Applied Tips Restructuring Plan in Solar and LED Units
Applied Materials Inc. has approved a plan to restructure the company’s Energy and Environmental Solutions (EES) segment in light of challenging industry conditions affecting the solar photovoltaic (PV) and light-emitting diode (LED) equipment markets, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Thursday (May 10).
The plan will impact up to approximately 250 positions globally. As part of the effort to cut costs, Applied expects to relocate manufacturing for its Precision Wafering System (PWS) solar business based in Cheseaux, Switzerland to Asia, according to the filing.
PWS business operations and customer support functions will be relocated to Treviso, Italy, the headquarters for Applied’s Baccini Cell Systems, and Xi’an, China, the site of Applied’s Solar Technology Center, according to the filing. PWS’s headquarters and new product development will remain in Switzerland.
The plan also includes reductions in development activities for LED. The total estimated pre-tax cost of implementing the plan is expected to be in the range of approximately $70 million to $100 million, or $0.04 to $0.06 per share, which will be incurred over the next 12 to 18 months beginning in the third quarter of fiscal 2012.
These actions are consistent with the company’s previously-stated goal to reduce the EES segment’s annual revenue breakeven level to $500 million in fiscal 2013, according to the filing.
