Wed, 23/05/2012 - 19:04
Suntech power holdings co. And trina solar ltd. Reported larger first-quarter losses than analysts estimated as oversupply in the solar panel manufacturing industry depressed profit margins.
Suntech, the biggest manufacturer of panels, said today it had a loss of 74 cents a share, worse than the 49-cent average estimate in a bloomberg survey. Trina, the fourth-largest maker, reported a 42-cent american depositary receipt loss, trailing forecasts of 27 cents. Both solar companies have now had losses for at least three consecutive quarters.
Photovoltaic panel makers boosted production capacity at the same time that subsidies for the technology were cut in germany and italy, reducing demand in the two largest solar markets. That slashed panel prices by 47 percent last year, sending a dozen manufacturers into administration.
Both companies maintained their increased guidance for module shipments for the full-year even if they shipped less in the first quarter, reducing revenue. Suntech expects a 20 percent increase in shipments in the second quarter while trina sees a 34 percent rise to 500 megawatts to 520 megawatts.
Suntech and trina said gross margins were affected by provisions for preliminary u.S. Anti-dumping and countervailing tariffs. Suntech's provisions were $19.2 Million and trina's $26.2 Million
