Yingli Green Energy Holding Company Limited (NYSE: YGE) was the latest solar company to report week earnings in 1Q09, announcing an unexpected loss at the end of last week.
The Chinese firm posted a loss of $20.7 million, or $0.16 per American Depositary Share (ADS), compared with 1Q08 profit of $31.9 million, or $0.25 per ADS.
Analysts, on average, had forecast a profit of $0.01 per ADS, according to Reuters Estimates. The company’s shares, which had been rising steadily since March, dipped with the news.
Total net revenues were $146.3 million, a decrease of 43.2% from 4Q08. The company said the decrease was primarily due to substantial lower shipment volume and lower average selling price, which were impacted by weaker demand resulting from difficult macroeconomic conditions globally, including tighter credit for PV system project financing, worse than normal winter weather conditions in Germany and changes in the feed-in tariff policy in Spain.
Furthermore, as close to half of the company’s PV module shipments were under contracts denominated in Euros, average selling price was also negatively impacted by depreciation of the Euro.
"We believe that the first quarter marked a low point for the entire solar industry this year, Yingli Green Energy included. However, recent gradual recovery in major markets, especially in Germany, combined with encouraging government policies towards alternative energy in the United States and China, gives us reasons to remain confident in the future of the global solar market," Chairman and CEO Liansheng Miao said.
The company said it expected to ship 450 to 500 megawatts (MW) of solar modules in 2009, down from the 550 to 600 MW guidance given in February.
Rival Chinese firm JA Solar recently announced a troubled first quarter.
Last week Yingli Green Energy announced an exclusive supplier agreement with AES Solar, a division of AES Corporation (NYSE: AES)
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