International Rectifier Closing El Segundo Plant

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International Rectifier Corp., which reported a big second quarter loss Thursday, said it plans to close its El Segundo semiconductor plant, consolidate operations at its Temecula facility and eliminate 850 jobs.

The maker of power management semiconductors, which is headquartered in El Segundo, expects the staff reductions amounting to 18 percent of its worldwide workforce to save about $33 million annually. Closure of the El Segundo plant is expected save an additional $12.7 million per year when completed by the end of 2010. However, the company anticipates $10 million in severance-related costs in fiscal 2009.

“While the current business climate remains challenging, we are proactively taking steps to help manage the effects and I am pleased with the progress the team is making in restructuring the company,” said Chief Executive Oleg Khaykin in a statement.

The closure and layoffs announcement followed the company’s report of a second quarter net loss of $186 million (-$2.56 per share), compared with a net loss of $4.5 million (-6 cents) a year ago. Revenue fell 28 percent to nearly $190 million.

The loss includes a $48.9 million asset impairment charge for a fabrication facility in Wales that the company announced last year is being downsized; a $10.3 million impairment charge to reflect the decline in value of the company’s mortgage- and asset-backed securities investments; and a nearly $103 million tax-related charge.

Analysts surveyed by Thomson First Call on average expected earnings of 15 cents per share, before charges, on revenue of $177 million.

Prior to the announcement, International Rectifier shares closed up 27 cents, or 2 percent to $14.09 on the New York Stock Exchange.