North Coast Solar Stocks

November 12, 2009

Q-Cells posts Q3 loss on write-downs, restructuring

Filed under: ESLR — Tags: , , , , , — Jason @ 1:25 am

Thu Nov 12, 2009 1:25am EST

* Q3 net loss 248.2 mln eur vs 146 eur loss forecast

* Q3 sales 184.2 mln eur vs 191 mln eur forecast

* Sees positive impact from cost cuts from Q1 2010 onwards

FRANKFURT, Nov 12 (Reuters) – Q-Cells posted its third consecutive quarterly net loss on write-downs and restructuring costs, but said cost cuts would start having a positive impact on earnings from early 2010.

The company’s third-quarter net loss came in at 248.2 million euros ($371.9 million), below the forecast in a Reuters poll for a 146 million loss.

The company said on Thursday the net loss was due to reorganization costs related to job cuts, as well as impairment losses on inventories and investments.

Earlier this year Q-Cells said it would cut about a fifth of its workforce as it battles a price slump that has pushed the entire solar industry into crisis.

Although demand for solar equipment has somewhat stabilized at low levels in the second half of 2009, European and U.S solar companies are still grappling with price declines of up to 50 percent and stiff competition from Asian peers that manage to produce at lower prices.

Q-Cells’s peer Renewable Energy Corp (REC), too, said in late October that an impairment test of joint venture Sovello had led to an impairment charge, prompting REC to swing to a third-quarter operating loss of 665 million Norwegian crowns ($119 million).

Sovello — in which Q-Cells, REC and U.S. peer Evergreen Solar (ESLR) hold a third each — makes solar modules in Thalheim, Germany.

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