Applied selling assets, real estate

January 27, 2006 – Applied Materials Inc., Santa Clara, CA, has laid out a plan to sell off some of its real estate and facilities in the US, Japan, and South Korea, in light of an evaluation of its global infrastructure in light of anticipated business needs.

On the auction block will be owned or leased facilities in Hayward, CA; Hillsboro, OR; Danvers, MA; Chunan, South Korea; and Narita, Japan. All of them were acquired either as part of a merger or under business conditions that have since changed.

The company will record approximately $112 million in pretax asset writeoffs and impairments and $90 million in restructuring of lease obligations in its current fiscal 1Q06, plus another $109 million in future cash expenditures (partially offset by proceeds of selling the facilities). But as a result of the moves Applied expects to save an estimated $29 million/year through 2014.


Easily post a comment below using your Linkedin, Twitter, Google or Facebook account. Comments won't automatically be posted to your social media accounts unless you select to share.