Aleo Solar fell as much as 7 percent, the steepest intra- day drop since Nov. 14, after the company said today it will post a loss of 25 million euros ($33 million) to 30 million euros. The result is due mainly to payments in lieu for contracts with a supplier of solar cells in the period from 2005 to 2008, it said in a statement.
“A new agreement was reached for the entire period from 2012 to 2019 that takes prices conforming more to the market into consideration,” said Oldenburg-based Aleo Solar. A full earnings report will be released in March, it said.
Prices for products across the solar industry tumbled this year as Chinese companies increased production capacities and demand fell in Germany, the world’s biggest photovoltaic market. Solon SE last week became Germany’s first listed solar company to file for insolvency.
Polysilicon, the raw material for solar cells and panels, has plunged to $26.31 a kilogram from $475 three years ago, data compiled by Bloomberg shows.
Aleo shares fell 3.1 percent to 20.845 euros as of 1:58 p.m. local time, giving the company a market value of 272 million euros.
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