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What: Shares of First Solar
So what: The company announced that it was closing its Frankfurt manufacturing facilities due to weakening market conditions in Europe and in order to cut costs and focus on sustainable market opportunities. In addition, it will idle four production lines at its manufacturing center in Malaysia next month.
Now what: First Solar is also planning to reduce personnel by cutting 2,000 positions, what amounts to a 30% reduction of its workforce. The company expects to reduce costs by $30 million-$60 million this year and $100 million-$120 million annually from here on out. Average manufacturing costs are supposed to improve to $0.70-$0.72 per watt this year, below the company's previous expectations of $0.74. First Solar has recognized that the solar market has "fundamentally changed," and is "quickly adapting" its market approach in response.
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Fool contributor Evan Niu holds no position in any company mentioned. Click here to see his holdings and a short bio. Motley Fool newsletter services have recommended buying shares of First Solar. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.