ReneSola Ltd. (NYSE: SOL) just popped up after the Chinese solar player reiterated earnings guidance.  But it is not immune to the ways of the world, and the 2009 guidance looks lite.

The company estimates that fourth quarter 2008 net revenues were $157 million to $159 million.  This translates to a 2008 range of $669 million to $671 million, above the mid-point of its $640 million to $670 million guidance.  First Call estimates are $153.63 million for the quarter and $663.35 million for the year.

For the quarter, ReneSola reached production output of approximately 112 megawatts, and approximately 363 megawatts for the year.  It had guided megawatt production of 340 to 350 for the year.

The company  said average selling wafer price have declined.  Sound familiar to what others are saying?  ReneSola is expecting writedowns of $130 to $140 million against the net value of inventories die to the rapid decrease in market prices.  As a result, ReneSola will report a quarter net loss of $125 to $130 million.

On a longer-term basis, the company sees a range of $650 million  to $700 million for the full-year 2009 revenues.  Unfortunately, First Call estimates are for $759.1 million for this year.  It is putting production output between 620 to 670 MW, but expects to have wafer manufacturing capacity of 825 MW by this July.

JON C. OGG
MARCH 3, 2009