Is Chinese solar cell manufacturer JA Solar (JASO) an example of more to come?
The company says the global economic slowdown has caused panic in the solar market, forcing it to cut sales projections. The company reported a loss for the quarter, partially because of investments it made with Lehman Bros.
Solar sales are dropping, leading to a supply glut.
They cut projected 2008 revenue from $1 billion to $850 billion, and said earnings per share would be near break-even. Margins for Q4 may drop precipitously from 21.6% to 5-7%.
JA Solar’s stock has dived almost 85% since early September, pummeled along with the rest of the solar industry, on concerns that a global economic recession and tightened credit would weaken the industry’s growth.
"JA Solar will remain a strong industry player, but we are not immune to the worldwide financial situation," said Samuel Yang, CEO.
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