KEMET Announces Chinese Manufacturing JV

(RTTNews) - KEMET Corp. (KEM) announced the formation of a joint venture for the manufacture of certain film and electrolytic capacitors in China.

KEMET Electronics Corporation or "KEC", a wholly-owned subsidiary of the Company, and Jianghai (Nantong) Film Capacitor Co., Ltd., a subsidiary of Nantong Jianghai Capacitor Co., Ltd. , have entered into a Joint Venture Agreement for the formation of KEMET Jianghai Electronic Components Co. Ltd., a limited liability company located in Nantong, China.

KEMET Jianghai Electronic Components will manufacture axial electrolytic capacitors and (H)EV Film DC brick capacitors, for distribution through the KEMET and Jianghai sales channels. KEC and Jianghai Film will each provide initial capital contributions of $5 million through a combination of cash and manufacturing equipment, and will be equally represented on the joint venture's board of directors.

KEMET will continue to support its customers in Europe and the Americas through its Italy and Macedonia locations for (H)EV Film DC brick capacitors and its customers worldwide through its manufacturing operations located in Portugal and Sweden for axial electrolytic capacitors.

Meanwhile, KEMET Electronics Corporation has invested in Novasentis's Series-D round of funding. Novasentis makes the world's thinnest, electro mechanical polymer based actuators that provide rich haptic feedback for a variety of applications including AR/VR and Wearables. Novasentis supplies its "smart" film and KEMET applies its expertise in manufacturing film capacitors, to the development and commercial production of the actuators.

KEMET reported that its GAAP net income was $18.6 million or $0.32 per share third fiscal quarter ended December 31, 2017. compared to U.S. GAAP net income of $12.8 million or $0.22 per diluted share for the quarter ended September 30, 2017. For the quarter ended December 31, 2016, the Company reported a U.S. GAAP net income of $12.3 million or $0.22 per diluted share.

Net sales of $306.4 million for the quarter ended December 31, 2017 increased $4.9 million, or 1.6%, from net sales of $301.5 million for the prior quarter ended September 30, 2017. Net sales increased $43.1 million, or 16.4%, up from proforma net sales (including the TOKIN acquisition) of $263.3 million at December 31, 2016.