China Sunergy Co.'s first-quarter loss widened as the solar cell
and module maker reported a drop in revenue and lowered its shipment
guidance for the year.
"In light of the current market environment, we have
determined that revenue growth, while desirable, is not our highest
priority at this time," Chief Executive Stephen Cai said.
For the remainder of 2013, Mr. Cai said the company will
continue to seek disciplined expansions in emerging markets, including
moving more production capacity to its Turkey plant, which will require time to reach full utilization.
As such, Mr. Cai said the company lowered its shipment
guidance for the year, though it hopes to post higher margins and return
to a profit.
The company now expects shipments to range between 500
megawatts and 550 megawatts, compared with its previous outlook for 550
megawatts to 600 megawatts.
For the second quarter, the company forecast total shipments will range between 100 megawatts and 110 megawatts.
Weakened demand in key European markets and oversupply
continue to nag at the solar products industry. China Sunergy had
previously said it expects oversupply in the global solar market to
persist through the year, but had noted that selective markets such as
China and Japan are improving. Therefore, the company has said it will
continue to target opportunities in those areas.
For the latest period, China Sunergy reported a loss of $22.9
million, or $1.71 per American depositary share, compared with a
year-ago loss of $9.6 million, or 71 cents per ADS. Excluding inventory
write-downs, bad debt provisions and other items, the loss was $1.67 an
ADS, compared with a profit of three cents a year earlier.
Total sales slipped 9.9% to $61.7 million.
The average selling price per watt for solar modules fell 7.8% from the prior quarter to 59 cents per watt.
Shipments for the quarter were 102.5 megawatts. China Sunergy had expected shipments of 100 megawatts to 110 megawatts.
France became the company's largest market, accounting for
nearly 26% of revenue in the first quarter, while Germany was second
largest with 17% of revenue, followed by India and Japan, with 15% and
13% of total revenue, respectively.
American depositary shares rose 3.8% to $2.20 in recent light
premarket trading. Through Friday's close, the stock is up 49% since the
start of the year.