As the earnings of Energy Conversion Devices Inc. continue to fall, the resignation of its CEO Mark Morelli has been announced together with its third-quarter results. The alternative energy company has also revealed its plan for a corporate restructuring after years of worsening losses.
Morelli took over the reins of ECD on Sept. 1, 2007. He succeeded Robert Stempel, the former CEO of General Motors who passed away recently. ECD has been developing automotive batteries for a long time.
It had also been involved in several projects that involved electric and hydrogen batteries. In the past few years, most of its business came from solar energy applications. Its revenue for the third fiscal quarter dropped by 69% to $21.5 million from the same quarter in 2010.
ECD posted a net loss of $243.2 million. In the third quarter, ECD had projected $57 million to $65 million in revenue. Sales of its solar panels in Europe fell due to revisions made to its incentive programs in France and Italy.
Last March, the Italian government said that it will cut incentives for solar projects in June. Last February, France said that it will limit the size of new solar projects at 500 megawatts and it also plans to make a new tender program for projects of 100 to 250 kilowatts.
ECD plans to cut its workforce by 20% or 300 workers and to focus on building its North American business as part of its restructuring plan.