NEW YORK (TheStreet) -- SunEdison (SUNE) was falling 2.05% to $14.39 at 12:30 p.m. on Wednesday as the power plant owner and operator continued to decline from its announcement earlier this week that it would indefinitely close its polysilicon manufacturing facility in Merano, Italy, effective immediately.
The company had shuttered the facility in Dec. 2011 as part of its worldwide restructuring plan designed to cut costs and improve competitiveness. SunEdison explored numerous options since that time but ultimately decided "the identified cost reductions were not enough to sustain the economic viability of the plant in the current market environment," according to the press release.
The closing will affect approximately 200 employees and comes in conjunction with the closure over the next 12 months of the associated electronic grade TCS (trichlorosilane) operation, which employs approximately 35 people. The company expects these two closures to record approximately $37 million of fixed asset impairments for the year-ended Dec. 31, 2013.
SunEdison also announced its plan to consolidate its semiconductor crystal operations, which would include the transitioning of small diameter crystal activities in the company's St. Peters, Missouri facility to its other crystal facilities in Italy, Korea and Taiwan. This consolidation, which would take place over the next 12 months, would affect approximately 100 employees in St. Peters.
TheStreet Ratings team rates SUNEDISON INC as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate SUNEDISON INC (SUNE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and weak operating cash flow."