Energy
More Losses in the Chinese Solar Space (CSUN, CSIQ, YGE)
Published:
Last Updated:
Another Chinese maker of PV solar cells, China Sunergy Co., Ltd. (NASDAQ:CSUN), has reported a loss for the first quarter of 2009. The company’s net loss per diluted ADS came to -$0.40. On a non-GAAP basis the loss was -$0.33, worse than analysts’ expectations of -$0.26. Revenues were down 14.4% sequentially, to $37 million, just a little below expectations of $36.46 million. These numbers are even weaker than those posted by Canadian Solar Inc. (NASDAQ:CSIQ) and Yingli Green Energy Holding Company Limited (NYSE:YGE).
Operationally, the company can’t seem to get it right. Shipments for the quarter were almost 70% higher than in the fourth quarter of 2008, but the average selling price fell so far that margins turned negative. But the company is used to that: the negative gross margin in the fourth quarter of 2008 was 33.1%, worse even that the first quarter negative margin of 23.7%. That kind of performance might lead to a change in management in any other country but China.
China Sunergy expects to ship 35-40 megawatts of production in the second quarter at a positive gross margin “in the low single digits.” No word on net margins, but don’t expect a positive result there. For the full year, the company reiterated guidance of 150-200 megawatts of capacity and gross margin of 15%-20% for the second half of the year.
China Sunergy shares are off about 7.5% in pre-market trading, at $3.58. The company’s 52-week trading range is $1.33-$12.55.
Paul Ausick
May 27, 2009
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.