Kemet Corporation (KEM) Misses Q4 EPS by 3c; NEC TOKIN Joint Venture Reaches Class Action Settlement

Kemet Corporation (NYSE: KEM) reported Q4 EPS of $0.04, $0.03 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $183.9 million versus the consensus estimate of $180.81 million.

Kemet also announced that NEC TOKIN Corporation, a joint venture between KEMET Electronics Corporation and NEC Corporation, reached a preliminary settlement with plaintiffs in two related U.S. antitrust class action suits.

"A significant hurdle to our acquisition of NEC TOKIN has been cleared," stated Per Loof, KEMET's Chief Executive Officer. "This settlement helps to open a path for implementation of our plan to complete the acquisition. We have been working closely with NEC Corporation to develop the strategy for the consummation of the acquisition and hope to be able to communicate to the investment community in a reasonable time frame the mechanics and timing of the closing of the acquisition. This agreement as well as the governmental fines assessed to NEC TOKIN, to date the most significant of which permit payments over time, will allow us to continue to follow our business strategies upon combination. While we still await some government jurisdictions to complete their review and assess any potential liability, our target is to complete a transaction later this calendar year. We believe that the transaction will benefit the ongoing businesses of KEMET and NEC TOKIN, providing increased shareholder value well into the future," continued Loof.

Pursuant to the terms of the settlement that has been reached in principle, in consideration of its release from the class action suits, NEC TOKIN will pay an aggregate $37.25 million to a settlement class of direct purchasers of capacitors and a settlement class of indirect purchasers of capacitors. Payments shall be made in installments, with the initial installment due 15 days after execution of the definitive settlement agreement, and annual installments extending through December, 2019. NEC TOKIN and the plaintiffs are working to finalize the settlement in a definitive settlement agreement, the terms of which are subject to court approval.

NEC TOKIN, a Japanese corporation, is a joint venture in which KEMET's wholly-owned subsidiary, KEMET Electronics Corporation, owns a 34% equity interest and 51% voting ownership interest, and NEC Corporation (together with a subsidiary thereof) owns a 66% equity interest and 49% voting ownership interest.

For earnings history and earnings-related data on Kemet Corporation (KEM) click here.

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