ReneSola Slumps as Sales Miss Forecast and Shipments Slideby
Solar manufactuer reduced full-year revenue forecast
Company cites falling panel prices and slowing demand
ReneSola Ltd., a Chinese solar manufacturer, fell the most in a month after posting lower-than-expected revenue and reducing its sales forecast as panel shipments slipped.
The company’s American depositary receipts dropped 3.2 percent to $1.23 at the close in New York, the most since July 21. Each ADR is worth two ordinary shares.
Revenue in the second quarter was $250 million, down 6.8 percent from the same period a year earlier and missing its forecast of $280 million to $290 million, Jiashan, China, based ReneSola said in a statement Wednesday. Net income was $5.5 million, compared with a loss of $2.3 million, and panel shipments to customers fell 12 percent to 282 megawatts.
ReneSola trimmed its full-year sale forecast, citing lower prices and slowing demand. It now expects revenue between $900 million and $1.1 billion, compared to earlier guidance of $1 billion to $1.2 billion. Solar manufacturers industrywide are grappling with dwindling prices caused by an increasing supply of panels as demand slows in China, the world’s largest solar market.