Revenue Rises But Loss Widens For China Sunergy
The falling price of solar panels continue to hurt China Sunergy (CSUN :NASDAQ) as year over year loss widens for the first quarter ending March 31, 2013.
Revenue for the solar cell and module manufacturer was $61.7 million, an increase of 13.4 percent from the previous quarter but down 10 percent from the $68.5 million reported in the same quarter of the previous year.
The 7.8 percent decrease in average selling price from Q4 2012 to Q1 2013 didn’t help the net loss as it increased to $22.9 million, or $1.71 per American Depositary Share (ADS). China Sunergy reported a loss of $9.6 million, or 71 cents per ADS, a year earlier.
To improve its financial picture, China Sunergy will be focusing on developing downstream projects and servicing its European customers through its new plant in Turkey. This strategy will result in a lower shipment outlook for 2013 as China Sunergy reduced its shipment outlook for 2013 from 500 megawatts (MW) to 550 MW, a sizeable reduction from the 550 MW to 600 MW previously offered.
For the second quarter of 2013, the Company estimates that total shipments will range between 100MW to 110 MW, well behind the 150.3 MW shipped in Q2 2012.
Not surprisingly shares of China Sunergy were down 4.24 percent in afternoon trading.