(Adds details, outlook, shares)
March 19 Wind turbine parts maker AMSC
said it would cut 5-10 percent of its workforce by the end of
the year and shut its Middleton plant in Wisconsin, moving the
operations to its headquarters in Massachusetts.
Shares of AMSC, which also estimated a smaller adjusted loss
for the fourth quarter ending March 31, rose as much as 10
percent in noon trading on the Nasdaq.
The company also said it would set up a plant in Romania to
make wind turbine electrical control systems for customers
outside of China.
AMSC, which mainly supplies electrical systems used in wind
turbines, had 362 employees as of March 31.
The company said the actions were expected to help it save
about $3 million in costs annually from the fourth quarter of
the year ending March 31, 2015.
All of AMSC's Middleton employees are expected to be offered
the opportunity to relocate to Massachusetts, the company said.
Operations at its New Berlin plant in Wisconsin will be
unaffected, it said.
AMSC estimated an adjusted loss of 14-16 cents per share for
the current quarter compared with 21 cents per share reported a
The company estimated revenue of $14 million to $16 million,
down from $20.4 million posted a year earlier.
Two analysts on average were expecting an adjusted loss of
18 cents per share on revenue of $17 million, according to
Thomson Reuters I/B/E/S.
AMSC, which is expected to report its results in June, said
it expected to record restructuring charges of about $1 million
in the quarter.
The company's shares were up 2.4 percent at $2.17 in
afternoon trading on the Nasdaq on Wednesday.
(Reporting by Mridhula Raghavan in Bangalore; Editing by Kirti