GREENVILLE, S.C., July 30 /PRNewswire-FirstCall/ -- KEMET Corporation
(NYSE: KEM) announced today that it will rationalize certain corporate staff
and manufacturing support functions to further reduce costs and achieve its
financial goals. Approximately 640 employees will be affected as a result of
this action. The salaried workforce affected represents approximately 12% of
the Company's salaried workforce.
The Company expects to reduce its support costs by approximately $24
million in the remainder of the current fiscal year (approx. $36 million on a
full-year basis), and will accrue a severance expense of approximately $20
million, primarily in the quarter ended September 2008. Approximately 200
employees will be affected in the Company's U.S. operations, with the balance
at various facilities within Europe, Mexico and Asia.
"It is imperative that we match our support costs to the condition of our
current market environment," said Per Loof, KEMET's Chief Executive Officer.
"The actions we are taking today are painful and difficult for the KEMET
family. However, we must minimize our costs at the support level while
maintaining world-class service, product innovation, and quality to
successfully compete in our market and reach our goals. We are fully
committed to executing our strategies, which are designed to return KEMET to
profitability and create shareholder value," continued Loof.
KEMET Corporation (KEM) applies world-class service and quality to deliver
industry-leading, high-performance capacitance solutions to its customers
around the world. KEMET offers the world's most complete line of surface-mount
and through-hole capacitor technologies across tantalum, ceramic, film,
aluminum, electrolytic, and paper dielectrics. KEMET's common stock is listed
on The New York Stock Exchange under the symbol KEM. Additional information
about KEMET can be found at http://www.kemet.com
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
Certain statements included herein contain forward-looking statements
within the meaning of federal security laws about KEMET Corporation (the
"Company") financial condition and results of operations that are based on
management's current expectations, estimates and projections about the markets
in which the Company operates, as well as management's beliefs and assumptions.
Words such as "expects," "anticipates," "believes," "estimates," variations of
such words and other similar expressions are intended to identify such
forward-looking statements. These statements are not guarantees of future
performance and involve certain risks, uncertainties and assumptions, which
are difficult to predict. Therefore, actual outcomes and results may differ
materially from what is expressed or forecasted in, or implied by, such
forward-looking statements. Readers are cautioned not to place undue reliance
on these forward-looking statements, which reflect management's judgment only
as of the date hereof. The Company undertakes no obligation to update publicly
any of these forward-looking statements to reflect new information, future
events or otherwise.
Factors that may cause actual outcome and results to differ materially
from those expressed in, or implied by, these forward-looking statements
include, but are not necessarily limited to, availability, sourcing and
pricing of raw materials, pressures on sales prices and volumes due to
competition and economic conditions, reliance on and financial viability of
significant customers, operating performance of joint ventures, alliances and
other equity investments, technological advancements, employee relations,
changes in construction spending, capital expenditures and long-term
investments (including those related to unforeseen acquisition opportunities),
continued availability of financial resources through financing arrangements
and operations, outcomes of pending or threatened legal proceedings,
negotiation of new or modifications of existing contracts for asset management
and for property and equipment construction and acquisition, regulations
governing tax laws, other governmental and authoritative bodies' policies and
legislation, and proceeds received from the sale of assets held for disposal.
In addition to these representative factors, forward-looking statements could
be impacted by general domestic and international economic and industry
conditions in the markets where the Company competes, such as changes in
currency exchange rates, interest and inflation rates, recession and other
economic and political factors over which the Company has no control. Other
risks and uncertainties may be described from time to time in the Company's
other reports and filings with the Securities and Exchange Commission.
Contact: Dean W. Dimke
Director of Corporate and Investor Communications
William M. Lowe, Jr.
Executive Vice President and Chief Financial Officer
SOURCE KEMET Corporation