KEMET Corporation, a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, announced today that it will take a charge to earnings related to severance expenses of approximately $8.0 million to $9.0 million of which approximately $7.0 million will be accrued during the current quarter that ends September 30, 2012. This action will affect approximately 420 employees representing 4% of the global workforce.
The Company expects to achieve cost savings related to these actions of approximately $16 million in its fiscal year ending March 31, 2013, and achieve an annual run rate savings of $25 million as it exits the current fiscal year.
Per Loof, KEMET Corporation’s Chief Executive Officer, stated, “Although we are confident that the prior actions we have previously announced, such as our vertical integration of our tantalum supply chain and our Film and Electrolytics restructuring will produce the expected benefits this fiscal year and beyond, we believe that it is imperative that we react to the continued economic slowdown. While these actions are always difficult when it affects our employees these actions are necessary to return to sustained profitability for our shareholders.”