Item 1. Business
	AVX Corporation (together with its consolidated subsidiaries, "AVX" or the "Company") is a leading worldwide manufacturer and supplier of a broad line of passive electronic components and related products. A substantial portion of the Company's passive electronic component sales are of ceramic and tantalum capacitors, both in "leaded" and "surface-mount" versions. Capacitors are used in virtually all electronic products to store, filter or regulate electric energy. Ceramic capacitors and tantalum capacitors are among the fastest growing types of capacitors. The Company also manufactures and sells electronic connectors and distributes and sells certain passive components and connectors manufactured by Kyocera Corporation of Japan, a public company, ("Kyocera").
	The Company's strategy is to focus on: 	* customer service, through the breadth and quality of its 		product line, as well as its ability to respond in a timely 	 	manner to its customers' component design and delivery 	 	requirements; 	* low-cost, high-quality manufacturing, through utilization of 	 	state-of-the-art facilities and skilled labor around the world; 	* global coordination of marketing and manufacturing, through 	 	manufacturing operations located worldwide and the assignment of 	 	global customer account executives to cover the Company's major 	 	multi-national customers; and 	* innovative and unique products and manufacturing processes, 		developed through emphasis on advanced technologies at the 	 	Company's research laboratories and participation in its 	 	customers' long-range product development programs.
	The Company's customers include leading OEMs in such industries as telecommunications, computers, automotive electronics, medical devices and instrumentation, industrial instrumentation, military and aerospace electronic systems, and consumer electronics. Sales of Company products are made by Company-employed direct sales personnel, independent manufacturers' representatives, and independent electronic component distributors.
	The overall growth in the electronics industry over the past several years can be particularly attributed to:
	* the development of new products and applications in 		established electronics markets, such as cellular telephones and 	 	personal computers; 	* the proliferating use of electronic systems in products in 	 	which such use had been historically absent or limited, such as 	 	automobiles, home appliances, and medical equipment; and 	* the increase in the number of capacitors required in certain 	 	electronic products with higher levels of complexity and 	 	functionality, such as those that use state-of-the-art 		 microprocessors.
	The Company's executive offices are located in Myrtle Beach, South Carolina and its manufacturing facilities are located in North America, Europe and Asia.
Public Offering
	From January 1990 through August 15, 1995, the Company was wholly-owned by Kyocera. On August 15, 1995, Kyocera sold 22.9%, or 19,650,000 of the Company's common shares, and the Company sold an additional 2,200,000 common shares, in a public offering. As a result, Kyocera currently owns 75.2% of the Company's common shares.
Products
	AVX offers an extensive line of passive components, designed to provide its customers with "one-stop shopping" for substantially all of their passive component needs. Ceramic and tantalum capacitors accounted for approximately 59% of the Company's net sales in fiscal 1997. Advanced products, which are designed and manufactured by the Company in cooperation with customers to meet the requirements of specific applications, represented about 13% of the Company's net sales in fiscal 1997. Connectors accounted for approximately 8% of net sales and the remaining 20% of AVX's net sales in fiscal 1997 came from its sales of certain products manufactured by Kyocera, for which the Company has a non-exclusive license to distribute and sell everywhere in the world except Japan.
Capacitors
	AVX manufactures a full line of multi-layered ceramic and solid tantalum capacitors in many different sizes and configurations. The Company's strategic focus on the growing use of ceramic and tantalum capacitors is reflected in its investment during the past three years of approximately $225 million primarily to increase its capacitor manufacturing capacity. The Company believes that sales of ceramic and tantalum capacitors will continue to be among the most rapidly growing in the worldwide capacitor market because technological advances have been constantly expanding the number and type of applications for these products.
	Tantalum and ceramic capacitors commonly are used in conjunction with integrated circuits and are best suited for applications requiring lower to medium capacitance values. Generally, ceramic capacitors are more cost-effective at lower capacitance values, and tantalum capacitors are more cost-effective at medium capacitance values. Capacitance is the measure of the capacitor's ability to store energy.
	Ceramic and tantalum capacitors are produced by the Company in two basic versions: leaded and surface-mount. Leaded capacitors are attached to a circuit board using lead wires while surface-mount capacitors are attached directly to a circuit board. In recent years there has been significant industry-wide growth in the use of surface-mount capacitors, and industry analysts have predicted that this would cause the market for leaded capacitors to decline significantly. In certain applications, however, leaded capacitors continue to be the component of choice.
	Advanced Products
	To fill the needs of its customers, the Company's advanced products engineers work with certain customers' in-house technical staffs to design, produce and manufacture special products to meet the specifications of particular applications. The manufacture of special products permits AVX, through its research and development activities, to make technological advances, provide the customer with a design solution to fit its needs, gain a marketing inroad with the customer with respect to AVX's complete product line and, in some cases, develop products that can be sold to additional customers in the future. AVX's advanced products division presently has significant ongoing projects with a variety of key customers in the computer, telecommunications, automotive and medical fields as well as some other new areas of use.
	Connectors
	The connector division of the Company manufactures high-quality electronic connectors and inter-connect systems for use in the computer, telecommunications, automotive electronics, medical device, military and aerospace industries. The Company's product line includes a variety of industry-standard connectors as well as products designed specifically for its customers' unique applications. The Company produces fine pitch, or small centerline, connectors, many of which have been selected by leading OEMs for applications in cellular phones, pagers, printers and notebook computers. The Company also has developed a value-added business in flat ribbon cable assembly and in backpanel, and card edge assemblies.
	Kyocera Products
	The Company's distribution and sale of certain Kyocera products throughout the world, except in Japan, broaden the Company's range of products and further facilitate its ability to offer "one-stop shopping" for its customers' electronic components needs. Kyocera's product lines sold by the Company include ceramic capacitors, hybrids, oscillators, saw devices, resistor networks, trimmers, chip resistors, ceramic filters, resonators, connectors and piezo acoustic devices.
Marketing, Sales and Distribution
	The Company places a high priority on solving customers' electronic component problems and responding to their needs. AVX frequently forms teams of its marketing, research and development, and manufacturing personnel to work with customers to design and manufacture products to suit their specific requirements.
	The Company's products are sold primarily to manufacturers and, to a much lesser extent, to United States and foreign government agencies. The Company has also qualified products under various military specifications, approved and monitored by the United States Defense Electronic Supply Center ("DESC"), and under certain foreign military specifications.
	Approximately 47%, 22% and 31% of the Company's net sales for fiscal 1997, were to customers in North America, Europe, and Asia, respectively. Financial information relating to geographic operations is set forth in Part IV, item 14(a), of this report. The Company's products are marketed worldwide by the Company's own sales personnel, as well as through independent manufacturers' representatives who are compensated solely on a commission basis, and independent electronic component distributors. The Company has regional sales personnel in strategic locations to provide technical and sales support for independent manufacturers' representatives and independent electronic component distributors. The Company believes that this combination of distribution channels provides a high level of market penetration and efficient coverage of its customers on a cost-effective basis.
	Among the Company's customers are Motorola Inc., Lucent Technologies, American Telephone and Telegraph Corporation, L.M. Ericsson Telefonaktiebolaget, OY Nokia AB., Northern Telecom,Uniden and Siemens AG in the telecommunications industry; International Business Machines Corporation, Compaq Computer Corp., Seagate Technology International, Western Digital Corp., Acer Incorporated, Intel Corp., Sony Corporation, and Samsung Co. Limited in the computer industry; and Ford Motor Co., Robert Bosch GmbH, General Motors Corp. and Magneti Marelli S.p.A. in the automotive industry. The Company's largest customers vary on a year-to-year basis, and no customer has a long-term commitment to purchase products of the Company. No one customer has accounted for more than 10% of net sales for the past three years.
	AVX had a backlog of orders of approximately $240 million at March 31, 1997, $250 million at March 31, 1996 and $317 million on March 31, 1995. Orders may be canceled by a customer at any time, subject to cancellation charges under certain circumstances. The backlog reduction since March 31, 1995, reflects the electronic components industry's tight supply situation in calendar 1995. The reduction in delivery lead times in 1996 has decreased customers' long-term ordering patterns, such that orders are currently placed more on an as needed basis. The backlog outstanding at any time is not necessarily indicative of the level of business to be expected in any ensuing period since certain orders are placed and delivered within the same period.
Research,Development and Engineering
	AVX's emphasis on research and development is reflected by the fact that most of the Company's manufactured products and manufacturing processes have been designed and developed by its own engineers and scientists. The Company's 60,000 square-foot facility, dedicated entirely to pure research and development, in Myrtle Beach, South Carolina, was constructed in fiscal 1995 and provides centralized coordination of AVX's global research and development efforts. The Company also maintains significant research and development staffs at its facilities in Coleraine, Northern Ireland, Jerusalem, Israel, and Paignton, England.
	The Company's research, development and engineering effort places a priority on the design and development of innovative products and manufacturing processes and engineering advances in existing product lines and manufacturing operations. Other areas of emphasis include material synthesis and the integration of passive components for applications requiring reduced size, and lower manufacturing costs associated with board assembly. Research, development and engineering expenditures were approximately $34 million, $30 million and $25 million during fiscal 1997, 1996 and 1995, respectively.
While AVX owns United States patents as well as corresponding patents in various other countries, and also has patent applications pending, its patents are not in the aggregate material to the successful operation of its business.
Transactions with Kyocera
	Since January 1990, Kyocera and AVX have engaged in a significant number and variety of related company transactions, including, without limitation, the transactions referred to in footnote 9 to the financial statements set forth in Part IV, item 14(a), of this report.
	The Company also has established several ongoing arrangements with Kyocera and has executed several agreements, the more significant of which are described below. Except for the Buzzer Assembly Agreement, each of the agreements described below contains provisions requiring that the terms of any transaction under such agreement be equivalent to that which an independent unrelated party would agree at arm's-length and is subject to the approval of the Special Advisory Committee of the AVX Board of Directors. The Special Advisory Committee is comprised of the independent directors of the Company and is required to review and approve such agreements and any significant transactions between the Company and Kyocera not covered by such agreements.
	Products Supply and Distribution Agreement. Pursuant to the Products Supply and Distribution Agreement (the "Distribution Agreement") (i) AVX will act as the non-exclusive distributor of certain Kyocera-manufactured products in territories outside of Japan, and (ii) Kyocera will act as the non-exclusive distributor of certain AVX-manufactured products within Japan. The Distribution Agreement has a term of one year, with automatic one-year renewals, subject to the right of termination by either party at the end of the then current term upon at least three months prior written notice.
	Disclosure and Option to License Agreement. Pursuant to the Disclosure and Option to License Agreement (the "License Agreement"), the Company and Kyocera agree to exchange confidential information relating to the development and manufacture of multi-layered ceramic capacitors and various other ceramic products. The expiration date of the License Agreement is March 31, 2005.
	Materials Supply Agreement. Pursuant to the Materials Supply Agreement (the "Supply Agreement"), AVX and Kyocera will from time to time supply the other party with certain raw and semi-processed materials used in the manufacture of ceramic capacitors and other ceramic products. The expiration date of the Supply Agreement is March 31, 2000.
	Buzzer Assembly Agreement. Pursuant to the Buzzer Assembly Agreement, AVX assembles certain electronic components for Kyocera in the Company's Juarez, Mexico facility. Kyocera pays AVX a fixed cost mutually agreed upon by the parties for each component assembled plus a profit margin. The Agreement will terminate on March 31, 2000, subject to the right of either party to terminate upon six months written notice.
	Machinery and Equipment Purchase Agreement. Pursuant to the Machinery and Equipment Purchase Agreement (the "Machinery Purchase Agreement"), AVX and Kyocera will from time to time design and manufacture for the other party certain equipment and machinery of a proprietary and confidential nature used in the manufacture of capacitors and other electrical components. The agreement will terminate on March 31, 2000.
Raw Materials
	Although most materials incorporated in the Company's products are available from a number of sources, certain materials (particularly palladium and tantalum) are available only from a relatively limited number of suppliers.
	Palladium, a principal raw material used in the manufacture of ceramic capacitors, is primarily purchased from various companies in the form of palladium sponge and ingot. The main areas of mining of palladium are in Russia and South Africa. Palladium is considered a commodity and is subject to price volatility and has fluctuated in a range of approximately $120 to $180 per troy ounce during the last three years. An inability of the Company to pass on an increase in palladium cost through to its customers could have a material adverse effect on the Company's results of operations. The Company is presently using substitutes for palladium in certain product applications.
	Tantalum powder is a principal material used in the manufacture of tantalum capacitor products. This product is purchased under annual contracts with suppliers from various parts of the world at prices that are subject to periodic adjustment. The Company is a major consumer of the world's annual tantalum production. Although the Company believes that there is currently no problem with the procurement of tantalum powder and that the tantalum required by the Company has generally been available in sufficient quantity to meet requirements, the limited number of tantalum powder suppliers could lead to higher prices. An inability of the Company to pass on an increase in tantalum cost to its customers could have a material adverse effect on the Company's results of operations.
	AVX internally develops and produces a majority of the ceramic raw materials used in its production processes and is expanding its ceramic production operations in order to meet increased demand. The Company believes that it is the only United States capacitor manufacturer that processes its own ceramic materials.
Competition
	The Company encounters strong competition in its various product lines from both domestic and foreign manufacturers. Competitive factors in the markets of the Company's products include product quality and reliability, breadth of product line, customer service, technological innovation, timely delivery, and price. The Company believes that it competes favorably on the basis of each of these factors. The breadth of the Company's product offering enables AVX to strengthen its market position by providing its customers with one of the broadest selections of passive electronic components available from one source. The Company's major competitors are Murata Manufacturing Company Ltd, KEMET Corporation, NEC Corporation, TDK Corporation and Vishay Intertechnology, Inc.
Employees
	As of March 31, 1997, AVX employed approximately 13,000 full time employees. Approximately 4,000 of these employees are employed in the United States. Of the employees located in the United States, approximately 2,000 are covered by collective-bargaining arrangements. In addition, some foreign employees are members of various trade and government-affiliated unions. The Company believes that its relationship with its employees is good, and the Company has not had a work stoppage as a result of collective bargaining difficulties during the past 20 years.
Environmental Matters
	The Company is subject in the United States to federal, state and local laws and regulations concerning the environment and to the environmental laws and regulations of the other countries in which it has manufacturing facilities. Based on the Company's periodic review of the operating policies and practices at all its facilities, the Company believes that its operations currently comply in all material respects with all such laws and regulations.
	The Company has been identified by the federal Environmental Protection Agency ("EPA"), state governmental agencies or other private parties as a potentially responsible party ("PRP") under the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA") or equivalent state or local laws for clean-up and response costs associated with ten sites at which remediation is required. Because CERCLA has been construed to authorize joint and several liability, EPA could seek to recover all clean-up costs from any one of the PRPs at a site despite the involvement of other PRPs. At all but one site, financially responsible PRPs other than the Company also are, or have been, involved in site investigation and clean-up activities. Therefore, the Company believes that any liability resulting from these sites will be apportioned between the Company and other PRPs.
	To resolve its liability at each of the sites at which it has been named a PRP, the Company has entered into various administrative orders and consent decrees (collectively, "Decrees") with federal and state regulatory agencies, governing the timing and nature of investigation and remediation. The Company has paid, or reserved for, all amounts required under the terms of these Decrees corresponding to its apportioned share of the liabilities. Such reserves for remediation, compliance and legal costs totaled $5,025 at March 31, 1997. As is customary, the Decrees at sites where the PRPs are not themselves implementing the chosen remedy contain provisions allowing EPA to reopen the agreement and seek additional amounts from settling PRPs in the event that certain contingencies occur, such as the discovery of significant new information about site conditions during clean-up or substantial cost overruns for the chosen remedy. The existence of such reopener provisions, combined with the difficulties of reliably estimating clean-up costs and the joint and several nature of CERCLA liability, makes it difficult to predict the ultimate liability at any site with certainty. While no assurance can be given, the Company does not believe that any additional costs to be incurred by the Company at any of the sites will have a material adverse effect on the Company's financial condition or results of operations.
	In addition, the Company does not believe that any investigation or clean-up that may be required at any other locations will have a material adverse effect on the Company's financial condition or results of operations.
Executive Officers of the Registrant
	The following table provides certain information regarding the executive officers of the Company as of May 23, 1997.
Name Age Position
Benedict P. Rosen 61 President, Chief Executive Officer, and Director John S. Gilbertson 53 Executive Vice President, Chief Operating 				Officer, Corporate Secretary and Director Donald B. Christiansen 58 Chief Financial Officer, Vice President, 			 	Treasurer, and Director C. Marshall Jackson 48 Senior Vice President of Marketing Ernie Chilton 53 Senior Vice President--Tantalum S. M. Chan 41 Vice President of Marketing and Sales--Asia Allan Cole 54 Vice President of Sales Alan Gordon 48 Vice President of European Sales/Marketing John L. Mann 54 Vice President of Quality James Patterson 62 Vice President of Leaded Division
	Benedict P. Rosen has served as President and Chief Executive Officer of the Company since April 1993 and as a member of the Board of Directors since January 1990. From February 1985 to March 1993, Mr. Rosen has served as Executive Vice President of AVX and has been employed by the Company since 1972. Mr. Rosen has been a Senior Managing and Representative Director of Kyocera since June 1995, and previously served as a Managing Director of Kyocera from 1992 to June 1995. Mr. Rosen is a Director of Nitzanim-AVX/Kyocera-Venture Capital Fund Ltd. and Aerovox Corporation.
	John S. Gilbertson has served as Executive Vice President and Chief Operating Officer of the Company since April 1994, as Corporate Secretary since April 1996, and as a member of the Board of Directors since January 1990. From April 1992 until present, Mr. Gilbertson served as the Executive Vice President of AVX. From September 1990 to March 1992, Mr. Gilbertson served as Senior Vice President of AVX. Mr. Gilbertson has been employed by AVX since 1981. Mr. Gilbertson has been a Director of Kyocera since June 1995.
	Donald B. Christiansen has served as Vice President of Finance, Chief Financial Officer and Treasurer since April 1994, and as a member of the Board of Directors since April 1992. From March 1992 until April 1994, Mr. Christiansen served as the Chief Financial Officer of AVX.
	C. Marshall Jackson has served as Senior Vice President of Marketing since April 1994. From January 1990 until March 1994, Mr. Jackson was Vice President of AVX and has been employed by the Company since 1969.
	Ernie Chilton has served as Senior Vice President--Tantalum of AVX since April 1994 and as a member of the Board of Directors from February 1993 to July 1995. From January 1990 until February 1993, Mr. Chilton served as Vice President of AVX. From January 1990 until 1993, Mr. Chilton served as Vice President of AVX. Mr. Chilton has been employed by the Company since 1980.
	S. M. Chan has served as Vice President of Marketing and Sales--Asia since April 1994. From April 1992 until March 1994, Mr. Chan served as the Director of Marketing of AVX. Mr. Chan has been employed by AVX since October 1990.
	Allan Cole has served as Vice President of Sales of the Company since May 1987. Mr. Cole has been employed by AVX since 1977 serving in several sales management positions, both domestic and international.
	Alan Gordon has served as Vice President--European Sales/Marketing of AVX since February 1993. From January 1991 until February 1993, Mr. Gordon served as the Director of Marketing of AVX. Mr. Gordon has been employed by AVX since 1991.
	John L. Mann has served as Vice President of Quality of the Company since May 1986. From March 1984 until May 1986, Mr. Mann served as the Corporate Director of Quality.
	James Patterson has served as Vice President of the Leaded Division of AVX since February 1993. From June 1992 until February 1993, Mr. Patterson served as the Division Vice President of SMP. Mr. Patterson has been employed by the Company since 1963.
Item 2.
Item 2. Properties
	The Company conducts manufacturing operations throughout the world. All the Company's operations around the world are certified to the ISO 9000 international quality control standards. ISO 9000 is a comprehensive set of quality program standards developed by the International Organization for Standardization. Certain facilities have also been qualified under a new set of stringent QS 9000 quality standards developed by the US automotive industry. A list of the Company's facilities, their square footage, whether they are leased or owned and a description of their use, follows:
	 Type 			Square of Description Location Footage Interest of Use UNITED STATES
Myrtle Beach,SC 451,005 Owned Research/Manufacturing/Headquarters Myrtle Beach, SC 46,631 Leased Warehouse Conway, SC 70,408 Owned Manufacturing Biddeford, ME 72,000 Owned Manufacturing Colorado Springs, CO 15,000 Owned Manufacturing El Paso, TX 17,760 Leased Warehouse New Orleans, LA 16,440 Leased Warehouse Olean, NY 107,400 Owned Manufacturing Raleigh, NC 206,000 Owned Manufacturing/Warehouse Sun Valley, CA 25,000 Leased Manufacturing Vancouver, WA 87,048 Leased Manufacturing Vancouver, WA 10,024 Leased Warehouse
OUTSIDE THE UNITED STATES Betzdorf, Germany 101,671 Owned Manufacturing Biggleswade, England 10,000 Leased Manufacturing Chihuahua, Mexico 104,848 Owned Manufacturing Coleraine, N. Ireland 105,000 Owned Research/Manufacturing Hong Kong 30,257 Owned Warehouse Jerusalem, Israel 42,470 Leased Research/Manufacturing Juarez, Mexico 84,000 Owned Manufacturing Lanskroun, Czech Republic 179,000 Leased Manufacturing Uherske Hradiste,Czech Republic 128,000 Leased Manufacturing Larne, N. Ireland 120,000 Owned Manufacturing/Warehouse Newmarket, England 52,000 Leased Manufacturing Paignton, England 150,000 Owned Research/Manufacturing San Salvador, El Salvador 232,981 Owned Manufacturing Singapore 49,500 Leased Manufacturing/Warehouse
In addition to the foregoing, the Company owns and leases a number of sales offices throughout the world.
	Management believes that all its property, plant and equipment is in good operating condition. The Company is constantly upgrading its equipment and adding capacity through greater use of automation. The Company's capital expenditures for plant and equipment were $93.9 million for fiscal 1997 and $110.5 million in fiscal 1996.
Item 3.
Item 3. Legal Proceedings
	The Company is a party to various legal proceedings and administrative actions, all of which are of an ordinary or routine nature incidental to the operations of the Company. Although it is difficult to predict the outcome of any legal proceeding, in the opinion of the Company's management, such procedures and actions should not, individually or in the aggregate, have a material adverse effect on the Company's financial condition or results of operations.
Item 4.
Item 4. Submission of Matters to a Vote of Securities Holders
	During the fourth quarter of the fiscal year covered by this report, no matter was submitted to a vote of security holders of the Company.
				 PART II
Item 5.
Item 5. Market for the Registrant's Securities and Related Stockholder Matters
Market for Common Stock
	The Company's Common Stock is listed on the New York Stock Exchange and trades under the symbol AVX. The following presents the high and low sale prices for the Company's Common Stock for each quarter since the IPO in August 1995 as reported on the New York Stock Exchange Composite Tape.
Holders of Record At May 23, 1997, there were approximately 22,500 holders of record of the Company's common stock.
Dividends The Company has declared and paid cash dividends of $.06 per share of common stock for the quarter ended March 31, 1997. The Company declared and paid cash dividends for the quarters ended December 31, 1996, September 30, 1996, June 30, 1996 and March 31, 1996 of $.055 per share of common stock. The Company declared and paid cash dividends for the quarters ended September 30, 1995 and December 31, 1995 of $.05 per share of common stock. The Company declared and paid cash dividends in the fiscal year ended March 31, 1995 and the quarter ended June 30, 1995 equal to approximately 35% of its net income. Future dividends, if any, will depend on the Company's profitability and anticipated operating requirements.
Item 6.
Item 6. Selected Financial Data
	The following table sets forth selected financial data for the Company for the five years ended March 31, 1997. The financial data set forth below should be read in conjunction with the Company's Financial Statements and the Notes thereto included elsewhere in this Form 10-K.
Item 7.
Item 7. Management's Discussion and Analysis of Results of Operations and Financial Condition
General
	The Company's 1997 net sales decreased 6.8% compared to 1996 while the previous three years increased 22.1%, 24.3% and 10.8%, respectively. The growth in sales from 1994 to 1997 is primarily the result of the Company increasing its production capacity and the expansion of the electronic components industry. This expansion has been due primarily to the growth of computer, telecommunications and automotive manufacturers' usage of passive electronic components. During the first half of fiscal 1997, the industry experienced a temporary slowdown and customers reduced their level of inventory .
	With the exception of this industry-wide order pattern correction, the growth in sales, in units and dollars, coupled with operating efficiencies and control of selling, general and administrative expenses, have contributed to the enhanced profitability of the Company over the past three years. In order to lower the costs of production, the Company continues to increase automation of its manufacturing processes and transfer certain labor intensive manufacturing processes from countries with high labor costs to lower labor cost areas (such as the Czech Republic, El Salvador, and Mexico).
During the fourth quarter of fiscal 1997, the Company experienced a more traditional pricing environment as customers' inventories returned to normal levels. Increased orders resulted in the Company's manufacturing capacity being more fully utilized.
	The following table sets forth the percentage relationships to net sales of certain income statement items for the periods presented