Energy
MEMC Lowers Guidance, Blames Lack of Credit (WFR)
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Citing unavailability of credit to "some solar customers," MEMC Electronic Materials, Inc. (NYSE:WFR) lowered its fourth quarter 2008 revenue guidance from $500 million to $400-$425 million. The company also projects that gross margins will fall about 2 percentage points, from 48% to around 46%.
MEMC’s interim CEO didn’t just blame lower demand and a weak globaleconomy. He also said that MEMC is not sure that orders for the fourthquarter will actually be converted to purchases. Even worse, "somecustomers who have placed short-term orders for solar products" may beunable to meet MEMC’s purchase conditions.
MEMC’s share price is off nearly 84% from 52-week highs. The price is off more than 6% in early trading this morning.
Paul Ausick
December 18, 2008
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