The Solar Roller Coaster

Written By Brianna Panzica

Posted August 19, 2011

As earnings reports for the second quarter trickle into the news, reports from solar companies have shown pain in the industry.

That was not the case, however, for China-based Yingli Green Energy (NYSE: YGE), maker of photovoltaic modules.

On Friday, Yingli reported second quarter earnings and proved that not every company has fallen behind in the solar industry.

Yingli had a revenue increase of about 27% to $681 million, way above analyst estimates of $616 million, reported Barron’s.

Net income rose to $58.1 million at 36 cents per share, also above Bloomberg estimates of 25 cents.

Module shipments rose 37% on a drop in prices.

The company estimates panel sales for 2011 to be up about 60% from last year’s sales, keeping estimates in the range of 1.7 GW and 1.75 GW, said Bloomberg.

According to the article, shares were up 7.5% on Friday morning to $6.05.

CEO Liansheng Miao discussed the healthy earnings:

“The increased shipments were primarily attributable to the improved market conditions, solid management execution and our diversified customer portfolio.”

Other companies, however, didn’t feel these improved market conditions.

JA Solar Holdings (NASDAQ: JASO) announced losses for the second quarter, blaming the high cost of materials and other factors.

For the second quarter of 2011, JA Solar posted a huge drop in gross margin, which was down to -2.7%, a large fall from last year’s level of 23.2%.

Revenue fell below Wall Street estimates of $418.6 million, reported at only $413 million, a 26.7% decline from the first quarter, according to Forbes.

Shipments were up 29% from a year ago, at 401 megawatts last quarter.  For the third quarter, JA Solar reported estimated shipments between 450 and 470.

But the company cut its full year outlook to 1.8GW from past estimates of 2.2GW.

CEO Peng Fang reasoned the losses, as Forbes reports:

“Our second quarter results reflect the market disruption that resulted from generally lower than anticipated installation levels in Germany and recent policy changes in Italy.”

At close, JA Solar was down 4.66% to $3.48.

That’s all for now,


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