The St. Peters, Mo., company, MEMC Electronic Materials Inc., also plans to change its name to SunEdison Inc. That doesn't reflect a change in its business strategy, but better represents it two businesses, MEMC said Wednesday. Its SunEdison subsidiary develops solar power projects.
MEMC anticipates that the average price for watt in its solar energy systems division will drop to $3.10 to $3.40 per watt this year, from $3.79 per watt in 2012, although it expects sales volume to rise 10 to 28 percent. On the chip side, it expects revenue of $940 million to $990 million, up 2 to 8 percent from 2012.
The solar industry overall has struggled in recent years as prices have dropped and supply has climbed. The chip industry is also contending with oversupply issues, as well as sluggish PC demand.
MEMC has posted two straight annual losses, although the loss in 2012 was narrower. Its revenue dropped 7 percent to $2.5 billion in 2012, with chip revenue declining to $917.5 million from $1.02 billion.
The company expects 2013 capital expenditures between $120 million and $140 million, from $139 million last year.
MEMC's name change must be approved by shareholders. If it is, the new company name would go into effect at its annual shareholders meeting on May 30.
Shares fell 67 cents, or 12.3 percent, to $4.76 in morning trading. The stock is up 25 percent over the past 12 months.