GREENVILLE, S.C. -- KEMET Corporation ("KEMET" or the "Company") (NYSE: KEM) today reported preliminary results for the third fiscal quarter ended December 31, 2011. Net sales for the quarter ended December 31, 2011 were $218.8 million which is a 17.3% decrease over the same quarter last fiscal year. Net sales for the nine months ended December 31, 2011 were $774.2 million which is a 2.3% increase over the same period last fiscal year.
On a U.S. GAAP basis, net loss was $(27.8) million, or $(0.62) per basic and diluted share for the third quarter of fiscal year 2012 compared to net income of $27.2 million or $0.52 per diluted share for the same quarter last year.
Non-GAAP adjusted net income was $2.0 million or $0.04 per diluted share for the third quarter of fiscal year 2012 compared to $33.1 million of adjusted net income or $0.64 per diluted share for the same quarter last year.
"We entered this quarter knowing that the impact of the distribution channel inventory rebalancing would have a significant impact on our financial results", said Per Loof, Chief Executive Officer of KEMET. "However, we generated approximately $21 million of cash from operations and we were successful in securing one of our key supply sources through the acquisition of Niotan Incorporated. Even though we expect the next couple of quarters to remain challenging we are positioning the Company for a strong rebound through our continuing realignment of facilities in Europe and supply chain integration when the world economy improves," continued Loof.
On a U.S. GAAP basis, the third quarter of fiscal year 2012 includes a $15.8 million impairment charge related to the Tantalum Business Group. In addition, the third quarter of fiscal year 2012 includes $10.7 million of restructuring charges primarily comprised of termination benefits of $6.1 million related to planned facility closures in Italy that will commence during fiscal year 2013 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.
Construction has started on a new manufacturing facility in Pontecchio, Italy, that will allow the closure and consolidation of three manufacturing operations located in Italy. The third quarter of fiscal year 2011 included $1.1 million of restructuring charges primarily associated with the relocation of equipment and $1.0 million of debt and stock registration related fees.
Kemet Corp. (NYSE: KEM)