Another Chinese Solar Module Manufacturer Reports First Quarter 2009 Loss, But Better-than-expected

Shares of Chinese solar module manufacturer, Solarfun Power Holdings Co., Ltd. (NASDAQ: SOLF, SOLF message board) are trading for a slightly higher price owing to the company’s announcement of better-than-expected 2009 first quarter earnings and an affirmative outlook. Concurrent with the report, the company also revealed the resignation of CEO Harold Hoskens, with effect June 30.

  The company’s net loss attributable to common shareholders was reported to have reached approximately $1 million ($0.02 per share) for the three months period ended March 31, as compared to a net profit attributable to common shareholders of about $105 million ($0.41 per share) in the matching quarter of the prior year. Solarfun said the slide manifested “module production overcapacity, excess module inventories in the channel and continuing restrictive funding availability for solar projects,” which was predominant across the global solar markets.

  Net revenue for the first quarter plunged 43 percent to $100.1 million, from $175.7 million in the 2008 first quarter. Street estimates averaged $100.12 million in revenue, alongside a loss of $0.17 per share. Revenues were particularly hurt by a 11.4 percent year-on-year decrease, and down 25 percent sequentially in photovoltaic module shipment, whilst average selling price tumbled to $2.78, from the preceding quarter.

  With regard to the second quarter that is already underway, Solarfun asserted that it is looking forward to improved shipment on the belief that the industry demand has already reached rock-bottom. On the other hand, it expects a further decline of the average selling price during the same business period.

  “We are cautiously optimistic for a more meaningful rebound, particularly during the second half of this year and heading into 2010”, commented Peter Xie, president of Solarfun. “That being said, the timing and magnitude of this turn is quite unpredictable and as a result, we will continue to refrain from making specific quarterly and full year projections”, he added.

Reference:
http://www.solarfun.com.cn/