DETROIT -- Mark Morelli announced his resignation today as CEO of Energy Conversion Devices Inc. as the alternative energy company's earnings continued in a tailspin.
Morelli's resignation was announced along with the company's third-quarter results and a plan to carry out a corporate restructuring after years of growing losses.
Morelli became CEO of ECD on Sept. 1, 2007, taking over for Robert Stempel, the former CEO of General Motors who passed away this past weekend.
ECD has been a longtime automotive battery developer and had been working on a variety of projects involving electric and hydrogen batteries. In recent years, most of its business stemmed from solar energy applications.
Revenue for ECD's third fiscal quarter fell 69 percent from the same quarter in 2010, to $21.5 million. ECD reported a net loss of $243.2 million. The company had projected $57 million to $65 million in revenue for its third quarter.
Changes to incentive programs in France and Italy drove down sales of its solar panels in Europe, where the company does most of its business.
In March Italy's government said it would reduce incentives for solar projects in June. In February, France said it would cap the size of new solar projects at 500 megawatts and would create a new tender program for projects of 100 to 250 kilowatts.
Energy Conversion Devices also announced it would reduce its workforce by 20 percent or 300 workers and concentrate on building its North American business as part of its restructuring plan, the company said in a release.
"These actions will enable ECD to better meet the needs of the dynamic global solar market and will strengthen our ability to respond to this changed industry environment," Chairman Stephen Rabinowitz said in a release.
Jay Knoll, executive vice president and general counsel, will serve as interim president until the ECD board of directors finds a replacement.
Knoll, 47, was honored last month by Crain's Detroit Business as part of its General and In-house Counsel awards program.
Bloomberg contributed to this report