NEW BEDFORD — City environmentalists and their supporters are gearing up for what they hope will be one last push for more money in the EPA’s settlement with harbor contaminator AVX.
Filing a motion to intervene last week, the Buzzards Bay Coalition has asked a federal judge to allow it to argue why the $366 million settlement should include a clause allowing the government to ask AVX for more money if the agreed upon figure is not enough to complete the harbor restoration.
But if environmentalists and the public figures that support them think the fight for the harbor isn’t over yet, AVX itself appears to disagree.
The electronic component manufacturer has already budgeted as though the settlement will go through, listing the full settlement amount as a liability in filings with the Securities Exchange Commission from fiscal years 2012 and 2013.
AVX is the parent company of Aerovox, a onetime electrical capacitor manufacturer whose factory was located near the Acushnet River on Belleville Avenue in New Bedford from the 1940s through the 1970s. During that time, the factory was the primary source of polychlorinated biphenyl (PCB) contamination in the harbor.
In its filings, AVX acknowledges that its settlement to clean the harbor of the cancer-causing toxins has yet to be approved by a federal judge and that “the timing of any such approval is uncertain.”
But that didn’t stop the company from recording “environmental charges” of $100 million in fiscal year 2012 and $266.3 million in fiscal year 2013 for expenses “related to environmental issues at the New Bedford Harbor Superfund Site.”
That charge actually resulted in a net loss of $64 million for the company in fiscal year 2013, despite the $1.4 billion in total revenue AVX made that year.
Representatives of AVX did not respond to three requests for comment. The SEC filing attributes the 2013 losses to both the Superfund charges and “uncertain global economic conditions” which resulted in overall decreases in sales prices.
Without accounting for the yet-unpaid settlement charge, the company actually had a net income of $202.3 million in fiscal year 2013. In fiscal year 2012, the company’s listed $152.8 million net income was actually $252.8 million without the environmental charges.
AVX still manufactures capacitors and other electronic components such as inductors and filters. Its parent company Kyocera Electronics Corporation, which acquired AVX in the 1990s and owns 72 percent of its stock, also manufactures electronics including components for wireless phones and solar power generation.
Kyocera also recorded the same environmental liability as AVX, listing it as “selling, general and administrative expenses” in its SEC filings for fiscal years 2012 and 2013.
Because of this, the filing states, Kyocera saw a 12.4 percent increase in selling, general and administrative expenses in 2013.
Still, the company had a net income of $671 million in fiscal year 2013 with annual sales of more than $14 billion.
Kyocera did not return two requests for comment.