10 maj: Danske/CEO: Et stort udestående med Moody's
10 maj: Mindre lokalbanker øjner bedre tider
10-05-2012 15:57:00

Applied Materials To Restructure Solar Business, Record Charges

Relateret indhold

By Shara Tibken


NEW YORK -(Dow Jones)- Applied Materials Inc. (AMAT) said it plans to restructure its solar business to better cope with challenging conditions in that industry.

Applied Materials--the largest provider of machines used in making semiconductors, solar panels and displays--said it will record restructuring charges of $70 million to $100 million, or 4 cents to 6 cents a share, over the next 12 to 18 months, starting in the fiscal third quarter ending in July.

The charge includes severance costs for about 250 employee positions, inventory charges, fixed asset impairment charges, and costs for lease terminations. Applied Materials said the inventory charges of up to $15 million, or 1 cent a share, will be included in both its adjusted and unadjusted earnings. Applied Materials also expects as much as $55 million in cash expenditures under its plan.

Shares, down 26% over the past 12 months, rose 1% to $11.19 in recent trading.

The Santa Clara, Calif., company, best known for its semiconductor manufacturing equipment business, regularly experiences sharp boom-and-bust cycles triggered by fluctuations in supplies of chip and demand for them. The company has broadened its business to include tools used in making solar panels and displays used in computers and TVs. But supply gluts for manufacturers in those businesses have slowed plans to boost production capacity in the past year and have hurt Applied Materials' results.

The company in February reported a 77% decline in profit for the first fiscal quarter on revenue that slid 19%. The numbers were better than Applied Materials predicted, and it provided an upbeat forecast for the fiscal second quarter. However, it later forecast weaker-than-expected guidance for the fiscal year, which it blamed on its solar and display businesses.

Applied Materials in March said it would cut additional costs from its solar operations to counteract the weakness. The company at the time said it planned to lower its fiscal 2013 solar breakeven level, or the amount of revenue needed to be profitable, to $500 million from $800 million.

The company on Thursday said its restructuring steps will help it meet the breakeven point.

As part of the restructuring plan unveiled Thursday, Applied Materials said it will relocate manufacturing operations for is precision wafering system solar business to Asia from Cheseaux, Switzerland. PWS business operations and customer support functions will be relocated primarily to Treviso, Italy, and Xi'an, China--locations of other Applied Materials operations. PWS' headquarters and new product development will remain in Switzerland.

The company said the plan also includes "significant" reductions in development activities for the light-emitting diode equipment market.

-By Shara Tibken, Dow Jones Newswires; 212-416-2189; shara.tibken@dowjones.com

(END) Dow Jones Newswires

May 10, 2012 09:57 ET (13:57 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Vestas får amerikansk ordre på 101 megawatt

08-12-2016 14:30:17
Vestas har fået en amerikansk ordre på 101 megawatt (MW).Ordren inkluderer de to møllemodeller V126 og V117, der begge har en kapacitet på 3,45 MW, oplyser Vest..

Vestas-aktien ramt af Trump-udnævnelse af ny chef for EPA

08-12-2016 10:27:22
Nedturen for Vestas-aktien efter præsidentvalget i USA i starten af november får yderligere styrke torsdag efter Donald Trumps udnævnelse af klimaændringsskepti..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
Vestas-aktien ramt af Trump-udnævnelse af ny chef for EPA
Vestas får amerikansk ordre på 101 megawatt
Aktier/tendens: Rekorder i USA og analysenyheder peger på stigninger
Aktier/middag: USA-nyt trykker Vestas og høreapparat-aktier ned
Torsdagens aktier: Mærsk og ECB hev eliteindeks i plus

Relaterede aktiekurser

Applied Materials Inc 32,71 0,6% Stigning i aktiekurs

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2016  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
9. december 2016 04:52:21
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20161205.1 - EUROWEB3 - 2016-12-09 04:52:21 - 2016-12-09 04:52:21 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her