Kemet 2Q Loss Narrows, Announces Layoffs (850 jobs)

[UpInArms]

http://www.forbes.com/home/feeds/ap/2004/10/25/ap1609010.html

Electronics component maker Kemet Corp. on Monday said its second-quarter loss narrowed due to the absence of charges that impacted its results a year ago.

Additionally, the company said it will reduce its work force by about 10 percent, or 820 employees worldwide. The action will result in a one-time charge of $5.5 million in the third quarter and annualized savings of $11.1 million, the company said.

Kemet posted a second-quarter loss of $7.5 million, or 9 cents per share, compared with a loss of $43.3 million, or 50 cents per share a year ago. The results included a special after-tax gain of $9.2 million, or 10 cents per share for the 2004 quarter, while the 2003 quarter included charges totaling $30 million, or 35 cents per share.

Excluding items, the company reported a loss of $16.7 million, or 19 cents per share, down from a loss of $13.3 million, or 15 cents per share last year.

<snip>

"Over the course of the summer and continuing into the fall, Kemet has been negatively impacted by an inventory cycle in our industry, especially at our distribution customers which represent approximately one half of our revenue," chief executive Jeffrey Graves said in a statement.

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hmmm.... negatively impacted by an inventory cycle

sounds like a build-up of inventory, resulting from fewer sales and now they are dumping people

[mbperrin]

1. Woo-hoo! Look at that * job machine go!

There go some more jobs!

[hatrack]

2. So there are now five scenarios under which you lose your job

1. The company you work for loses a lot of money

2. The company you work for loses a little money

3. The company you work for breaks even

4. The company you work for makes a little money

5. The company you work for makes a lot of money

I think that covers all eventualities . . . did I forget anything?

[LastDemocratInSC]

3. Kemet has SCREWED Republican South Carolina

Kemet once provided thousands of jobs throughout the Upstate of South Carolina - prime fundie repug territory. Over the years they have exported almost ALL of the jobs that were once held by our citizens here - to Mexico and China. Kemet has very few employees left in SC today compared to the past while Mexico and China are getting those dollars.

[physioex]

4. Yea....

They have totally screwed up the Greenville economy...