Reuters: Global Markets: ReneSola shares fall on dim revenue forecast

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ReneSola shares fall on dim revenue forecast Aug 24th 2012, 14:45 Fri Aug 24, 2012 10:45am EDT (Reuters) - Solar products maker ReneSola Ltd (SOL.N) reported a bigger-than-expected quarterly loss and forecast revenue below analysts' expectations for the current quarter amid continued weakness in selling prices. The company's shares fell 16 percent to a two-week low of $1.50 in morning trading on the New York Stock Exchange. Solar companies have suffered as demand dropped in top market Europe and rapid expansion in manufacturing capacity created a glut, sending prices plunging. ReneSola said selling prices for its modules and wafers more than halved from a year earlier. The company forecast third-quarter revenue of between $200 million and $220 million. Analysts on average were expecting $228.7 million, according to Thomson Reuters I/B/E/S. However, China-based ReneSola said it expected production costs for polysilicon, the key material used in most solar panels, to drop further in the third quarter. The company said it also expects lower manufacturing and processing costs for its modules and wafers in the quarter. ReneSola expects total solar wafer and module shipments to be in the range of 510 to 530 megawatts (MW) in the current quarter, higher than 503.7 MW in the second quarter. Rivals Trina Solar (TSL.N) and JinkoSolar Holding Co (JKS.N) also forecast higher shipments for the third quarter earlier this week. ReneSola has 60-70 MW of projects in the pipeline for the remainder of the year, a company executive said on a conference call with analysts. The company posted a second-quarter net loss of $34.8 million, or 40 cents per American Depositary Share (ADS), compared with income of $1.8 million, or 2 cents per ADS, a year earlier. Revenue fell 6.5 percent to $233 million. Analysts had expected a loss of 34 cents on revenue of $219.2 million. (Reporting by Swetha Gopinath in Bangalore; Editing by Maju Samuel) Link this Share this Digg this Email Reprints

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