CoorsTek, Inc. recently updated its previously issued guidance for the fourth quarter of 2001. Specifically, the company is projecting revenue of $70 to $72 million versus $76 million, and a gross manufacturing loss of $11 to $13 million. Factors contributing to this loss include decreased gross margins because of underabsorption of fixed costs related to the lower sales volume and a significant reduction in inventory of more than $20 million for the quarter. CoorsTek is projecting an approximate 15% sequential decrease in selling, general and administrative expenses, which is better than had been expected. Early in the 2001 fourth quarter, CoorsTek estimated that it would record an approximate $10 million write-off to cover its optimization efforts during the quarter. The individual charges are as follows: approximately $1 million related to a nearly 20% reduction in workforce, approximately $7 million for obsolete inventory and the write-off of excess equipment, and approximately $1.5 million for facility closings. All of these expenses are included in the estimated gross manufacturing loss, as noted above, with the exception of the write-off associated with facility closings, which will be reported as an asset impairment.
CoorsTek intends to provide additional guidance regarding its first quarter 2002 outlook in the 2001 earnings release and conference call on January 24, 2002. The conference call, which will begin at 4:30 p.m. EST, will be web cast live on the Internet via the CoorsTek website at http://www.coorstek.com.