GREENVILLE, S.C., July 26, 2012 /PRNewswire/ -- KEMET Corporation (NYSE: KEM) (the "Company"), a leading manufacturer of tantalum, ceramic, aluminum, film, paper and electrolytic capacitors, announced today that 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 globally 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, "We are taking these actions to improve our operating margins. Furthermore, 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."
The Company's common stock is listed on the NYSE under the ticker symbol "KEM" (NYSE: KEM). At the Investor Relations section of our web site at http://www.kemet.com/IR, users may subscribe to KEMET news releases and find additional information about our Company. KEMET applies world class service and quality to deliver industry leading, high performance capacitance solutions to its customers around the world and offers the world's most complete line of surface mount and through hole capacitor technologies across tantalum, ceramic, film, aluminum, electrolytic, and paper dielectrics. 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 securities laws about KEMET Corporation's (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.