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Continued pressure on module prices as competition intensified has led to Yingli Green warning margins would be impacted greater than expected in the second quarter of the year. Although the Tier 1 PV manufacturer said that module shipments were higher than the first quarter, in contrast to updated guidance from rivals, Trina Solar and Canadian Solar, shipments would increase between 13% and 14%, compared to a previously guided 15% increase.
Yingli Green said that its overall gross margin for the second quarter of 2012 would be in the middle single digit percentage, compared to its previous guidance of middle to high single digit percentage.
Deutsche Bank had told investors in May that it had calculated that Yingli’s module shipments in the second quarter would be in the range of 600MW should it achieve its 15% shipment increase expectation.
The company also followed its piers by warning of a foreign exchange loss in the quarter of between US$28 million to US$30 million due to the depreciation of the Euro against the RMB.
"In the second quarter, the PV industry continued to face tremendous challenges as competition intensified. However, we managed to reach our guidance for both module shipment volumes and gross margin," commented Liansheng Miao, chairman and chief executive officer of Yingli Green Energy. "As solar electricity becomes affordable, we are seeing quickly broadening PV market and emerging demand for net metering. Furthermore, we are confident to withstand intense competition and remain a leading player in the PV industry as we achieve continuous cost reductions through the adoption of new materials and new techniques and further improvements of our operating efficiency."
Yingli didn’t say whether its 2012 shipment guidance would have to be revised. The company had previously guided shipments to be in the range of 2.4GW-2.5GW.