Hutchinson Technology Incorporated is reporting a net loss of $12.5 million, or $0.53 per share, on net sales of $58.5 million for its fiscal first quarter ending December 25th, 2011. The results for the quarter included:
Flood-related costs of $13.7 million of Thailand operating and site restoration costs; flood insurance recoveries, non-cash interest for convertible debt instruments; and previously accrued severance expenses related to manufacturing consolidation.
Excluding these items, the company’s net loss for its fiscal 2012 first quarter totaled $11.5 million, or $0.49 per share.
Repair and restoration activities are proceeding as planned at the company’s Thailand assembly operation. HTI President and CEO Wayne Fortune says “After review of the flood mitigation plans of the Thai government and those of the industrial park where our plant is located, we are proceeding with plans to restore our Thai operation and expect to resume production by the end of June.”
The company estimates that it will spend $25 million to $30 million in fiscal 2012 and an additional $5 million in fiscal 2013 to restore its assembly operation in Thailand and bring it back to pre-flood capacity levels and to cover the incremental costs of manufacturing in the U.S.