MEMC shares fall after lackluster 2nd-quarter forecast

The company cited manufacturing problems at one of its plants.

In midday trading, the stock lost $4.45, or 5.9 percent, to $70.90. Shares have traded in a 52-week range of $49.70 to $96.08.

Late Thursday, the company said it expects second-quarter sales of approximately $540 million to $570 million, compared with $472.7 million in the same quarter last year.

On average, analysts polled by Thomson Financial expect sales of $565.8 million.

MEMC said that demand is "a bit weaker than typical" and it said it was prudent to be "extra cautious" about its ability to produce polysilicon in the second quarter.

The company said its Pasadena, Texas, polysilicon plant has had to slow its output because of a chemical build-up in the production line.

For its fiscal first quarter, the company swung to a loss on a decline in the value of its stake in solar power equipment maker Suntech Power Holdings Co.

The company posted a loss of $41.8 million, or 18 cents per share, compared with a profit of $134.7 million, or 58 cents per share, in the first quarter of 2007.

Excluding one-time costs and gains, the company earned 84 cents per share compared with $1.72 per share in the year-ago quarter.