Sept. 28 (Bloomberg) -- Advanced Energy Industries Inc., a provider of solar power components, said earnings may fall short of its forecast after firing workers and shifting some manufacturing to China.
Advanced Energy will take a charge of about $2.5 million to $3.5 million in the current quarter as part of the restructuring plan, the Fort Collins, Colorado-based company said today in a statement.
Including the charge, Advanced Energy expects earnings to be lower than the third-quarter forecast of 20 cents to 30 cents a share it gave in July. The cuts may save the company $6 million a year, according to the statement.
Advanced Energy is moving production of some components to a factory in Shenzhen, China, and firing some workers, mostly in its thin films unit. The company did not say how many people will be affected or where the components are manufactured now.
Advanced Energy shares, which were 2.2 percent higher to $9.39 at 9:58 a.m. in Nasdaq Stock Market trading, have dropped 31 percent this year. It’s market value is about $410 million.
Chief Executive Officer Garry Rogerson, who was hired in August, said in the statement that the move was necessary because of the “currently challenging environment in the end markets.” Solar-panel prices have declined this year, driven in part by a drop in the cost of polysilicon, the raw material.
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