UPDATE: First Solar Names Honeywell Executive Gillette As CEO
September 03 2009 - 1:40PM
Dow Jones News
First Solar Inc. (FSLR) named Rob Gillette, the head of
Honeywell International Inc.'s (HON) aerospace business, to become
the second chief executive in First Solar's history, replacing
Michael Ahearn.
Gillette, who most recently served as president and CEO of
Honeywell's aerospace division - Honeywell's most profitable
segment - has served in a number of executive positions at the
conglomerate. He first joined Honeywell in 1996.
Gillette takes the helm of the leading thin-film solar panel
maker during a trying time for the industry. Solar panel prices
have plummeted as many firms increased production anticipating
continued growth in the sector. But the recession has hurt demand
for solar, and some governments have cut back on the important
subsidies that make solar cost-competitive with other sources of
electricity.
First Solar's panels are cheaper than traditional silicon-based
panels, but pricing pressure on silicon-based panels has begun to
trickle down to lower-cost providers. In July the company said it
is planning to enact a rebate program in Germany - one of the
largest markets for solar power - in order to spur demand.
First Solar's shares were up 1.7% to $120.29 in recent trading.
The stock is down more than 60% from all-time highs reached last
May.
Honeywell added 22 cents to $35.99.
First Solar announced in April that it was searching for a
successor to Ahearn, who has served as Chief Executive since 2000.
Ahearn led the company, which was founded in 1999, as it launched
production of commercial products in 2002 and four years later,
launched its initial public offering.
Ahearn, who will remain First Solar's chairman, has said that in
his new role he will focus on government policy and the
establishment regulatory frameworks in the U.S. and abroad.
Gillette's step into the Chief Executive position is the second
recent change to First Solar's executive suite. In late August,
John Carrington, an executive vice president of global marketing
and business development, left the company. Gillette will assume
his role at First Solar on Oct. 1 and also join the board of
directors.
"Rob has a track record of fostering innovation and bringing new
technologies and products to market," said Ahearn, in a prepared
statement. He added that Gillette has worked extensively in global
markets, including Europe, Asia and South America.
First Solar declined to comment further.
At the same time, Honeywell announced Tim Mahoney, the company's
chief technology officer at its aerospace business, would succeed
Gillette. Mahoney, with 30 years experience in the aerospace
industry, has led projects with key customers including Boeing Co.
(BA). In the most recent quarter, Honeywell's aerospace division
posted a 17% decline in sales and a 25% drop in profits. Overall,
the company reported its second-quarter profit dropped 38%.
Mahoney joined Honeywell in 1997 after a 20-year career at
United Technologies Corp.'s (UTX) Sikorsky Aircraft division.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com
(Jerry A. DiColo contributed to this report.)