BUILDING ON THE PAST, READY FOR THE FUTURE: - MEMC

64
DiD yoU knoW?
In October of 1995, Industry Week
magazine selected MEMC’s St. Peters plant
as one of America’s Ten Best Plants based
on management practices, employee
involvement, quantifiable performance
indicators, and evidence of the company’s
competitiveness.
The year 1995 marked some significant changes
at MEMC in what proved to be a banner year
for the company. The year prior, the company
reported earnings of $34 million in sales of
$660.8 million, and by the end of 1995, MEMC
celebrated its eleventh consecutive quarter of
sold-out production.
goIng PuBlIC
On July 13, 1995, MEMC Electronic Materials,
Inc., began trading as a public company under the
C H A P T E R S I x
Strictly Business
symbol “WFR” on the New York Stock Exchange.
The initial public offering of seventeen million
shares of stock raised some $408 million on an
offering price of $24 per share. Proceeds from
the offering were earmarked for use in reducing
MEMC’s debt to its parent company, Hüls AG,
and to finance the aggressive growth plan that
was estimated to cost approximately $700 million
through 1997.
reCessIon hIts
In 1996, MEMC had record net sales and net
earnings despite the fact that, during the second
half of that year, overcapacity and resulting price
declines in the semiconductor device industry
resulted in reduced orders for silicon wafers. This
trend, which continued into 1997, combined with
MEMC’s significant startup costs for its new and
expanded facilities, led to a net loss of $6.7 million
for the year.
Despite the gloomy conditions, MEMC continued