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MEMC shares tumble on weaker first-quarter outlook [St. Louis Post-Dispatch](St. Louis Post-Dispatch (MO) Via Acquire Media NewsEdge) March 14--Shares of MEMC Electronic Materials Inc. tumbled 13 percent Wednesday after the O'Fallon, Mo.-based company said it would experience slower solar sales in the first quarter. MEMC, a maker of silicon wafers for the solar and semiconductor industries, also announced plans to take the name of its subsidiary SunEdison, a name the parent company says better reflects its business. MEMC acquired SunEdison, a builder of solar power plants, in 2009. If shareholders approve the name change, the company would make the switch to the SunEdison name after its annual shareholders meeting on May 30. In a news release, MEMC said it expected solar power project sales to be between 10 megawatts and 38 megawatts in the first quarter, down from 52 megawatts in the prior quarter. Total sales for 2013 will be 420 megawatts to 490 megawatts, a 28 percent increase last year. The company also plans to invest more money of its own money in those projects. "The decision to hold projects on the balance sheet instead of selling them will be viewed negatively by some," Jeffrey Osborne, an analyst at Stifel Nicolaus & Co. said in an email. "It soaks up the use of cash with a long-term financial return as opposed to a quick flip of a project sale." In addition, the company said it was establishing a new division, called SunEdison Capital, to raise funds to develop, build and finance solar power plants. It also announced it had invested in an independent private equity firm, EverStream Energy Capital Management, to support the SunEdison Capital business. MEMC's solar energy business, which also includes wafers used in solar cells, accounts for about two thirds of the company's revenue. As for its semiconductor business, MEMC expects its semiconductor revenue to grow to between $940 million and $990 million in 2013, up from $918 million in 2012, the company said Wednesday. Shares of MEMC closed at $4.70, down 73 cents, from the previous close. Bloomberg News contributed to this report. ___ (c)2013 St. Louis Post-Dispatch Visit the St. Louis Post-Dispatch at www.stltoday.com Distributed by MCT Information Services |