Wind Power Company Gets New Chief Executive
Dec. 13, 1995
SAN FRANCISCO (AP) _ Gerald Alderson has resigned as Chief Executive Officer of troubled Kenetech Corp., and turnaround specialist Richard Saunders has taken his place.
The management shakeup, announced Tuesday, will not prevent layoffs, the company said. The manufacturer of wind power farms could be sold or liquidated.
Saunders would not say how many of the company's 800 employees might be let go.
``I'm not giving that out,'' Saunders said Wednesday. ``I can't honestly tell you that I know right now.''
He also declined to predict which route the company would take to rescue itself. The company's earnings and stock price have plunged this year as domestic demand for its wind turbines fell.
The stock was trading at $2 a share Wednesday on the Nasdaq Stock Market, down 56.25 cents from Tuesday. Kenetech traded at nearly three times that price a few months ago.
``We've engaged Smith Barney to explore all alternatives available to enhance stockholder value,'' he said. ``That's literally true _ all alternatives. That's the only comment we have or will be making at this time about that.''
Saunders, 69, joined the San Francisco-based company on Nov. 1 as president.
Alderson will remain on the board, chair board meetings and take on other assignments, Saunders said.
Kenetech is a leading provider of products and services to the electric power industry. Through its subsidiaries, it designs, develops, builds, finances, operates and maintains power plants that use environmentally preferred technologies _ principally wind, biomass and natural gas.
About 400 of its employees work in a Livermore subsidiary called U.S. Windpower Inc., which makes wind turbines.