<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [FEE REQUIRED]
For the fiscal year end March 31, 1998.
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [NO FEE REQUIRED]
For the transition period from to Commission file no. 0-20289
A: Full title of the plan and the address of the plan, if different from
that of the issuer named below:
KEMET Employees' Savings Plan
B: Name of issuer of the securities held pursuant to the plan and the
address of its principal executive office:
KEMET Corporation
Post Office Box 5928
Greenville, South Carolina 29606
<PAGE> 2
REQUIRED INFORMATION
Financial Statements and Schedules. The financial statements and
schedules included herewith relating to the KEMET Employees' Savings Plan (the
"Plan") were prepared in accordance with the financial reporting requirements
of ERISA and are provided pursuant to Instruction 4 of Form 11-K.
Consent of the Independent Auditors.
<PAGE> 3
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Act of 1934,
the Administrative Committee of the KEMET Employees' Savings Plan has duly
caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
KEMET EMPLOYEES' SAVING PLAN
September 25, 1998 By /S/ D.Ray Cash
-------------------------------------
D. Ray Cash
Senior Vice President of Administration and Treasurer
For the Administrative Committee
<PAGE> 4
KEMET EMPLOYEES' SAVINGS PLAN
Financial Statements and Schedules
March 31, 1998 and 1997
(With Independent Auditors' Report Thereon)
<PAGE> 5
KEMET EMPLOYEES' SAVINGS PLAN
Table of Contents
Independent Auditors' Report
Financial Statements:
Statements of Net Assets Available for
Benefits - March 31, 1998 and 1997
Statements of Changes in Net Assets Available for
Benefits - Years ended March 31, 1998 and 1997
Notes to Financial Statements - March 31, 1998 and 1997
Schedules
Item 27a - Schedule of Assets Held for Investment Purposes
at March 31, 1998 1
Item 27d - Schedule of Reportable Transactions for the Year ended
March 31, 1998 2
Independent Auditors' Consent Exhibit 23
Schedules not filed herewith are omitted because of the absence of conditions
under which they are required.
<PAGE> 6
Independent Auditors' Report
The Board of Directors
KEMET Electronics Corporation:
We have audited the accompanying statements of net assets available for
benefits of KEMET Employees' Savings Plan as of March 31, 1998 and 1997, and
the related statements of changes in net assets available for benefits for the
years then ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
March 31, 1998 and 1997, and the changes in net assets available for benefits
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedules 1 and 2 are
presented for the purpose of additional analysis and are not a required part
of the basic financial statements but are supplementary information required
by the Department of Labor's Rules and Regulations for Reporting and
Disclosure under the Employee Retirement Income Security Act of 1974. The
supplemental schedules have been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, are
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/S/ KPMG Peat Marwick LLP
July 31, 1998 KPMG Peat Marwick LLP
<PAGE> 7
KEMET EMPLOYEES' SAVINGS PLAN
Statements of Net Assets Available for Benefits
March 31, 1998 and 1997
<TABLE>
1998 1997
---- ----
<S> <C> <C>
Assets:
Investments (notes 2 and 7) $ 62,899,943 $
50,302,121 Participant loans
1,913,491 1,408,233 Employer contribution
receivable 1,838,215 1,750,961
Cash - 19,057
------------ ------------
Total assets 66,651,649 53,480,372
Liabilities:
Other - -
------------ ------------
Net assets available for benefits $ 66,651,649 $ 53,480,372
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 8
KEMET EMPLOYEES' SAVING PLAN
Statements of Changes in Net Assets Available for Benefits
Years ended March 31, 1998 and 1997
<TABLE>
1998 1997
---- ----
<S> <C> <C>
Additions to net assets attributed to:
Investment income:
Net appreciation (depreciation)
in fair value of investments $ 7,121,797 $ (605,333)
Investments and dividends 3,117,936 2,393,399
------------ ------------
10,239,733 1,788,066
------------ ------------
Contributions:
Participants' 5,178,624 4,730,998
Employer's 1,838,215 1,783,706
------------ ------------
7,016,839 6,514,704
------------ ------------
Total additions 17,256,572 8,302,770
------------ ------------
Deductions from net assets attributed to:
Benefits paid to participants 4,073,245 5,071,951
Administrative expenses 12,050 18,400
------------ ------------
Total deductions 4,085,295 5,090,351
------------ ------------
Net increase 13,171,277 3,212,419
Net assets available for benefits:
Beginning of year 53,480,372 50,267,953
------------ ------------
End of year $66,651,649 $ 53,480,372
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 9
KEMET EMPLOYEES' SAVING PLAN
Notes to Financial Statements
March 31, 1998 and 1997
(1) Description of Plan
The following description of the KEMET Employees' Savings Plan (Plan) provides
only general information. Participants should refer to the Plan agreement for
a more complete description of the Plan's provisions.
(a) General
The Plan is a defined contribution plan sponsored by KEMET Electronics
Corporation (Company) covering all full-time employees of the Company, its
parent and its subsidiaries who have completed one year of service. The Plan
is subject to the provisions of the Employee Retirement Income Security Act of
1974 (ERISA).
(b) Contributions
Participants may choose one or both of the two savings types available, which
are the 401(k), which provides for deferral of taxation, and the Personal
Investment Account (PIA). Participants are allowed to contribute between 2
1/2% and 7 1/2% of their annual compensation as their basic contribution to
the Plan. This may be on a pretax basis to the 401(k) or an after tax basis to
the PIA. The Company matches 50% of 401(k) and 30% of PIA contributions,
subject to the basic savings rate limit of 7 1/2%. Employer contributions are
reduced by forfeitures. Additional amounts may be contributed at the option
of the Company's Board of Directors.
In addition to their basic contribution, participants may contribute between
0.5% and 10% to either the 401(k) on a pretax basis (up to the IRS maximum) or
to the PIA.
(c) Participant Accounts
Each participant's account is credited with (a) the participant's
contribution, (b) the Company's matching contribution, (c) allocations of the
Company's additional contribution, and (d) Plan earnings, and through April,
1996, charged with an allocation of administrative expenses. Allocations are
based on participant earnings or account balances, as defined. The benefit to
which a participant is entitled is the benefit that can be provided from the
participant's account.
(d) Vesting
Participants are immediately vested in their voluntary contributions and the
Company matching contributions plus actual earnings thereon. However,
penalties are incurred which can result in forfeiture of a portion of the
current year employer match if withdrawals are made on funds that have been in
the plan for less than twenty-four months, or if other withdrawals have been
made in the last twenty-four months.
<PAGE> 10
(1) Description of Plan, Continued
(e) Investment Options
Through April 30, 1996, participants could direct the investment of their
accounts, including the Company's contributions, into the following funds:
Equity Income Fund - a diversified portfolio of common stocks
Stable Value Fund - certificates of deposits, guaranteed investment
contracts, money market investments or other fixed principle investments
Balanced Fund - common stocks and bonds
KEMET Stock Fund - common stock of KEMET Corporation
Effective May 1, 1997, the Plan changed trustees from Wachovia Bank of SC, NA
to T. Rowe Price. Investment options with T. Rowe Price for participants are
as follows:
KEMET Stock Fund - common stock of KEMET Corporation
International Stock Fund - common stocks of established, non-U.S. companies
Blended Stable Value Fund - guaranteed investment contracts or other fixed
principle investments
Small-Cap Value Fund - common stocks of small companies (market value less
than $500 million) with potential for capital appreciation
Mid-Cap Growth Fund - common stocks of medium-sized companies with potential
for capital appreciation
Balanced Fund - common stocks and bonds
Equity Income Fund - common stocks, primarily of dividend-paying established
companies
Changes in net assets available for benefits by fund as disclosed in footnote
8 for the year ended March 31, 1997 combine like accounts at the two trustees,
and include activity at Wachovia from April 1 to April 30, 1996 and at T. Rowe
Price from May 1, 1996 to March 31, 1997.
(f) Payment of Benefits
On termination of service due to death, disability or retirement, a
participant may elect to receive either a lump-sum amount equal to the value
of the participant's vested interest in his or her account, or annual
installments over a ten year period. For termination of service due to other
reasons, a participant may receive the value of the vested interest in his or
her account as a lump-sum distribution.
(g) Forfeited Accounts
Forfeited accounts are used to reduce future employer contributions.
(2) Summary of Significant Accounting Policies
(a) Basis of Accounting
The financial statements of the Plan are prepared under the accrual method of
accounting.
<PAGE> 11
(b) Investment Valuation and Income Recognition
At March 31, 1998, under the terms of a trust agreement between T. Rowe Price
and the Plan, T. Rowe Price manages a trust fund on behalf of the Plan which
includes all Plan investments. The information on the investments and changes
in investments of the Plan as of March 31, 1998 and 1997 and for the period
May 1, 1996 to March 31, 1997 was certified by T. Rowe Price to be complete
and accurate. All information in the accompanying financial statements
regarding changes in investments for the month of April 1996 was certified by
Wachovia to be complete and accurate.
The investments and changes therein of this trust fund have been reported to
the Plan as having been determined through the use of fair values for all
assets of the trust fund except for its investment contracts which are valued
at contract value (note 3). Shares of registered investment companies are
valued at quoted market prices which represent the net asset value of shares
held by the Plan at year-end. The Company stock is valued at its quoted
market price.
Purchases and sales of securities are recorded on a trade-date basis.
Interest income is recorded on the accrual basis. Dividends are recorded on
the ex-dividend date.
(c) Payment of Benefits
Benefits are recorded when paid.
(e) Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions.
These estimates and assumptions affect the reported amount of assets and
liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements. In addition, they affect the reported
amounts of income and expenses during the reporting period. Actual results
could differ from these estimates and assumptions.
(3) Investment Contracts With Insurance Companies
The Plan's investment contracts with insurance companies included in the
stable value fund option are primarily invested in shares of a guaranteed
investment contract fund managed by Wachovia through April 1996 and T. Rowe
Price beginning May 1996. The insurance companies maintain the contributions
in a pooled account. The account is credited with earnings on the underlying
investments and charged for Plan withdrawals and administrative expenses
charged by the insurance companies. The contracts are fully
benefit-responsive and are included in the financial statements at contract
value, which approximates fair value, as reported to the Plan by the insurance
companies. Contract value represents contributions made under the contracts,
plus earnings, less Plan withdrawals and administrative expenses.
The average yield for the guaranteed investment contracts for the years ended
March 31, 1998 and 1997 was approximately 6.0%.
(4) Related Party Transactions
Certain Plan investments are shares of mutual funds managed by Wachovia in
1996 and T. Rowe Price beginning May 1, 1996. T. Rowe Price and Wachovia were
the trustees as defined by the Plan for the indicated periods and, therefore,
these
transactions qualify as party-in-interest. Fees paid by the Plan to T. Rowe
Price for loan administration services were $12,050 in fiscal 1998 and $18,400
in fiscal 1997. All other administrative fees were paid by the Company
subsequent to April 30, 1996.
<PAGE> 12
(5) Plan Termination
Although it has not expressed any intent to do so, the Company has the right
under the Plan to amend it from time to time, to discontinue its contributions
at any time, and to terminate the Plan subject to the provisions of ERISA. In
the event of Plan termination, participants will remain 100 percent vested in
their accounts.
(6) Tax Status
The Internal Revenue Service has determined and informed the Company by a
letter dated December 12, 1994, that the Plan and related trust are designed
in accordance with applicable sections of the Internal Revenue Code (IRC).
The Plan has been amended since receiving the determination letter. However,
the Plan's administrator and the Plan's tax counsel believe that the Plan is
designed and is currently being operated in accordance with applicable
provisions of the IRC.
(7) Investments
At March 31, investments of the Plan were as follows:
<TABLE>
1998 1997
---- ----
<S> <C> <C>
Investments:
At fair value:
Registered investment companies:
T. Rowe Price International Stock Fund $1,131,857 $ 606,414
T. Rowe Price Small Cap Value Fund 2,585,331 990,245
T. Rowe Price Mid Cap Growth Fund 4,423,894 1,925,956
T. Rowe Price Balanced Fund 10,064,107 7,613,987
T. Rowe Price Equity Income Fund 14,475,183 9,533,819
---------- -----------
32,680,372 20,670,421
Common stock of KEMET Corporation 11,124,693 11,105,155
---------- -----------
Total investments, at fair value 43,805,065 31,775,576
At contract value:
T. Rowe Price Stable Value Common
Trust Fund 18,459,780 17,737,218
Metropolitan Life Insurance Company 635,098 789,327
---------- -----------
Total investments, at contract value 19,094,878 18,526,545
---------- -----------
Total investments $62,899,943 $50,302,121
========== ===========
</TABLE>
<PAGE> 13
(8) Net Assets and Changes in Net Assets Available for Benefits with Fund
Information
A summary of net assets available for benefits with fund information at
March 31, 1998 follows:
<TABLE> Small
KEMET Blended International Cap Mid
Cap Equity
Stock Stable Value Stock Value Growth
Balanced Income Loan Settlement
Fund Fund Fund Fund Fund
Fund Fund Fund Account Total
- --------------------------------------------------------------------------------
- ------------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C> <C>
Investments:
Pooled funds
at fair value $ - - 1,131,857 2,585,331
4,423,894 10,064,107 14,475,183 - - 32,680,372
Pooled funds
at contract value - 18,459,780 - -
- - - - - - 18,459,780
Contract with
insurance company
at contract value - 635,098 - -
- - - - - - 635,098
Common stock
of related
entity at
fair value 11,124,693 - - -
- - - - - - 11,124,693
---------- ---------- --------- ---------
- --------- ---------- ---------- ---------- ----- ----------
Total investments 11,124,693 19,094,878 1,131,857 2,585,331
4,423,894 10,064,107 14,475,183 - - 62,899,943
---------- ---------- --------- ---------
- --------- ---------- ---------- ---------- ----- ----------
Participant loans - - - -
- - - - 1,913,491 - 1,913,491
Employer
contribution receivable 246,123 549,536 56,681 107,888
207,917 269,807 400,263 - - 1,838,215
Cash - - - -
- - - - - - -
---------- ---------- --------- ---------
- -------- ---------- ---------- --------- ------ ----------
Total assets 11,370,816 19,644,414 1,188,538 2,693,219
4,631,811 10,333,914 14,875,446 1,913,491 - 66,651,649
---------- ---------- --------- ---------
- --------- ---------- ---------- --------- ------ ----------
Net assets
available
for benefits $11,370,816 19,644,414 1,188,538 2,693,219
4,631,811 10,333,914 14,875,446 1,913,491 - 66,651,649
========== ========== ========= =========
========= ========== ========== ========= ====== ==========
</TABLE>
<PAGE> 14
(8) Net Assets and Changes in Net Assets Available for Benefits with Fund
Information
A summary of the changes in net assets available for benefits with
fund information for the year ended March 31, 1998 follows:
<TABLE>
Inter- Small
KEMET Blended national Cap Mid
Cap Equity
Stock Stable Value Stock Value Growth
Balanced Income Loan Settlement
Fund Fund Fund Fund Fund
Fund Fund Fund Account Total
- --------------------------------------------------------------------------------
- ------------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Net appreciation
(depreciation)
in fair value of
investments $1,024,571 - 78,159 421,082
1,182,590 1,858,476 2,556,919 - - 7,121,797
Interest and
dividends - 1,155,761 49,213 140,358
37,219 353,882 1,220,865 160,638 - 3,117,936
Contributions:
Participants 683,760 1,308,790 177,550 283,025
564,253 629,180 1,032,171 - - 4,678,729
Employer 246,123 549,536 56,681 107,888
207,917 269,807 400,263 - - 1,838,215
Rollovers
into the Plan 92,047 1,345 26,442 92,349
111,943 73,355 102,414 - - 499,895
- --------------------------------------------------------------------------------
- ------------------------------------
Total additions 2,046,501 3,015,432 388,045 1,044,702
2,103,922 3,184,700 5,312,632 160,638 - 17,256,572
- --------------------------------------------------------------------------------
- ------------------------------------
Deductions
in net assets
attributed to:
Benefits paid
to participants (505,947) (1,434,150) (17,772) (187,650) -
(276,922) (732,743) (871,699) (46,362) - (4,073,245)
Administrative expenses (918) (4,750) (100) (272)
(438) (3,738) (1,834) - - (12,050)
Intraplan transfers(1,562,426) (834,472) 144,764 752,929
669,804 139,546 708,912 - (19,057) -
Loan withdrawals (96,548) (521,723) (15,624) (8,565)
(24,640) (231,503) (306,395) 1,204,998 - -
Loan principle 87,481 264,695 25,079 21,069
45,934 83,845 125,275 (653,378) - -
Loan interest 22,013 60,370 5,027 6,331
13,728 22,451 30,718 (160,638) - -
- --------------------------------------------------------------------------------
- ------------------------------------
Net
increase
(decrease) (8,844) 545,402 529,419 1,628,544
2,531,388 2,462,558 4,997,609 505,258 (19,057) 13,171,277
Net assets available
for benefits:
Beginning of year 11,380,660 19,099,012 659,119 1,064,675
2,100,423 7,871,356 9,877,837 1,408,233 19,057 53,480,372
- --------------------------------------------------------------------------------
- ------------------------------------
End of year 11,370,816 19,644,414 1,188,538 2,693,219
4,631,811 10,333,914 14,875,446 1,913,491 - 66,651,649
================================================================================
====================================
</TABLE>
<PAGE> 15
(8) Net Assets and Changes in Net Assets Available for Benefits with Fund
Information
A summary of net assets available for benefits with fund information at
March 31, 1997 follows:
<TABLE> Small
KEMET Blended International Cap Mid
Cap Equity
Stock Stable Value Stock Value Growth
Balanced Income Loan Settlement
Fund Fund Fund Fund Fund
Fund Fund Fund Account Total
- --------------------------------------------------------------------------------
- ------------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C> <C>
Investments:
Pooled funds
at fair value $ - - 606,414 990,245
1,925,956 7,613,987 9,533,819 - - 20,670,421
Pooled funds
at contract value - 17,737,218 - -
- - - - - - 17,737,218
Contract with
insurance company
at contract value - 789,327 - -
- - - - - - 789,327
Common stock
of related
entity at
fair value 11,105,155 - - -
- - - - - - 11,105,155
---------- ---------- ------- ---------
- --------- ---------- ---------- --------- ------ ----------
Total investments 11,105,155 18,526,545 606,414 990,245
1,925,956 7,613,987 9,533,819 - - 50,302,121
---------- ---------- ------- ---------
- --------- ---------- ---------- --------- ------ ----------
Participant loans - - - -
- - - - 1,408,233 - 1,408,233
Employer
contribution receivable 275,505 572,467 52,705 74,430
174,467 257,369 344,018 - - 1,750,961
Cash - - - -
- - - - - 19,057 19,057
---------- ---------- ------- ---------
- --------- --------- --------- --------- ------ ----------
Total assets 11,380,660 19,099,012 659,119 1,064,675
2,100,423 7,871,356 9,877,837 1,408,233 19,057 53,480,372
---------- ---------- ------- ---------
- --------- --------- --------- --------- ------ ----------
Net assets
available
for benefits $11,380,660 19,099,012 659,119 1,064,675
2,100,423 7,871,356 9,877,837 1,408,233 19,057 53,480,372
========== ========== ======= =========
========= ========= ========= ========= ====== ==========
</TABLE>
<PAGE> 16
(8) Net Assets and Changes in Net Assets Available for Benefits with Fund
Information
A summary of the changes in net assets available for benefits with
fund information for the year ended March 31, 1997 follows:
<TABLE>
Inter- Small
KEMET Blended national Cap Mid
Cap Equity
Stock Stable Value Stock Value Growth
Balanced Income Loan Settlement
Fund Fund Fund Fund Fund
Fund Fund Fund Account Total
- --------------------------------------------------------------------------------
- -----------------------
<S> <C> <C> <C> <C> <C>
<C> <C> <C> <C> <C>
Additions to net
assets attributed to:
Investment income:
Net appreciation
(depreciation)
in fair value of
investments $(2,016,633) 20 22,384 16,325
(63,040) 550,130 885,481 - - (605,333)
Interest and
dividends 4,223 1,185,427 17,190 42,568
51,720 324,894 687,565 78,990 822 2,393,399
Contributions:
Participants 752,692 1,413,754 140,277 170,380
415,115 609,433 828,458 - 400,715 4,730,824
Employer 3,275 (157,018) 52,864 74,925
175,170 (27,050) 6,157 - 1,655,383 1,783,706
Rollovers
into the Plan - - - -
- - - - - 174 174
- --------------------------------------------------------------------------------
- -------------------------------------
Total additions (1,256,443) 2,442,183 232,715 304,198
578,965 1,457,407 2,407,661 78,990 2,057,094 8,302,770
- --------------------------------------------------------------------------------
- -------------------------------------
Deductions
in net assets
attributed to:
Benefits paid
to participants (454,244) (2,954,190) (2,077) (26,222)
(89,986) (544,377) (851,783) (47,629) (101,443) (5,071,951)
Administrative expenses (1,009) (10,908) (128) (263)
(238) (4,023) (1,831) - - (18,400)
Intraplan transfers 618,247 (1,335,110) 438,932 811,023
1,613,920 (340,441) 209,151 - (2,015,722) -
Loan withdrawals (160,401) (1,015,107) (22,930) (35,717)
(26,327) (247,522) (213,696) 1,721,700 - -
Loan principle 35,782 118,313 10,228 9,449
18,364 31,039 42,662 (265,837) - -
Loan interest 12,285 33,875 2,379 2,207
5,725 11,300 11,220 (78,991) - -
- --------------------------------------------------------------------------------
- -------------------------------------
Net
increase
(decrease) (1,205,783) (2,720,944) 659,119 1,064,675
2,100,423 363,383 1,603,384 1,408,233 (60,071) 3,212,419
Net assets available
for benefits:
Beginning of year 12,586,443 21,819,956 - -
- - 7,507,973 8,274,453 - 79,128 50,267,953
- --------------------------------------------------------------------------------
- -------------------------------------
End of year 11,380,660 19,099,012 659,119 1,064,675
2,100,423 7,871,356 9,877,837 1,408,233 19,057 53,480,372
================================================================================
=====================================
</TABLE>
<PAGE> 17
Schedule 1
KEMET EMPLOYEES' SAVINGS PLAN
Item 27a - Schedule of Assets Held for Investment Purposes
March 31, 1998
<TABLE>
(c)
Description of investment
(a) (b) including maturity date,
Party- Identity of issue, rate of interest, (e)
in- borrower, lessor, collateral, par or (d) Current
interest or similar party maturity value Cost Value
<S> <C> <C> <C> <C>
* T. Rowe Price Stable Value
Common Trust Fund $ 18,459,780 18,459,780
* KEMET Corp. Common Stock 11,856,302 11,124,693
* T. Rowe Price Equity Income Fund 12,290,253 14,475,183
* T. Rowe Price Balanced Fund 8,407,019 10,064,107
* T. Rowe Price Mid-Cap Growth Fund 3,374,351 4,423,894
* T. Rowe Price Small-Cap Value Fund 2,254,636 2,585,331
* T. Rowe Price International Stock Fund 1,060,221 1,131,857
Metropolitan Life Investment Contract 635,098 635,098
-------------- -----------
58,337,660 62,899,943
* Participant Loans 1,913,491
-------------- -----------
$ 58,337,660 64,813,434
==============
===========
</TABLE>
* Party-in-interest
See accompanying independent auditors' report.
<PAGE> 18
Schedule II
KEMET EMPLOYEES' SAVINGS PLAN
Item 27d - Schedule of Reportable Transactions
March 31, 1998
<TABLE>
(f) (h) (i)
(a)
Expense (g) Current Value Net
Identity (b) (c) (d) (e)
Incurred Cost of Asset on Gain
of Party Description Purchase Selling Lease
with of Transaction or
Involved of Asset Price Price Rental
Transaction Asset Date (Loss)
- --------------------------------------------------------------------------------
- -------------------------------------
<S> <C> <C> <C> <C>
<C> <C> <C> <C>
T. Rowe Price Guaranteed Investment
Contract $ 5,450,096 - -
- - 5,450,096 5,450,096 -
T. Rowe Price Balanced Fund 2,182,097 - -
- - 2,182,097 2,182,097 -
T. Rowe Price Equity Income Fund 4,982,391 - -
- - 4,982,391 4,982,391 -
T. Rowe Price Mid-Cap Growth Fund 2,194,788 - -
- - 2,194,788 2,194,788 -
KEMET Corp. Common Stock 5,195,497 - -
- - 5,195,497 5,195,497 -
T. Rowe Price Guaranteed Investment
Contract - 4,880,814 -
- - 4,880,814 4,880,814 -
T. Rowe Price Balanced Fund - 1,597,013 -
- - 1,420,575 1,597,013 176,438
T. Rowe Price Equity Income Fund - 2,599,069 -
- - 2,310,981 2,599,069 288,088
T. Rowe Price Mid-Cap Growth Fund - 881,372 -
- - 803,990 881,372 77,382
KEMET Corp. Common Stock - 6,202,065 -
- - 4,799,827 6,202,065 1,402,238
Note: Information in the above schedule was derived from schedules
certified by T. Rowe Price.
</TABLE>
See accompanying independent auditors' report.
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Exhibit 23
INDEPENDENT AUDITORS' CONSENT
The Board of Directors
KEMET Corporation:
We consent to incorporation by reference in the Registration Statement (No.
33-60092) on Form S-8 of KEMET Corporation of our report dated July 31, 1998,
relating to the statements of net assets available for benefits of the KEMET
Employees' Savings Plan at March 31, 1998 and 1997, and the related statements
of changes in net assets available for benefits for the years then ended, as
well as the related financial statement schedules, which report appears in the
March 31, 1998 annual report on Form 11-K of the KEMET Employees Savings Plan.
/S/ KPMG Peat Marwick LLP
Greenville, South Carolina KPMG Peat Marwick LLP
September 25, 1998
