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Yingli Green Energy Q4 Adj. Loss Wider Than Expected

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3/4/2013 10:31 AM ET

China-based solar products company Yingli Green Energy Holding Co. Ltd. (YGE: Quote) on Monday reported a loss for the fourth quarter that narrowed from last year on higher revenues.

However, adjusted loss per share was wider than analysts' estimates, while gross margin was negatively impacted by an inventory provision. The company's shares are down 5 percent in the regular trading session.

Looking ahead to fiscal 2013, the company projects an up to 43.7 percent increase in its PV module shipments from the preceding year.

Yingli Green noted that fourth-quarter shipment of PV modules grew 41 percent sequentially from the third quarter as demand in China continued to expand strongly. Demand in Europe remained stable as a result of continued demand from Germany and contributions from other European markets, while demand in the U.S. experienced a slight seasonal slowdown.

However, increased PV modules shipment was partly offset by the continuing industry-wide decline in the average selling price of PV modules in the quarter.

Yingli Green Energy's net loss for the fourth quarter was RMB 1.25 billion or $200.48 million, narrower than net loss of RMB 3.77 billion in the prior-year quarter. Loss per share and per American depositary share or ADS narrowed to RMB 7.98 or $1.28 from RMB 24.37 last year.

Results for the latest quarter include a non-cash inventory provision of RMB 121.01 million or $19.42 million and impairment of long-lived assets of RMB 200.50 million or $32.18 million.

The year-ago quarter's results included impairment of long-lived assets of RMB 2.28 billion, impairment of goodwill of RMB 273.38 million and provision for inventory purchase commitments of RMB 851.69 million.

Excluding items, adjusted net loss for the latest quarter was RMB 908.26 million or $145.79 million, compared to adjusted loss of RMB 126.50 million in the year-ago quarter.

Adjusted loss per share and per ADS was RMB 5.80 or $0.93, compared to adjusted loss per share or per ADS of RMB 0.82 last year. On average, 13 analysts polled by Thomson Reuters expected the company to report loss of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.

Total net revenues for the quarter grew 13 percent to RMB 2.90 billion or $465.95 million from RMB 2.57 billion in the same period last year. Analysts had a consensus revenue estimate for the quarter of $366.38 million.

Gross margin for the quarter was negative 8.5 percent, compared to gross margin of 3.0 percent in the prior-year period. Gross margin for the latest quarter was negatively impacted by the inventory provision of RMB 121.0 million.

For fiscal 2012, Yingli Green Energy's net loss was RMB 3.06 billion or $491.87 million, narrower than loss of RMB 3.21 billion in the prior year. Loss per ordinary share and per ADS narrowed to RMB 19.59 or $3.14 from loss of RMB 20.46 in the previous year.

Adjusted net loss was RMB 2.10 billion or $336.64 million, compared to adjusted net income of RMB 773.75 million a year ago. Adjusted loss per share and per ADS was RMB 13.41 or $2.15, compared to adjusted earnings per share and per ADS of RMB 4.81 last year.

Net revenues for the year declined 22 percent to RMB 11.39 billion or $1.83 billion from RMB 14.68 billion in the prior year.

Analysts expected the company to report loss of $2.21 per share for the year on revenues of $1.74 billion.

PV module shipment for the year grew by 43 percent year over year to 2,297.1 MW.

Looking ahead to fiscal 2013, Yingli Green forecasts its PV module shipment in a range of 3.2 GW to 3.3 GW, representing an increase of 39.4 percent to 43.7 percent compared to the preceding year.

In Monday's regular trading session, YGE is trading at $2.28, down $0.12 or 5.00 percent on a volume of 1.47 million shares.

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by RTT Staff Writer

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