Though a pick-up in demand was seen late in the third quarter, weak demand, pricing pressure and inventory build have impacted China Sunergy. Revised guidance puts module shipments down by as much as 55MW compared to previous guidance, while gross margins are expected to be negative to the tune of around 14%.
Capacity expansions are out, improving manufacturing line efficiencies and productivity is in, according to First Solar’s chairman Michael Ahearn, who took over the CEO role from ousted Rob Gillete last week. Capacity expansions had seen average module efficiencies rates increase modestly in 2011; on the downside, production cost per watt merely flat-lined. Almost unheard of was the fact that manufacturing line utilization rates had dipped below 100% as capacity outstripped demand. Back at the helm, Ahearn said that First Solar would re-focus on markets without energy subsidies such as the Middle East as well as markets with critical energy needs such as India, North Africa and China.
The anticipated pick-up in demand elasticity proved elusive for what is expected to be a common theme of the next few weeks as major PV manufacturers report third quarter results. Another short-term trend will be guidance revisions along the lines announced by Trina Solar, which has cut shipment guidance by approximately 100MW and margins reductions by a few percentage points.
SunPower’s latest endeavours in California includes partnering with Orchard Supply Hardware, a chain of 89 hardware and garden retail stores located throughout the state, in order to reach a wider audience through information displays and at www.OSH.com.
CNPV Solar Power has become the next target of accusations levied at it from The Coalition for American Solar Manufacturing (CASM). The China-based integrated manufacturer of solar PV products has denied the allegations made in a trade action against suppliers of crystalline silicon PV cells and modules from the People's Republic of China.
Total sales from Panasonic’s new subsidiary, Sanyo were down 19% to 669.3 billion yen, compared with 829.7 billion yen in the same period a year ago. Though the company did not provide disclosure of Sanyo solar PV business separately, Panasonic did say that sales were stable in the quarter. Sanyo had previously not disclosed PV sales separately.
Motech Industries released its Q3 2011 financial results, which saw the company’s revenue grow 17% over Q2 2011 results to US$251.83 million. Additionally, the company’s net losses went down to US$19 million, from the second quarter’s US$21.47 million.
Responding to capacity expansion push-outs and cancellations at solar wafer manufacturing customers, Meyer Burger Technology has set in motion temporary adjustments to equipment production at its subsidiary, MB Wafertec. However, Meyer Burger reiterated that its 2011 net sales and earnings remained on target.
Strong quarterly shipments failed to offer respite from a rapid decline in revenue and profit margins within OCI Chemicals, polysilicon production division in the third quarter of 2011. Revenue in its polysilicon segment fell from KRW572 billion in Q2 to KRW495 billion in Q3. Margins fell from 50% in Q2 to 36% in Q3, according to the company.
Citing some customer cutbacks in solar module manufacturing production levels and continued pressure on wafer prices that have declined more than 50% since April this year, PV Crystalox Solar is taking drastic measures to reduce cash burn in difficult times for the global PV industry. The company guided a significant reduction in wafer shipments, compared to previous forecasts, job losses and short time working.
