GAAP basis, the fourth quarter of fiscal year 2012 includes $2.2 million of plant start-up costs and $0.9 million of restructuring charges primarily comprised of termination benefits of $0.6 million. This restructuring activity is a continuation of the Company’s efforts to restructure its manufacturing operations within Europe, primarily within the Film and Electrolytic segment. The fourth quarter of fiscal year 2011 included a $3.0 million inventory adjustment, $2.0 million of restructuring charges primarily associated with the relocation of equipment and $0.6 million of registration related fees. “We began this quarter knowing again that the distribution channel inventory rebalancing would continue to have impact on our financial results”, said Per Loof, Chief Executive Officer of Kemet. “However, our book to bill ratio is increasing and we are pleased overall with our position in the marketplace. Our efforts to secure certain materials in our supply chain have been successful and will reduce our operating costs later this fiscal year. We are looking forward to beginning our relationship with NEC TOKIN in the coming months and creating greater value for all of our stakeholders,” continued Loof.