Inline with a growing number of PV manufacturers as quarterly results loom, Yingli Green Energy has revised downwards certain third quarter and full-year guidance figures. Though not citing industry specific problems, Yingli Green also advised of undertaking a non-cash inventory provision of approximately USD$40 million in the third quarter. Declining prices and inventory build on the back of weak demand has been responsible for other firms write down values of modules held in stock.
Yingli noted that it expected third quarter module shipments to increase by a low twenties percentage quarter over quarter range, down from previous guidance of a high twenties percentage increase.
Module shipment estimates for the second quarter of 2011 were in the range of 410MW, suggesting shipments increased to approximately 500MW in the third quarter.
Gross margin for the third quarter, which was impacted by the inventory provision, is expected to be in the range of 10% to 11%, compared to its previous guidance of middle to high-teen percentage range.
Yingli had reported overall gross margin of 22.1% in the second quarter of 2011, compared to a gross margin of 27.3% in the first quarter and 33.5% in the second quarter of 2010.
The company also revised down slightly shipment guidance for the full-year. Yingli expects PV module shipments to be in the range of 1,580MW to 1,630MW, down from previous guidance of between 1,700MW to 1,750MW.
Based on quarterly shipment estimates available for three quarters, Yingli Green is guiding fourth quarter shipments below third quarter guided levels.
Yingli Green is due to release Q3 financial results on Wednesday, November 23, 2011.
