Sinovel Sees First-Half Net Loss as Industry Investment Slows
Sinovel Wind Energy Group Co. (601558), China’s third-biggest maker of wind turbines, forecast a first- half net loss and reported a bigger-than-expected 2012 loss as wind-power investment slowed and industry competition increased.
Net loss was 583 million yuan in 2012, exceeding the company’s 490 million yuan loss forecast made in January and a profit of 598.8 million yuan in 2011, Sinovel said yesterday in a filing to the Shanghai stock exchange. Sales tumbled 58 percent to 4.02 billion yuan. First-quarter 2013 net loss was 248.5 million yuan against year-earlier net income of 28.6 million yuan, according to a separate filing.
“Drop in growth in emerging markets and developing countries and global economic slowdown affected investment in the wind power industry,” the Beijing-based company said in the full-year earnings statement.
Turbine makers have seen a drop in profits and some have posted losses amid slower industry growth. Installations of wind turbines in China fell 18 percent to 15.9 gigawatts last year from 2011, according to Bloomberg New Energy Finance data.
To counter a slump in sales, Urumqi-based Xinjiang Goldwind Science & Technology Co. and Denmark’s Vestas Wind Systems A/S (VWS) have said they are cutting costs.
Sinovel fell 1.6 percent to close at 5.01 yuan in Shanghai trading yesterday, before earnings were released.
To contact Bloomberg News staff for this story: Feifei Shen in Beijing at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org