The move was widely expected. The soft economy, and higher material and energy costs, also affected results. Q1 sales are virtually unchanged from a year ago. Weak markets are likely to continue for much of 2001. Case-ready offerings are still strong, and the company is developing new products.
Margins are narrow.
DRAM prices are steadying at low levels. On the bright side, memory-chip inventory levels are normalizing and competitors are leaving the sector. Craig Shere Calpine said at an annual conference that it sees a very close relationship between its generation capacity growth and future EPS growth. Strengthening fundamentals warrant premium valuation. The company cites a slowdown in networking and datacommunications, and says it is evaluating a restructuring charge.