MANHASSET, N.Y. Kemet Corp. announced Wednesday (Jan. 26) that Jeffrey Graves has resigned as the company's chief executive, ending an almost two-year reign marked by strategic changes but mostly languid financial results.
James McClintock, Kemet's president and chief operating officer, and David Gable, vice president and chief financial officer, will assume chief executive duties until a successor is found.
Graves became Kemet's CEO in March 2003
after being named its president in October 2002. But in October 2003, Graves relinquished
the president's duties to McClintock.
Long known as a commodity tantalum and ceramic capacitor supplier with mostly North American operations, Graves attempted to steer Kemet into becoming a more global company, moving manufacturing offshore into China and acquiring several small component and laminate suppliers to broaden its specialty product capability.
But profitability has remained elusive for Kemet. Competition from Far East capacitor suppliers has forced Kemet to slash part prices and post a long string of unprofitable quarters until June 2004, when the company earned $0.7 million on sales of $122.4 million.
But Kemet returned to unprofitability in the Sept. 2004 fiscal quarter as an industry slowdown led to a buildup of inventory at its distributors. The company posted even worse results in the Dec. 2004 quarter as inventory woes continued.