I recently visited this company's website and read some of the shareholder letters from the past 3 years. I'm impressed with the approach of the new CEO Per-Olof Loof who said in the 2005 Annual Report's Shareholder's Letter:"I joined KEMET as Chief Executive Officer in April 2005. KEMET is a team on a mission: to be a successful company, which means that we have to be profitable. Being profitable in the short-term is important to employees as well as shareholders and other stakeholders.I will not try to gloss-over or defend the FY2005 results. I have said that our number one priority is “The math must work,” and it clearly was not working. We did make progress on many fronts. However, our financial performance was unacceptable, and it will improve. Your company is taking immediate action on numerous fronts to bring the company to the performance levels you want and expect. We have taken immediate actions to adjust our cost/expense to revenue ratio. We are reaching the conclusion of the reorganization of our global operations, announced in July 2003. Over 90% of our production workforce is now in low-cost locations. Our first production facility in Suzhou, China, is performing well, and our second should be on-line as you read this. These facilities manufacture products close to the major customers that are consuming them." http://www.kemet.com/kemet/web/homepage/kechome.nsf/Weben/INVESTOR%20RELATIONSThe slogan of this company is "CHARGED." The target for financial results is shown in the recent investor presentation on page 24 and calls for 25% Gross Margins and 10% Operating Income. They sold $175 million of convertible debt in November 2006 and are now growing the company by acquiring smaller companies. Although profitability has been limited so far I am hopeful that after integrating the recent acquisitions that the new larger company will be better able to achieve the stated financial targets...JT :-)
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