Phoenix Solar Plummets on Finance Delays: Frankfurt Mover
Phoenix Solar slid as much as 30 percent, to 91.9 euro cents, at the 5:30 p.m. close of trading today. The Sulzemoos, Germany-based company said in a statement late yesterday it would postpone its 2011 report “most likely for a few weeks.”
German solar businesses are struggling with reduced state aid and competition from Chinese companies led by Suntech Power Holdings Co. that have expanded capacity, creating a glut in solar panels. The lower house of parliament in Germany, the second-biggest market for the industry in 2011, last week backed legislation to cut solar subsidies by as much as 29 percent starting this month.
Germany’s photovoltaic suppliers expect sales to drop as much as 22 percent on average this year, the VDMA machine- makers’ association said. Sixty-two percent of the companies surveyed said they plan to dismiss workers, VDMA said yesterday. Germany’s Q-Cells SE (QCE), once the largest solar-cell maker, filed for insolvency today.
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