LDK Solar sells 15 pct stake in plant for $219 mln

Tue Nov 17, 2009 5:58pm EST

* To sell stake to Jiangxi International Trust

* To use proceeds to strengthen financial position

* Shares up 13 pct in after-hours trade

LOS ANGELES, Nov 17 (Reuters) – Chinese solar wafer maker LDK Solar Co Ltd (LDK) said on Tuesday it agreed to sell a 15 percent stake in its Chinese polysilicon plant to Jiangxi International Trust and Investment Co Ltd for about $219 million, lifting its shares as much as 14 percent after hours.

LDK makes silicon wafers for the solar power industry and is working to ramp up a plant for polysilicon, a prime commodity in the solar industry, as part of its strategy to reduce costs.

Prices for polysilicon and for solar panels have tumbled in the last year.

Needham and Co analyst Edwin Mok said the deal helps LDK “in terms of alleviating their liquidity concerns given that the company’s cash flow is pretty tight on that end.”

Mok said that he does not expect the deal to impact the plant’s operations, but it could signal that the company may sell more stakes in the facility.

Xiaofeng Peng, the company’s chief executive and chairman, said in a statement that the sale would “significantly strengthen our financial position and increase our near-term operating flexibility.”

The news follows the sudden departure in October of the company’s head of manufacturing, who was in charge of ramping up the plant in China.

LDK is also facing a contract dispute with Germany’s Q-Cells, among the world’s largest makers of solar cells, that could prompt other customers to renegotiate their contracts.

Shares of LDK Solar were up 13 percent at $7.59 in trading after the bell. They closed at $6.71 on Tuesday on the New York Stock Exchange.

(Reporting by Laura Isensee in Los Angeles and Arundhati Ramanathan in Bangalore; Editing by Deepak Kannan, Leslie Gevirtz)

LDK Solar Sells 15% Ownership Stake in Its 15,000 MT Polysilicon Plant

4:30 pm EST, Tuesday November 17, 2009

XINYU CITY, China and SUNNYVALE, Calif., Nov. 17 /PRNewswire-FirstCall/ — LDK Solar Co., Ltd. (LDK), a leading manufacturer of multicrystalline solar wafers, today announced that it has entered into an agreement to sell a 15% ownership stake in its 15,000 metric ton (MT) annualized capacity polysilicon plant in Xinyu City, China. Jiangxi International Trust and Investment Co., Ltd. has agreed to purchase this interest for approximately RMB1.5 billion (equivalent to approximately US$219 million).

“We are very pleased with the continued support of our business from local financial institutions, as evidenced by this recent development,” stated Xiaofeng Peng, Chairman and CEO of LDK Solar. “Jiangxi International Trust and Investment Co.’s investment in our 15,000 MT polysilicon plant will significantly strengthen our financial position and increase our near-term operating flexibility. We are pleased with the ongoing progress in ramping our 15,000 MT plant and look forward to providing a comprehensive update during our upcoming earnings call.”

About Jiangxi International Trust and Investment Co., Ltd

Jiangxi International Trust and Investment Co., Ltd. is engaged in economic development in Jiangxi Province through the operation of financial trusts, management of enterprise assets restructuring, mergers and acquisitions, project finance, corporate finance, and other intermediary business, on behalf of the custody business, by bank deposit, interbank offered loans, or investment using its own funds, managing the financial lending and other business approved by the People’s Bank.

First Solar Exec Gaffney Leaves; Profit Hit On Severance

By Eric Savitz
barrons.com

First Solar (FSLR) disclosed in an 8-K filing this morning said EVP and corporate secretary John Gaffney is leaving his post by “mutual agreement” with the company. Gaffney, formerly an attorney with Cravath, Swaine & Moore, was in charge of the company’s sustainable development and environmental affairs activities, as well as the legal and corporate development departments.

According to the filing, the company will take a $6.9 million after-tax Q4 hit to net income to cover his severance, or about 8 cents a share.

Gordon Johnson, an analyst with Hapoalim Securities, notes that Gaffney was involved in recent efforts to lobby for continued exclusion of the company’s cadmium telluride solar products from a pair of European standards known as WEEE (the Waste Electrical and Electronic Equipment directive) and RoHS (the Restriction of Use of Certain Hazardous Substances directive). As the New York Times recently reported, there is a move in Europe to extend the rules to cover the use of cadmium in solar products.

“Given Mr. Gaffney’s role as the lead coordinator in such effort, we question the inconvenient timing of his departure,” Johnson writes in a research note. “Mr. Gaffney’s termination during such a crucial period carries potentially negative inferences and could be indicative of negative complications in the company’s recent lobbying efforts. We reiterate out view that any tightening of EU regulations on cadmium in PV panels would be extraordinarily detrimental to FSLR and highlight the possible negative conjectures of Mr. Gaffney’s awkwardly timed departure.”

Johnson notes that FSLR produces only products that are cadmium-based, and that the current RoHS rule limited the amount of CdTe to 100 parts per million in any substrate – while the CdTe layer in First Solar’s panels are 47% Cadmium (or in other words, 470,000 parts per million.) “Thus, to be clear, FSLR is not currently in compliance with the RoHS directive, and will likely need to apply for an exemption in the near future,” creating “a large risk to the investment case” for FSLR shares, he writes.

FSLR today is up 47 cents, or 0.4%, to $123.88.

Canadian Solar sees doubling shipments in 2010

Tue Nov 17, 2009 1:17pm EST

* Q3 shr $0.69 vs est of $0.54

* Backs FY shipment view, sees shipments doubling in ‘10

* Says Q3 ASP was “just over” $2, sees Q4 prices below $2

* Sees Q1 ASPs down 7 to 8 pct sequentially, on Euro basis

* Shares rise 7 pct to new year-high

Nov 17 (Reuters) – Canadian Solar Inc’s (CSIQ) third-quarter profit rose sharply on strong demand, comfortably beating estimates, and the company said it expects to more than double shipments in 2010, sending its shares up more than 7 percent to their highest levels in a year.

The company, which backed its 2009 shipment view of about 295 megawatts (MW) to 305 MW, currently sees shipping about 600 MW to 700 MW in 2010.

On a conference call with analysts, the company said it had “reasonable” visibility into the first quarter and 2010.

“We have seen reasonable visibility. Our customers have already given us firm purchase orders for both December and January,” company executives said.

The company added that while the first quarter was usually weak, the first quarter of 2010 will be relatively stronger compared with last year.

Canadian Solar said major markets, including Germany, Italy and the U.S. would drive demand, adding that it expects strong growth from newer markets, such as Canada, Japan and China.

“For 2010…countries such as France and India might prove to be dark horses,” a company executive said.

“Basically our strategy is to improve our position in traditional markets such as Germany, Italy and Spain, while at the same time, diversifying into other significant markets.”

Given strong demand, Canadian Solar said it plans to increase its solar module production capacity to 1 gigawatt by the end of April 2010 from 820 MW currently.

The company, however, warned that average selling prices (ASP) would continue to fall.

“Third-quarter ASPs were just over $2, which reflects the industry average,” the company said, adding that prices in the fourth-quarter would likely come in below $2.

Canadian Solar said it was modelling for a sequential decline of about 7 percent to 8 percent for the first quarter, on a Euro basis.

While a fall in prices might be bad for component companies, customers benefit as the lower prices bring progress towards so-called “grid parity”, the point at which renewables cost the same as fossil fuel-based forms of power generation.

For the latest third-quarter, the company earned 69 cents a share, more than double the 31 cents a share it earned last year, comfortably beating estimates of 54 cents a share.

Sales nearly doubled sequentially to $213.1 million, coming in above Wall Street view.

Shares of the Chinese solar-cell maker rose $1.35 to a year-high of $21.05, before paring gains to trade up 2 cents at $19.72 Tuesday on Nasdaq. The stock has so far risen nearly seven-fold from a March low.

About 3.4 million shares changed hands in intra-day trade, 2.5 times the company’s 10-day moving average.

(Reporting by Adveith Nair in Bangalore; Editing by Jarshad Kakkrakandy)

SunPower shares tumble after accounting errors

Tue Nov 17, 2009 12:48pm EST

* Shares slide after accounting errors discovered

* Analysts cut recommendations on shares

NEW YORK, Nov 17 (Reuters) – The shares of solar power company SunPower Corp (SPWRA, SPWRB) tumbled more than 18 percent on Tuesday after the company said it was investigating millions of dollars in accounting errors.

The company announced on Monday that its audit committee had launched the probe after an internal review found its Philippine operations had overstated expenses and understated costs.

It was not yet clear if the company would need to restate its 2009 quarterly reports or its 2008 annual report.

Analysts at Raymond James, FBR and Caris cut their recommendations on SunPower stock Tuesday morning.

“Any whiff of accounting impropriety is going to be looked at extremely negatively by the market,” Raymond James analyst Pavel Molchanov said in an interview.

He noted the figure for the errors — $15 million — was not a huge number “in the grand scheme of things” and the news does not change SunPower’s fundamental business or contracts.

“We’re not going to jump to any conclusions, but the market has never been skittish about jumping to conclusions … Until the company can explain what the underlying problem is — what the cause is, who’s responsible — there will be an overhang on the stock. That’s the basis of our downgrade,” Molchanov said.

FBR Capital Markets analyst Mehdi Hosseini said in a note to clients that the accounting errors add “an additional layer of uncertainties” about the company’s cost structure.

Hosseini cut his price target for SunPower’s shares to $30 each from $38.

SunPower shares were down 18.2 percent at $22.28 in midday trading on Nasdaq after hitting $22.97 earlier in the session.

(Reporting by Matt Daily and Laura Isensee in Los Angeles, editing by Dave Zimmerman and Andre Grenon)

SunPower Crumbles; Multiple Downgrades On Accounting Mess

By Eric Savitz
barrons.com

SunPower (SPWRA, SPWRB) shares have cratered this morning after the company late yesterday disclosed an internal investigation of accounting practices at its Philippine operations, warning that it may have to restate results from 2008 and the first three quarters of 2009. In particular, the company said cost of goods sold appears to have been understated for the June and September quarters.

The disclosure has triggered a wave of mostly negative commentary from the Street, including a number of downgrades.

* Caris & Co. analyst Ben Pang cut his rating to Below Average from Average, with a new target of $21, down from $35. “We think the issue calls into question the profitability and earnings trends for the company and could also impact SPWRA’s ability to win certain contracts,” he writes in a note.
* Piper Jaffray analyst Jesse Pichel cut his rating to Neutral from Overweight, with a new target of $31, down from $38. Pichel notes that the stock has been moved to the “penalty box,” given the magnitude of the changes to cost of goods sold from the restructuring, and investor controversy over the company’s higher cost structure relative to Chinese solar companies. “We believe the stock will likely remain penalized until further information is disclosed.”
* FBR Capital analyst Mehdi Hosseini cut his rating to Market Perform, from Outperform. He says it is “prudent to move to the sidelines” until the company provides more details on the issue.
* Raymond James analyst Pavel Moldhanov cut his rating to Market Perform from Outperform. “The broader concern…is the very fact of accounting irregularities, however minor they may be,” he writes.

Meanwhile, analysts already bearish on the stock remain bearish.

* Bank of America/Merrill Lynch analyst Steven Milunovich repeated his Underperform rating. “The even raises questions regarding the containment of this particular issue and the strength of the company’s internal controls,” he writes.
* Pacific Crest analyst Mark Bachman likewise repeated his Underperform rating. “We remind investors that SunPower had to lower EPS guidance by 50 cents roughly one year ago due to accounting issues related to tax planning and foreign currency hedging,” he writes. “Two significant near-term accounting issues should raise investor concerns, and should also call into question whether SunPower has the proper accounting controls in place.”
* Gordon Johnson, Hapoalim Securities: “We believe this move implies further risk to management’s credibility, which, as we have written about before, remains a concern of ours with respect to incremental investment in SunPower,” he writes. Johnson maintains his Sell rating, adding that “at risk of stating the obvious, yesterday’s restatement strongly supports our thesis.”

SPWRA today is down $5, or 18.4%, to $22.23.

SunPower shares tumble as company investigates possible accounting errors

9:23 am EST, Tuesday November 17, 2009

NEW YORK (AP) — Shares of SunPower Corp. (SPWRA, SPWRB) tumbled in premarket trading Tuesday, following news that it is investigating whether its manufacturing operations in the Philippines made unsubstantiated accounting entries during the first three quarters of 2009.

The maker of solar power products said some of the entries relate to its fiscal year ended Dec. 28, 2008.

Shares fell $3.82, or 14 percent, to $22.90 ahead of Tuesday’s market open. The stock has ranged from $18.50 to $46.30 over the past year.

On Monday after the markets closed, the company said that based on preliminary findings, its audit committee has identified accounting entries that may have overstated expenses by about $1 million on the cost of goods sold in the first quarter of 2009. The entries also may have understated expenses by about $14 million in the second quarter and about $2 million in the third quarter of 2009.

SunPower estimated identified accounting entries totaling about $9 million in understatements should have been recorded in 2008. The company is working with its audit committee to determine if any restatements to its 2009 quarterly reports and 2008 annual results will be necessary.

The company noted that until its probe is complete, there can’t be any assurance that broader issues don’t exist.

“While accounting errors in any company’s financial statements are as welcome as the bubonic plague, SunPower’s early quantification of the adjustments indicates it may be manageable,” said Deutsche Bank analyst Steve O’Rourke, who maintained his “Buy” rating and $31 share price target.

O’Rourke also held to his outlook for the company, as he waits for a full-scope disclosure of the issues. He said the accounting errors call the company’s credibility more into question than its business model.

Collins Stewart analyst Dan Ries maintained a “Hold” rating for the company. He noted that SunPower’s cost of goods sold has been a key concern driving his rating for the solar company.

“If costs were being understated since calendar year 2008, our concerns would only grow,” Ries said in a report to clients.

Energizer Licensees ICP Solar and Universal Power Group Join Forces

Joint Operations and Product Supply to Increase Sales

8:49 am EST, Tuesday November 17, 2009

MONTREAL & CARROLLTON, Texas–(BUSINESS WIRE)–ICP Solar Technologies Inc. (ICPR), a developer and marketer of innovative solar panels, solar chargers, energy meters and other solar powered devices, today announced that it has partnered with Universal Power Group (UPG) in a third-party logistics and supply arrangement designed to leverage ICP Solar’s broad product line and UPG’s sourcing and distribution expertise.

“Since UPG is also a licensing partner in the Energizer® program and a major provider of third-party logistics for battery-based systems, we are collaborating with them to substantially improve ICP Solar’s in-stock performance and also add their complementary products to our offerings,” said Sass Peress, CEO of ICP Solar Technologies. “This relationship will also enable UPG to offer ICP Solar’s innovative line of Energizer-branded solar chargers to their own vast customer base. By drawing on UPG’s inventory and logistics support, ICP Solar can now increase its focus on innovation, marketing and sales. We expect this agreement to significantly improve our revenues and positively impact our bottom line for our next fiscal year.”

UPG is a leading, Texas-based distributor and supplier of batteries and related power accessories and a provider of supply chain and other value-added services. In December 2008, UPG entered into a licensing agreement with Energizer Holdings, Inc. to develop a line of automotive power products under the Energizer brand for distribution through mass, specialty and automotive stores.

“We are delighted to combine our expertise in third-party logistics with ICP Solar, while also expanding the breadth of Energizer-branded products we can offer to our combined target markets”, said UPG’s president and CEO, Ian Edmonds. “This marks another step in UPG’s long-term strategy of penetrating new markets through strategic alliances, while introducing new products to our existing customers. As a result, we can offer our retail and strategic partners a more complete line power accessories, while also adding opportunities for additional services and new distribution outlets. In addition, diversifying our markets minimizes UPG’s exposure to any one segment of the economy. ICP Solar is an example of the kinds of strategic partnerships we are seeking today, and we look forward to a mutually beneficial relationship for the long term.”

About Universal Power Group, Inc.

Universal Power Group, Inc. (UPG) is a leading supplier and distributor of batteries and power accessories, and a provider of supply chain and other value-added services. UPG’s product offerings include proprietary brands of industrial and consumer batteries of all chemistries, chargers, jump-starters, 12-volt accessories, solar and security products. UPG’s supply chain services include procurement, warehousing, inventory management, distribution, fulfillment and value-added services such as sourcing, battery pack assembly, coordination of battery recycling efforts, and product design and development. For more information, please visit the UPG website at www.upgi.com.

About Energizer Holdings, Inc.

Energizer Holdings, Inc. [ENR], www.energizer.com, headquartered in St. Louis, Missouri, is one of the world’s largest manufacturers of primary batteries, battery-powered devices and flashlights. Energizer, a global leader in the dynamic business of providing portable power geared toward the new digital age, offers a full portfolio of products including the Energizer® MAX® premium alkaline brand; Energizer® Ultimate Lithium; Energizer® Advanced Lithium and Nickel Metal Hydride (NiMH) Rechargeable batteries and chargers.

The Energizer product line also includes specialty batteries for hearing aids, health and fitness devices, as well as for keyless remote entry systems, watches and other uses. Through its flashlight and lighting products unit, Energizer helps bring consumer insight and innovation to these important household devices. Energizer continues its role as a technology leader with Energizer® Energi To Go®, portable battery powered chargers for cell phones.

Yingli Green Energy Announces the Attainment of TUV Rheinland ‘Power Controlled’ Certification at its 2009 Annual Global Customer Conference

7:22 am EST, Tuesday November 17, 2009

BAODING, China, Nov. 17 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (YGE; “Yingli Green Energy” or the “Company”), one of the world’s leading vertically integrated photovoltaic (“PV”) product manufacturers, today announced that its “Yingli Solar” brand modules have attained the “Power Controlled” certification from TUV Rheinland Group (“TUV Rheinland”), a leading global service provider in the testing of photovoltaic modules and components, at its 2009 Annual Global Customer Conference which kicked off today in Baoding. Present at the conference were more than 300 customers, business partners, PV association representatives and selected journalists.

“Power Controlled” certification provides independent verification and assurance that the real rated power of Yingli Solar brand modules lies within the specified tolerance as stated in the Company’s datasheets. The certification reduces risk and uncertainty in the real power installed in PV systems and therefore further reduces financial return risk for investors. The Company believes the attainment of this certification further reinforces the bankability of its “Yingli Solar” brand modules.

“We are pleased to be among the first companies to receive ‘Power Controlled’ certification,” Mr. Liansheng Miao, Chairman and CEO of Yingli Green Energy, commented. “At Yingli Green Energy we are focused on continuously improving our product quality, and we strive to underpin our innovations with certifications from leading independent third parties. With the ‘Power Controlled’ certification we can offer our customers and investors an additional level of assurance that our modules deliver the power that we promise, and by reducing the uncertainty in PV system performance we are helping lay the foundation for grid-parity PV solutions in the future.”

Willi Vaassen, TUV Rheinland Business Field Manager of Renewable Energy, commented, “We are pleased that Yingli Green Energy is one of the first recipients of the ‘Power Controlled’ certification, which we have designed to drive the development of a reliable power rating system for PV modules. As the leading global service provider in the testing of photovoltaic modules and components, we are committed to boosting market access and reducing investment risk for PV systems around the world through rolling this program out to leading global PV-module manufacturers.”

TUV Rheinland “Power Controlled” certification includes periodic third-party assessment of Yingli Green Energy’s pulsed solar simulators, measurement procedures, maintenance and calibration intervals and power output verification testing of PV modules through random sampling and evaluation of flash-test data from the production line. The measurement procedures and calibration are traceable to the highest standards of World PV Scale (WPVS).

About TUV Rheinland Group

TUV Rheinland is a leading group for the provision of technical services worldwide. It has over 490 locations in 61 countries on all five continents. TUV Rheinland is over 130 years old and its headquarters are in Cologne, Germany. As the leading global service provider in the testing of Photovoltaic modules and components, TUV Rheinland Group tests and provides certification of about 70% of PV products worldwide. We have more than 100 PV-experts worldwide with up to 25 years of expertise in the PV field.

Canadian Solar Reports Third Quarter 2009 Results and Issues 2010 Guidance

Q309 Highlights
– 87% increase in net revenues to $213.1 million, compared to Q209 net revenues of $114.2 million.
– 113% increase in shipments of 102.6 MW, compared to Q209 shipments of 48.2 MW, setting a new quarterly shipping record.
– Gross margin of 16.3%, compared to Q209 gross margin of 20.2% and Q308 gross margin of 15.5%.
– Net income of $0.69 per diluted share in Q309, compared to $0.49 per diluted share in Q209. Net profit of $25.3 million sets new quarterly record. Net profit margin reaches 11.9%.

7:00 am EST, Tuesday November 17, 2009

ONTARIO, Canada, Nov. 17 /PRNewswire-Asia-FirstCall/ — Canadian Solar Inc. (the “Company”, “Canadian Solar” or “we”) (CSIQ) today announced its unaudited financial results for the third quarter of 2009 ended September 30, 2009 and its outlook for the fourth quarter of 2009 and the full year 2010.

Net revenues for the third quarter of 2009 were $213.1 million, compared to net revenues of $114.2 million for the second quarter of 2009 and $252.4 million for the third quarter of 2008.

Net income for the third quarter of 2009 was $25.3 million, or $0.69 per diluted share, compared to $17.7 million, or $0.49 per diluted share, for the second quarter of 2009 and $11.1 million, or $0.31 per diluted share, for the third quarter of 2008.

Shipments for the third quarter of 2009 were 102.6 MW, compared to shipments of 48.2 MW for the second quarter of 2009 and 60 MW for the third quarter of 2008. Third quarter 2009 sales came from all geographic markets important to the solar industry, with Europe continuing to be the Company’s largest contributing geographic market. Sales in that region grew strongly in the quarter, increasing 179% from the second quarter of 2009.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, commented: “We broke our previous records on both MW shipment volumes and net profit in this quarter. The significant increases in sales and earnings were the result of the successful implementation of our global sales strategy combined with our strong brand name recognition, cost control and effective supply chain management. Our flexible vertical integration model allowed us to capture the sharp increase in market demand during the quarter and to raise our module sales faster than the growth of our internal cell capacity. Our R&D capability is another important competitive differentiator for Canadian Solar. During the quarter, three of our solar module products recorded the highest scores for P-type solar modules during the PV USA (PTC) tests, which are mandatory for the California Solar Initiatives. Subsequent to the quarter end, we pre-launched our high-output premium products using our enhanced selective emitter technology. These products are expected to have monocrystalline cell conversion efficiencies of 18.5% and multicrystalline cell efficiencies of 17%. We are also in the process of testing a cost effective two-axis tracker.”

First Solar and Ordos Take Key Step Forward in 2GW China Project

Cooperation Framework Agreement Signed During China-US Presidential Summit

4:30 am EST, Tuesday November 17, 2009

BEIJING–(BUSINESS WIRE)–First Solar, Inc. (FSLR) today announced a Cooperation Framework Agreement with the Chinese government that takes another critical step towards the realization of the world’s largest solar power plant in the autonomous region of Inner Mongolia, China.

First Solar President Bruce Sohn and Mayor Yun Guangzhong of the Ordos City Government signed the Cooperation Framework Agreement in the presence of Chinese Vice Premier Li Keqiang, Vice Minister Liu Qi of the National Energy Administration, and U.S. Secretary of Energy Steven Chu. The Agreement between First Solar and Ordos spells out additional project details and local support that advance the development of the 2 gigawatt (GW) solar power plant and confirm the June 1, 2010 expected construction start date for the 30 megawatt (MW) Phase 1. First Solar and Ordos also agreed to establish two committees to ensure the successful execution of the project and to develop a new energy industry in Ordos.

“This Cooperation Framework Agreement and its recognition by the National Energy Administration mark a critical step forward in the approval process for the Ordos project, one of the world’s most ambitious renewable energy projects,” said First Solar Chief Executive Officer Rob Gillette. “It reinforces the commitment of First Solar, the Chinese government, and the Ordos local government to make an immediate contribution to the development of a healthy solar industry in China and to the reduction of greenhouse gas emissions.”

The signing ceremony took place as part of the U.S.-China Summit where U.S. President Barack Obama and Chinese President Hu Jintao met to discuss upcoming global climate change negotiations and clean energy, among other topics. “President Obama’s trip to Beijing is a significant step forward in further solidifying bilateral relations with China. First Solar is enthusiastic in contributing to the commercial relations of our two countries through this Cooperative Framework Agreement,” said Mr. Gillette.

“Solar energy will play a significant role in achieving China’s low carbon future,” said Yun Guangzhong, Mayor of Ordos City. “We are very pleased to be partnering with one of the solar industry’s global leaders in a project of such significance.”

The 2GW First Solar project is to be built in multiple phases, beginning with the 30MW Phase 1. Phases 2, 3 and 4 are to be 100MW, 870MW, and 1,000MW, respectively. Phases 2 and 3 are to be completed by 2014 and Phase 4 is to be completed by 2019. The project is part of a planned 11.95GW New Energy Industry Demonstration Zone in Ordos City, Inner Mongolia. The New Energy Industry Demonstration Zone is expected to combine solar, wind, hydroelectric and biomass power sources to provide a steady supply of renewable energy to the region that includes the Chinese capital.

Yesterday, Mr. Sohn participated in a Clean Energy Roundtable with National Energy Administration Vice Minister Liu Qi, Energy Secretary Chu, Commerce Secretary Locke, U.S. Trade Representative Kirk and a small group of senior U.S. and Chinese business executives. During the high-level Roundtable, in which First Solar was asked to address the significance of renewable energy, Mr. Sohn told participants that China’s vision and leadership in supporting solar energy and the Ordos project will “serve as a model of renewable power generation for the world. Projects such as Ordos will enable significant cost reductions through scale, and make solar a truly sustainable energy source in the near future. First Solar is committed to helping build a sustainable solar industry and low carbon economy in China by bringing advanced solar PV technology, global experience, and a focus on cost reduction and environmental sustainability.”

The Cooperation Framework Agreement sets forth the agreement in principle of the parties concerning the project and related activities. Final agreement between the parties is subject to the negotiation and execution of definitive agreements among the parties.

STR Holdings Reports Third Quarter 2009 Financial Results

10:08 pm EST, Monday November 16, 2009

ENFIELD, Conn.–(BUSINESS WIRE)–STR Holdings, Inc. (STRI) today announced its consolidated financial results for the quarter and nine months ended September 30, 2009.

Third Quarter 2009 consolidated financial and operating highlights include:

* Solar Net Sales rose 19% to $35.4 million, on a quarterly sequential basis
* Quality Assurance Net Sales increased 13% to $32.0 million from the 2008 third quarter
* Operating Cash Flow of $15.7 million significantly exceeded Net Income

During the third quarter of 2009, the Company’s Solar segment net sales declined by $12.8 million, or 27%, compared to the third quarter of 2008. Solar segment adjusted EBITDA for the third quarter of 2009 was $16.5 million, compared with $21.9 million a year ago.

During 2009, the Company’s Solar segment has been negatively impacted by an oversupply of inventory in the Solar module supply chain. However, on a sequential basis, third quarter 2009 Solar sales rose 19% to $35.4 million as a result of increased sales in the United States and Europe as overall solar industry conditions have shown improvement during the quarter in key end markets including California, Germany and Italy.

STR’s Quality Assurance segment net sales for the third quarter of 2009 rose $3.6 million, or 13%, from the same quarter last year due to increased testing volume in the United States and Asia. Quality Assurance adjusted EBITDA rose to $7.1 million, up from $5.6 million a year ago.

“This quarter’s financial results reflected double digit improvement in our sequential top-line performance as well as significant growth in our cash flow generation,” stated Chairman, President and Chief Executive Officer Dennis L. Jilot. “And, while it came as no surprise that we saw a year over year decline in our Solar segment sales, we are now seeing signs that economic conditions are improving. At the same time, we recently began shipping from our new Malaysian plant, making us the only encapsulant provider with manufacturing and distribution capabilities in North America, Europe and Asia. As such, STR is well positioned to capitalize on the solar industry’s global expansion, including the emerging China market.”

Spire Corporation Reports Third-Quarter 2009 Results

– Revenues for first nine months grew 9% year over year

– Entered into Agreement to sell its medical products business unit

5:36 pm EST, Monday November 16, 2009

BEDFORD, Mass.–(BUSINESS WIRE)–Spire Corporation (SPIR), a global solar company providing capital equipment to manufacture photovoltaic (PV) modules, turnkey manufacturing lines and solar PV systems, today reported revenues from continuing operations for the third-quarter ended September 30, 2009 of $16.5 million, as compared to $16.6 million for the same quarter of 2008. Net loss for the third-quarter of 2009 was $3.5 million, or $(0.42) per share, compared with net income of $445,000, or $0.05 per share, for the third-quarter of 2008. These losses include losses of $1.2 million and $77,000, or $(0.15) and $(0.01) per share, for the third-quarter periods of 2009 and 2008, respectively, from the Company’s medical products business unit which has been classified as discontinued operations.

Revenues from continuing operations for the first nine months ended September 30, 2009 were $50.1 million, a 9% increase from $46.2 million for the same nine month period in 2008. Net loss for the nine months ended September 30, 2009 was $9.6 million, or $(1.15) per share, compared with a net loss of $347,000, or $(0.04) per share, for the same period in 2008. These results include losses of $1.6 million and $358,000, or $(0.20) and $(0.04) per share, for the nine month periods ended September 30, 2009 and 2008, respectively, from the Company’s medical products business unit which has been classified as discontinued operations.

Net cash provided by operating activities of continuing operations was $429,000 for the nine months ended September 30, 2009, compared to net cash provided by operating activities of $2.9 million for the same period in 2008. As of September 30, 2009, the Company had cash and cash equivalents of $6.3 million of which $4.9 million is unrestricted.

Roger G. Little, Chairman and CEO, said, “We are encouraged in a tough market by a 3% growth in revenue of our solar products and services business on a year over year basis for the third quarter ended September 30, 2009, as this segment represented 82% of our total revenue. The Company delivered two module lines and several orders for capital equipment to its customers as they position for expected global expansion of PV.”

“The Company also delivered solar cells to UNICOR, a wholly-owned government corporation, for the Spire-installed turnkey PV module factory as part of its ongoing commitment and partnership in support of the federal market. The Company was also awarded a new contract to expand their current 25 megawatt (MW) module manufacturing capacity by the addition of a 50MW module manufacturing line to be located in Sheridan, Oregon.”

Solar panel maker Suntech plans Phoenix-area plant

Chinese-owned solar panel maker Suntech Power Holdings announces plans for Phoenix-area plant

By Terry Tang, Associated Press Writer
5:17 pm EST, Monday November 16, 2009

PHOENIX (AP) — Gov. Jan Brewer on Monday announced plans for a Chinese-owned solar panel maker to build its U.S. headquarters and a manufacturing plant in the Phoenix area, propelling one of the nation’s sunniest states toward a bigger global presence in the renewable energy industry.

Suntech Power Holdings Co. (STP) said it expects to start building photovoltaic panels at the facility by the third quarter of 2010. The company, which has more than 9,000 employees, expects to eventually employ 250 or more people at the plant.

Suntech said it selected the Phoenix area because of Arizona’s leadership in solar research through Arizona State University and statewide renewable energy policies. The company plans to decide on the precise location of the plant in the coming weeks.

The first phase of Suntech’s 100,000-square-foot facility will bring a $13 million investment and 125 jobs, the governor said. If the company’s investment grows to at least $25 million, it will qualify for property tax reductions as part of the state’s Renewable Energy Tax Incentive program.

“It’s an example of how an investment can work and be fiscally responsible,” said Barry Broome, president of the Greater Arizona Economic Council. “This is a company that’s capable of creating thousands of jobs in a state like Arizona.”

Brewer said a majority of the jobs would be high-paying positions with health care coverage.

“Trust me, they are not going to be the last ones,” she said. “We are building what I believe is a very diverse and sustainable Arizona economy.”

Suntech Chairman and CEO Dr. Zhengrong Shi said setting up in Arizona is the first step in a long-term, strategic investment in the North American market.

SunPower Internal Review Identifies Unsubstantiated Accounting Entries

4:47 pm EST, Monday November 16, 2009

SAN JOSE, Calif., Nov. 16 /PRNewswire-FirstCall/ — SunPower Corp. (SPWRA, SPWRB) today announced that based upon an internal review of its Philippine manufacturing operations, the company believes there may have been unsubstantiated accounting entries made in the first three quarters of 2009, some of which relate to the company’s fiscal year ended December 28, 2008. Management informed the Audit Committee of the Board of Directors of these entries and the Audit Committee immediately commenced an investigation of the matter, which is ongoing. The company’s Audit Committee and management have discussed these issues with the company’s independent auditors.

Based upon the preliminary findings of the ongoing investigation, the Audit Committee to date has identified accounting entries in the Philippines that may have overstated expenses in its cost of goods sold of approximately $1 million in the first quarter ending March 29, 2009, and understated expenses in its cost of goods sold of approximately $14 million in the second quarter ending June 28, 2009 and approximately $2 million in the third quarter ending September 27, 2009. The company previously reported 2009 quarterly revenues and operating income under Generally Accepted Accounting Principles (GAAP) of $213.8 million and a loss of $2.5 million, respectively, in the first quarter, $297.6 million and $9.9 million, respectively, in the second quarter and $466.3 million and $34.6 million, respectively, in the third quarter. Full-year 2008 revenues were reported of $1,434.9 million and GAAP operating income of $167.5 million.

If the preliminary investigation findings prove to be final, they could impact the company’s previously reported interim 2009 financial results. The company is also in the process of evaluating the financial impact of these adjustments on its previously reported results for the fiscal year and interim periods ended December 28, 2008. The company currently estimates that approximately $9 million of the identified accounting entries should have been recorded in 2008.

The company is working with the Audit Committee, the Committee’s outside experts, and with the company’s independent auditors to determine if any restatements of the 2009 interim financial reports and the 2008 annual report will be necessary. Until the investigation is complete and such a determination is made, there can be no assurance that broader issues do not exist. Therefore, the company’s previously issued interim financial statements for each of the 2009 quarterly periods, the previously reported financial results for the fiscal year ending December 28, 2008, the financial information in its quarterly reports on Form 10-Q for the 2009 quarters, the financial information in the 2008 annual report on Form 10-K, and the guidance provided by the company for the 2009 fiscal year, should no longer be relied upon. The company anticipates providing an update on the investigation within the next 30 days.

Operationally, the company’s outlook for the fourth quarter of 2009 remains consistent with its previous expectations for sales and operating income, subject to any costs, charges, and tax-related impacts relating to the ongoing investigation.

Solar Stocks Rally As Yingli Forecasts Stable Pricing

By Eric Savitz
barrons.com

Solar stocks are flying today after some bullish comments Friday on pricing in the solar sector by Yingli Green Energy (YGE) CFO Bryan Li on the company’s Q3 conference call on Friday. Li said he expects Q4 average solar products pricing to be flat to down slightly in Q4 from Q3, with flat to up pricing in Q1 of next year.

Merrill Lynch/Bank of America analyst Lu Yeung wrote in a Friday research note that the ASP forecast “bodes well for the broader industry group.”

Barclays Capital Vishal Shah likewise noted in a report today that the comments from YGE management suggest that “the price war in the solar industry may be temporarily over.” He added that while weather, Germain feed-in-tariff reductions and development of non-German markets will be important in how 2010 plays out, “YGE’s comments increase the prospects of potential upward earnings revisions for the sector in the near term.”

Janney Capital Markets analyst John Roy today upped his rating on on YGE to Buy from Neutral, “as the outlook for pricing and thus margins have improved.” He contends that “Yingli is a major price setter, and they are guiding to a more benign pricing environment in 2010.” He adds that “there is other evidence that prices are beginning to stabilize,” and that the trend should continue.

Ergo, most solar stocks are sharply higher:

* Suntech (STP) is up $1.75, or 12.8%, to $15.47.
* Sunpower (SPWRA) is up 63 cents, or 2.4%, to $27.05.
* Canadian Solar (CSIQ) is up 74 cents, or 4%, to $19.19.
* Yingli is up 54 cents, or 4%, to $13.99.
* First Solar (FSLR) is up $4.74, or 4%, to $123.04.
* Evergreen Solar (ESLR) is up 8 cents, or 5.4%, to $1.56.
* LDK Solar (LDK) is up 58 cents, or 9.1%, to $6.97.

Suntech hopes Arizona plant to ease US job worries

Mon Nov 16, 2009 3:03pm EST

* Plant to start at 30 MW in third quarter of 2010

* Co expects to keep same margins for U.S.-made panels

* Co hopes new plant will ease worries on green jobs

By Laura Isensee

LOS ANGELES, Nov 16 (Reuters) – Suntech Power Holdings Co Ltd (STP), China’s largest solar panel maker, hopes its first U.S. manufacturing plant in Arizona will ease worries that China may be taking green jobs from the United States, an executive said on Monday.

Suntech said on Sunday that it picked Arizona as the site for its U.S. panel assembly facility, which will use solar cells shipped from China.

Shares of Suntech, which is set to report quarterly results on Thursday, were up nearly 13 percent at $15.47 in trading on Monday on the New York Stock Exchange.

“This is truly an international marketplace, especially when you’re talking about solar. It always has been. It makes a very positive statement — here’s a Chinese solar company that’s literally exporting jobs from China to the U.S.,” said Roger Efird, managing director of Suntech.

“We’re hoping that this kind of action helps to alleviate the worries that some people have about alternative energy jobs moving overseas,” Efird said.

Suntech plans to open its new plant in the third quarter of 2010 with an initial capacity of 30 megawatts and a staff of 75 people. The plant is part of its long-term strategy for the United States, which the company expects to be its biggest market in three years.

Piper Jaffray analyst Jesse Pichel said that Suntech’s plans for U.S. manufacturing are primarily political for now but could pay off economically in the future.

“If you want to be a global player, you have to have global production to meet local market demand,” Pichel said.

“In the future if the U.S. can be the size of the German market, then putting (manufacturing) in the States will have some economic benefit. But clearly right now, it’s a political move. Everyone wants jobs,” Pichel said.

He noted that federal buildings may require U.S.-made solar panels. “Given that Suntech uses a lot of silicon made in Texas and with module assembly in Arizona, they would be as ‘Made in the USA’ as anybody,” Pichel said.

Solar Leaders One Year Later

From our entry November 13, 2008 in Time to start re-entering the leaders.

Company	Entry	Last	$ G / L	% G / L
CSIQ – Canadian Solar Inc.	$    5.50	$   19.48	$   13.98	254%
ENER – Energy Conversion Devices, Inc.	$   25.00	$   11.11	$  (13.89)	-56%
FSLR – First Solar Inc.	$ 110.00	$ 123.03	$   13.03	12%
HOKU – Hoku Scientific Inc.	$    4.00	$    2.42	$   (1.58)	-40%
SPWRA – SunPower Corp.	$   25.00	$   27.09	$    2.09	8%
STP – Suntech Power Holdings Co. Ltd.	$   10.00	$   15.26	$    5.26	53%
Average Gain				39%

Cheap Solar: Plunging Silicon Gives Asian Solar Companies an Edge, HSBC Says

By Keith Johnson
wsj.com

Solar prices have already collapsed, but they still have plenty of room to keep falling. That’s actually good news for the industry—and for Asian solar-power companies in particular, HSBC says in a new report.

Thanks to the glut of polysilicon, prices for solar-power modules have collapsed, falling 50% over the last year, the bank says. Since there’s still a supply glut, prices will keep falling—another 20% by the end of 2010.

The bad news, such as it is, is that falling prices squeeze margins at lots of solar companies, slamming share prices and forcing layoffs.

The good news is that as solar power gets cheaper, demand should pick up after a terrible year. HSBC figures that cheaper silicon makes solar power only two to two-and-a-half times more expensive than traditional power sources, compared with five to six times more expensive just a year ago.

That should spur rapid growth, consolidation, and scale economies—all of which could push the cost of solar power even lower. HSBC renewed its forecast of solar grid parity in some big markets by 2013.

The other big effect of cheaper silicon prices is that it makes the cost of silicon less important and other costs more so—giving an advantage to Asian solar-power players who enjoy advantages in things like labor and manufacturing costs.

HSBC says: “We estimate silicon will account for one-third of module costs by 2011, down from more than two- thirds in 2008. As a result, we believe leaders in downstream non-silicon costs will enjoy higher market share, better margins or both.”

For the investment bank, that means that companies such as Trina Solar (TSL) and Suntech Power (STP) are becoming more attractive. The bank initiated coverage on Trina at “overweight” and upgraded Suntech to “neutral” from “underweight.”

Less attractive? Yingli Green Energy (YGE) and LDK Solar (LDK), both burdened by in-house silicon production. HSBC downgraed Yingli to “underweight” from “overweight” and reiterated LDK’s “underweight” rating.

ReneSola Ltd Announces Third Quarter 2009 Results

Company Achieves Record Quarterly Product Shipment Volume; Net Revenues Exceed Guidance

7:13 am EST, Monday November 16, 2009

JIASHAN, China, Nov. 16 /PRNewswire-Asia-FirstCall/ — ReneSola Ltd (“ReneSola” or the “Company”) (SOL), a vertically integrated Chinese manufacturer of solar power products, today announced its unaudited financial results for the third quarter ended September 30, 2009.

Third Quarter 2009 Financial and Operating Highlights
– Q3 2009 net revenues exceeded guidance and were US$140.9 million, an increase of 70.6% from US$82.6 million in Q2 2009.
– Total solar product shipments in Q3 2009 were a record 146.9 megawatts (“MW”), an increase of 71.0% from 85.9 MW in Q2 2009.
– The Company successfully completed the integration of Wuxi Jiacheng Solar Energy Technology Co. (“JC Solar”) following its acquisition on May 31, 2009. Approximately 11 MW of modules were shipped in Q3 2009 with a gross profit margin of over 20%.

                                Three months     Three months    Three months
                                    ended            ended          ended
                                September 30,      June 30,      September 30,
                                     2008             2009           2009
                                 (Unaudited)      (Unaudited)     (Unaudited)

    Product shipment (MW)              90.4             85.9           146.9
    Net revenue (US$000)            215,754           82,629         140,945
    Gross profit (US$000)            45,809            4,251           4,738
    Gross margin (%)                  21.2%             5.1%            3.4%
    Operating profit (loss)
     (US$000)                        36,888           (3,962)         (7,774)
    Profit (loss) for the
     period (US$000)                 32,385           (3,589)        (10,171)

 

“We witnessed a strong rebound in customer demand for our quality products in the third quarter of 2009 and reached a corporate landmark as ReneSola achieved the highest quarterly shipments of solar products in its history,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “The benefits of our strategic acquisition of JC Solar and evolution into an OEM based, vertically integrated solar manufacturer expedited with the recently announced acquisition of Dynamic Green Energy are allowing us to build upon our strong wafer manufacturing platform and deliver high quality, low cost products throughout the solar production value chain.”

Mr. Charles Bai, ReneSola’s chief financial officer, added, “We were pleased to see strong improvements in revenues and shipment volumes during the third quarter as we continue to witness strong customer demand and continue to gain market share globally. We are one quarter away from completely working through our high cost inventories. As such, we expect substantial margin improvements and a return to profitability in Q1 2010.”

Results for the Third Quarter of 2009

Suntech Selects Arizona for First U.S. Manufacturing Plant

Solar Leader Brings Green Manufacturing Jobs from China to the United States

10:30 pm EST, Sunday November 15, 2009

BEIJING, Nov. 15 /PRNewswire-Asia/ — From the U.S. China Green Tech Summit today, Suntech Power Holdings Co., Ltd. (STP), announced that its first U.S. manufacturing plant for the growing North American market would be located in the Greater Phoenix, Arizona area. The plant will have an initial production capacity of 30 megawatts (MW) and is expected to begin production in the third quarter of 2010.

The announcement makes Suntech the first Chinese cleantech leader to bring manufacturing jobs to America. Suntech selected the Greater Phoenix area for its plant because of Arizona’s leadership in research through Arizona State University, and statewide renewable energy policies, particularly its Renewable Energy Standard and distributed generation set-aside, as well as a supportive local business climate represented by the Greater Phoenix Economic Council. The Suntech U.S. plant will employ over 75 full-time employees at launch and may double its staff within the year as the North American market develops.

Initially starting with 30 MW of PV module production capacity, the Suntech plant is configured for growth to respond to the expected expansion of the U.S. solar market in the coming years. The U.S. market had 356MW of solar PV capacity installed during 2008 (source: Photon Magazine, Nov. 2009), and is expected to grow six-fold to more than 2GW by 2012 (source: Solarbuzz LLC, Mar. 2009).

“Bringing manufacturing jobs to the U.S. is part of Suntech’s vision to grow the solar market in every corner of the world,” said Suntech’s Chairman and CEO Dr. Zhengrong Shi. “We are eagerly watching growing markets and see the potential of bringing manufacturing capabilities to other markets where we see the combination of rapid local market growth and manufacturing cost competitiveness.”

Locating the plant close to Suntech’s U.S. customers will reduce the time, costs, and emissions associated with long-distance shipping of Suntech panels. The plant, which will be approximately 80,000 to 100,000 square feet, will allow for long-term growth of manufacturing capabilities to meet increasing American demand for solar power.

“Suntech has been a leader to watch for some time, and its decision to bring manufacturing here to the U.S. is a great sign of the increasingly important collaboration between Chinese and American leaders in the renewable energy industry, as well as the potential for growth of green jobs in countries that implement smart, supportive policies,” said Dan Kammen, Professor in the Energy and Resources Group and Director of the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley.

Dr. Shi continued, “This is the first step in what I see as a long-term, strategic investment in the North American market. Over the last two years we have grown our U.S. team to over 60 employees. As a result of that effort, we have developed a network of over 200 solar dealers and integrators installing Suntech products and are actively involved with a number of large-scale solar project developers serving the utility market. We also have developed strong partnerships with U.S. companies such as MEMC (WFR) of Pasadena, Texas, our largest supplier of silicon wafers used in our modules. The leadership shown by the US government in advancing renewable energy will only improve the environment for further investments in the coming years.”

Suntech plans to make a final decision on the specific location of the plant in the coming weeks.

Solar power startup Ausra looks to sell itself

Fri Nov 13, 2009 9:40pm EST

* Potential buyers are international conglomerates

* Deals in “aggressive level” of discussion

* Solar thermal start-up raised $130 mln in venture capital

By Laura Isensee

LOS ANGELES, Nov 13 (Reuters) – Kleiner Perkins and Khosla Ventures-backed solar thermal start-up Ausra Inc is in talks to sell itself with three potential buyers, two sources familiar with the company told Reuters on Friday.

The buyers could take a majority stake or snag the whole company and the discussions are at a “very aggressive level”, said one source familiar with the company, who was not authorized to discuss the matter publicly.

Both sources said the interested companies were global conglomerates in the power generation business but declined to name them. The companies already have various power products, such as steam and gas turbines, and are committed to renewable energy. One interested party has engaged with Ausra previously, one source said.

Ausra declined to comment.

A sale of the high profile Silicon Valley start-up that has raised $130 million in venture capital would add to a string of recent deals and growing consolidation in the solar power industry.

Chinese solar wafer manufacturer ReneSola Ltd (SOL) plans to buy Dynamic Green Energy Ltd while silicon maker MEMC Electronic Materials Inc (WFR) plans to acquire privately-held SunEdison, which installs, maintains and finances commercial solar systems.

Privately held Ausra, which is based in Mountain View, California, launched as a solar thermal developer in 2006, when solar power and other clean technology were luring venture capitalists.

Two years ago the company landed a power purchasing agreement with California utility PG&E, a unit of PG&E Corp (PCG) for a 117 megawatt solar thermal plant. Solar thermal plants use the sun’s rays to heat liquid to create steam, which drives turbines and generates electricity.

Earlier this year, the company switched tracks, saying it would move away from developing projects and focus on supplying large-scale solar steam generators.

This month Ausra said that it canceled its agreement with PG&E and sold the project’s land to the largest U.S. solar power company, thin film photovoltaic First Solar Inc (FSLR).

Ausra also has deals in Jordan and Australia and other investors include Starfish Ventures and KERN Partners.

One source familiar with the company said that “extensive work” has been done at various stages of completion with the interested buyers.

“We’re talking about meetings with dozens of people involved,” said the person, who also was not authorized to speak publicly about the discussions.

(Reporting by Laura Isensee; Editing Bernard Orr)

Solar panel supply glut past peak – research

Fri Nov 13, 2009 3:51pm EST

* Supply of panels to exceed demand by 66 pct in 2009

* Previous forecast in August was nearly 92 pct

* Strong demand in Germany eating up excess supply

LOS ANGELES, Nov 13 (Reuters) – The global glut of solar panels that has overwhelmed the industry for much of 2009 is past its peak as strong demand from Germany, the world’s largest solar market, eats up extra supply, according to a report issued on Friday by industry research firm iSuppli.

Solar panels have piled up and prices have tumbled this year since the financial crisis and pullbacks in government incentives in Spain triggered a drop in demand.

The research group previously forecast the oversupply of panels to last through 2010, but said it estimates the glut could be resolved next year.

“Solar-panel installations in Germany began surging to record levels in July as prices for photovoltaic systems plunged,” said Henning Wicht, senior director of photovoltaics research for iSuppli, in a statement.

“This phenomenon has boosted the global solar panel business and mitigated the severe oversupply situation that has stung the industry throughout this year.”

The global supply of solar panels is expected to exceed demand by nearly 66 percent in 2009, down from the previous forecast in August of about 92 percent overage, iSuppli said.

The report echoes some positive forecasts given by solar power companies that have reported financial results recently.

Chinese solar panel maker Yingli Green Energy Holding Co Ltd (YGE) posted better-than-expected quarterly profit on Friday and said that demand in Europe is outstripping supply.

European renewable energy companies — such as Germany’s Q-Cells AG, one of the world’s largest solar cell makers — sounded upbeat for 2010 as cost cuts and an expected pickup in demand helped lift profits after a difficult year.

(Reporting by Laura Isensee)

Yingli profit tops Street view; shares jump

Fri Nov 13, 2009 12:13pm EST

* Q3 adjusted earns $0.18/ADS; Street view $0.16/ADS

* Raises low end of forecast range for 2009 gross margin

* Shares rise 9 pct

NEW YORK, Nov 13 (Reuters) – Chinese solar panel maker Yingli Green Energy Holding Co Ltd (YGE) posted better-than-expected third-quarter profit on strong shipments, sending its shares up 9 percent.

Solar companies have struggled over the past 12 months as a glut of supplies on the global market has depressed prices, but Yingli’s earnings showed the sector may be rebounding.

Improvement in credit markets helped lift Yingli’s solar module shipments by 80 percent from the second quarter, and the company said it now expects full-year shipments of 490 MW to 500 MW, compared with a previous forecast of 450 MW to 500 MW.

Demand in Europe is far outstripping supply, company executives told a conference call, and the U.S. market improved in the third quarter.

Yingli’s results bode well for its Chinese peers Suntech Power Holdings Co Ltd (STP) and Trina Solar (TSL), which are due to report quarterly results next week, said Simmons & Co analyst Burt Chao.

Yingli’s results reflect “strong demand, strong pricing and the ability for these companies to meaningfully decrease costs and therefore expand margins,” Chao said.

He said Yingli could reach margins of 25 percent next year and noted the company’s positive outlook for average selling prices for panels to be flat or even rise in the first quarter of 2010.

Net income for the third quarter was $17.7 million, or 12 cents per American depositary share (ADS). Excluding one-time items, the company earned 18 cents per ADS.

Analysts on average were expecting 16 cents per ADS before items, according to Thomson Reuters I/B/E/S.

Total net revenue increased slightly to $326 million.

For 2009, The company narrowed its gross margin outlook to between 19 percent and 20 percent, from 18 percent to 20 percent previously.

Yingli shares were up 9.4 percent at $13.16 in midday trading on the New York Stock Exchange.

(Reporting by Matt Daily; additional reporting by Laura Isensee in Los Angeles and Supantha Mukherjee in Bangalore; Editing by Dave Zimmerman and John Wallace)

Yingli Green Energy Reports Third Quarter 2009 Results

Shipment Volume Reached Record High and Increased More Than 80% Quarter over Quarter
Income from Operations Increased 127% Quarter over Quarter
Non-GAAP EPS Increased to RMB 1.20 from RMB 0.91 Quarter over Quarter

4:07 am EST, Friday November 13, 2009

BAODING, China, Nov. 13 /PRNewswire-Asia-FirstCall/ — Yingli Green Energy Holding Company Limited (YGE; “Yingli Green Energy” or the “Company”), one of the world’s leading vertically integrated photovoltaic (“PV”) product manufacturers, today announced its unaudited consolidated financial results for the quarter ended September 30, 2009.

Third Quarter 2009 Consolidated Financial and Operating Highlights
– Total net revenues were RMB 2,225.2 million (US$326.0 million) and PV module shipment volume increased more than 80% quarter over quarter.
– Gross profit was RMB 447.6 million (US$65.6 million), with a gross margin of 20.1%.
– Operating income was RMB 242.8 million (US$35.6 million), with an operating margin of 10.9 %.
– Net income(1) was RMB 120.8 million (US$17.7 million) and diluted earnings per ordinary share and per American depositary share (“ADS”) was RMB 0.79 (US$0.12).
– On an adjusted Non-GAAP(2) basis, net income was RMB 184.2 million (US$27.0 million) and diluted earnings per ordinary share and per ADS was RMB 1.20 (US$0.18).

“I am pleased to announce strong results for the third quarter, with record highs in shipment volume and net revenues and healthy growth in net income,” said Mr. Liansheng Miao, Chairman and Chief Executive Officer of Yingli Green Energy. “The main driving force for these results was increased market demand for our ‘Yingli Solar’ brand products as the solar project financing environment continued to improve and as we began to see the benefits of our recently implemented competitive pricing strategy, which leverages our favorable cost structure. Additionally, our continuous focus on high quality products and customer service enabled us to continue to expand our market share and raise recognition of our products in both established and emerging solar markets during the quarter, which we expect will help drive growth in the quarters to come.”

“I am also very pleased to report that our gross margin continued to increase, reaching 20.1% in the third quarter from 18.3% in the second quarter of 2009 and 15.3% in the first quarter of 2009, underlining our ability to improve profitability by reducing both polysilicon and processing costs while achieving significant shipment volume growth,” Mr. Miao continued.