China Sunergy Co. (CSUN) lowered its shipments outlooks for the second
quarter and the year, citing increasing financing delays that slowed some shipments
in July and potentially could lead to some order cancellations.
The Chinese solar-products maker said some of its customers in
Europe
have
seen delays in approvals of project loans.
The lowered views come as a number of producers have cut their views in recent
months amid changes in subsidy policies in key European markets.
China Sunergy also slashed its second-quarter margin forecast to 1% from its
prior estimate of 7.5% to 8.5%, citing a higher proportion of higher-cost
inventory, a faster-than-anticipated drop in selling prices and higher
materials costs.
The company reduced its second-quarter shipments forecast by 20 megawatts to
between 100 megawatts and 110 megawatts. For the year, the company cut its
estimate by 90 megawatts to between 580 megawatts and 600 megawatts.
Chief Executive Stephen Cai said "we wanted to give the market ample
notice that our second quarter results will be substantially lower than
previously forecasted. However, the sales we will not realize in [the second quarter]
will be realized in [the third quarter]. "
China Sunergy last month reported its first-quarter earnings plunged 51% as the
company was hurt by derivative-related write-downs and falling prices.
The company's American depositary shares closed Thursday at $1.81 and were
inactive premarket. The stock is down 57% this year.