Energy Company CEO Awarded $3.1 Billion in Loan Guarantees Steps Down…Stocks Plummet
- Posted on October 25, 2011 at 7:20pm by
Becket Adams
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First Solar Stock Quote, Image: CNN Money
The CEO of the nation’s largest solar company is out, First Solar announced Tuesday, sending its shares tumbling more than 24 percent.
Before going any further, it’s important to note that First Solar received $3.1 billion in backing under the same loan guarantee program that supported Solyndra.
Rob Gillette, who took over at the company less than three years ago, becomes the latest in a series of high-level departures at First Solar. He was preceded by Bruce Sohn (who resigned as president of operations in April) and utility systems chief Jens Meyerhoff who announced that he was leaving in August.
“Effective immediately, Rob Gillette is no longer serving as Chief Executive Officer, and the Board of Directors thanks him for his service to the company,” First Solar said in a short statement (h/t The Hill). “The Board of Directors has formed a search committee and is initiating a search for a permanent Chief Executive Officer.”
“This is not a good sign,” said Gordon Johnson, head of alternative energy research and managing director of Axiom Capital Management Inc., in a recent Market Watch article.
The timing of the exit seems poorly timed, consider that some of the most high-profile companies in the business have fallen under a congressional microscope.
GOP critics have sought to halt solar loan guarantees since a one-time industry favorite, Solyndra LLC, sought bankruptcy protection after receiving a half-billion loan guarantee.
“He may just be stepping down because he sees the writing on the wall in the solar industry and thinks that First Solar will be unable to compete with crystalline silicon,” Gordon Johnson, an analyst at Axiom Capital Management Inc. in New York, said in a recent Bloomberg report.
First Solar didn’t return calls from the Associated Press seeking comment but merely said that they would explain it all when they release their Q3 earnings report.
“Whenever I see a CEO change that’s rather abrupt, particularly when it comes preceding earnings, I generally expect that there is bad news coming,” Cantor Fitzgerald analyst Dale Pfau said in a Reuters report.
Board Chairman and company founder Mike Ahearn will take over as CEO on an interim basis, overseeing an executive team that has seen plenty of change recently.
Gillette, a former chief executive at Honeywell Aerospace, was hired to steer the company as the entire industry headed into a tough period. Rising competition from Chinese manufacturers and a drop in panel prices slashed profits throughout the industry and some say that is what led to Solyndra’s downfall. “It’s more difficult for First Solar to compete now since the price of traditional crystalline solar panels have come down so much,” he added.
However, unlike Solyndra, First Solar has been profitable. In the three months that ended in June, it reported a $61.1 million profit, though that was down from $159 million in the same period a year earlier, reports the Wall Street Journal.
Gillette remained outwardly positive, telling investors that better times were ahead for the solar industry. Germany, Italy, and other European countries that make up the biggest market for solar panels appeared to be “bouncing back” from the continent’s financial crisis, he said.
“I think we will see some stability in the markets,” Gillette said in August. “I think in Europe we are still kind of all bouncing back.”
So what was the damage done to First Solar’s stock at the end of the day?
Shares fell from $43.77 to $14.18 in single afternoon of trading.
It might also be worth noting that last week The Blaze cataloged several of the Obama administration’s “clean energy” investments in an article titled Energy Department Caught Removing Energy Company’s Name From Old Press Releases. The report listed the details behind the failed Solyndra investment, the possible failure of SunPower and the failure of Mountain Plaza Inc.
The article ended with these lines: “Keep your eyes on First Solar ($3.1 billion in loan guarantees). Who knows? They may be the next ‘safe’ investment to keel over.” With the abrupt departure of First Solar’s CEO and with its stock nosediving, First Solar could very well go broke and manage to drown out the Solyndra scandal with its $3.1 billion dollar shadow.
The Associated Press contributed to this story.
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Comments (47)
Lantern
Posted on October 26, 2011 at 1:11pmAnd what? The money gets re-bundled into the Obama campaign?
Report Post »jrcess
Posted on October 26, 2011 at 12:47pmObama, Biden, Reid, are all crooks.
Report Post »TEARS FOR AMERICA
Posted on October 26, 2011 at 12:02pmI am beginning to believe these are all front organizations for laundering (redistributing) wealth…ya think?
Report Post »Seymour
Posted on October 26, 2011 at 12:42pmIn one word, YES. Is it not obvious to those with critical thinking skills let alone thinking skills think these inept, ignorant and disastrous decisions with our tax dollars are for the good of the US? While our economy is literally on life support? This is wealth transference in its most simplistic elementary form yet America continues to look on.
Report Post »D Money
Posted on October 26, 2011 at 1:21pmYes, but the transfer has been from the so-called 99% to the 1%. Taxpayer money being redirected to support and protect the investments of rich Democrat supporters. This should be a main part of the message of the Republicans in this election cycle.
Report Post »yougottabekidding
Posted on October 26, 2011 at 5:23pmBut to who is it being redistributed to.
Report Post »It’s going to thieves. We pay for it (those of us that pay taxes) They set up deals that make sure the so called investers get paid and the government does not. Which means you and I give our money to the investers. Wake up you idiots that claim to be the educated 2% at ows
Tired-of-fools
Posted on October 26, 2011 at 10:49amSpain tried this “Green Energy” crap and look where it got them. The problem is that the Whitehouse is so wrapped up in it they can’t see past thier idiology. And of course being the good liberals that they are, they are much smarter than everyone else. The Obamunist is supposedly a legal professor so he should STAY OUT of the economic system. Let the market take care of itself and stop trying to manipulate the system.
Report Post »flfshrmn
Posted on October 26, 2011 at 11:29amBank bailouts, GM bailout, UNION bailouts,Freddy & Fanny bailout, JP Morg., ECB bailouts, massive government waste in redundant federal programs and fully staffed agencies, massive government spending programs without congressional approval, massive Foriegn Aid packages for radical Islamic and Socialist countries, 60% funding of the United Nations, Solyndra, First Solar, Fast and Furious, ect, ect, ect………..
Report Post »Sorry Suckers……We just don’t have enough to ensure Social Security will be there for you…..sorry!
LukeAppling
Posted on October 26, 2011 at 10:48amDoes Obama know anyone who is honest? It appears he does not. As Obama hides from the media who actually ask him a question with some depth he wastes our tax dollars flying our airplanes, landing at our airports and not paying us one dime. what kind of media do we have and when will this fraud named Obama be exposed? He has wasted 3 trillion dollars on Solor, electic, bailouts, paying off friends, aqllowing illegals, running guns and suing states while ignoring the lack of jobs, blaming Bush and hiding under his desk. IMPEACH HIM, please.
Report Post »Hankstwocents
Posted on October 26, 2011 at 11:37amAmen !
Report Post »Lantern
Posted on October 26, 2011 at 1:13pmI’m afraid it will have to happen at the ballot box. With a largely Democratic Senate, nothing will go through.
Report Post »hempstead1944
Posted on October 26, 2011 at 10:25amNo wonder Obama can raise so much campaign money…..these public funded companies declare bankruptcy after they have funneled all that money to Obama……follow the money, it leads to the WH !
Report Post »boca_chica
Posted on October 26, 2011 at 9:49amIt’s funny that during the “Bush years” when the media were rabid about finding ANYTHING on the Bush government, nothing like this was found. This government is giving taxpayer money to corporations-and taking it out of the mouths of starving U S children( whats good for the left, can be used for the right as well.). If government wants better batteries and solar panels, do what we have always done-give reasearch monies to scientists who make tech invovations-the manufacturing will follow. Companies don’t need loans if their product IS SELLING!!!!
Report Post »Lantern
Posted on October 26, 2011 at 1:16pmI agree. when will these progressive eco-freaks get it through their heads that solar is just not feasible at the moment? Invest in something that is successful.
Report Post »ArthurS
Posted on October 26, 2011 at 9:39amLet me give you readers another view of this story and others like it. Goverment is the problem. Goverment is not to be opening and running companies. They don’t do it well and they are competing with the private sector. This will lead to goverment taking over all the private sector in time. We already see this happening. They are using our money without any consequences. The problem is not the CEO or President. Those titles only mean something when they have something to loose. It’s tax payers money.. No skin off their butts. Investors are getting guarantees using our money. It’s you and I who paying for this without any say. This is what will destroy Capitalism not true capitalism itself.
Report Post »jnobfan
Posted on October 26, 2011 at 9:09amSomebody needs to not only go to jail but to be publicly horsewhipped. Yes I said horsewhipped.
We the people have had enough of corrupt government. I don’t agree with the OWS mobs but they are correct about corruption and collaboration between business and government. It needs to be stopped and horsewhipping or some kind of public punishment IMO is the way to go.
Report Post »Lantern
Posted on October 26, 2011 at 1:19pmFrom what I’ve been hearing, most don’t think it is about corruption and collaboration between business and government, they think it is corporate CEO’s and Wall Street bankers getting more than their “fair share” and not sharing it with the poor.
Report Post »HKS
Posted on October 26, 2011 at 8:26amIf the kind of money this stimulus package spent had been applied to our overall manufacturing cost would could have been competitive on the world stage in manufacturing. Getting energy cost down alone would have went a long way in the right direction. Obamas energy war is the kiss of death for an economy. Essentially puts the US out of business in the manufacturing sector and that’s where all the jobs their talking about are. So the message from this administration is just lip service as they are actively killing the economy as we speak with everything they do. Psssssst, a little secret, don’t tell anyone, the economy is in the manufacturing, it supports everything else, it’s the root money.
Report Post »georgeisn6
Posted on October 26, 2011 at 6:21amThere has got to be a lot of newly minted welthy democrat thives out there.
Report Post »georgeisn6
Posted on October 26, 2011 at 6:13amThe “O”whatabummer capitlist system; Build widgets for 5 dollars each and sell them for 3 dollars each, not much profit but just look at the busness:
Report Post »ColoradoMaverick
Posted on October 26, 2011 at 5:56amWhen is the Liberal Establishment Dominant Mass Media going to start doing it’s job and start to report the corrupt Obama administration? This money laundering scam is huge and we are just seeing the tip of the ice berg. The Tea Party needs to get a hold of this story and get Congress to act now.
Report Post »ollie42
Posted on October 26, 2011 at 6:47amSorry Maverick but don’t hold your breath. The MSM is totally in bed with O, The Repubs in Congress are wimps and the tea party is too busy fighting itself. We are stuck with this kind of crap until the big blowup, & I‘m not sure how that’s going to come out. BE PREPARED!!
Report Post »flfshrmn
Posted on October 26, 2011 at 10:54amYou hit the nail……..the Repubs are GUTLESS! Issa is giving it a good effort but, why isn’t everyone piling on? Its criminal.
Report Post »Now the DOJ wants to make it legal for the government to lie to protect itself from the FOIA. (as the scandals contunue to stack up)
Who is going to step up and cut the head off of this snake?
Cosmos102
Posted on October 26, 2011 at 1:58amOr could this whole Green Energy thing have been used as a money laundering operation? The money given to the solar industry was donated right back to Obama.
Report Post »conservideo
Posted on October 26, 2011 at 2:25amAll you need as a politician to launder is a C-4 corporation and a super-pac and you’re in business under the table. Then the money travels in circles leaving unseen travels.
Report Post »Mikev5
Posted on October 26, 2011 at 1:43amThe **** is hitting the fan boys the slow slide is going to turn into a massive slide of all these Green energy scam businesses as they run for cover the rats are leaving the sinking ship.
They also know the free funds and blind support will slam shut by end of 2012
Report Post »klg1956
Posted on October 26, 2011 at 1:24amRob Gillette departs First Solar. He was preceded by Bruce Sohn (who resigned as president of operations in April) and utility systems chief Jens Meyerhoff who announced that he was leaving in August and the Board of Directors thanks them for his service to the company. Sound familiar, doesn’t it? Kind of like Fannie Mae and Freddie Mac. Jim Johnson leaves just before it hits the crapper, and then Franklin Raines and then Jamie Gorelick….all frauders so that they get their millions of dollars worth of bonuses and Jim Johnson who almost singled-handedly sank our entire economy got tens of millions of dollars for just leaving…with a cake and big thank you…sounds just like these guy…they all got taxpayer funded parachute packages and cakes for tanking their companies and taking billions of taxpayer dollars with them. Is there a movie here? You bet your ass there is!
Report Post »Lantern
Posted on October 26, 2011 at 1:21pmTheir assets should be frozen until the money they borrowed from the Federal Governement is recovered.
Report Post »Brem
Posted on October 26, 2011 at 1:20amCongrats Obama, this time a double looting. Dreamy eyed gulible liberals bought the Obama green scam.
Report Post »So shareholders and taxpayers looted. At least Solyndra didn’t get their IPO done
Keep it up suckers,Obama has lots more great projects for you to invest in – windfarms that will be rusting relics a few years from now, expensive electric cars that get the same mileage as electric cars built over 100 years ago and endless worthless solar technologies for liberal suckers
I think Hugo Chavez would have done less damage to this country if elected president
LinkedIn G
Posted on October 26, 2011 at 1:12amGoing Green … going … going … going … GONE …no more green
Report Post »Bill Rowland
Posted on October 26, 2011 at 6:17amDrill Baby Drill -
OMG
Report Post »Shotgun167
Posted on October 26, 2011 at 12:43amWell, they said Bush was responsible for Enron. Obama has tried to do everything Bush did bad, but badder.
Report Post »woodyb
Posted on October 26, 2011 at 12:28amThe company has not had any problems — these guys just resigned so they could ‘spend more time with their families!”
That is tomorrow’s press briefing announcement!!!!!!!!!!!!!!!!!!!
Report Post »The-Monk
Posted on October 26, 2011 at 12:20amHe used the loan money to short his own company stocks and walked away with much, much more.
Report Post »He belongs in prison along with the people that gave him the loan. When are we going to investigate these things? This is becoming more and more common place with this administration.
pamela kay
Posted on October 26, 2011 at 2:05amHe will donate to the dems .
Report Post »Bete Noire
Posted on October 26, 2011 at 12:18amFrom Bloomberg Business > First Solar received two other guarantees Sept. 30, the day the program ended, for projects in California. Its 230-megawatt Antelope Valley Solar Ranch 1 project in Los Angeles County received a $646 million guarantee and was sold to Exelon Corp. NextEra Inc. and General Electric Co. bought the 550-megawatt Desert Sunlight project in Riverside County after it received a $1.46 billion guarantee. <- So GE (Jeffrey Immelt – Obama's Job Czar) buys a big chunk of the company right after it receives a $1.65 billion loan guarantee????? WTF!
Report Post »Ex_Masshole
Posted on October 26, 2011 at 12:18am“Shares fell from $43.77 to $14.18 in single afternoon of trading.”
It doesn’t matter what their Q3 report says. That’s some serious damage right there. The volatility of the solar marketplace is going to make future investors even more skittish and this administration can’t continue to fund these risky ventures.
While the Solyndra scandal is being largely whitewashed by the MSM, it’s effects were clearly the death knell of the “green economy.” The good that comes out of a battered market is sensibility (albeit temporary).
Report Post »klg1956
Posted on October 26, 2011 at 1:33amWord on the street is that he will be training inmates to be the “new” “green” job operators…..trained with our tax dollars…and I am sure special funded with taxpayer incentives too, and we’ll make them Union members so that their taxpayer funded salaries gives the Democrat party that little boost of union dues campaign funds…….oh just for the first three years, a few hundred billion, maybe a trillion, hey, what’s a trillion these days….pre Obama…..trillion was only used when talking about science and light years (distance); post Obama, trillion is daily verbiage.
Report Post »The10thAmendment
Posted on October 25, 2011 at 11:53pmNothing to see here folks. Just business as usual from The Club of Rome and it’s environmental GREEN redistribution of wealth.
Report Post »ishka4me
Posted on October 25, 2011 at 11:53pmsome of the massive flooding in vermont and Nort western massachusetts are atributed to green energy. The hydro elec producing dams store water above dams and release and produce elec when rates are highest. the cooler and wet summers had elec prices low so hydro stored the water as well as the windmill producing locations lowered elec rates on the wholesale market. when irene hit and delivered 11 inches of rain to the already swollen resivoirs, massive flooding occured. You can see by flood damage that the majority of locations damaged were just down river of the hydro production dams.
Report Post »Chuck Stein
Posted on October 26, 2011 at 12:11amInteresting. I have read a couple of times that earthquakes were being attributed to fracking. I wonder why the MSM wouldn’t report a downside to “green” energy. Good thing that windmills don’t kill bats or birds. (end sarcasm )
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