Can we say 3 dollars a share? Is this the bottom? Or am I going to experience new, unexplored levels of pain?
MEMC Elec/3Q Outlook -2: Analysts Put 3Q Loss At $1.03/Shr
09/15/98
Dow Jones News Service
(Copyright (c) 1998, Dow Jones & Company, Inc.)
ST. PETERS, Mo. (Dow Jones)--MEMC Electronic Materials Inc. (WFR) said
third-quarter losses will be wider than First Call analysts' expected
consensus of $1.03 a share.
In a press release Tuesday, the silicon wafer company attributed the
expected shortfall to lower-than-expected sales, a general weakness in
semiconductor demand, weak Asian and Japanese economic conditions,
overcapacity, price erosion - especially for DRAMs - and a movement
toward sub-$1,000 PCs.
Third-quarter sales are expected to total $160 million to $165 million
due to lower product volume and prices. MEMC expects to post negative
third-quarter gross margins in the mid-to-high teens. Sales at the
company's unconsolidated joint ventures are expected to decrease due to
lower semiconductor demand and monthly plant shutdowns taken by certain
customers to address excess DRAM capacity.
According to MEMC, its joint ventures will experience sharper price
declines than MEMC since all of their production and sales consist of
8-inch wafers.
A series of short-term plant shutdowns are scheduled during the third
and fourth quarters to cut costs.
A First Call consensus of four analysts estimated MEMC's third-quarter
loss at $1.03 a share. The company reported a loss of $4.3 million, or
10 cents a share, on sales of $260 million for the third quarter ended
Sept. 30, 1997.
Final third-quarter results will be released Oct. 26.
(END) DOW JONES NEWS 09-15-98
05:14 PM
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