Timing of Solar Projects Burns MEMC
MEMC Electronic Materials Inc. (NYSE:WFR) said it expects negative tax impacts and the timing of solar energy projects to cause greater loss in the fourth quarter.
The company, which rolled out plans last month to revamp its solar and semiconductor businesses, now foresees an adjusted loss of 17 cents to 23 cents a share on adjusted revenue of $753 million to $792 million. Last month MEMC had projected a loss of 5 cents to profit of 10 cents on revenue of $789 million to $861 million.
Although the company’s solar business experienced record growth last year, interconnections did not fare as well as expected, said Chief Executive Ahmad Chatila.
Early last month, MEMC announced plans to cut its total work force by 20 percent as the company strives to reduce its exposure to fluctuation in the solar market. The firm is expected to report fourth-quarter results on Feb. 15.
Here’s how shares reacted to the news:
MEMC Electronic Materials Inc. (NYSE:WFR): WFR shares recently traded at $4.86, up $0.3, or 6.58%. They have traded in a 52-week range of $3.65 to $15.04. Volume today was 11,665,422 shares versus a 3-month average volume of 8,120,960 shares. The company’s trailing earnings are $-0.17 per share.