ReneSola has revised downwards second quarter 2011 shipment and revenue guidance due to steeper than expected price declines for c-Si wafers and modules. Total solar wafer and module shipments are now expected to be in the range of 290MW-300MW, compared to its previously guided range of 330MW-350MW. As a result, revenues previously guided in the range of US$280 million-US$300 million have been lowered to between US$235 million-US$245 million. ReneSola follows a growing number of PV suppliers making downward revisions to second-quarter financial guidance due to weak demand in the first-half of the year.
Xianshou Li, ReneSola's chief executive officer, commented, “We experienced greater-than-expected price declines in both our core wafer business and supporting module business in the second quarter of 2011. Although the decline in wafer prices will impact our second quarter margins, we believe our low manufacturing costs will continue to decrease with our in-house polysilicon production expansion and proprietary technology advances in manufacturing and will help ease margin pressure. Additionally, our wafers are still selling at a 100% utilization rate.”
ReneSola also said that it expected gross profit margin to be in the range 17% to 19%, compared to its previously guided range of 25% to 27%.
“Despite a relatively cautious near-term outlook, we believe our industry expertise, low-cost manufacturing and strong balance sheet position us well for long-term growth,” added Li.