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SunPower Plunges After Solar Manufacturer Scraps Profit Goal

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SunPower Corp. slumped after the second-biggest U.S. solar manufacturer scrapped a target to at least break even this year, in part because of challenging conditions in its power-plant business.

The company cited the extension of a federal investment tax credit that has reduced the urgency to complete new projects by the end of the year, as well as aggressive pricing by industry newcomers. It will close a Philippine panel assembly facility and transfer the equipment to Mexico, cutting 15 percent of the overall workforce, or 1,200 employees, in the process. The shares slid 30 percent to $10.36 in after-hours trading on Tuesday in New York.