Kemet Suffers Steep Quarterly Loss

Though it wasn't unexpected, Simpsonville-based Kemet Corp., said the company took a significant earnings hit this past quarter.

Kemet, which manufactures tantalum, ceramic, aluminum, film, paper and electrolytic capacitors used in electronics, reported a net loss of $35.1 million (or 78 cents per share) for its fiscal first quarter that ended June 30.

That eclipsed the $17.8 million loss the company booked in its prior-year quarter. Net sales, the company reported, were $202.7 million for the first quarter — down 9.3 percent from a year ago.

"Revenue was right on forecast and indicators point to a slight increase in our second quarter,” CEO Per Loof said in a news release. “This quarter saw the full impact on our financial results of the raw material supply chain disruption that occurred in our last quarter. However, we have corrections underway and this area is under our control.”

Loof said the company has been the victim of economic and market downturns, as well as the cost of its recent major acquisition of Japan-based NEC TOKIN for a reported $100 million. 

To stem the tide of red ink, the company in May announced austerity measures aimed at saving money, including the layoffs of 64 employees and contracted workers at its Simpsonville headquarters, and a total of 202 layoffs in 10 countries.

The cuts are expected to save the company $3.8 million quarterly beginning Sept. 30.