China-based solar products maker JinkoSolar Holding Co. Ltd. (JKS: Quote) said Wednesday it slipped to a loss for the first quarter, hurt by lower solar modules sales, weak selling prices, and increased operating expenses. The company said global economic uncertainty and product oversupply weighed on its results.
JinkoSolar's quarterly loss was wider than Street estimates, while sales came in ahead of expectations. JinkoSolar shares are currently losing about 9 percent in morning trade on the New York Stock Exchange.
JinkoSolar, which offers solar modules, solar cells, and crystalline silicon ingots, said its first quarter revenues slid over 50 percent compared to last year.
"Business conditions continued to be challenging during the first quarter as demand and module average selling prices remained weak due to economic uncertainty, especially in Europe, and a global oversupply of solar products," said CEO Kangping Chen said.
Results were further impacted by gross margin that contracted to 0.7 percent from 26.2 percent in the prior year. Operating margin was negative 28.9 percent, compared to positive 19.6 percent a year ago.
JinkoSolar reported first quarter net loss to common shares of 356.3 million yuan or $56.6 million, compared to net profit of 336.6 million yuan in the same quarter last year. On a per American Depositary Share, or ADS basis, loss for the quarter was 16.04 yuan or $2.55, compared to earnings of 13.78 yuan in the prior year.
Excluding items, adjusted loss for the quarter was 330.5 million yuan or $52.5 million, compared to earnings of 336.6 million yuan last year. Adjusted loss per per ADS was 14.88 yuan or $2.36, compared to earnings per ADS of 13.78 yuan a year earlier.
On average, four analysts polled by Thomson Reuters expected a loss of $1.12 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter totaled 1.06 billion yuan or $168 million, a decline from 2.14 billion yuan a year ago. Analysts expected revenues of $156.78 million for the quarter.
Moving forward to the second quarter, JinkoSolar said it expects solar module shipments to be in the range of 200 MW to 240 MW. By the end of 2012, it expects in-house annual silicon ingot and wafer, solar cell and solar module production capacity to be about 1,200 MW.
JKS is trading at $4.12, down $0.41 or 9.05%, on the NYSE.
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by RTT Staff Writer
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