Coherent expected restructuring charges of up to $200 million; stock extends rally

Coherent Corp. (COHR) disclosed Tuesday that it expects to record $150 million to $200 million in charges related to a restructuring plan approved last week. The engineered materials and opto-electronics components company said the restructuring includes site consolidations, the moving and closing of facilities and the relocation of certain manufacturing facilities, and will be coupled with other cost cutting measures, "as part of a transformation to a simpler, more streamlined" business model. The company said the expected charges will include $75 million to $100 million of severance and benefits charges. The restructuring is expected to be substantially completed by the end of fiscal 2025. The stock rallied 8.6% in premarket trading, after soaring 14.0% on Friday after announcing a collaboration with Japan-based Mitsubishis Electric Corp. to scale manufacturing of SiC power electronics for use in electric vehicles. Coherent's stock has gained 5.2% year to date through Friday while the S&P 500 has advanced 9.5%.

-Tomi Kilgore

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05-30-23 0643ET

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