Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: It's been a roller coaster of a day for shares of MEMC Electronic Materials
So what: The company announced a handful of actions to be taken during the fourth quarter, including reducing its global workforce, slimming down production capacity, and reducing operating costs. MEMC will take a charge of roughly $700 million, of which $520 million is noncash. More than half of the remaining $180 million in cash charges is expected to occur after 2012.
Now what: MEMC is cutting 1,300 positions globally, which represents roughly 20% of its workforce, including 250 domestic positions. It will be idling its Merano, Italy, polysilicon facility and may even shutter the plant unless it can achieve cost and power reductions in the short term. A crystal facility in Portland, Ore., will see some production capacity reductions as well. The solar materials and SunEdison business units will also be combined into a single solar energy business unit starting next year. Slimming down and refocusing is always a tough call and creates uncertainty for investors, but in the end sometimes you gotta do what you gotta do.
Interested in more info on MEMC Electronic Materials? Add it to your watchlist by clicking here.
Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.